United States v. Wayne Stephens

421 F.3d 503, 2005 U.S. App. LEXIS 18581, 2005 WL 2064001
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 29, 2005
Docket03-2964
StatusPublished
Cited by97 cases

This text of 421 F.3d 503 (United States v. Wayne Stephens) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh 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. Wayne Stephens, 421 F.3d 503, 2005 U.S. App. LEXIS 18581, 2005 WL 2064001 (7th Cir. 2005).

Opinions

ILANA DIAMOND ROVNER, Circuit Judge.

Wayne Stephens was employed as a manager in a technical support unit for Accenture’s New York office when he repeatedly used an “add to pay” function on his time and expense reports to obtain a total of approximately $67,395 in unauthorized cash advances for personal use. That conduct resulted in his criminal conviction for wire fraud in violation of 18 U.S.C. § 1343.

In his position at Accenture, Stephens was required to use the computer program called Automatic Remote Time and Expense System (ARTES) to file a bi-weekly time and expense report (hereinafter “expense report”) that was used in calculating his paycheck. Through ARTES, employees would input information regarding expenses incurred, and Accenture would use that information to bill the client and to reimburse the employee in the paycheck. Employees could request reimbursement for business-related expenses by filling in the fields labeled “expenses without receipt,” “expenses with receipt,” and “business meals.” In addition, the form included a “add to pay/deduct from pay” line which allowed employees to add to or deduct from their paychecks. The “deduct from pay” line could be used for certain personal expenses, such as charges incurred by employees as a result of personal telephone calls or use of a concierge service that Accenture operated for its employees. The proper use of the “add to” function was at issue in the trial. Some testimony indicated that the “add to” function was to be used only for business-related expenses such as expenses related to international assignments or employee relocations. Stephens, on the other hand, argued that there was no policy related to the use of that function, and that it could be used for personal expenses. Prior to January 2000, Accenture’s written Policy 526 stated that “[clash advances are not provided via time reports nor through petty cash in the offices.” In January 2000, however, that policy was replaced by Policy 63.044, which did not contain that sentence. Policy 526 was in place at the time Stephens was hired, but Policy 63.044 had subsumed it by the time of the criminal actions. Therefore, during the time period of the conduct at issue here, Accenture did not have a written policy regarding the availability of cash advances through the time and expense reports. Accenture’s Policy 63.044 did expressly allow the use of corporate credit cards for cash advances or for personal expenses, but further declared that Accenture had no liability for the balance on the accounts and that employ[506]*506ees were required to directly pay the entire balance on their monthly statements.

Once an employee completed the expense report, it was sent electronically to Accenture’s processing center and its payroll department, where the employee’s check was automatically generated based upon that information and deposited into the employee’s bank account. Approximately 5% of the expense reports were audited after they were submitted. In addition, the expense reports contained a field for the name of the employee’s supervisor, and a copy of the expense report was automatically sent to that designated supervisor upon submission. The supervisor could also access a supervisee’s expense report by using the “auditor’s view” of the ARTES program and typing in the supervisee’s identification number.

When Stephens was hired in May 1999, his supervisor was Sandra Lieb-Gieger. Lieb-Gieger required Stephens to submit his expense report to her the day before it was due. She would then review it and once approved, would personally submit it to the processing center. While Lieb-Gieger was his supervisor, Stephens often recorded business expenses, but never sought a cash advance using the “add to” function. He also consistently entered Lieb-Gieger’s name in the reviewer field. Beginning in March 2000, Neil Penney became Stephens’ supervisor. Penney did not preapprove expense reports prior to submission to the processing department. Instead, Penney allowed Stephens to submit the expense reports directly to the processing department, but required Stephens to e-mail a copy to him. Penney testified, however, that he did not check those expense reports and did not notice when his supervisees failed to e-mail copies to him.

In March 2000, shortly after Penney became his supervisor, Stephens submitted his expense report and e-mailed a copy to Penney. Stephens did not request a cash advance through the “add to” function on that expense report. Beginning on April 30, 2000, however, Stephens began utilizing the “add to” function to secure cash advances. His April 30 expense report requested a cash advance in the amount of $7,800. Stephens did not include Penney’s name in the reviewer field of that expense report, instead designating himself as his own reviewer, and he did not e-mail a copy to Penney. He also requested reimbursement for business expenses in the amount of $78.00. The government argued at trial that Stephens used the $7,800 figure in the “add to” function because, if confronted, he could argue that it reflected his business expenses of $78.00 and was a mistake in the placement of the decimal point.

Stephens continued that use of the “add to” function for the next six expense reports. On each of six expense reports between April 30 and July 31, 2000, Stephens requested cash advances in amounts between $9,800 and $9,985, increasing his cash advance yield to $67,395. None of those reports were reviewed by Penney because Stephens did not e-mail a copy to Penney and did not include Penney’s name in the reviewer field, thus bypassing the automatic sending of the report to Penney.

In his August 15, 2000, expense report, Stephens deviated from his previous pattern of keeping his requests slightly under the $10,000 mark. Instead, he requested a cash advance of $22,980. That request was noticed by Accenture’s audit team, and Stephens was fired on August 23, 2000 based on unauthorized cash advances.

Stephens was subsequently convicted of wire fraud and sentenced to 21 months’ imprisonment, 2 years supervised release, and $50,000 in restitution. He appeals that conviction, alleging that the evidence was insufficient to support the jury verdict [507]*507and that the jury selection process violated the Equal Protection Clause.

I

We turn first to Stephens’ challenge to the sufficiency of the evidence. In considering this claim, we consider the evidence in the light most favorable to the government, making all inferences in its favor, and must affirm if a rational trier of fact could have found all the elements of the offense beyond a reasonable doubt. United States v. Owens, 301 F.3d 521, 527 (7th Cir.2002); United States v. Paneras, 222 F.3d 406, 410 (7th Cir.2000). In order to convict Stephens of wire fraud under 18 U.S.C. § 1341, the jury had to find that: (1) there was a scheme to defraud; (2) wires were used in furtherance on the scheme; and (3) Stephens participated in the scheme with the intent to defraud. Owens, 301 F.3d at 528. Stephens contends that the jury could not rationally find either a scheme to defraud or the intent to defraud. Instead, Stephens contends that the evidence at best establishes simple theft. He argues that the government failed to demonstrate that Accenture’s policy expressly prohibited Stephens from making requests for personal cash advances.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. Eugene Haywood
Seventh Circuit, 2024
United States v. Kentrevion Watkins
107 F.4th 607 (Seventh Circuit, 2024)
United States v. Keith Gregory
Seventh Circuit, 2024
State v. Buck
Idaho Court of Appeals, 2023
United States v. Nicole Smith
Seventh Circuit, 2023
United States v. Matthew Smith
Seventh Circuit, 2023
United States v. Kerri Agee
Seventh Circuit, 2023
United States v. Kelly Isley
Seventh Circuit, 2023
United States v. Chad Griffin
76 F.4th 724 (Seventh Circuit, 2023)
United States v. James Vorley
Seventh Circuit, 2022
People v. Frazier CA3
California Court of Appeal, 2021
United States v. Christian Lovies
16 F.4th 493 (Seventh Circuit, 2021)
People v. Battle
489 P.3d 329 (California Supreme Court, 2021)
Charmell Brown v. Alex Jones
Seventh Circuit, 2020
United States v. Heon Seok Lee
Seventh Circuit, 2019

Cite This Page — Counsel Stack

Bluebook (online)
421 F.3d 503, 2005 U.S. App. LEXIS 18581, 2005 WL 2064001, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-wayne-stephens-ca7-2005.