United States v. Phillips, No. 11-30195 (9th Cir. 2012)Annotate this Case
Defendant, the former CEO of MOD, appealed from his conviction on four counts of wire fraud, one count of mail fraud, and two counts of money laundering. The court held that defendant's mail fraud conviction must be reversed where the success of defendant's fraudulent scheme did not depend in any way on the use of the mails; convictions on Counts 6 and 7, money laundering, were affirmed where the convictions did not raise a Santos merger problem, and thus proceeds should be defined as "gross receipts" for the purposes of defendant's crime; defendant's claim that there was error in the jury instructions failed because proceeds did not mean profits in this case; the prosecutor's comments during closing were proper; and defendant failed to show that the district court committed plain error in imposing a standard condition of supervised release. As for the Government's cross-appeal regarding forfeiture, the court remanded to determine the amount that defendant derived from the wire frauds charged in Counts 1, 2, and 3, and to enter a forfeiture judgment against defendant in that amount.