Opinion ID: 618612
Heading Depth: 2
Heading Rank: 1

Heading: Bennett's Convictions and Direct Appeals

Text: Bennett was the chief financial officer of a family business called Bennett Financial Group (BFG). The crimes of which he was convicted are described generally in United States v. Bennett, No. 00-1330 (2d Cir. May 31, 2001) ( Bennett I ) (summary order), and United States v. Bennett, 252 F.3d 559 (2d Cir.2001) ( Bennett II ), cert. denied, 535 U.S. 932, 122 S.Ct. 1307, 152 L.Ed.2d 217 (2002). The indictment alleged offenses of four kinds. First, Bennett allegedly ran a massive pyramid scheme through BFG, selling fictitious leases to investors and pledging or selling legitimate leases twice over to different parties. These pyramid scheme allegations supported mail fraud and securities fraud counts. Second, Bennett allegedly shifted the cash generated by pyramid sales into an unaudited shell company, supporting several money laundering counts. Third, Bennett allegedly inflated BFG's profitability in financial statements submitted to banks and investors who loaned money to BFG. These allegations supported bank fraud and additional securities fraud counts. Fourth, Bennett deceived SEC investigators, supporting public integrity counts such as perjury and obstruction of justice. There have been two trials. At each trial, the Government submitted evidence that would have permitted conviction on all the counts.... Bennett II, 252 F.3d at 560-61. At his first trial, which ended in March 1999, Bennett testified that in connection with an investigation into BFG by the Securities and Exchange Commission (SEC) he, inter alia, gave the SEC sworn testimony that was false, submitted documents that he had fabricated or backdated, and instructed others to give false statements and fictitious documents. At that trial, Bennett was convicted on one count of obstruction of justice, two counts of conspiracy to obstruct justice and commit perjury, and four counts of perjury, see generally id. at 561; Bennett I at 2. The jury was not able to reach verdicts on other counts, and a second trial on those counts was held in May-June 1999. At the second trialat which Bennett did not testifythe jury, although unable to reach verdicts on certain mail fraud and securities fraud counts, found Bennett guilty on two counts of securities fraud, five counts of bank fraud, five counts of engaging in monetary transactions with criminally derived property, and 30 counts of money laundering, see generally Bennett II, 252 F.3d at 561; Bennett I at 2. Following the second trial, Bennett was sentenced principally to 30 years' imprisonment and was ordered to forfeit $109,088,889.11. In Bennett I, we affirmed Bennett's convictions, albeit not his sentence. We rejected all of Bennett's claims of trial error, including, as discussed in greater detail in Part II.B below, his contention that he was entitled to a new trial on the ground that the court at his second trial gave the jury erroneous or incomplete instructions with respect to mens rea on the fraud counts, see Bennett I at 5-6. Simultaneously with our summary order in Bennett I, we filed a published opinion vacating Bennett's sentence and remanding to the district court for resentencing, ruling that the trial judge had departed upward from the Guidelines-recommended imprisonment range on an impermissible basis. See Bennett II, 252 F.3d at 564-65. On remand, the court resentenced Bennett, imposing the same nonincarceratory penalties but imposing a prison term of 22 years rather than 30. This Court affirmed the new sentence. See United States v. Bennett, No. 02-1379, 2003 U.S.App. LEXIS 19394 (2d Cir. Sept. 18, 2003) ( Bennett III ) (summary order), cert. denied, 540 U.S. 1134, 124 S.Ct. 1112, 157 L.Ed.2d 940 (2004).