Opinion ID: 4024287
Heading Depth: 3
Heading Rank: 3

Heading: Acts Occurring in the Eastern District

Text: BSMI operated out of Billʹs home state in Washington, but solicited investors nationwide.4 The Government asserts on appeal that two categories of acts establish venue in the EDNY with respect to the BSMI scheme: (1) cold calls to potential investors and (2) email correspondence with an apparent potential investor.
In May of 2010, Bill purchased a sales lead list to solicit capital for BSMI from investors nationwide. Several individuals, including Kristofor, were tasked with cold‐calling potential investors. Three versions of the call list were circulated to employees to be used for those calls. The first list (the ʺunscrubbed listʺ) was circulated by Frank Perkins to Joseph Pascua and to an email address shared by Kristofor and Bill on May 25, 2010. The unscrubbed list, derived from and identical to the sales lead list, contained contact information for approximately 2,000 individuals, about 40 of whom had addresses within the EDNY. The Government established that this 4 HFGI was also operated out of Washington, but one of the HFGI investors was located in Brooklyn, as was the escrow attorney. Russell does not challenge the juryʹs finding that this evidence was sufficient to establish venue in the EDNY on his conviction for Count One, conspiracy to commit wire fraud. Accordingly, we focus solely on acts occurring in the EDNY in furtherance of the BSMI scheme. ‐11‐ list was used by BSMI employees to make cold calls; one non‐EDNY investor on that list who was initially solicited via cold call testified at trial. Nine days later, Russell scrubbed the list to remove investors on the Do Not Call Registry and circulated a ʺscrubbedʺ list (the ʺfirst scrubbed listʺ). Russell sent the first scrubbed list by email to Julie Day, a BSMI employee, with a carbon copy sent to the email address that Kristofor shared with Bill. In that email, Russell stated that the list was ʺto replace the one I sent you last week to start researchingʺ and that ʺ[o]nly the ones with the area code in GREEN need[ed] to be researched.ʺ Govʹt App. at 343. The first scrubbed list contained approximately 70 potential investors. Of these, 15 individuals had addresses in the EDNY, 14 of which were highlighted green. In that email, Russell stated ʺ[l]et me know when you are running low [on contact numbers] and I will send a new list.ʺ Id. Later that day, Russell circulated another list (the ʺsecond scrubbed listʺ) to the email shared by Kris and Bill, copying Joseph Pascua and Frank Perkins. The second scrubbed list contained approximately 50 names, two of which had 718 area codes. The 718 numbers did not include corresponding ‐12‐ addresses and the Government did not establish that these individuals resided within the EDNY.5 Two BSMI employees, Judith Shulmire and Joseph Pascua, testified that cold calling was a key solicitation strategy for BSMI. Shulmire testified that the entire staff was tasked with making sales calls to potential investors from the circulated lists. Pascua also testified that three to five BSMI employees made cold calls to solicit investment. Pascua further noted that on a call with Bill and Frank Perkins, Bill stated that ʺhe needed to get aggressive in calling investorsʺ from the list and that he would identify himself as Kristofor in these calls. Trial Tr. at 1626. Shulmire also testified that Kristofor ʺmade some sales callsʺ and participated in sales calls with his father where his father would pretend to be him, with Kristoforʹs consent. Govʹt App. at 234. Kristofor also participated in pre‐ and post‐call strategy sessions with his father and other BSMI staff.
In July 2010, Postal Inspector Lucente, who worked and resided in the EDNY, viewed a webinar broadcast from the BSMI office in Washington that described potential investment opportunities in BSMI. On November 29, 2010, Inspector Lucente emailed the company under a pseudonym to express interest 5 The 718 area code covers areas within and outside the EDNY. ‐13‐ in investing in BSMI. Inspector Lucente was located in his office in the EDNY when he communicated with BSMI. On November 30, 2010, Inspector Lucente received an email response from the address info@black‐sand‐inc.com thanking him for his interest in BSMI. Three days later, JoEll Pascua, Joseph Pascuaʹs wife and a BSMI employee, sent Inspector Lucente a second email including a BSMI newsletter containing material misrepresentations about BSMI. On December 5, 2010, Joseph Pascua sent another email to Inspector Lucente, stating that ʺthe opportunity may be limited with BSMI,ʺ citing BSMIʹs need to work with accredited investors with whom BSMI had a pre‐existing relationship, but leaving open the possibility of working with Inspector Lucente. Trial Tr. at 2008.