FILED

U.S. COURT OF APPEALS

ELEVENTH CIRCUIT

JUNE 18, 2002

THOMAS K. KAHN

CLERK

 [PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT

__________________________

No. 01-15065

__________________________

D.C. Docket No. 99-00370-CR-T-23-MSS

UNITED STATES OF AMERICA,

Plaintiff-Appellee,

versus

ROBERT MCCARRICK

Defendant-Appellant.

__________________________

Appeal from the United States District Court

for the Middle District of Florida

__________________________

(June 18, 2002)

Before DUBINA, BARKETT, and KRAVITCH, Circuit Judges.

BARKETT, Circuit Judge:

Robert McCarrick appeals his convictions for one count of bank fraud, in

violation of 18 U.S.C. § 1344, and one count of making a false statement to a
1

McCarrick was sentenced to concurrent prison terms of one year and one day on each

count, followed by 36 months of supervised release. He was also ordered to pay restitution to

the Small Business Administration in the amount of $48,182.00.

2

The SBA is a federal government agency that assists small businesses in obtaining

financing by guarantying loans made to them by private banks.

3

The loan application, which was signed on November 9, 1994, consisted of an

informational “cover” page, and various comprehensive schedules on which McCarrick listed his

planned purchases and lease, his existing indebtedness, and his assets. The application contained

a certification provision, which McCarrick signed, that provided, “I hereby certify that all the

information contained in this document and any supporting information provided to the lender or

SBA is true and correct to the best of my knowledge.” The application also contained a

cautionary note, immediately above the certification provision, that stated, “If you knowingly

make a false statement or overvalue a security to obtain a loan from SBA you can be fined up to

$10,000 or imprisoned for not more than five years or both under 18 U.S.C. § 1001.”

2

government agency, in violation of 18 U.S.C. § 1001.1 He argues that the

government failed to prove the necessary element of specific intent to defraud for

each of these crimes. We agree, and therefore reverse.

BACKGROUND

McCarrick owned and operated an automobile repair business called Fleet 

Maintenance Management (“Fleet”). On November 9, 1994, he applied to Liberty

Bank (“Liberty”) for a loan of approximately $49,000, to be guaranteed by the

Small Business Administration (“SBA”).2

 McCarrick told Liberty’s loan officer

William McGrath that the purpose of the loan was to expand his business into fleet

maintenance repairs and auto body work. McCarrick stated on his loan

application3

 that he planned to use $35,000 of the loan to lease a new building for

his business and to purchase five specific pieces of equipment: a spray paint booth,
4

The tire machine is used to change and repair tires, and the lifts are used to raise vehicles

aboveground for repair. The frame machine and the spray paint booth are used for auto body

work. The two machines work in conjunction with one another; the frame machine straightens

damaged vehicles and the spray paint booth is used to repaint vehicles after repair. 

5

The proposal lists various pieces of equipment, and a price for each. It contains a

provision, entitled, “Acceptance of Proposal,” which McCarrick signed. The provision states:

“The above prices, specifications and conditions are hereby accepted. You [McVittie] are

authorized to do the work as specified. Payment will be made as outlined above.” 

3

a frame machine, a tire machine, and two lifts.4 The remaining $14,000 was to be

used as working capital. Along with his loan application, McCarrick submitted a

sale-proposal and acceptance for the equipment he was going to purchase, which

he had obtained from Terry McVittie, the owner of an auto equipment seller called

T.M. Distributing.5

 McCarrick also submitted a proposed lease for $2,400 per

month that he had obtained for a garage. 

Liberty and the SBA approved the $49,000 loan on November 29, 1994,

issuing a loan authorization. At the closing, on December 23, McCarrick signed a

security agreement for the loan, a note promising to repay it, and a “Settlement

Sheet,” upon which he certified that “there has been no adverse change in the

financial condition, organization, operations, or fixed assets [of Fleet], since the

application of this loan was filed.” McGrath gave McCarrick a check for $14,000

working capital, and a separate check, made out jointly to McCarrick and T.M.

Distributing for $24,712, which McCarrick immediately gave to McVittie to pay

for the tire machine, the lifts, and the frame machine. One week later, on
6

McCarrick testified that McVittie had authorized him to deposit the check into Fleet’s

business account pending arrival of the spray paint booth. McVittie did not confirm or deny this,

testifying only that he did not remember authorizing McCarrick to do so.

7

McVittie testified that he did not remember when McCarrick canceled the order for the

spray paint booth.

4

December 30, 1994, McCarrick received the remaining check for $12,679 to pay

for the spray paint booth, which had been ordered but not yet delivered. 

Upon receiving the check, McCarrick’s girlfriend (who was working in

Fleet’s garage) endorsed the check for “T.M. Distributing Company,” and signed

Terry McVittie’s name. McCarrick wrote “for deposit only” on the check, and

deposited it into his business’ bank account (i.e., Fleet’s account).6

 McCarrick

testified that he deposited the check into Fleet’s account because the spray paint

booth had not yet arrived, and that he intended to use the money to pay for the

booth as soon as it came. 

Over the next month, McCarrick’s business experienced serious financial

difficulties, and he canceled the order with T.M. Distributing for the spray paint

booth, using the $12,679 instead to keep his business afloat. McCarrick testified

that he remembered cancelling the order during the third week of January 1995.7

McVittie testified that the cancellation was connected to the fact that McCarrick

had difficulty obtaining the requisite permits for the installation of the booth. 

McCarrick’s testimony was undisputed that he had standing orders for paint work
5

awaiting the spray paint booth, and the loss of this business contributed

significantly to his business’ decline, causing his subsequent cancellation of the

order for the spray paint booth. McCarrick made his loan payments in January and

February, but missed his payment in March 1995, and made no payments on the

loan thereafter, though he was able to keep his business afloat until July. 

The government charged McCarrick with one count of bank fraud and one

count of making false statements to the government, and the jury found McCarrick

guilty on both counts. McCarrick was sentenced to concurrent terms of one year

and one day, plus three years of supervised release, and was ordered to pay

restitution to the SBA in the full amount of the loan. McCarrick argues on appeal

that the evidence adduced by the government was not sufficient to show, beyond a

reasonable doubt, that he acted with specific intent to defraud the government at

the time he signed the loan documents, as was required in order to convict him

under 18 U.S.C. §§ 1001 and 1344. We review McCarrick’s sufficiency of the

evidence claim de novo, United States v. Giordano, 261 F.3d 1134, 1139 (11th Cir.

2001), resolving all reasonable inferences and credibility evaluations in favor of

the jury’s verdict, United States v. Starke, 62 F.3d 1374, 1380 (11th Cir. 1995). 

While we recognize that McCarrick shoulders a heavy burden in challenging the

sufficiency of evidence supporting his convictions, we must nevertheless be
6

satisfied that, after drawing all permissible inferences in favor of government, the

jury was rationally able to find that every element of the charged crimes was

established by the government beyond a reasonable doubt. See id.

DISCUSSION

McCarrick was charged with, and convicted of, violating 18 U.S.C. § 1344

and 18 U.S.C. § 1001. 18 U.S.C. § 1344, entitled “Bank Fraud,” provides:

Whoever knowingly executes, or attempts to execute, a scheme or

artifice–

(1) to defraud a financial institution; or

(2) to obtain any of the moneys, funds, credits, assets,

securities, or other property owned by, or under the custody or

control of, a financial institution, by means of false or

fraudulent pretenses, representations, or promises;

shall be fined not more than $1,000,000 or imprisoned not more than

30 years, or both.

Id. Thus, to convict under § 1344(1), the government must prove (1) that the

defendant intentionally participated in a scheme or artifice to defraud another of

money or property; and (2) that the intended victim of the scheme or artifice was a

federally-insured financial institution. See United States v. Goldsmith, 109 F.3d

714, 715 (11th Cir. 1997). To convict under § 1344(2), the government must

prove (1) that a scheme existed to obtain moneys, funds, or credit in the custody of

a federally-insured bank by fraud; (2) that the defendant participated in the scheme
7

by means of material false pretenses, representations or promises; and (3) that the

defendant acted knowingly. See Goldsmith, 109 F.3d at 715; United States v.

Falcone, 934 F.2d 1528, 1539-40 (11th Cir. 1991), modified in part, 960 F.2d 988

(11th Cir. 1992); United States v. Swearingen, 858 F.2d 1555, 1556 (11th Cir.

1988).

18 U.S.C. § 1001, entitled “Statements or Entries Generally,” provides in

relevant part:

(a) Except as otherwise provided in this section, whoever, in any

matter within the jurisdiction of the executive, legislative, or judicial

branch of the Government of the United States, knowingly and

willfully– 

(1) falsifies, conceals, or covers up by any trick, scheme, or

device a material fact;

(2) makes any materially false, fictitious, or fraudulent

statement or representation; or

(3) makes or uses any false writing or document knowing the

same to contain any materially false, fictitious, or fraudulent

statement or entry;

shall be fined under this title or imprisoned not more than 5 years, or

both.

***

Id. Thus, in order to convict under § 1001, the government is required to prove (1) 

that the defendant made a false statement; (2) that the statement was material; (3)
8

that the defendant acted with specific intent to mislead; and (4) that the matter was

within the purview of a federal government agency. See United States v. Puente,

982 F.2d 156, 158 (5th Cir. 1993). 

The government’s sole allegation of fraud in this case is that, at the time

McCarrick signed the loan documents, he had no intention of buying the spray

paint booth, as he represented. Specifically, Count One charged that McCarrick

committed bank fraud by falsely promising, on his loan application, that he

planned to buy a spray paint booth, in order to defraud the government of $12,679 . 

Count Two charged McCarrick with making a false statement to the SBA by

acknowledging, on his “Settlement Statement,” that he planned to use the loan

proceeds in accordance with the terms of the loan authorization, even though he

knew he was not going to buy the spray paint booth. Thus, McCarrick’s

convictions under both § 1344 and § 1001 depend on whether the jury could infer,

from the evidence adduced at trial, that McCarrick did not intend to buy the spray

paint booth at the time he signed the loan documents. 

No evidence was presented of events occurring prior to McCarrick’s signing

of the loan documents that related to his alleged intent to defraud. The evidence at

trial consisted entirely of events that occurred subsequent to the signing of the loan

documents. The government concedes that any criminal intent McCarrick formed
9

after signing the loan documents cannot support his convictions on the crimes

charged in the indictment, which require that McCarrick have acted with intent to

defraud the SBA at the time of the signing of the loan documents. As the

government notes, however, evidence of McCarrick’s subsequent conduct may be

considered if it supports a reasonable inference as to McCarrick’s prior intent. 

Thus, the question in this case is whether the jury could properly infer from

McCarrick’s conduct subsequent to signing the loan documents–which was the

only evidence in this case–that he intended to defraud the SBA at the time he

signed the documents. We have carefully reviewed the record and must conclude

that the evidence presented in this case does not support a rational inference of the

requisite prior intent, beyond a reasonable doubt. 

The government seeks to support its contention that McCarrick did not

intend to buy the spray paint booth at the time he signed the loan documents with

the following three factual circumstances: (1) McCarrick’s business bounced

approximately twenty checks during the month of December 1994, after the loan

was authorized, but before the proceeds were disbursed at the closing; (2)

McCarrick canceled his order for the spray paint booth “only” four weeks after

McVittie ordered it from the manufacturer, even though McVittie told him it would

probably take four-to-six weeks to deliver; and (3) McCarrick’s girlfriend signed
8

McCarrick was not charged with forgery.

10

McVittie’s name on the $12,679 check earmarked for the spray paint booth, which

McCarrick deposited into Fleet’s business account.8

 The government also argues

alternatively, relying on United States v. Brown, 53 F.3d 312, 314 (11th Cir.

1995), that the jury’s purported disbelief of McCarrick’s testimony–by

itself–entitled it to find McCarrick guilty beyond a reasonable doubt. 

McCarrick responds that the evidence shows that everything on the

documents he signed was truthful, that he intended to purchase the spray paint

booth when he signed the loan documents, and that it was only later, after leasing

the new facility and purchasing all the equipment he promised to purchase (with

the exception of the spray paint booth) that his business difficulties began, causing

him to cancel the order for the spray paint booth. Any wrongdoing he may have

committed, McCarrick contends, occurred subsequent to the signing of the loan

documents, and is insufficient to support the jury’s inference that he intended to

defraud the SBA at the requisite time. We agree. 

First, the government argues that because twenty-two of McCarrick’s

business checks were returned with “Non-Sufficient Funds” (“NSF”) in the month

of December, he knew he could not afford to buy the spray paint booth, as listed on

the loan application of November 9th. The record shows that McCarrick wrote a
11

total of approximately ninety-five checks during this period, and the twenty-two

NSF checks represented payments for ordinary operating expenses of between $30

and $500, with the majority between $100 and $300. The government has not

offered any explanation as to why the NSF checks would have made McCarrick

aware, when he signed the loan documents, that he could not afford the spray paint

booth, as represented. First, the government has not introduced any evidence

showing that McCarrick actually knew of all of the returned checks at the time of

the December 23 closing. Nine of the twenty-two checks were returned on

December 21 and 22, and the government has not shown that word of the nonsufficient funds reached McCarrick only one or two days later, which is unlikely. 

Moreover, there is no explanation of why the NSF checks worked an adverse

change in Fleet’s financial condition, or showed McCarrick that he could no longer

afford the spray paint booth. The record is clear that the expenses represented by

the NSF checks could easily be covered by the $14,000 check McCarrick was

receiving for operating capital and there is no evidence in the record that Fleet’s

business or operations had changed, or that McCarrick failed to maintain–in good

condition–any of the assets he listed on the loan application as collateral. 

Likewise, the fact that McCarrick canceled the paint booth only four weeks

after it was ordered, during the third week of January 1995, does not provide a
9

See footnote 5, above.

10McCarrick also testified that his business losses resulted in part from the loss of retail

business that occurred when Manatee County required him to take down signs identifying his

business. 

12

sufficient basis, on this record, for the inference that he did not intend to buy it in

the first place. The sale proposal from McVittie, which McCarrick signed,

indicates that McCarrick had contracted with McVittie to buy the spray paint

booth, along with the other equipment, even prior to the loan authorization and

closing.9

 Both McCarrick and McVittie testified that the booth was actually

ordered. McCarrick testified that he canceled the order due to unforseen business

losses resulting in part from his inability to fill standing customer paint orders

without the paint booth,10 and McVittie testified that the order had to be canceled

because of difficulty in obtaining the necessary installation permits. The

government offered no evidence to refute this testimony or to show that McCarrick

intended, or had any reason, to cancel the order at the time he signed the loan

documents.

Nor does the fact that McCarrick and his girlfriend may have improperly

endorsed the $12,679 check for the spray paint booth and deposited it into Fleet’s

bank account, by itself, suffice to show that McCarrick did not intend, at the time

of the signing of the loan documents, to use that money for its allotted purpose. 
13

While this evidence could plausibly contribute to such an inference if it were

combined with other evidence, there is no other probative evidence in this case,

and it cannot do so standing alone. Even if we assume that, in depositing the check

into Fleet’s business account, McCarrick wrongfully intended to use the money for

general business expenses until the spray paint booth arrived–and then to pay for

the booth from the commingled funds when it did arrive–it simply does not follow

that he did not intend to purchase the spray paint booth at the time he signed the

loan documents. 

Singly or taken together, the government’s three pieces of circumstantial

evidence do not provide a basis from which to infer beyond a reasonable doubt that

McCarrick intended to defraud the SBA at the time he signed the loan documents. 

To find for the government, the factfinder would have to ignore all of the

undisputed evidence in the case: that McCarrick leased a new garage, set up and

decorated the garage, put up signs advertising his business, and spent $24,000 for a

tire machine, two lifts, and a frame machine–in short all the equipment necessary to

do auto body work. The factfinder would then have to conclude that, despite all of

this preparatory effort and expense, McCarrick knew all along he was not going to

buy the spray paint booth, the last piece of equipment necessary to complete body
11 The testimony at trial was undisputed–with government witnesses, McVittie, and 

McGrath, and defendant McCarrick agreeing–that without a spray booth, purchasing a frame

machine makes little business sense because repaired vehicles could not then be repainted at the

same establishment.

12The defendant in Brown was convicted of money laundering. The conviction required

proof that the defendant knew that the laundered money was the proceeds of illegal activity,

which, in Brown, consisted of drug activity. The government presented the direct testimony of

other witnesses, including a co-conspirator, that the defendant was part of the drug organization

generating the laundered money. The government’s evidence also showed that the defendant

made drug-related phone calls, drove from Georgia to Texas in furtherance of the drug

conspiracy, and personally picked up a six-pound shipment of marijuana. See Brown, 53 F.3d at

314. In combination with this evidence, we held that the jury’s disbelief of the defendant’s

testimony could be used to help establish his guilt. See id. 

14

repairs, and thereby intended to defraud the SBA of $12,679.11 The evidence

overwhelmingly contradicts such a conclusion.

Finally, we reject the government’s assertion that the jury’s purported

disbelief of McCarrick’s testimony can be used as the sole basis to support a

conviction beyond a reasonable doubt, even in the absence of any other probative

government evidence. Brown does not stand for such a proposition. In Brown, we

held that, in combination with other evidence, the jury’s disbelief of a defendant’s

testimony may be used to help establish his guilt. We explained that “a statement

by a defendant, if disbelieved by the jury may be considered as substantive evidence

of the defendant’s guilt . . . . [a]t least where some corroborative evidence exists for

the charged offense . . . .” Brown, 53 F.3d at 314 (emphasis in original).12 Our

cases since Brown have reiterated the government’s fundamental obligation to
15

establish guilt in its case-in-chief. See United States v. Rudisill, 187 F.3d 1260,

1268 (11th Cir. 1999) (Brown supports conclusion that “the [defendant’s incredible

testimony], combined with the other evidence of his involvement in these

conspiracies, convinces us that there was sufficient evidence to sustain his

convictions.”) (emphasis supplied); United States v. Martinez, 83 F.3d 371, 374

(11th Cir. 1996); United States v. Mejia, 82 F.3d 1032, 1038 (11th Cir. 1996). In

this case, however, the government has adduced no evidence from which the jury

could draw a permissible inference that McCarrick intended to defraud the SBA at

the time he signed the loan documents, and we therefore reverse his conviction. 

Although a jury has wide latitude to determine factual issues and to draw

reasonable inferences from circumstantial evidence, this power is not without limits,

and this Court cannot affirm a criminal conviction by an unlimited application of a

jury’s “power to infer” no matter how attenuated the link between the evidence and

the defendant’s guilt on a necessary element of the offense of conviction. In view

of the uncontradicted evidence of McCarrick’s compliance with every provision of

the loan agreement besides the purchase of the spray paint booth, and of Fleet’s

unforeseen and certainly-unintended business difficulties and financial decline, the

link between the events that occurred after McCarrick signed the loan documents

and McCarrick’s alleged intent to defraud is too attenuated to support his
16

convictions for the crimes with which he was charged and convicted.

CONCLUSION

For the foregoing reasons, McCarrick’s convictions are,

REVERSED.