Opinion ID: 175418
Heading Depth: 3
Heading Rank: 2

Heading: The Indictment, Trial, and Sentencing

Text: In July 2007, a federal grand jury sitting in Newark returned a 33-count indictment. The District Court severed the first twenty counts and the Government submitted a redacted and renumbered indictment (hereinafter, “Indictment”).6 Counts 1–5 of the Indictment, the Land Fraud Counts, include Counts 1–3, which charged James and Riley with mail fraud as part of the scheme to convey City-owned property to Riley between 2002 and 2005, in violation of 18 U.S.C. §§ 1341 and 2.7 Count 4 charged James and Riley with fraud involving a local government receiving federal funds, in connection with the fraudulent sale of City-owned properties to Riley in 2005, in violation of 18 U.S.C. §§ 666(a)(1)(A) and 2. Count 5 charged James and Riley with conspiracy to defraud the public of James’s honest services between 1999 and 2006, contrary to 18 U.S.C. §§ 1341 and 1346, in violation of 18 U.S.C. § 371. Counts 6–9 (collectively, the “Housing Fraud Counts”) charged Riley with housing assistance fraud in violation of 18 U.S.C. §§ 1341 and 2. Finally, Counts 10–13 (collectively, the “Tax Fraud Counts”) charged Riley with tax evasion in violation of 26 U.S.C. § 7206(1). 5 For example, Riley paid $18,000 for the Phase II properties and without making any improvements sold them for $80,000 a month later. 6 The group of severed counts charged James with a scheme to defraud the City of Newark of money and property through the misuse of City of Newark credit cards. 7 Title 18 U.S.C. § 2 states that “[w]hoever commits an offense against the United States or aids, abets, counsels, commands, induces or procures its commission, is punishable as a principal.” 18 U.S.C. § 2. 7 Trial began on February 26, 2008. On April 16, 2008, following five weeks of testimony, the jury convicted James and Riley on all five Land Fraud Counts and Riley on Counts 6–13. On July 23, 2008, the District Court denied Appellants’ post-trial motions. The District Court sentenced James and Riley to a custodial sentence of twenty-seven months and fifteen-months respectively. James and Riley appealed the Land Fraud convictions and the Government cross-appealed the sentences.8