Opinion ID: 3001485
Heading Depth: 3
Heading Rank: 2

Heading: Mail Fraud Counts

Text: Next, both Cozzo and Useni challenge their convictions on the seven mail-fraud counts. The mail-fraud counts involve bingo and pull-tab license applications that Bingo Partners submitted via the mails to the state of Illinois in 1997. Cozzo and Useni argue that they cannot be held liable for any mail fraud based on actions taken by Bingo Partners in 1997 because their involvement with the Grand Palace ceased in May 1996 when Useni sold the hall to Bingo Partners. Furthermore, they argue that there was no evidence that they knew of the mailing of any of the applications in 1997. A conviction for mail fraud must be supported by evidence that a defendant participated in a scheme to defraud and caused the mails to be used in furtherance of that scheme. United States v. Barger, 178 F.3d 844, 847 (7th Cir. 1999). A defendant need not actually have used the mails himself to be liable for mail fraud. Instead, the evidence is sufficient to support a conviction for mail fraud if the defendant acted “with the knowledge that [the use of the mails] would ‘follow in the ordinary course of business, or where such use [could] reasonably [have been] foreseen.’ ” Am. Auto. Accessories, Inc. v. Fishman, 175 F.3d 534, 542 (7th Cir. 1999) (quoting United States v. Alexander, 135 F.3d 470, 474-75 (7th Cir. 1998)) (second alteration in original). The jury in this case had sufficient evidence before it to convict Useni and Cozzo on the mail-fraud counts. As was outlined in the discussion of the racketeering conspiracy count, the jury could have reasonably found that Useni and Cozzo were willing participants in the scheme to defraud both the IAWV posts of gambling proceeds raised in their name and the state of Illinois of 24 Nos. 06-1978 & 06-2107 tax revenue. There was also evidence from which a reasonable jury could conclude that the mailing of the license applications by Bingo Partners was in furtherance of the same fraudulent scheme, and that Useni’s and Cozzo’s participation in the scheme continued on into the time period in which Bingo Partners mailed the applications. The Grand Palace continued to be operated in the same manner after it was sold to Bingo Partners as when Useni and Cozzo were in charge. Indeed, Useni and Cozzo ensured that Bingo Partners would be able to continue operation of the hall. They left the money to operate the games for Bingo Partners to use until Bingo Partners got on its feet. Useni agreed to lend Bingo Partners the use of his provider’s license in exchange for $1000 a week. And Bingham, a stalwart in the previous regime, helped explain to the veterans comprising Bingo Partners how to run the Grand Palace. Moreover, Useni and Cozzo had a financial incentive to make sure the Grand Palace did not fold under Bingo Partners’s watch. The terms of the sale of the Grand Palace to Bingo Partners required Bingo Partners to make monthly payments to both Cozzo and Useni. Those monthly payments were made from the proceeds of the gambling; they were taken directly from the pull-tab machine. Both Cozzo and Useni demonstrated their interest in those payments, as they called Bingo Partners on different occasions inquiring about the money owed them. In short, because of the aid they provided to Bingo Partners and the money they continued to receive from the gambling, both Cozzo and Useni continued to participate in the illegal scheme even after the Grand Palace was sold to Bingo Partners. Finally, the jury had sufficient evidence to conclude that Useni and Cozzo reasonably could have foreseen Nos. 06-1978 & 06-2107 25 the mailing of the bingo and pull-tab applications by Bingo Partners. The jury could reasonably have concluded that Cozzo was well aware that the continuing viability of the gambling at the Grand Palace depended on the annual renewal of the licenses, since he had attempted to have a bingo license application submitted using the names of his sisters and girlfriend. Similarly, Useni had submitted a provider application when he was owner of the Grand Palace and could therefore have anticipated that the bingo and pull-tab licenses had to be renewed annually as well. Accordingly, the jury’s convictions on the mail fraud counts were supported by the evidence.