United States v. Dirosa

761 F.3d 144, 2014 WL 3818686, 2014 U.S. App. LEXIS 14951
CourtCourt of Appeals for the First Circuit
DecidedAugust 4, 2014
Docket13-1643
StatusPublished
Cited by17 cases

This text of 761 F.3d 144 (United States v. Dirosa) is published on Counsel Stack Legal Research, covering Court of Appeals for the First 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. Dirosa, 761 F.3d 144, 2014 WL 3818686, 2014 U.S. App. LEXIS 14951 (1st Cir. 2014).

Opinion

THOMPSON, Circuit Judge.

Peter DiRosa was sentenced to 57 months in prison after a jury found him guilty of one count of wire fraud. The charge resulted from a transaction in which DiRosa and an associate, Thomas Renison, convinced then-75-year-old Frank Jablonski to invest $600,000 in an elaborate scheme surrounding a real estate development project in Polgardi, Hungary. On appeal, DiRosa challenges the denial of his suffieiency-of-the-evidence-based motion for acquittal, the admission of certain testimony, and his sentence. After careful consideration, we wholly affirm.

BACKGROUND

A. The Dynamic Duo

Ironically DiRosa and Renison met some eleven years ago while both were involved in charitable work for the same parish. Renison was a 25-year veteran in the insurance and finance businesses. DiRosa, according to his introduction, was a project developer in eastern Europe. DiRosa said his current venture involved building a resort in Polgardi, Hungary showcasing the country’s natural hot springs, a popular tourist attraction. The resort, he boasted, would also have several golf courses, and eventually a casino, for guests to enjoy.

DiRosa told Renison that he had already met with several high-ranking Hungarian officials who were on board with the project, as well as an architect and advertising executive from New York. He also represented that the project was very close to being funded and the land very close to being secured. DiRosa asked Renison to be a “type of [ ] partner in the deal” and be primarily responsible for overseeing the administration of benefits for the resort’s estimated two to three thousand potential employees. Additionally, Renison, a self-proclaimed “avid golfer,” would be given the opportunity to work with a golf majors champion to create and manage the re *148 sort’s courses, notwithstanding his lack of experience in golf course management.

DiRosa and Renison traveled to Hungary on a number of occasions — mostly on Renison’s dime — to check in on the project’s progress. While on these trips, the pair often met with, among others, the attorney for the project, Ildiko Sardy, and Sardy’s husband, Janos Danyi, who was the project’s accountant.

B. Jablonski’s “Investment”

When all the shenanigans with Jablonski began, he was a 75-year-old retiree who had been living with his wife, Marguerite, in Kennebunk, Maine. Prior to retiring, Jablonski made a living as a management consultant. After his employer discontinued its management of Jablonski’s 401(k) account, Jablonski found himself in need of financial planning services. At that time, Jablonski had been working with an insurance broker to obtain medical insurance for himself and his wife. The broker referred him to Renison, who Jablonski ultimately hired to invest his retirement funds into a variable annuity.

In May 2008, DiRosa told Renison that his project needed an investor — one who was willing to provide $600,000 to be placed in an escrow account and used as collateral to purchase farmland in Hungary that would be converted into commercial property. Renison immediately thought of Jablonski as the ideal candidate for the investment.

Renison contacted Jablonski about the investment opportunity and, over the course of several conversations (both on the telephone and at Jablonski’s home), he promoted the duo’s idea. While Renison did most of the talking during the “[t]wo or three” meetings that were conducted over the course of a week or two, DiRosa was always present. Jablonski was told that he would receive a $400,000 profit for his investment, would be reimbursed for the $52,000 surrender charge he would incur for withdrawing the money prematurely from his retirement account, would earn interest on the money while it sat in the escrow account, and would receive $6,500 per month to replace the income he would lose from taking the money out of the annuity. In addition, he was assured that his money would never leave the escrow account. That entire process, Reni-son declared, including recoupment of all profits and fees, would take six months at the most, and in actuality he expected it would wrap up much sooner. As Renison delivered his spiel, DiRosa never corrected, clarified, or contradicted any of the assertions Renison made.

Jablonski was also given written materials compiled by DiRosa that purported to describe the project in more detail, including a marketing brochure about the resort and an accounting report. The brochure contained information about the resort’s key management and its advisory board, boasting a membership cohort of prominent public figures such as a U.S. Congressman and a professional golfer (the same one with whom Renison was supposed to manage the resort’s golf course). The accounting report represented that the project was slated to make a $29 million dollar profit in its first year. What Jablonski was not told, however, was that this advisory board was not only nonoperational, it was nonexistent, and that the $400,000 profit he was promised was contingent on the project being fully funded, which, of course, at the time it was not.

Convinced he would be foolish to pass on such a promising investment, on May 27, 2008, Jablonski signed a loan document drafted by DiRosa reflecting the terms of their agreement. Because of his prior relationship with Jablonski, Renison, rather than DiRosa, signed the agreement. The next day, the pair accompanied Jablonski *149 to a local bank to facilitate the wiring of the funds overseas. DiRosa had a heavy hand in this process, assisting the bank tellers and Jablonski throughout. Bank records indicate that on June 3, 2008, $600,000 was transferred from Jablonski’s account to an account in Hungary held in the name of Sardy & Associates Attorneys.

C. Have Funds, Will Travel

Following the June 3rd transfer, Jablon-ski’s $600,000 went on a whirlwind world tour. Between June and September 2008, the funds were transferred back and forth numerous times between several Hungarian accounts held by Sardy. Additionally, during that time and over the course of several transactions, approximately $100,000 in cash was withdrawn from one of Sardy’s accounts. In September 2008, approximately $518,000 was transferred via two separate transactions from Sardy’s account into an Austrian bank account in the name of Danyi (remember, he is Sar-dy’s husband). Eventually, $225,000 of that money came back stateside and was transferred from Danyi’s account to an account held in the name of DiRosa’s wife, Eileen.

A few months later, Renison and DiRosa met up and Renison confided that things for him were “kind of financially tight.” DiRosa indicated that he could loan Reni-son some money, and shortly thereafter, Renison had two checks in hand, one in the amount of $100,000 and the other in the amount of $5,000. Both checks were written out of Eileen DiRosa’s account, which the $225,000 had gone into earlier. When Renison asked DiRosa where he got the money from, DiRosa said a friend named “Ernie” had lent it to him. 1

Unfortunately for Jablonski, the funds traveled everywhere except back to him.

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Cite This Page — Counsel Stack

Bluebook (online)
761 F.3d 144, 2014 WL 3818686, 2014 U.S. App. LEXIS 14951, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-dirosa-ca1-2014.