Opinion ID: 592148
Heading Depth: 3
Heading Rank: 3

Heading: Property Fraud

Text: 31 Lothian also argues that his withdrawal from BNGA entitled him to acquittal on three counts charging interstate transportation of fraudulently obtained property. Alternatively, he contends that the evidence was insufficient to support his conviction on these counts because at the time the property crossed state lines he was not a participant in the scheme and therefore had no knowledge that the property was fraudulently obtained. We reject both these arguments. 32 The elements of interstate transportation of fraudulently obtained property under 18 U.S.C. § 2314 are (1) knowledge that property valued at at least $5,000 has been obtained by fraud, and (2) transporting that property or causing it to be transported in interstate commerce. Pereira v. United States, 347 U.S. 1, 9, 74 S.Ct. 358, 363, 98 L.Ed. 435 (1947); United States v. Olano, 934 F.2d 1425, 1430 (9th Cir.1991), cert. granted, --- U.S. ----, 112 S.Ct. 1935, 118 L.Ed.2d 542 (1992). A defendant who participates in the fraud by which the property was obtained may be held liable despite lack of intent or knowledge that interstate commerce would be used. United States v. Masters, 456 F.2d 1060, 1061 (9th Cir.1972); see United States v. Roselli, 432 F.2d 879, 890-91 (9th Cir.1970) (transportation requirement is solely jurisdictional and statute aimed at fraud itself), cert. denied, 401 U.S. 924, 91 S.Ct. 883, 27 L.Ed.2d 828 (1971); United States v. Kibby, 848 F.2d 920, 923 (8th Cir.1988) (citing United States v. Ludwig, 523 F.2d 705, 707 (8th Cir.1975), cert. denied, 423 U.S. 1076, 96 S.Ct. 861, 47 L.Ed.2d 86 (1976)). Moreover, because vicarious liability principles apply among participants in a fraudulent scheme, a defendant who is a knowing participant is liable for his co-schemers' interstate transport of property occurring during his membership in the scheme. See United States v. Vaccaro, 816 F.2d 443, 455 (9th Cir.), cert. denied, 484 U.S. 914, 108 S.Ct. 262, 98 L.Ed.2d 220 (1987). 33 As we concluded above, the evidence was sufficient to establish that Lothian participated in the fraud at BNGA through January 6, 1986, and after April 7, 1986. Because the three disputed property fraud counts involve victims first contacted prior to January 6, 1986, or property transported after April 7, 1986, we need not consider whether and how the withdrawal defense might apply to property fraud. The evidence was sufficient to support Lothian's conviction on these property fraud counts. 5