United States v. Jaradat

512 F. App'x 612
Court of Appeals for the Seventh Circuit·Decided March 18, 2013·No. No. 12-1097·Published

Opinion

ORDER

Hakim Jaradat, a self-employed tax accountant, was arrested after securing false employment verification for a straw buyer’s mortgage application. After a 6-day trial, a jury found Jaradat guilty of wire and mail fraud. See 18 U.S.C. §§ 1341, 1343. The district court calculated guidelines ranges of 12 to 18 months’ imprisonment and 2 to 5 years’ supervised release based on a criminal history category of I and a total offense level of 13 (a base offense level of 7 plus 4 levels for an intended loss exceeding $10,000 and 2 levels for use of a special skill). See U.S.S.G. §§ 2B1.1(a)(1), (b)(1)(13), 3B1.3. The court sentenced him to one day in prison and three years of supervised release with a special condition that 12 months be served in home detention. Jaradat has filed a notice of appeal, but appointed counsel asserts that the appeal is frivolous and seeks to withdraw under Anders v. California, 386 U.S. 738, 87 S.Ct. 1396, 18 L.Ed.2d 493 (1967). Jaradat opposes counsel’s motion. See Cm. R. 51(b). We confine our review to the potential issues identified in counsel’s facially adequate brief and Jaradat’s response. See United States v. Schuh, 289 F.3d 968, 973-74 (7th Cir.2002).

Jaradat was targeted in early 2008 as part of “Operation Madhouse,” an undercover investigation run by the Federal Bureau of Investigation to ferret out mortgage fraud. Before trial the government moved in limine to introduce evidence that Jaradat had prepared phony tax returns in both 2006 and 2008 as documentation for fraudulent mortgage applications. He fabricated the returns in 2008 just days after funds were dispersed on the fraudulent loan he facilitated with the false employment verification. Jaradat objected to use of the 2006 tax returns (though not the [614]*6142008 documents), but the district court ruled that both sets of fake returns could be offered to show intent and the absence of mistake because Jaradat had created them for similar mortgage-fraud schemes close in time to this one. See Fed.R.Evid. 404(b).

At trial the government called the informant who paid Jaradat for the false employment verification and introduced English-language translations of their recorded Arabic conversations. According to the informant, the two first met in 2006, shortly after the informant began working for the FBI as part of Operation Madhouse. At the informant’s request, Jaradat prepared tax returns to submit with a mortgage application, purportedly showing the informant’s income for the previous two tax years. The informant testified that Jaradat supplied the income figures for the documents, explained that type-written documents made approval easier, told him to provide the lender with copies (not originals), and said that he would be able to provide fake check stubs as verification. These documents were never used as part of a mortgage application, but in 2008 the informant approached Jaradat again and asked him to obtain a false employment verification for a straw buyer. Jaradat paid an owner of a construction company to say that the straw buyer, an undercover FBI agent, had worked as a construction supervisor for three years. The lender approved a mortgage for $171,000 after contacting the construction company and “verifying” the straw buyer’s work history. Jaradat’s co-defendant, a real estate agent, sent the mortgage and closing documents via FedEx to the lender, which then wired the money to the purported seller, another undercover agent. The FBI later returned the funds.

In his Anders submission, counsel first considers whether Jaradat could argue that the district court abused its discretion in allowing the jury to learn that he fabricated two tax returns for the informant in 2006. Counsel concludes that this contention would be frivolous, but Jaradat disagrees and proposes to argue that the evidence was irrelevant and unfairly prejudicial because of the two-year separation in time and asserted dissimilarity between fake tax returns and a fake employment verification. We agree with counsel. The district court reasoned that Jaradat’s dealings with the informant in 2006 showed his intent and lack of mistake in providing false information for mortgage applications. See Fed.R.Evid. 404(b). In both instances Jaradat provided false verification of the applicant’s income, making the actions sufficiently similar to show absence of mistake. See United States v. Wheeler, 540 F.3d 683, 691-92 (7th Cir.2008); United States v. Watts, 535 F.3d 650, 659-60 (7th Cir.2008); United States v. Montani, 204 F.3d 761, 768 (7th Cir.2000). And two years is sufficiently close in time to the charged conduct. See United States v. Harris, 587 F.3d 861, 865 (7th Cir.2009) (explaining that acts occurring within two years of crime were sufficiently close in time); United States v. Ross, 510 F.3d 702, 713 (7th Cir.2007) (explaining that similar acts occurring within five to six years of crime were sufficiently close in time). Moreover, the district court instructed the jury to consider this evidence only as to motive, plan, intent, and absence of mistake, thus curing any potential prejudice the evidence may have caused. See United States v. Vargas, 552 F.3d 550, 557 (7th Cir.2008); United States v. Moore, 531 F.3d 496, 500 (7th Cir.2008).

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United States v. Jaradat, 512 F. App'x 612 (7th Cir. 2013).

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