United States v. Blixt

CourtCourt of Appeals for the Ninth Circuit
DecidedNovember 25, 2008
Docket07-30198
StatusPublished

This text of United States v. Blixt (United States v. Blixt) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Blixt, (9th Cir. 2008).

Opinion

FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

UNITED STATES OF AMERICA,  No. 07-30198 Plaintiff-Appellee, D.C. No. v.  CR-06-00025- MARGARET BLIXT, CCL-1 Defendant-Appellant.  OPINION

Appeal from the United States District Court for the District of Montana Charles C. Lovell, District Judge, Presiding

Argued and Submitted May 6, 2008—Seattle, Washington

Filed November 26, 2008

Before: Susan P. Graber and Johnnie B. Rawlinson, Circuit Judges, and Otis D. Wright II* District Judge.

Opinion by Judge Rawlinson

*The Honorable Otis D. Wright II, United States District Judge for the Central District of California, sitting by designation.

15807 15810 UNITED STATES v. BLIXT

COUNSEL

Palmer A. Hoovestal, Hoovestal Law Firm, Helena, Montana, for defendant-appellant Margaret Blixt.

Michael S. Lahr, Assistant United States Attorney, Helena, Montana, for plaintiff-appellee United States of America.

OPINION

RAWLINSON, Circuit Judge:

Margaret Blixt (Blixt) appeals from her jury conviction and sentence for mail fraud under 18 U.S.C. § 1341 and aggra- vated identity theft under 18 U.S.C. § 1028A. The district court denied Blixt’s motion to dismiss the aggravated identity theft charge and subsequent motion for acquittal on the same count. The court determined as a matter of law that contrary to Blixt’s assertion, a signature is a name for the purpose of defining a “means of identification” as used in § 1028A. The district court also denied Blixt’s motion for acquittal on the mail fraud charge, rejecting her interpretation of what is required to prove the materiality element of the offense.

Blixt appeals these rulings, the inclusion and exclusion of various jury instructions, and the court’s decision not to UNITED STATES v. BLIXT 15811 depart downward for diminished mental capacity pursuant to U.S.S.G § 5K2.13. We have jurisdiction under 28 U.S.C. § 1291 and we affirm.

I.

BACKGROUND

Blixt began working for Crawford and Company (Craw- ford) in 1998 in its Helena, Montana office. Crawford is a large international corporation, providing claim adjusting, vocational rehabilitation, and risk management services to its insurance company clients. At the time of the events leading to Blixt’s conviction, Timothy Fitzpatrick (Fitzpatrick) was the branch manager.

When checks arrived from insurance companies, they were forwarded from the Helena office, along with associated invoices and accounting information, to Crawford’s headquar- ters in Atlanta via commercial carrier. From 2003 to 2004, it was primarily Blixt’s responsibility to forward the packages.

The Helena branch maintained a checking account at Val- ley Bank, with Fitzpatrick having signature authority. Begin- ning in March, 2003, Blixt began to deposit client payments into the Valley Bank account. Blixt wrote approximately 352 checks from this account for her own personal gain, forging Fitzpatrick’s signature on each check. The total amount of the checks was in excess of $150,000.00.

In January, 2004, Blixt began sending false accounting information to Crawford’s Atlanta office to cover her actions. Crawford accounting personnel relied on the invoice numbers written by Blixt to determine where to allocate the funds. Using this system, Blixt was able to orchestrate allocation of current funds to old accounts from which Blixt had stolen funds. 15812 UNITED STATES v. BLIXT In August, 2004, Fitzpatrick was alerted by Valley Bank to “some unusual signatures on checks that were coming into the account.” Ultimately, Blixt admitted her actions to Fitzpat- rick.

In October or November, 2004, Detective Russell Whit- comb (Whitcomb) of the Helena Police Department inter- viewed Blixt. Blixt admitted that she forged Fitzpatrick’s signature, stole the money, and used it for her own benefit.

FBI Special Agent Kevin Damuth (Damuth) also met with Blixt. Blixt told Damuth that she deposited checks received from customers into the Valley Bank account and withdrew the money by writing checks to herself, signing Fitzpatrick’s name. She admitted that neither Fitzpatrick nor anybody else from Crawford had given her authorization to sign Fitzpat- rick’s name.

On October 4, 2006, Blixt was indicted on two counts. Count 1 charged Blixt with a violation of 18 U.S.C. § 1341 (mail fraud). Count 2 charged her with a violation of 18 U.S.C. § 1028A(a)(1) (aggravated identity theft).

Blixt moved to dismiss Count 2, arguing that a signature was not a name, and therefore not a means of identification under 18 U.S.C. § 1028A. The district court denied Blixt’s motion, holding that a forged signature was a means of identi- fication as contemplated under that statute.

Prior to trial, the government filed a motion in limine to prevent Blixt from arguing and presenting evidence at trial that a forged signature is not a means of identification. Upon completion of the government’s case, the district court denied the motion. The court also denied Blixt’s motion for acquittal pursuant to Rule 29 of the Rules of Criminal Procedure, made at the close of the government’s case.

During the settling of jury instructions, Blixt’s counsel again raised the defense’s theory that a forged signature is not UNITED STATES v. BLIXT 15813 a name. The district court indicated that it would instruct the jury otherwise. When Blixt’s counsel stated that he intended to present the theory nevertheless, the court responded that it would listen to the argument and if the court thought the argu- ment was “contrary to the instruction, the jury [would] be instructed further.”

During closing argument, Blixt’s counsel argued that a forged signature is not a means of identification but rather “a series of swirls and lines. It doesn’t say anything. And that’s what a forged signature is. It’s not the use of a name.” Defense counsel also made the following statements:

• For there to be false statements for the purpose of engaging in mail fraud, Blixt’s statements “had to have influenced somebody to part with money.”

• The judge was appointed by the President and affirmed by the Senate.

• The jury was brought from the community “to form[ ] a buffer, the barrier between the awesome power of the government and the people.”

• The community “can solve our own problems. We don’t need the federal government to inter- cede in local matters.”

• “This is serious, serious business. This is the United States government. This is the same gov- ernment that is at war in Iraq.”

• These are “state offenses” that “should have been charged at the state level because the government cannot prove these elements . . .”

• This case “should have been in state court.” 15814 UNITED STATES v. BLIXT Following these statements from defense counsel, the dis- trict court instructed the jury that “a signature is a name within the meaning of the phrase ‘Means of Identification.’ ” With respect to Blixt’s counsel’s statements regarding the materiality element of the mail fraud charge, the court also stated that “Mr. Hoovestal has argued that it is necessary here that a person parted with money. Now, this is incorrect under the law . . .”

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