Efron v. UBS Financial Services Incorporated of Puerto Rico

Court: US Court of Appeals for the First Circuit

Docket: 21-1858

Opinion Date: March 20, 2024

Judge: MONTECALVO

Areas of Law: Banking, Criminal Law, White Collar Crime

In this case heard by the United States Court of Appeals for the First Circuit, the plaintiff-appellant, David Efron, filed a Racketeer Influenced and Corrupt Organizations Act (RICO) claim and various Puerto Rico law claims against UBS Financial Services and other defendants. Efron alleged that the defendants had illegally disclosed his private bank account information to his ex-wife, triggering litigation and a subsequent indemnification claim from UBS. The district court dismissed Efron's case after denying him leave to file a second amended complaint.

On appeal, the Court of Appeals found that the district court had not abused its discretion by limiting Efron to deposing only two UBS employees before filing his proposed second amended complaint. The court also agreed that permitting Efron to amend his complaint would be futile, affirming the dismissal of his RICO claim. The court declined to impose sanctions against Efron, despite arguments from UBS that the appeal was frivolous. The court concluded that while Efron's case was weak, it was not so squarely resolved in his prior appeal on a different RICO claim that it could be deemed frivolous.

United States v. Jimenez

Court: US Court of Appeals for the Second Circuit

Docket: 22-2090

Opinion Date: March 15, 2024

Judge: WALKER

Areas of Law: Criminal Law, Real Estate & Property Law, Tax Law, White Collar Crime

The case pertains to Ariel Jimenez, who owned and operated a tax preparation business in Bronx, New York. Between 2009 and 2015, Jimenez led a large-scale tax fraud and identity theft scheme, purchasing stolen identities of children to falsely claim them as dependents on clients' tax returns. Through this scheme, Jimenez obtained millions of dollars, which he laundered by structuring bank deposits, investing in real estate properties, and transferring the properties to his parents and limited liability companies. Following a jury trial, Jimenez was convicted of conspiracy to defraud the United States with respect to tax-return claims, conspiracy to commit wire fraud, aggravated identity theft, and money laundering.

On appeal, Jimenez raised two issues. First, he claimed that the district court’s jury instruction regarding withdrawal from a conspiracy was erroneous. Second, he alleged that the evidence supporting his conspiracy convictions was insufficient. The United States Court of Appeals For the Second Circuit affirmed the conviction. The court held that the district court’s jury instruction on withdrawal from a conspiracy was a correct statement of the law and that the evidence supporting Jimenez's conspiracy convictions was sufficient. The court found that Jimenez had failed to effectively withdraw from the conspiracy as he continued to benefit from it.

United States v. Foxx

Court: US Court of Appeals for the Seventh Circuit

Docket: 22-1761

Opinion Date: March 21, 2024

Judge: ROVNER

Areas of Law: Criminal Law, Tax Law, White Collar Crime

LaTonya Foxx, along with two others, was charged and convicted for engaging in a fraudulent tax scheme. Foxx pleaded guilty to one count of wire fraud and was sentenced to 18 months’ imprisonment, one year of supervised release, and ordered to pay $1,261,903 in restitution. The scheme involved filing fraudulent tax returns to generate improper refunds for clients and the defendants. The United States Court of Appeals for the Seventh Circuit heard Foxx's appeal of the restitution order.

The court noted that any power to award restitution must come from a statute. In this case, the Mandatory Victims Restitution Act authorizes restitution for wire fraud offenses. The court noted that restitution is limited to the actual losses caused by the specific conduct underlying the offense, and the government must establish those losses by a preponderance of the evidence.

Foxx argued that the district court failed to adequately delineate the scheme and make specific findings that the losses included in the restitution derived from the same scheme for which she was convicted. The court found no fatal deficiency in the district court's findings and concluded that Foxx failed to demonstrate a plain error. The court held that Foxx could be ordered to pay restitution for all the losses she caused during the scheme, not just those relating to the specific wire transactions to which she pleaded guilty. The court affirmed the restitution order.

Justia Webinars: Confronting Racial Bias in Jury Selection

Justia Team

Our legal system is built upon the fundamental principle of a right to a fair trial by a jury of one’s peers; but can we consider the trial fair if the jury is not? Can an underrepresentation of marginalized communities of color in the jury truly deem a trial as fair, accurate, and reliable?

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