Opinion ID: 766081
Heading Depth: 2
Heading Rank: 3

Heading: Shipsey's Trial

Text: 15 Shipsey's trial began on May 20, 1997. Shipsey subsequently moved for a judgment of acquittal and the district court dismissed two of the four money laundering counts. The district court instructed the jury on the theft counts as follows: 16 Now counts fourteen through twenty charge the defendant with theft of funds connected with an employee benefit plan in violation of [18 U.S.C. S 664]. In order for the defendant to be found guilty of that charge, the government must prove each of the following elements beyond a reasonable doubt: 17 First, the defendant willfully stole or converted property to his own use or the use of another; and 18 Second, the property belonged to an employee benefit plan subject [ERISA]. 19 Now, an act is done willfully if it is done with an intend [sic] to defraud or for a purpose inconsistent with the purposes of the plan. In determining whether defendant acted willfully in causing a disbursement of moneys by a plan or connected fund, you may consider whether or not the defendant had a good faith belief that the disbursement was authorized. 20 Now, to steal is to acquire or possess property as a result of some wrongful or dishonest act or taking. Stealing requires that a person willfully obtain or retain possession of property which belongs to another with the intent to deprive the owner of the benefit of ownership or possession. 21 Conversion is the willful and unlawful taking and retaining of the property of another with the intent to deprive the owner of its use or benefit either temporarily or permanently . . . . 22 (emphasis added). 23 On June 12, 1997, the jury found Shipsey guilty of the seven theft counts and the two undismissed money laundering counts. The jury could not reach a verdict on the mail and wire fraud counts, so the court declared a mistrial on those counts. 24 After the verdict, Shipsey moved for a new trial. Among other contentions, he argued that the district court erred in instructing the jury that it could convict Shipsey of theft under a theory other than fraud, the theory alleged in the indictment. Shipsey asserted that by allowing the jury to consider other theories of theft, the district court relieved the prosecution of its burden to prove both that Shipsey made misrepresentations and that First Cal and the pension funds relied upon them, both elements of theft by false pretenses, see, e.g., People v. Allen, 208 Cal. App. 2d 537, 540 (Dist. Ct. App. 1962). The district court denied the motion. It noted that Shipsey was charged in the indictment with violating 18 U.S.C.S 664, which imposes liability on 25 [a]ny person who embezzles, steals, or unlawfully and willfully abstracts or converts to his own use or to the use of another, any of the moneys, funds, securities, premiums, credits, property, or other assets of an [ERISA plan]. 26 The district court held that, even though the theft counts incorporated paragraphs five through seven of the indictment and therefore specifically alleged that the unauthorized distributions resulted from Shipsey's false pretenses, the government could prove theft by any theory encompassed by the statute. 27 Shipsey was sentenced to thirty seven months on each count, to be served concurrently, three years supervised release on each count also to be served concurrently, and was released pending his appeal.