Opinion ID: 795316
Heading Depth: 3
Heading Rank: 3

Heading: Count III—Wire Fraud

Text: 71 The essential elements of wire fraud are a scheme to defraud, the use of interstate wires incident to the scheme, and an intent to cause harm. United States v. Frank, 354 F.3d 910, 918 (8th Cir.2004). 72 Edelmann's argument is that the government failed to establish the use of interstate wires, asserting that the evidence demonstrated that only intrastate wires were used, as Richardson caused the Schwab office in Little Rock to wire the funds to Edelmann's bank account at a Little Rock bank. However, the government presented the testimony of David Fern, a Charles Schwab employee, who testified that Schwab has relationships with various banks across the country who hold their funds in-house. Fern testified that Schwab held Richardson's funds and, in making a transfer, these funds go from Schwab to the federal wire routing house, and from there . . . to the receiving bank. He explained that the money went through a clearinghouse for wires and that all wired funds go through the Federal Reserve. Fern testified that his branch office in Little Rock does not hold cash in any way, shape, or form. In addition, the government presented evidence showing that Richardson's request for the wire transfer was made via fax to Schwab's wired funds department in San Francisco. Therefore, the money was sent by Citibank to Superior Federal, with the originator being located in San Francisco and the beneficiary being located in Lonoke, Arkansas. 73 Additionally, Edelmann argues that the government failed to prove that a scheme to defraud existed because a legitimate debtor-creditor relationship existed between Richardson and Edelmann. The government, however, presented evidence that Edelmann procured the promissory notes through false statements and false documents that she presented to Richardson to entice him to loan her $250,000. Therefore, we find that sufficient evidence exists to support the jury's verdict as to Count III.