# U ni te d S ta te s Co ur t of A pp ea ls

For the Eig hth Circu it

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No. 1 7- 32 79

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Uni te d S ta te s o f Am eri ca

ll ll ll ll ll ll ll ll ll ll l Pla in ti

ff - App el le e

v.

Keit h Hag en

ll ll ll ll ll ll ll ll ll ll l Defe nd

an t - Ap pe ll an t

__

__ __ __ __ __

App eal fro m

Uni te d S ta te s Di st ric t Co ur t

fo r th e Dis tri ct of S ou th Dako ta - Abe rd een

__

__ __ __ __ __

Su bm it te d: Octo be r 25 , 20 18

Fi le d: Feb ru ary 28 , 20 19

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Befo re WOL LMAN, LOKEN , and ERICKSON, Ci rcu it Ju dg es

.

__ __ __ __ __ __

LOKEN, Ci rcu it Ju dg e.

Keit h Hag en an d Am an da Hol y Bu ll

, th en hu sb an d an d wife

, es ta bl is he d Hol y

Bu ll Cat tl e Co m

pa ny (“ HBCC” ) in 20 04 to pr ov id e cu st om gr azi ng se rv ic es to cat tl e

pr od uc ers o n pa st ur e la nd le as ed th ro ug h th e Bu reau of In di an Affai rs (“ BIA”)

, whi ch

m an ag es an d le as es la nd th e fed eral go ve rn m en t ho ld s in tru st on be ha lf of in di vi du al

In di an own ers

. Hag en se rv ed as po in t of co nt act wit h cat tl e pr od uc ers an d wor ke d

th e cat tl e, whi le Hol y

Bu ll arra ng ed pa st ur e la nd lea se s t hr ou gh th e BIA.Hag en an d Hol y Bu ll were ch arg ed wit h th ree co un ts of wire frau d, fo ur co un ts

of m ai l frau d, an d on e co un t of co ns pi racy to co m m it m ai l an d wire frau d aft er cat tl e

pr oduc er s who co nt ract ed fo r gr azi ng se rv ic es du rin g th e 20 12 -2 01 4 se as on s re ce ive d

ne it h e r t h o s e se rv ic es no r refu nd s of pa y m en ts m ad e to HBCC. Hol y Bu ll pl ead ed

gu il ty to th e co ns pi racy co un t an d te st ifi ed fo r th e go ve rn m en t at Hag en ’s tri al

. Afte r

a th ree- da y

tri al , th e jury co nv ic te d Hagen of al l eig ht co un ts

. He was s en te nc ed to

co nc ur ren t te rm s of 46 m on th s im pr is on m en t a n d 3 ye a r s of su pe rv is ed rel eas e on

each co un t, res ti tu ti on in th e am ou nt of $2 36 ,00 0, an d a $1 00 sp eci al as se ss m en t on

each co un t. Hag en ap pe al s, arg ui ng th e ev id en ce was in su ffi ci en t to pr ov e he ha d th e

req ui si te in te nt to de frau d

, a n d two m ai li ng s were no t in fu rth eran ce of an y frau d.

Rev ie win g th e ev id en ce in th e l i g h t mo s t f a vo rab le to th e jury’ s ve rd ic t, we affi rm

Hag en ’s co nv ic ti on of co ns pi racy an d two su bs ta nt iv e frau d co un ts bu t v a c a te th e

co nv ic ti on an d s pe ci al ass es sm en ts on th e o th er fi ve su bs ta nt iv e co un ts

.

Suff ic ie ncy of t he Ev id ence

The gr azi ng se as on in th is reg io n of So ut h D a k o t a r u n s f ro m May 15 to

Octo be r 15 each y ear. The BIA le as es pa st ur e la nd th ro ug h a n e g o ti at io n pr oc es s

wit h in di vi du al tru st la nd own ers or th ro ug h an ad ve rti se d an d op en bi d pr oc es s each

sp rin g. Mo st le as es ru n fo r on e, th ree, or fiv e y ears ; pa y m en t is du e in Octo be r of th e

y ear pr io r to th e le as e. In each le as e, th e BIA pr ov id es a de fau lt gr azi ng rat io fo r th e

en ti re se as on of on e co w-cal f p a i r p e r s i x acre s of la nd

. A p ers on se ek in g to gr aze

m or e co w-cal f pa irs pe r acr e m us t s ub m it a gr azi ng pl an to th e BIA fo r ap pr ov al

.

Fro m 20 04 th ro ug h 20 11

, HBCC pr ov id ed cu st om gr azi ng se rv ic es fo r on e or

two cat tl e pr od uc ers each y ear on la nd le as ed th ro ug h th e BIA’s ne go ti at io n pr oc es s.

Hag en pr om ot ed HBCC’s se rv ic es an d co nt act ed pr od uc ers se ek in g pa st ur e us in g an

a g r i c u l t ur al pu bl ic at io n, th e Farm Fo ru m

, kn own lo cal ly as th e “ Green Sh eet

. ”

Bu si ne ss wit h pr od uc ers ran sm oo th ly th es e y ears

, bu t th e BIA wro te le tt ers to Hag en

an d Hol y Bu ll no ti ng th ei r no nc om pl ia nc e wit h th e ag en cy ’s le as in g pr oc ed ur es

--

-2

-si gn in g m

ul ti -y ear le as es in May 20 08 th at we r e la te r can cel le d fo r no np ay m en t,

gr azi ng cat tl e on la nd whe re le as es ha d no t be en pa id

, le tt in g cat tl e g e t lo os e an d

tre sp as s on ot he r pr op ert y

, an d ov erg razi ng le as ed la nd

. Hag en an d Hol y Bu ll ne ve r

res po nd ed an d di d no t su bm it gr azi ng pl an s to de vi at e fro m th e de fau lt gr azi ng rat io

.

In 20 12

, th e fir st of th e gr azi ng se as on s at is su e, Hol y Bu ll le as ed 34 7.5 3 acre s

of pa st ur e th ro ug h th e BIA fo r gr azi ng

. Und er th e BIA gr azi ng rat io

, th at la nd co ul d

su pp or t a fu ll se as on of g r a z i n g f o r 57 .92 co w-cal f pa irs

. W it ho ut su bm it ti ng a

gr azi ng pl an to de vi at e fro m th at rat io

, Hag en an d Ho l y Bu ll co nt ract ed wit h th ree

cat tl e pr od uc ers to gr aze at le as t 10 0 c o w

- c a l f pa irs an d 20 0 he ife rs

. And rew

St ro sc he in gr azed at le as t 70 pa irs

, as pl an ne d. Onl y 33 of Jo hn Haefn er’s 10 0 co wcal f pa irs gr azed wit h HBCC, a n d o n l y f o r o ne da y

. Bru ce Pen ne r ne ed ed to fin d

te m po rary gr azi ng la nd at th e b e g i n n i n g of th e se as on be cau se HBCC ha d no t

pr op erl y le as ed BIA la nd

, an d was fo rced to rem ov e hi s 20 0 he ife rs fiv e week s earl y

be cau se th e la nd HBCC s u p p l i ed co ul d no t su pp or t th e cat tl e. Haefn er an d Pen ne r

pa i d $ 3 0

, 0 0 0 an d $4 6,0 00 in ad va nc e fo r HBCC gr azi ng se rv ic es ; ne it he r rece iv ed

a ref un d fo r se rv ic es no t p ro vi de d.

I n 2 01 3, Hol y Bu ll le as ed 54 7.5 3 acre s of pa st ur e th ro ug h th e BIA, w h i c h

co ul d su pp or t 91 .26 co w

- c al f pa irs un de r th e BIA de fau lt rat io

. Hag en co nt ract ed

wit h si x di ffer en t pr od uc ers to gr aze a to ta l of 38 0 co w-cal f pa irs wit ho ut su bm it ti ng

a gr azi ng pl an to th e BIA. Each pr od uc er pa id in fu ll up fro nt , a to ta l of $1 26 ,50 0.

Not a si ng le co w g raze d on HBCC- le as ed la nd , a nd no pr od uc er rece iv ed a refu nd

.

In 20 14

, Hag e n a n d H o l y B ul l le as ed 40 acre s of pa st ur e th ro ug h th e BIA,

whi ch co ul d su pp or t 6.6 7 co w-cal f pa irs un de r th e de fau lt rat io

. Hag en co nt ract ed

wit h th ree di ffer en t pr od uc ers to gr aze 30 0 co w-cal f pa irs

. Onc e ag ai n th e pr od uc ers

pa id i n f u l l u p f r o nt

, a to ta l of $1 02 ,50 0. No pr od uc er br ou gh t a si ng le co w to

pa st ur e, an d no ne rece iv ed a refu nd

. One pr od uc er, Cal vi n Herrb ol dt

, was ab le to

av oi d a lo ss by sto pp in g p ay m en t o n h is ch eck be fo re Hag en co ul d c as h i t.

-3

-The Co ns pi racy Cou nt -- Co un t 1

Co un t 1 ch arg ed Hag en an d Hol y Bu ll wit h c o n s p i r a cy to co m m it m ai l an d

wire frau d by co nt ract in g wit h twel ve di ffer en t cat tl e pr od uc ers to gr aze ov er 70 0

co w-cal f pa irs an d 20 0 he ife rs du rin g th e 20 12 -2 01 4 gr azi ng se as on s fo r ov er

$3 00 ,00 0, fu lfi ll in g on ly on e co nt ract

, an d fai li ng to refu nd cat tl e pr od uc er pa y m en ts

fo r se rv ic es no t pr ov id ed

. Mai l frau d i s u s e of th e m ai ls to ex ecu te a “ sc he m e or

art ifi ce to de frau d,” 18 U.S.C. § 13 41 ; wire frau d is us e of th e wire s to do th e sa m e,

18 U.S.C. § 13 43 ; co ns pi rin g to do ei th er is a se pa ra t e o f f e ns e, 18 U.S.C. § 13 49

.

Ea c h of fen se req ui res pr oo f of in te nt to de frau d, pr oo f th at th e de fen da nt w i l l f u l l y

pa rti ci pa te d in a sc he m e wit h kn owl ed ge of it s frau du le nt na tu re an d t h e i nt en t to

ach ie ve il li ci t ob

jecti ve s. Uni te d S t a t e s v

. Bai le y

, 85 9 F.2 d 12 65

, 12 73 (7 th Ci r.

19 88 ); se e Uni te d S ta te s v . Lou pe r-M or ris , 67 2 F .3d 53 9, 5 55 -5 7 (8 th Cir . 20 12 )

.

In su pp or t of th is ch arg e, th e go ve rn m en t in tro du ced de ta il ed te st im on y

reg ard in g Hag en ’s ab ov e-s um m ari zed de al in gs wit h cert ai n cat tl e pr od uc ers in 20 12

,

20 13

, an d 20 14

. Th e g o v e rn m en t al so in tro du ced ev id en ce th at fiv e ot he r cat tl e

pr od uc ers con tra ct ed an d p ai d fo r HBCC gra zi ng se rv ic es th os e y ears bu t re cei ve d

ne it he r se rv ic es no r refu nd s, an d th at Cal vi n Herrb ol dt wou ld ha ve su ffer ed a lo ss in

20 14 ha d he no t st op pe d pa y m en t on h i s c h e c k be fo re Hag en co ul d cas h it

. Man y

cat tl e pr od uc ers te st ifi ed th at th ey co nt ract ed wit h Hag en an d pa id up fro nt

, bu t whe n

gr azi ng se as on be ga n, Hag en pu sh ed ba ck th e gr azi ng da te s, m ad e ex cu se s as to why

th e cat tl e co ul d n o t co m e, or si m pl y st op pe d co m

m un ic at in g un ti l pr od uc ers were

fo rced to arra ng e o th er g razi ng

.

“ In rev ie win g th e su ffi ci en cy of th e ev id en ce, we co ns id er th e ev id en ce in th e

li gh t m os t fav or ab le to th e jury’ s ve rd ic t, a c c e p t i n g al l reas on ab le in fere nc es th at

s u p p o r t t he ve rd ic t.” Uni te d St at es v. Bro wn

, 62 7 F.3 d 10 68

, 10 72 -7 3 (8 th Ci r.

20 10 ), cert

. de ni ed

, 56 5 U.S. 89 2 (2 01 1)

. “ W e m us t up ho ld th e co nv ic ti on un le ss no

reas on ab le jury co ul d fin d th e de fen da nt gu il ty.” Uni te d St at es v. W al ke r

, 81 8 F.3 d

-4

-41 6, 41 9 (8 th Ci r. 20 16 ) (cl ean ed up ). Afte r care fu l rev ie w of t h e ex te ns iv e tri al

reco rd

, we co nc lu de th e e v i d en ce was su ffi ci en t to co nv ic t Hag en of co ns pi racy to

co m m it m ai l an d wi re fra ud

.

T h e ev id en ce es ta bl is he d th at Hag en co nt ract ed to gr aze su bs ta nt ia ll y mo r e

cat tl e on la nd HBCC le as ed th an th e BIA de fau lt rat io reco mm e n d e d in bo th 20 12

an d 20 13

. And in 20 14

, Hag en co nt ract ed to gr aze 30 0 co w-cal f pa irs on 40 acre s

--

fo rty ti m es m or e th an th e de fau lt rat io reco m m en de d an d su bs ta nt ia ll y m or e th an 40

acre s co ul d su pp or t. Hol y Bu ll te st i f i e d s h e k ne w wh at sh e an d Hag en were do in g

was wro ng

, bu t th ey ne ed ed th e m on ey to su pp or t th ei r la rg e fam il y

. W hi le

co nt ract in g th at ex ceed s th e BIA rat io do es no t wit ho ut m or e pr ov e in te nt to de frau d,

ev id en ce th at Hag en kn owi ng ly co ll ect ed m on ey to gr aze m or e cat tl e th an hi s le as ed

la nd co ul d su pp or t pe rm it te d a reas on ab le jury to fin d th e req ui si te frau du le nt in te nt

.

Hag en arg ue s t he ev id en ce es ta bl is he d o nl y th at he was a na iv e bu si ne ss m an

who ha d no in te nt to de frau d cat tl e pr od uc ers

. Bu t w he n a de fen da nt ’s vi ct im s

“ su ffer ed so m e ta ng ib le lo ss -- as th ey di d he re

- - t he sc he m e it se lf of te n se rv es as

ev id en ce of a de fen da nt ’s in te nt to de frau d.” Uni te d St at es v. Erva st i

, 20 1 F.3 d 10 29

,

10 37 (8 th Ci r. 20 00 ) (cl ean ed up ). Giv en th e go ve rn m en t’s ev id en ce of a th ree- y ear

sc he m e th at res ul te d in ex te ns iv e pr od uc er lo ss es

, Hag en ’s cl ai m th at he was si m pl y

a n a i v e bu si ne ss m an “ was a cred ib il it y is su e, th e pr ov in ce of th e jury to res ol ve

. ”

W al ke r , 81 8 F .3d at 4 21

.

The 20 12 Seas on -- Co un ts 2 an d 3

Co un ts 2 an d 3 ch arg ed Hag en wit h us in g t h e wire s to ex ecu te a sc he m e to

de frau d by ca sh in g Jo hn Haefn er’s an d Bru ce Pen ne r’s ch eck s fo r gr azi ng se r v i ces

th at were no t pr ov id ed du rin g th e 20 12 gr azi ng se as on

. To es ta bl is h wire frau d, th e

go ve rn m en t m

us t pr ov e a “ sc he m e,” whi ch “ co nn ot es so m e de gr ee of pl an ni ng by th e

pe rp et rat or ,” sp eci fic in te nt to de frau d, whi ch “ m ay be in ferr ed fro m al l th e fact s an d

-5

-ci rcu m st an ces su rro un di ng [Hag en ’s] act io ns ,” D e M i e r v. Uni te d St at es

, 61 6 F.2 d

36 6, 36 9 (8t h Cir. 19 80 ), an d us e o f th e m ai ls or wire s in fu rth eran ce of the sc he m e

to de frau d, Uni te d St at es v. Ta c k e t t

, 64 6 F.2 d 12 40

, 12 44 (8 th Ci r. 19 81 ). Hag en

arg ue s th e go ve rn m en t fai le d to pr ov e th at he act ed wit h th e r e q u i s i t e in te nt to

de frau d t he se pro du cers . W e ag ree.

Reg ard in g Co un t 2, th e tri al ev id en ce es ta bl is he d th at Haefn er res po nd ed to an

HBCC ad ve rti se m en t in th e Green Sh eet an d pa id Hag en $3 0,0 00 on Apr il 13

, 20 12

,

fo r gr azi ng se rv ic es fo r 10 0 co w-cal f pa irs

. Haefn er was read y to br in g hi s cat tl e to

p a st ur e on May 1, bu t Hag en co ul d no t ta ke th em un ti l th e se co nd week in May

.

Haefn er th en br ou gh t 33 co w-cal f pa irs an d un lo ad ed th em wit h Hag en ’s h el p, an d

Haefn er’s hi red ha nd br ou gh t a se c o n d lo ad th e ne xt da y

. Afte r un lo ad in g, an

un kn own m an st op pe d Haefn er’s ha nd an d to ld hi m “ th e tri be was wait in g fo r cat tl e

to co nf is cat e be cau se [Hag en ] ha dn ’t pa id hi s l e a s e s in fo ur y ears .” Heari ng th is

,

Haefn er l oa de d u p a ll of h is co ws an d t oo k t he m ho m e.

On th is ev id en ce, we can no t sa y a reas on ab le jury co ul d fin d Hag en act ed wit h

sp eci fic in te nt to de frau d Haefn er. Hag en be ga n fu lfi ll i n g t h e c on tra ct whe n he

he lp ed Haefn er un lo ad 33 co w-cal f pa irs

. The re was no ev id en ce th at

, ha d an

ou ts id er n ot pe rs ua de d Hae fn er t o wal k a way fro m th e de al , Ha ge n wou ld no t ha ve

pr ov id ed th e ag reed gr azi ng se rv ic es

. In de ed

, Hag en accu se d Haefn er of br each in g

th e co nt ract by re m ov in g hi s co ws. In th es e ci rcu m st an ces , t h a t H a e fn er req ue st ed

bu t di d no t rece iv e a refu nd do es no t es ta bl is h in te nt to de frau d. Lik ewis e, Hag en ’s

po ss ib le no n- co m

pl ia nc e wit h t h e B I A gr azi ng rat io do es no t es ta bl is h in te nt to

de frau d. We vac at e Hag en ’s con vi ct io n a nd th e sp eci al ass es sm en t o n C ou nt 2.

Reg ard in g Co un t 3, th e ev id en ce es ta bl is he d th at Pen ne r re s po nd ed to HBCC’s

ad ve rti se m en t in th e Green Sh eet

, ag reed to pa y $4 6,0 00 to gr aze 20 0 he ife rs du rin g

th e 20 12 se as on

, an d wro te a ch eck to HBCC fo r th e fu ll am ou nt on Apr il 18

, 20 12

.

Earl y in th e gr azi ng se as on , a fte r de li ve rin g hi s cat tl e, th e B I A ad vi se d Pen ne r th at

-6

-he m

us t m ov e hi s cat tl e be cau se th ey were on la nd no t pr op erl y le as ed by Hag en an d

Hol y Bu ll

. Two week s la te r, Hag en an d Hol y Bu ll res ol ve d t h e l eas in g is su e an d

rei m bu rs ed Pen ne r fo r th e co st of su bs ti tu te gr azi ng

. P e n n e r r e t u rn ed hi s cat tl e to

HBCC la nd bu t du e to dr y co nd it io ns

, br ou gh t th em ho m e fiv e week s earl y

. Hag en

sa id he wou ld refu nd Pen ne r $1 2,0 00 for th os e fi ve week s b ut ne ve r di d.

Thi s ev id en ce fai ls to es ta bl is h Hag en cas he d Pen ne r’s ch eck in fu rth eran ce of

a sc he m e to de frau d Pen ne r. Hag en at te m pt e d to fu lfi ll th e co nt ract

, bu t dr y

co nd it io ns oc cu rri ng lo ng aft er Pen ne r’s ch eck was cas he d fo rced it s pr em at ur e

t e rm in at io n. Eve n if Hag en br ok e a pr om is e to refu nd $1 2,0 00 fo r th e ear l y

te rm in at io n, br each of co nt ract is no t frau d, an d th e cas hi ng of Pe n n e r ’s ch eck in

Apr il was no t in fu rth eran ce of an y di sp ut e th at aro se at th e en d of th e gr azi ng se as on

.

Acco rd in gl y

, we va cat e Hag en ’s co nv ic ti on an d th e sp eci al as se ss m en t on Co un t 3.

The 20 13 Seas on -- Co un ts 5, 6 , and 7

Co un t 5 ch arg ed Hag en wit h us i n g t h e m ai ls to ex ecu te a sc he m e to de frau d

Ro be r t K r i z b y m ai li ng Kriz a gr azi ng co nt ract fo r th e 20 13 se as on

. The ev id en ce

es ta bl is he d th at Hag en , r es po nd in g to an ad ve rti se m en t in th e Green Sh eet , o ffer ed

to gr aze Kriz ’s cat tl e fo r th e 20 13 gr azi ng se as on

. The Kriz fam il y typic al ly pa st ur ed

th ei r cat tl e wit h th e St lu ka fam il y

, bu t du e to a fir e th e two fam il ie s ne ed ed ne w la nd

on whi ch to gr aze th ei r cat tl e th at se as on

. Ro be rt Kriz an d J o h n S t lu ka m et Hag en

an d vi ewed th e pa st ur e, ag reed to gr aze a to ta l of 10 0 co w-cal f pa irs fo r $3 5,0 00 th at

se as on

, an d Hol y Bu ll m ai le d th e co nt ract to th e Kriz es

, who ga ve Hag en a ch eck fo r

$1 7,5 00 on Apr il 23

, 20 13

. W he n th e ti m e cam e to br in g th e cat tl e to pa st ur e a m on th

la te r, Hag en sa id he di d n ot ha ve th e la nd to gr aze th e cat tl e or th e m on ey to refu nd

th e Kriz es

. In Aug us t 20 13

, th e Kriz es rece iv ed a le tt er fro m HBCC ap ol og iz in g fo r

an y in co nv en ie nc es an d of feri ng to gr aze th ei r cat tl e fo r th e r e s t of th e se as on

. By

th en

, th e BIA had in fo rm ed Dav id Kriz th at Hag en di d no t hav e an y pa st ur e le as ed

.

The Kriz es de ci de d th ey wou ld no t ris k lo si ng th ei r cat tl e by br in gi ng th em to HBCC.

-7

-Onc e ag ai n, al th ou gh th e qu es ti on is s o mew ha t cl os er, we co nc lu de a

reas on ab le jury co ul d no t fin d th at Hag en cau se d th e gr azi ng co nt ract to be m ai le d in

fu rth eran ce o f a sc he m e to de frau d. The tri al ev id en ce es ta bl is he d th at Hag en ha d

en ou g h l a n d to gr aze Kriz ’s 50 co w-cal f pa irs fo r th e 20 13 gr azi ng se as on

, well

wit hi n th e de fau lt BIA rat io of 91 .26 pa irs fo r th e la nd HBCC le as ed th at se as on

. The

le tt er Hag en se nt in Aug us t of fere d to be la te dl y fu lfi ll hi s en d of th e de al by gr azi ng

Kriz ’s cat t l e f

or th e res t of th e se as on

. The go ve rn m en t fai le d to pr ov e he ha d no

in te nt or no ab il it y to carr y ou t th at of fer. Thu s, th e ev id en ce di d no t es ta bl is h ei th er

a sc he m e to de frau d or Ha g en ’s sp eci fic in te nt to de frau d Ro be rt Kriz whe n th e

gr azi ng co nt ract was m ai le d in Apr il 2 0 1 3

. Acco rd in gl y

, we va cat e Hag en ’s

co nv ic ti on an d t he sp eci al ass es sm en t o n C ou nt 5.

Co un ts 6 an d 7 ch arg ed t h a t H ag en us ed th e m ai ls to ex ecu te a sc he m e to

de frau d Ro be rt Kriz an d Jo hn St lu ka w h e n he se nt th em le tt ers in Aug us t 20 13

of feri ng to gr aze th ei r cat tl e fo r th e rem ai nd er of th e se as on

. Und er 18 U.S.C. § 13 41

,

th e al le ge d us e of th e m ai l m us t be “ su ffi ci en tl y c l o s e ly rel at ed to ,” an d op erat e to

fu rth er, th e de fen da nt ’s sc he m e. Tack et t

, 64 6 F.2 d at 12 44

. Hag en a r g u es th e

go ve rn m en t fai le d to pr ov e th es e le tt ers were us ed in fu rth eran ce of th e frau d al le ge d.

W e ag ree.

The le tt ers un de rlyin g Co un ts 6 an d 7 were se nt in Aug us t of 20 13

, so m e fo ur

m on th s aft er Hag en rece iv ed pa y m en ts fro m Kriz an d St lu ka fo r 20 1 3 g razi ng an d

th ree m on th s aft er th e st art of th e gr azi ng se as on

. Thu s, th e le tt ers were no t se nt fo r

th e pu rp os e of ex ecu ti ng th e al le ge d sc he m e to de frau d th e s e p ro du cers , f or Hag en

ha d a lre ad y

rece iv ed th ei r pa y m en ts for cat tl e HBCC was no t gr azi ng

. Mai li ng th e

le tt ers ha d no effe ct on th e su cces s or fai lu re of th e al le ge d sc he m e; it was al read y

co m pl et ed

. As in Tack et t

, Hag en ’s “ aft er-t he -fac t, un so li ci te d, in ci de nt al m ai li ng [s ]

at is su e” ca nn ot su st ai n h is co nv ic ti on on Co un ts 6 an d 7

. Id

. at 1 24 4.

-8

-The go ve rn m en t arg ue s th at th es e le tt ers to p ro duc er s K riz an d St lu ka fu rth ered

th e s c h e me t o d e f

rau d be cau se th ey were “ de si gn ed to lu ll th e vi ct im s in to a fal se

se ns e of se cu rit y

, po st po ne th ei r ul ti m at e co m pl ai nt to th e au th or it ie s, an d th eref or e

m ak e th e[i r] ap pr eh en si on

. . . le ss li ke ly.” Uni te d St at es v. Lan e

, 47 4 U.S. 43 8, 45 1

(1 98 6) (q uo ta ti on o m it te d)

. Howev er, Hag en ’s le tt ers acce pt in g res po ns ib il it y

,

ap ol og iz in g fo r de la y

an d i nc on ve ni en ce, an d offe rin g to fu lfi ll th e Kriz an d Stl uk a

g r a z i n g co nt ract s are no t co m m un ic at io ns th at wou ld po st po ne in qu iri es o r

co m pl ai nt s to th e BIA or ot he r au th or it ie s. And un li ke th e ev id en ce in Uni te d St at es

v. Fi or it o

, 64 0 F.3 d 33 8, 34 8 (8 th Ci r. 20 11 ), ne it he r Kriz no r St lu ka te st ifi ed th at he

was lu ll ed in to a fal se se ns e of se cu rit y

. In de ed

, whe n as k e d o n di rect ex am wha t

th ei r res po ns es were to th is le tt er, St ev e St lu ka te st ifi ed

, “ I jus t ki nd of la ug he d.

. . .

I m ean

, it ’s to o la te ,” an d Ro be rt Kriz te st ifi ed

, “ My ho ne st reac ti on was

, why do we

wan t to ta ke cat tl e do wn th ere? W e’ve al read y lo st $3 5,0 00 be twee n th e two of us .”

Thi s b r i e f te st im on y di d no t es ta bl is h th e le tt ers were in fu rth eran ce of sc he m es to

de frau d. Acco rd in gl y

, we va cat e Hag en ’s co nv ic ti on s an d th e sp eci al as se ss m en ts on

Co ur ts 6 an d 7

.

The 20 14 Seas on -- Co un ts 4 an d 8

Co un ts 4 an d 8 ch arg ed th at Hag en us ed m ai l an d wire to ex ecu te a sc he m e to

de frau d Ro be rt Berg du rin g th e 20 14 gr azi ng se as on whe n Berg m ai le d Hag en a

$3 5,0 00 ch eck on May 30

, 20 14

, in fu ll pa y m en t of a gr azi ng co nt ract (Co un t 8) an d

Hag en cas he d th e ch eck us in g wi r e t r an sm is si on on Ju ne 4, 20 14 (Co un t 4)

. Afte r

Hag en res po nd ed to Cal vi n Herrb ol dt ’s Green Sh eet ad in th e sp rin g of 20 14 se ek in g

gr azi ng la nd th at se as on

, Herrb ol dt al ert e d B e r g

, a fam il y fri en d, who was al so

lo ok in g to gr aze 10 0 co w-cal f pa irs

. At th is ti m e, HBCC ha d le as ed on ly 40 acre s of

pa st ur e, whi ch co ul d su pp or t 6.6 7 co w-cal f pa irs un de r th e BIA de fau lt rat io

. Berg ’s

so n Ri le y tra ve le d to vi ew Hag en ’s pa st ur e, whe re Hag en as su red hi m th ere w a s

en ou gh la nd to su pp or t th e two pr od uc ers ’ 20 0 co w-cal f pa irs

. Tha t da y

, Hag en ga ve

Ri le y a si gn ed co nt ract to cu st o m g r a z e 10 0 co w-cal f pa irs fo r $3 5,0 00

, an d Ri le y

-9

-ga ve Hag en a ch eck fo r th e fu ll am ou nt

. Howev er, th e Berg s st op pe d pa y m en t on th e

ch eck aft er a se co nd vi si t to th e pa st ur e. In res po n s e

, Hag en rep eat ed ly cal le d th e

B e r g s

, as su rin g th em he ha d en ou gh le as ed la nd bu t in si st in g on fu ll pa ym e n t u p

fro nt

. St il l in ne ed of pa st ur e, Berg m ai le d Hol y Bu ll a se co nd ch eck fo r $3 5,0 00

,

whi ch was pr om

pt ly cas he d. Late r, whe n th e t i me cam e fo r gr azi ng

, Berg cal le d

Hag en se ve ral ti m es to pl an de li ve ry

. Hag en ne ve r ret ur ne d t h e cal ls

. The Berg s

gr azed no cat tl e o n HBC C p as tu re an d n ev er re cei ve d a refu nd

.

Bas ed on th is ev id en ce, th e jury reas on ab ly fo un d th at Hag en ha d th e in te nt to

de frau d Ro be rt Berg

. Kno win g on ly 40 acre s of l a n d h a d be en le as ed fo r gr azi ng

,

Hag en no ne th el es s co nt ract ed to gr aze a qu an ti ty of co w-cal f pa irs th at 40 acre s co ul d

no t po ss ib ly su pp or t. He acce p t e d B e rg ’s pa y m en t in ad va nc e, th en rep eat ed th e

m is rep res en ta ti on th at he ha d le as ed su ffi c i en t pa st ur e la nd to in du ce a se co nd

pa y m en t in ad va nc e fro m a sk ep ti cal cl ie nt who ha d st op p e d pa y m en t on th e fir st

ch eck

. W he n it was ti m e to gr aze th e cat tl e, Hag en di sa pp e a r e d wit h th e cl ie nt ’s

m on ey

. As th is was a vi ct im who su ffer ed ta ng ib le lo ss

, “ th e sc he m e it se lf

. . .

se rv e[d ] as ev id en ce of [Hag en ’s] in te nt to de frau d.” Erva st i

, 20 1 F.3 d at 10 37

.

Mo reo ve r, Hol y Bu ll te st ifi ed th at sh e an d Hag en kn ew th e la nd co ul d no t su pp or t th e

cat tl e th ey

ag reed to gra ze b ut to ok th e m on ey an y way

.

Hag en arg ue s th e go ve rn m en t fai le d to pr ov e h e i n t e nd ed to de frau d Berg

be cau se th ere was ev id en ce th at he ex pe ct ed to le as e th e sa m e am ou nt of la nd th ro ug h

th e BIA fo r th e 20 14 se as on as he ha d in th e pa st

. Howev er, in Ju ne 20 14

, Hag en ha d

on ly ad m in is tra ti ve ly ap pe al ed th e BIA’s de ci si on s to le as e HBCC on ly 40 acre s th at

se as on

. Not on ly was th e ou tc om e of th e ap pe al un cert ai n, it was al so im po ss ib le th at

th e ap pe al wou ld be de ci de d in hi s fav or be fo re t he 20 14 gra zi ng sea so n be cau se it

w a s no t rece iv ed by t he BIA un ti l Ju ne 30 , 2 01 4. Thu s, whe n Hag en co nt ract e d t o

-1 0-gr aze Berg ’s 10 0 co w-cal f pa irs

, Hag en kn ew he was pr om is in g to gr aze su bs ta nt ia ll y

m or e cat tl e th an hi s 4 0 a cres co ul d p os si bl y su pp or t -- a sa il or ’s pro m is e. 1

On th is ev id en ce, Hag en ’s in te nt to de frau d Berg is “a c r e d ib il it y is su e, th e

pr ov in ce of th e jury to res ol ve .” W al ke r

, 81 8 F.3 d at 42 1. W e co nc lu de th e jury

reas on ab ly fo un d th at Hag en

, “ ha vi ng de vi se d or in te nd in g to de vi se an y sc he m e or

art ifi ce to de frau d,” us ed m ai l an d wire “ fo r th e pu rp os e of ex ecu ti ng su ch sc he m e or

art ifi ce.” 18 U.S.C. §§ 13 41

, 13 43

. Acco rd in gl y

, we affi rm Hag en ’s co nv ic ti on an d

se nt en ce o n C ou nt s 4 an d 8

.

Con cl us io n

Fo r th e fo reg oi ng reas on s

, w e i n s t ru ct th e di st ric t co ur t to va cat e th e

co nv ic ti on s an d sp eci al as se ss m en ts on Co un ts 2, 3, 5, 6, an d 7. In al l ot he r res pe ct s,

th e jud gm en t of th e di st ric t co ur t is affi rm ed

. See Uni te d St at es v. Grim es

, 70 2 F.3 d

46 0, 4 69 , 47 2 (8 th Cir . 20 12 ).

__ __ __ __ __ __ __ __ __ __ __ __ __ __ __

1 “ Tis bu t a sa il or ’s pr om is e, weat he r-b ou nd ,” m ad e no t wit h th e in te nt to ke ep

, bu t to br eak as so on as th e se as are cal m en ou gh to sa il

. Ro be rt Bro wni ng

, So rd el lo

(1 84 0)

, rep rin te d in The Po et ic al W or ks of Ro be rt Bro wni ng 11 5, 15 0 ( A u g u s t i n e

Bi rrel l ed ., 19 02 ).

-1 1-