United States v. McGlashan

78 F.4th 1
Court of Appeals for the First Circuit·Decided August 14, 2023·No. 21-1421·Published·Cited by 1 cases

Opinion

United States Court of Appeals For the First Circuit

No. 21-1421 UNITED STATES OF AMERICA, Appellee,

v.

WILLIAM McGLASHAN, JR.,

Defendant, Appellant.

APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS

[Hon. Nathaniel M. Gorton, U.S. District Judge]

Before

Gelpí, Howard, and Thompson, Circuit Judges.

Carter G. Phillips, with whom Jack W. Pirozzolo, Daniel J.

Feith, John L. Gibbons, Sidley Austin LLP, John C. Hueston, and Hueston Hennigan LLP were on brief, for appellant.

Alexia R. De Vincentis, Assistant United States Attorney, with whom Nathaniel R. Mendell, Acting United States Attorney, was on brief, for appellee.

August 14, 2023

HOWARD, Circuit Judge. In this appeal involving the scope of the federal wire fraud statute, 18 U.S.C. § 1343, defendant-appellant William McGlashan, Jr., argues in part that the indictment against him should have been dismissed for aiming at a property interest that was not the object of his fraud. We, however, conclude that the relevant property alleged in the indictment was indeed an object of his fraud, and McGlashan's other arguments either are superfluous to our decision or have been waived. We therefore affirm the judgment of the district court.

I.

We briefly summarize the factual background and procedural posture of the case, as relevant to McGlashan's appeal. "Ordinarily, because this appeal follows a guilty plea, we would derive the facts from the plea agreement, the change-of-plea colloquy, the unchallenged portions of the presentence investigation report, and the sentencing hearing transcript." United States v. Parigian, 824 F.3d 5, 8 (1st Cir. 2016); see also United States v. Díaz-Rivera, 957 F.3d 20, 22 (1st Cir. 2020). However, "because [McGlashan's] appeal trains solely on the legal adequacy of the challenged superseding indictment, we focus our review within th[at] indictment's four corners." Parigian, 824 F.3d at 8.

A.

Along with fourteen other parents, McGlashan was named as a defendant in an indictment that resulted from "Operation Varsity Blues" (the "Operation"), an investigation into alleged fraudulent schemes designed to secure the defendants' children's admission to elite universities throughout the United States. As is most relevant to this appeal, McGlashan's involvement in the scheme charged in this case boils down to paying $50,000 to have an ACT proctor change his son's test answers in order to increase his son's ACT score.1 The ACT exam is a "standardized test that is widely used as part of the college admissions process in the United States," and is run by ACT, Inc. ("ACT"), an Iowa-based nonprofit organization. As noted in the indictment, "[m]ost selective colleges and universities in the United States require prospective students to submit standardized test scores . . . as part of their application packages," and these "scores are a material part of the admissions process." The ACT exam is administered by proctors who the indictment alleges "are agents of ACT[, Inc.][,] . . . [who] owe a duty of honest services to th[at]

1The indictment also alleges that McGlashan participated in a scheme to falsify his son's athletic credentials in an attempt to have him admitted to the University of Southern California ("USC") as a "purported football recruit." However, this scheme is not at issue in the instant appeal because McGlashan only pleaded guilty to the ACT-related fraud.

organization[]." Before administering the exam, the proctors "must typically certify" that they will abide by the ACT Administration Manual and "ensure that 'the test materials are kept secure and confidential, used [by each] examinee only, and returned to ACT immediately after testing.'" The exam is "typically administered to large groups of students on specified dates and under strict time limits," but "students with certain learning or other disabilities may qualify for testing accommodations, . . . and, in such circumstances, may take the test alone, under the supervision of a test administrator retained by ACT, Inc. . . . ."

The indictment alleges that McGlashan agreed in fall 2017 to direct $50,000 to a nonprofit corporation founded by William "Rick" Singer -- the principal organizer of the schemes implicated in the Operation -- as a "purported donation" in exchange for Singer arranging for a test proctor who would correct his son's exam answers. Singer instructed McGlashan to send a "Request for Arranged Testing" form to ACT, so that McGlashan's son would take the exam at a school in West Hollywood, California, rather than at his own high school. Having McGlashan's son take the ACT exam at the West Hollywood school was crucial to the plan, since it is alleged that Singer "bribed" Igor Dvorskiy -- the director of the school and "a compensated standardized test administrator for ACT, Inc." -- to allow a proctor to correct

McGlashan's son's test answers. Singer did so by "caus[ing]" the same nonprofit to which McGlashan had directed the $50,000 to pay both Dvorskiy and the proctor for their role in "facilitating [the] cheating."

All went to plan, at least initially. McGlashan's son took the ACT exam at the West Hollywood school on December 9, 2017, and the test proctor duly corrected his answers thereafter. Dvorskiy sent the exam materials to ACT's Iowa headquarters several days later via Federal Express. Singer then paid Dvorskiy $40,000 and the proctor $35,000 through the above-mentioned nonprofit later that month for their respective services "for McGlashan's son and other students." After his son's ACT score was released in early January, McGlashan texted Singer that "[y]ou have a very relieved and motivated young man! Very grateful." The score was ultimately sent to several colleges -- including Northeastern University, located in Massachusetts -- on October 24, 2018.

B.

On January 14, 2020, a grand jury sitting in the District of Massachusetts charged McGlashan in the Fourth Superseding Indictment -- the operative indictment in this appeal -- with (1) conspiracy to commit mail and wire fraud, in violation of 18 U.S.C. § 1349 (Count One); (2) conspiracy to commit federal programs bribery prohibited by 18 U.S.C. § 666(a)(2), in violation of 18 U.S.C. § 371 (Count Two); (3) money laundering conspiracy, in

violation of 18 U.S.C. § 1956(h) (Count Three); and (4) wire fraud and honest services wire fraud, and aiding and abetting the same, in violation of 18 U.S.C. §§ 1343, 1346, and 2 (Count Seven). Count Seven specifically alleges -- as is most relevant to this appeal -- that McGlashan:

having devised and intending to devise a scheme and artifice to defraud and for obtaining money and property, to wit, ACT . . . standardized tests and test scores, . . . by means of materially false and fraudulent pretenses, representations, and promises, and to defraud and deprive [] ACT, Inc., . . . of [its] right to the honest and faithful services of [its] test administrators . . . through bribes and kickbacks, did transmit and cause to be transmitted, by means of wire communications in interstate and foreign commerce, writings, signs, signals, pictures and sounds for the purpose of executing the scheme to defraud[:]

[the "ACT scores sent to Northeastern University" on or around October 24, 2018].

Thus, in Count Seven, the indictment alleges that McGlashan participated in a fraudulent scheme to obtain tests and test scores from ACT, and that, through bribes and kickbacks, he sought to deprive ACT of the "honest services" of its test administrators.

In moving to dismiss Count Seven, McGlashan advanced three arguments related to the allegations of fraud against ACT: (1) ACT test scores cannot constitute "money or property" under the wire fraud statute, because they do not constitute items that have "long been recognized as property," Carpenter v. United

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