United States v. Jefferson

652 F.3d 927, 2011 U.S. App. LEXIS 18023, 2011 WL 3802803
CourtCourt of Appeals for the Eighth Circuit
DecidedAugust 30, 2011
Docket10-1065
StatusPublished
Cited by13 cases

This text of 652 F.3d 927 (United States v. Jefferson) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth 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. Jefferson, 652 F.3d 927, 2011 U.S. App. LEXIS 18023, 2011 WL 3802803 (8th Cir. 2011).

Opinion

BENTON, Circuit Judge.

A jury convicted John E. Jefferson of wire fraud, money laundering, and failure to file tax returns. The district court 2 sentenced him to 90 months’ imprisonment, and ordered $8,833,097 in restitution. Having jurisdiction under 28 U.S.C. § 1291, this court affirms.

In 2001, Jefferson asked Edward D. Orenstein — whom he had previously done business with — to help raise capital for a venture in Liberia. Jefferson told Orenstein that the Liberian government needed help renegotiating resource contracts with corporations. Jefferson said he knew many high-ranking Liberian officials as well as influential figures, who would grant him access and influence in the renegotiation. Jefferson claimed to need investors for consulting fees to those who would position him in the renegotiation. Armed with this information, Orenstein sought investors, explaining the investment opportunity as Jefferson had explained it to him. Orenstein solicited money on his own; Jefferson did not want to meet with investors. As money was collected, Orenstein either handed it over to Jefferson in person or wired it to bank accounts. Over nearly seven years, Orenstein raised $8,833,097. He used about $400,000 to $500,000 for business expenses over the seven years; the rest he gave to Jefferson. Jefferson used the money to live on, renting multiple homes and purchasing luxury cars and items. No money was ever invested in the Liberia project.

Jefferson appeals, arguing that the evidence was insufficient for his wire-fraud and money-laundering convictions and that his sentence and the restitution were unreasonable.

This court reviews de novo the sufficiency of the evidence to support a jury verdict. United States v. Campa-Fabela, 210 F.3d 837, 839 (8th Cir.2000). This court views the facts in the light most favorable to the verdict, accepting all reasonable inferences. United States v. Stroh, 176 F.3d 439, 440 (8th Cir.1999). “The jury’s verdict must be upheld if there is an interpretation of the evidence that would allow a reasonable-minded jury to conclude guilt beyond a reasonable doubt.” United States v. Erdman, 953 F.2d 387, 389 (8th Cir.1992).

*930 To establish wire fraud, the government must prove that the defendant “[1] voluntarily [participated in] a scheme to defraud another out of money, [2] that he did so with the intent to defraud, [3] that it was reasonably foreseeable interstate wire communications would be used, and [4] that interstate wire communications were used.” United States v. Anderson, 570 F.3d 1025, 1030 (8th Cir.2009) (alterations in original).

Jefferson argues that his wire-fraud and money-laundering convictions are not supported by the evidence. He contends that Orenstein’s testimony linking him to the Liberia project is uncorroborated and not credible. Witness testimony, however, does not need to be corroborated. See United States v. Carpenter, 422 F.3d 738, 746 (8th Cir.2005). And a jury’s credibility determinations are “virtually unreviewable on appeal.” United States v. Frausto, 616 F.3d 767, 772 (8th Cir.2010). At trial, Orenstein testified that the materially false statements he made to investors about the Liberia project originated with Jefferson. He testified he spoke with Jefferson daily — who would update him on the project’s progress. Orenstein then gave the money he collected to Jefferson either in person or through wire transfers. The jury could credit this testimony in reaching the verdict. See Carpenter, 422 F.3d at 746 (8th Cir.2005) (“Because [defendant] bases his challenge to the sufficiency of the evidence solely on witness credibility, he cannot prevail.”).

Contrary to Jefferson’s premise, there was additional evidence that he provided Orenstein with the false information about Liberia. In 2005, Jefferson admitted to agents of the Internal Revenue Service’s Criminal Division (questioning him about taxes) that he originated the Liberia project. Consistent with Orenstein’s testimony, Jefferson explained that he provided Orenstein with the information about the project, which Orenstein relayed to potential investors. Another witness also testified that when he crossed paths with Jefferson outside Orenstein’s office one afternoon, Jefferson stated that the investment was almost complete, and investors would likely be paid in 30 days. In that conversation, Jefferson noted his relationship with prominent figures, including former Secretary of State Henry Kissinger.

Circumstantial evidence also indicated that Jefferson knew the investment was a fraud. See Erdman, 953 F.2d at 389 (“A conviction may be based on circumstantial as well as direct evidence. The evidence need not exclude every reasonable hypothesis except guilt.”). A comparison of Orenstein’s and Jefferson’s spending suggests that Orenstein believed the investment to be legitimate, while Jefferson knew it was a scam. Over nearly seven years, Orenstein lived modestly, using $400,000 to $500,000 of the raised capital for operating expenses, office rent and other business incidentals, suggesting a man awaiting a big payout. Jefferson, on the other hand, used the funds Orenstein transferred (over $8 million dollars) for personal expenses such as cars and houses, suggesting a man exploiting a scheme. Based on the totality of the evidence, the jury reasonably returned a guilty verdict. See United States v. Stenger, 605 F.3d 492, 504 (8th Cir.2010) (“The jurors were free to reach a logical conclusion based on the totality of the evidence presented at ... trial.”).

Jefferson next argues that the district court committed procedural error by enhancing his offense level based on an inaccurate loss calculation. This court reviews the district court’s loss finding for clear error. United States v. Erhart, 415 F.3d 965, 970 (8th Cir.2005). Because “the *931 damage wrought by fraud is sometimes difficult to calculate.... the district court need only make a reasonable estimate of loss rather than a precise determination.” United States v. Agboola, 417 F.3d 860, 870 (8th Cir.2005). The district court assessed the loss by the fraud victims as between $2.5 million and $7 million. At some time before Orenstein began soliciting investors for the Liberia project, he had been raising money for a project to build high-speed ferry boats in Russia.

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Bluebook (online)
652 F.3d 927, 2011 U.S. App. LEXIS 18023, 2011 WL 3802803, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-jefferson-ca8-2011.