Opinion ID: 3171512
Heading Depth: 3
Heading Rank: 4

Heading: “Guaranteed” Principal

Text: Bravata’s most persistent lie was the safety of the investors’ principal. On appeal, however, he claims that DeFauw, Doa, Fusco, Gienapp, Schondelmayer, and Weiss never testified that Bravata “guaranteed” their principal and therefore these convictions cannot stand. True enough, these six investors never testified that Bravata “guaranteed” their principal investments in so many words. But they nonetheless recounted Bravata’s lies about the safety of their principal. (R. 199, DeFauw Test., Day 3 Trial Tr. at 66 (“Q: Did he tell you [the principal investment] was safe and guaranteed to be safe? A: Yes.”); R. 210, Doa Test., Day 13 Trial Tr. at 14 (“I was told that the [principal investment] would be held at PENSCO Trust. So I can—you can only assume from simple deduction that it would be guaranteed. - 10 - Case Nos. 13-2380, 13-2381, 13-2591, 15-1370, United States v. Bravata PENSCO Trust was holding it.”); R. 206, Fusco Test., Day 10 Trial Tr. at 76 (“He said that [the original investment] would be insured and that we would not lose our principal investment.”); R. 204, Gienapp Test., Day 8 Trial Tr. at 76 (“Q: So he said [the principal] was safe? A: Yes, certainly. Q: You would get it back? A: Yes, you would get it back.”); R. 214, Schondelmayer Test., Day 20 Trial Tr. at 59 (“Q: What did he tell you would happen with your principal investment? A: The money would be safe.”); R. 324, Joan Weiss Test., Day 23 Trial Tr. at 61 (“He said our initial investment would never go down and that it was safe and secure, we could take the money out at any time we wanted to and it was with Comerica Bank.”).) The government proved material misrepresentations, whether or not the witnesses uttered the word “guaranteed.”