United States v. Sethi

Court of Appeals for the Fifth Circuit·Decided August 18, 2026·No. 25-40567·Unpublished

Opinion

United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit

____________ FILED August 18, 2026

No. 25-40567 Lyle W. Cayce ____________ Clerk

United States of America,

Plaintiff—Appellee,

versus

Sameer Praveen Sethi,

Defendant—Appellant.

Appeal from the United States District Court for the Eastern District of Texas USDC No. 4:20-CR-77-1

Before Willet, Engelhardt, and Douglas, Circuit Judges. Per Curiam: * Following an 11-day trial, a jury found Defendant-Appellant Sameer Sethi guilty of seven counts of wire fraud, in violation of 18 U.S.C. § 1343, and a single count of money laundering, in violation of 18 U.S.C. § 1957. The district court sentenced Sethi to 151 months in prison. On appeal, Sethi challenges (1) the district court’s application of the hearsay rule; (2) the absence of a limiting jury instruction regarding the admitted out-of-court

*

This opinion is not designated for publication. See 5th Cir. R. 47.5.

No. 25-40567

statements; (3) the district court’s denial of Sethi’s motion seeking a trial continuance; and (4) the court’s jury instruction regarding the seven counts of wire fraud with which he was charged. We AFFIRM.

I.

In 2003, Sethi founded what would become Sethi Petroleum (SP), a Texas company with its principal office in Plano. SP purported to be an “oil exploration company.” Sethi was SP’s president and had signing authority over its bank accounts. In May 2015, SP ceased operations.

In 2016, IRS Special Agent Ronald Leazer commenced an investigation and, in March 2020, interviewed Sethi at Sethi’s home. Two days after that interview, a grand jury charged Sethi with eight counts of wire fraud, six counts of mail fraud, and one count of money laundering. In June 2021, a superseding indictment omitted the mail fraud charges but retained the wire fraud and money laundering offenses.

The superseding indictment alleged that Sethi had defrauded investors by creating joint ventures for “investing” in oil and gas interests; making false statements regarding those ventures in investment materials (executive summaries and private placement memoranda) that induced investors to think that their money actually would be invested in those ventures; and spending most of the investors’ money on Sethi’s (personal) and SP’s (general business) expenses rather than oil and gas interests. Sethi pleaded not guilty.

At trial, the government called 20 witnesses and introduced emails, investment materials, bank records, and other documents, along with audio recordings and a video recording. Sethi testified in his own defense, called four witnesses, and introduced an audio recording of his own. He denied any intent to defraud investors, and blamed Michael Davis, who had acted as SP’s chief financial officer and general counsel in 2014 and 2015, for a large

No. 25-40567

percentage of investor money being used to fund SP’s operating expenses instead of oil ventures. Apparently unpersuaded by Sethi’s testimony and other evidence, the jury found him guilty of all counts that were submitted to it—seven counts of wire fraud (Counts 1–5 and 7–8) and one count of money laundering (Count 15). 1 II.

Sethi challenges the district court’s admission of certain out-of-court statements, arguing that they are inadmissible hearsay, as well as the court’s failure to instruct the jury regarding the limited purpose for which those statements were admitted. Sethi also contends that the district court abused its discretion in denying his motion seeking a ninth continuance of the trial, and in instructing the jury regarding wire fraud. All four challenges fail.

A. Hearsay The Federal Rules of Evidence define “hearsay” as “a statement that:

(1) the declarant does not make while testifying at the current trial or hearing; and (2) a party offers in evidence to prove the truth of the matter asserted in the statement.” See Fed. R. Evid. 801(c); United States v. Moore, 748 F.2d 246, 248 (5th Cir. 1984) (defining hearsay as “a statement, other than one made by the declarant while testifying at the trial or hearing, offered in evidence to prove the truth of the matter asserted” (citing Fed. R. Evid. 801(c))). 2 Hearsay is not admissible unless a federal statute, the Federal

1 Due to the death of a witness, Count 6 was dismissed mid-trial for lack of sufficient supporting evidence.

2 But, even if offered to prove the truth of the matter asserted, an out-of-court statement by a party that is offered against that party “is not hearsay.” See Fed. R. Evid. 801(d)(2)(A). According to the 1972 Advisory Committee Notes to Rule 801, “[a]dmissions by a party-opponent are excluded from the category of hearsay on the theory that their admissibility in evidence is the result of the adversary system rather than the

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Rules of Evidence, or “other rules prescribed by the Supreme Court” provide otherwise. See Fed. R. Evid. 802; see also Fed. R. Evid. 803– 804 (identifying various types of statements that are not excluded by the rule against hearsay).

As defined in Rule 801, an out-of-court statement is hearsay only if “offered for proof of its contents.” Moore, 748 F.2d at 248. If evidence of an out-of-court statement is offered as “proof that certain statements were made, not that the statements were true[,]” it is not hearsay. Id.; Anderson v. United States, 417 U.S. 211, 219–20 (1974) (“Out-of-court statements constitute hearsay only when offered in evidence to prove the truth of the matter asserted . . . therein.” (footnotes omitted)); United States v. Cantu, 876 F.2d 1134, 1137 (5th Cir. 1989) (“If the significance of a statement lies solely in the fact that it was made, rather than in the veracity of the out-ofcourt declarant’s assertion, the statement is not hearsay because it is not offered to prove the truth of the matter asserted.” (quotation marks and citations omitted)). Accordingly, a statement “offered to prove that the party had knowledge or notice is not hearsay because the value of the statement does not rest upon the declarant’s credibility.” In re Morrison, 555 F.3d 473, 483 (5th Cir. 2009) (quotation omitted).

Likewise, “[w]hen statements are introduced to prove the falsity of the matter asserted, they are not inadmissible as hearsay.” Moore, 748 F.2d at 248 (emphasis in original) (quoting United States v. Adkins, 741 F.2d 744, 746 (5th Cir. 1984); see also Anderson, 417 U.S. at 220 (“[T]he point of . . . introducing those statements was simply to prove that [they] were made so as to establish a foundation for later showing, through other admissible

conditions of the hearsay rule.” See Fed. R. Evid. 801(d)(2)(A), advisory committee’s note 2 to 1972 proposed rules (citation modified ).

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evidence, that they were false.” (footnotes omitted)); Adkins, 741 F.2d at 746 (“The Dun & Bradstreet report was not offered . . . to prove the truth of the matter asserted, that [the] facilities and employees were as reported. Rather, the government offered the report to establish a foundation for later showing, through other admissible evidence, that it was false[.] Thus, the . . . report [was] not hearsay and was properly admitted.” (citations omitted)).

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