T hi s di s pos i t i on i s notappr opr i a t e f orpubl i c a t i on and i s notpr e c e de nt * e xc e pta s pr ovi de d by9th C i r . R . 36- 3. NOT F OR P UB L I CAT I ON UN I TE D STATE S C OU RT OF APPE ALS FOR T HE NI NTH CI RC UI T UN I T E D S T AT E S OF AME R I C A, P l ai nt i ff

- A pp el l ee , v. M ARK TOD D H AU ZE , D e f

e n d a n t - A p p e lla n t. N o. 10- 50261 D . C . N o. 3: 07 -c r- 01 43 5-W -1 ME MOR AN DU M *

A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f o rth e S o u th e rn D is tr ic t o f C a lif o rn ia T hom a s J . W he l a n, S e ni orD i s tr i c tJ udge , P r e s i di ng A r gue d a nd S ubm i tt e d D e c e m be r3, 2012

P a s a d e n a , C a lif

o rn ia B efo re: W A R D L A W , B E A , an d N . R . S M IT H , C i rcu i tJu d g es. M a rkT o d d H au z e ap p e a ls th e ju d g m e n t a n dr e s titu tio n o r d e rf o llo w in g h is j uryc onvi c t i on f

ore i ghtc ount s of

m a i l f r aud a nd a i di ng a nd abe tt i ng i n vi ol a t i on of 18 U . S . C . § 1341 a nd 18 U . S . C . § 2, s i x c ount s of w i r e f r aud a nd a i di ng a nd abe tt i ng i n vi ol a t i on of

18 U . S . C . § 1343 a nd 18 U . S . C . § 2, a nd one c ountof 

# FI LED DE C 19 2012 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALS2

m ak i n g fal se st at em en t s o n a t ax retu rn i n v i o l at i o n o f 2 6 U . S . C . § 7 2 0 6 (1 ). T h ese char ges arose fr om H auze ’ s s chem e t o d ef raud and o bt ai n m on eyfr om i nv es t ors thr ough hi s f

or e i gn c urr e nc ytr a di ng f und ( U ni ve r s a l M one yT r a de r s ) a nd f or e i gn c u rr e n c yh e d g e f

u n d ( U n i v e r s a l Cu rr e n c yFu n d ) . W e a f f i rm. T he di s tr i c tc ourtdi d note rri n de ny i ng H auz e ’ s m ot i on t o di s m i s s the in d ic tm e n t a s m u ltip lic ito u s . See U ni ted States v. G arl i ck, 2 4 0 F .3 d7 8 9 , 7 9 4 ( 9 th C i r . 2001) . E a c h c ountof m a i l a nd w i r e f

r aud i nc l ude d i n the i ndi c tm e nta l l e ge d a s e p a r a te a c t o f

m a ilin g o rw ir in g . W h e th e ro rn o t H au z e h a d af id u c ia ryr e la tio n s h ip w ith h is c lie n ts is i rrel ev an tt o th e ch arg ed o ffen ses, b ecau se H au ze w as n o tch arg ed w i th “ h o n est s e rv ic e s ” f

r au d . 1 8 U .S .C . § § 1 3 4 1 , 1 3 4 3 ; s e e U n ite d S ta tes v . Milo v a n o v ic , 678 F .3 d 7 1 3 , 7 2 1 ( 9 th C ir . 2 0 1 2 ) ( e n b a n c ) . T he di stri ctcourtdi d n otabuse i t s di sc re t i on i n adm i tt i ng evi dence that H au z e g u a r a n te e d h is c lie n ts a$ 3 0 0 s to p - lo s s f o re a c h $ 2 0 0 0 tr a d in g p o s itio n . S uc h t e s t i m onyw a s r e l e va ntt o the c ha r ge tha tH auz e de f r aude d i nve s t or s by i nduc i ng the m t o i nve s ti n U ni ve r s a l M one yT r a de r s a nd U ni ve r s a l C urr e nc yF und ba s e d on f

a l s e pr om i s e s of

s t op- l os s pr ot e c t i on. T he di s tr i c tc ourtdi d notabus e i t s di s c r e t i on i n de ny i ng H auz e ’ s m ot i on f or ane w tr i a l . T he e vi de nc e of H auz e ’ s 2002 s a nc t i ons w a s a dm i s s i bl e a s s ubs t a nt i ve3

e v id e n c e th a t H au z e f

a ls e lyr e p r e s e n te dto h is c lie n ts th a t h e h a dac le a n r e c o r d . Se e U ni te d State s v . W

e l l i ngton , 7 5 4 F .2 d1 4 5 7 , 1 4 6 5 ( 9 th C ir . 1 9 8 5 ) . T h is evi dence w as al so adm i ss i bl e und erF eder al R ul e of E vi dence 404 (b) a s e vi dence o f H au z e ’s k n o w le d g e a n d in te n t to d e f r au d . E v id e n c e th a t H au z e h a dp r e v io u s ly b e e n s a n c tio n e d f

o rd e c e iv in g ac lie n t a n dc h u rn in g ac lie n t’s a c c o u n t m a k e s it m ore probabl e thatH auze kn ew hi s r epre se nt at i on s i n the charged sc hem e w er e fr audu l entand thathe i nt ended t o d ef raud hi s c l i ent s. T he w ebsi t e pri nt ou t s w er e a l s o a dm i s s i bl e . T he w e bs i t e pr i nt out s w e r e pr ope r l yauthe nt i c a t e d thr ough the tr ia l te s tim o n yo f

th e w e b s ite d e s ig n e r . F e dR . E v id . 9 0 1 ( a ) . F i nal l y, the di stri ctcourtdi d n otabuse i t s di sc re t i on i n i ncl ud i ng l osse s in c u rr e d b yU n iv e r s a l C u rr e n c yF u n din v e s to r s in its r e s titu tio n o r d e r . 1 8 U .S .C . § 3663A ( a ) ( 2) . R e s t i tut i on f orm a i l a nd w i r e f

r aud m a ybe or de r e d f

ora l l pe r s ons di re ct l y harm ed by the sc hem e. Se e U n ite d S ta tes v . B o o th , 3 0 9 F .3 d5 6 6 , 5 7 6 ( 9 th C ir . 2 0 0 2 ) . F o rth e s e r e a s o n s , H au z e ’s ju d g m e n t o f c o n v ic tio n a n dr e s titu tio n o r d e ris A FFI R M ED .