United States v. Reitmeyer

356 F.3d 1313, 2004 U.S. App. LEXIS 1700, 2004 WL 206319
CourtCourt of Appeals for the Tenth Circuit
DecidedFebruary 4, 2004
Docket02-5151
StatusPublished
Cited by30 cases

This text of 356 F.3d 1313 (United States v. Reitmeyer) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth 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. Reitmeyer, 356 F.3d 1313, 2004 U.S. App. LEXIS 1700, 2004 WL 206319 (10th Cir. 2004).

Opinion

BRORBY, Senior Circuit Judge.

The government appeals the district court’s dismissal of its indictment on statute of limitations grounds. The indictment charged certain companies and five company officers with “executing] and attempting] to execute a scheme to defraud the United States and to obtain money from the United States by false pretenses” in violation of the Major Fraud Act, 18 U.S.C. § 1031(a). Exercising jurisdiction under 18 U.S.C. § 3731 and 28 U.S.C. § 1291, we affirm. 1

I. Background

We recite the following factual allegations as they appear in the superseding indictment. The United States Army Corps of Engineers awarded North American Construction Corporation a fixed price contract to construct a groundwater treatment facility. Part of the construction required drilling wells, which North American subcontracted to CH & A Corporation. CH & A, in turn, subcontracted the *1316 “horizontal” well drilling portion of the contract to EVI Cherrington Environmental, Inc.

EVI drilled the horizontal wells but experienced cost overruns. In order to recover these additional costs, North American, with the aid of EVI and CH & A, submitted a certified claim for equitable adjustment to the chief contracting officer of the Corps on May 16, 1994. The companies sought almost $ 4 million, claiming the geological conditions encountered during drilling “were different than those represented by the government’s specification on which EVI had based their [sic] bid.” According to the companies’ claim, the Corps’ misrepresentations “caused the project to run longer than had been anticipated” and caused the companies to incur the “excess costs.” The companies met with the Corps on June 28, 1995, “to promote and support” their claim.

On February 15, 2002, over seven years after the companies initially filed their claim, the government filed an indictment in district court, and later filed a superseding indictment, charging the companies and certain of their officers (collectively “the Companies”) with “executing] and attempting] to execute a scheme to defraud the United States and to obtain money from the United States by means of false pretenses” in violation of the Major Fraud Act. See 18 U.S.C. § 1031(a). The indictment alleged the Companies submitted a “false Claim for Equitable Adjustment.” It asserted the Companies knew “there were no material differences between [the Corps’] representations in the bid package and the actual conditions encountered.” It also alleged the Companies intentionally withheld from their claim a report prepared by EVI concluding the Corps provided information that “would have correctly warned a prospective horizontal driller of the hard drilling conditions ultimately encountered.”

In response, the Companies filed motions to dismiss the indictment, arguing “the statute of limitations for the charged offense expired before the original Indictment was returned.” The relevant statute of limitations requires the government to commence a prosecution within seven years after an offense is committed. See 18 U.S.C. § 1031(f). Since the government returned the indictment more than seven years after the Companies filed the claim for equitable adjustment, the Companies argued the “action was commenced outside the limitations period, and therefore, must be dismissed.”

The district court agreed with the Companies’ argument and concluded the statute of limitations began running when the Companies filed their claim for equitable adjustment on May 16, 1994. The district court therefore concluded the government commenced its prosecution outside of the limitations period by returning the indictment roughly nine months after the limitations period expired. (Apt-App. at 139.) As a result of these conclusions, the district court granted the Companies’ motions and dismissed the indictment. The government appeals. 2

II. Discussion

On appeal, the government argues the district court incorrectly dismissed the indictment on statute of limitations grounds. We review this question de novo. United States v. Thompson, 287 F.3d 1244, 1248^9 (10th Cir.2002); Foutz v. United States, 72 F.3d 802, 804 (10th Cir.1995). We test the indictment “solely *1317 on the basis of the allegations made on its face, and such allegations are to be taken as true.” United States v. Hall, 20 F.3d 1084, 1087 (10th Cir.1994).

The statute of limitations under the Major Fraud Act states: “A prosecution of an offense under this section may be commenced any time not later than 7 years after the offense is committed, plus any additional time otherwise allowed by law.” 18 U.S.C. § 1031(f). “[Cjriminal statutes of limitation are to be liberally interpreted in favor of repose.” United States v. Marion, 404 U.S. 307, 323 n. 14, 92 S.Ct. 455, 30 L.Ed.2d 468 (1971). “Statutes of limitations normally begin to run when the crime is complete.” Pendergast v. United States, 317 U.S. 412, 418, 63 S.Ct. 268, 87 L.Ed. 368 (1943). “A crime is complete as soon as every element in the crime occurs.” United States v. Payne, 978 F.2d 1177, 1179 (10th Cir.1992) (quotation marks and citation omitted).

Under the principles discussed above, the statute of limitations began running in this case when the Companies first “committed” or completed an offense under the Major Fraud Act. In order to determine when the Companies committed an offense, however, we must first determine what constitutes an offense under the Act.

In relevant part, the Act prescribes fines and imprisonment under certain circumstances for “[wjhoever knowingly executes, or attempts to execute, any scheme or artifice with the intent — -(1) to defraud the United States; or (2) to obtain money or property by means of false or fraudulent pretenses, representations, or promises.” 18 U.S.C. § 1031(a). 3 Under the plain language of the Act, an offense is each knowing “execution]” or “attempted] execution]” of a scheme or artifice to defraud or obtain money by false pretenses. Id. Each act in furtherance of a scheme does not constitute a separate offense, see United States v. Sain,

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Bluebook (online)
356 F.3d 1313, 2004 U.S. App. LEXIS 1700, 2004 WL 206319, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-reitmeyer-ca10-2004.