Wire Fraud Convictions Reversed, But Related Fraud, Laundering Convictions Upheld

U.S. v. Redcorn, -- F.3d --, 2008 WL 2332005 (10th Cir. 6/9/08) - reversal of wire fraud convictions of defendants who were also found guilty of embezzlement from a health care benefit program and money laundering. There was insufficient evidence to show that the defendants' transfers of funds to out-of-state investments accounts were part of the plot to defraud. The indictment was sufficient because it gave adequate notice to defendants that they needed to defend against embezzling from a health care benefit program. The court rejects the appellants' argument that the McCarran-Ferguson Act, which provides that state law generally governs insurance matters, preempts the applicable federal criminal statute. Defendants' Brady claim that the government withheld evidence was not raised below and did not meet the plain error standard. The district court reasonably concluded that newly discovered evidence was not significant enough to be likely to result in acquittal. As for sentencing, the district court properly found the underlying sentencing facts.