Document: 522 U.S. 23118 S.Ct. 285139 L.Ed.2d 215 Garrit BATES, Petitioner,v.UNITED STATES. No. 96-7185 Supreme Court of the United States Argued Oct. 7, 1997. Decided Nov. 4, Syllabus * James and Laurenda Jackson owned operated Education America, Inc., a for-profit consulting management firm for technical vocational schools. In 1986, Jacksons acquired Acme Institute Technology, not-for-profit school, appointed petitioner Bates, then vice president to serve as Acme's treasurer. 1987, Jackson, president, signed program participation agreement with Department that authorized school receive student loan checks through Title IV Guaranteed Student Loan (GSL) program. See 20 U.S.C. §1070 et seq. hinged upon both its continued accreditation by an approved accrediting association Jackson's promise comply all applicable statutes regulations. Under GSL program, banks other private institutions lent money students tuition educational expenses. The Federal Government administered guaranteed payment if borrower defaulted. would check directly from lender, endorse check, credit amount against student's debt. If withdrew before term ended, governing regulations required return within specified time, portion proceeds. lender deduct refund owed. did not repay student-and she defaulted, Government-would remain liable full loan. late pursuant decisions made initiated pattern practice making refunds. Bates gave priority fee America salaries Jacksons, instructed employees make America's wrote letter stated unmade refunds were solely responsibility decision corporate office. By March 1989, liability had grown approximately $85,000. subsequently lost accreditation, and, in 1990, notified was no longer eligible participate A few months later, ceased operations. 1994, indicted on twelve counts "knowingly willfully misapply[ing]'' federally insured funds, violation §1097(a) (1988 ed.) 18 §2. Agreeing conviction under willful misapplication allegation defendant's "intent injure or defraud States,'' District dismissed indictment because it lacked such allegation. Seventh Circuit vacated judgment reinstated prosecution, concluding prove only knowingly misapplied funds. Held: Specific intent someone, whether another, is element funds proscribed §1097(a). text does include defraud'' requirement, this court ordinarily resists reading words into statute do appear face. contrast, §1097(d), enacted at same time §1097(a), has requirement. It generally presumed Congress acts intentionally purposely where includes particular language one section but omits another. Russello v. States, 464 16, 23, 104 296, 300, 78 17. Despite contrasting §§1097(a) (d), relies interpreting §656, which proscribes bank An element, originally included dropped during revision criminal code. view history, courts have hold offense described §656. Assuming, without deciding, §656 correctly read retain never contained present start still §1097(d). Neither nor history warrants adoption Bates's construction Nor set trap unwary. As construed Circuit, catches transgressor who exercises unauthorized dominion over his own benefit third party. So read, measure render felonious innocent maladministration business enterprise merely unwise use Furthermore, 1992 amendment adding "fails refund'' §1097(a)'s demonstrate deliberate failure defraud, became compass statute's current text. added simply foreclose any argument reach Cf. Commissioner Estate Sternberger, 348 187, 194, 75 229, 233, 99 L.Ed. 246. Finally, nothing text, structure, importation requirement proscription, rule lenity come play case. Wells, 519 ----, ----. Pp. ___-___. 96 F.3d 964 (C.A.7 1996), affirmed. GINSBURG, J., delivered opinion unanimous Court. C. Richard Oren, Rochester, IN, petitioner. Lisa S. Blatt, Washington, DC, respondent. Justice GINSBURG 1 This case concerns meaning 100 Stat. 1491, added, ed.), declared felony willfully'' misapply Higher Act 1965. acknowledges demanded proof intentional conversion question presented demanded, addition, defendant specifically intended someone-either guarantor, measure, We hold, accord Appeals, specific 2 (App. 2-12) alleged following facts. December located South Bend, Indiana, offered associate degree programs electronic engineering, tool, die, plastics mold design. After acquisition, Bates-then America-to treasurer board trustees. 3 On April 30, Acme, federal ed.).1 4 (34 C.F.R. §§668.22 682.606 (1990)) proceeds, based how much paid point.2 Refunds regulation §682.607) instructed, be period (30 60 days) withdrawal. loans 5 Around end 14, 1988, sent director ordering him, effective month, "tally [Acme's] receipts preceding month remit 10% [the] total Inc.'' also told pay monthly salary. further stated: "If above creates cash shortfall your will loaned back you cover shortfall.'' serving chief financial officer, permitted these salary payments take refunds, 1988 early officials ordered stop using special account segregated unearned student-loaned general account. former owners used ensure always available timely lenders. 6 October amassed roughly $55,000 aid January 1989 draw attention gravity totaled $68,000. dated 13, released concerning requested. "solely office.'' 7 National Association Trade Technical Schools, national association, conducted on-site audit determine should continue accredit school. reported "inadequately demonstrated ability appropriate refunds,'' "loaned substantial amounts [James Jackson,] trustee.'' report noted evidence fees been "upstream[ed]'' America. 8, June 5, During tenure $139,649 including interest certain allowances. 8 September grand jury between 15, February 1995, filed motion dismiss indictment. He argued, agreed, States.'' Because allegation, it. 9 appeal, Court's prosecution. (1996). Appeals concluded "the misapplied-i.e., converted-Title he so willfully.'' Id., 970. Circuit's conflicts Eleventh Kammer, 1161, 1165-1166 (1993), held requires allege States. granted certiorari resolve conflict, 117 941, 136 831 (1997), now affirm judgment. II 10 Our inquiry begins ed.). At offenses charged indictment, provided relevant part: "Any person embezzles, misapplies, steals, obtains fraud, false statement, forgery assets, property subchapter . shall fined more than $10,000 imprisoned years, both.''3 11 state mind we resist elements makes "destro[y] concea[l] record relating provision assistance [Title IV] States'' (emphasis added). reiterated: ""[W]here another Act, disparate inclusion exclusion.''' 17 (1983) (quoting Wong Kim Bo, 472 F.2d 720, 722 (C.A.5 1972)). 12 urges essential, albeit unexpressed, him. For argument, primarily reasoning Court, like F.3d, 1165, looked Courts unanimously agree government acted "injure "deceive'' officer,4 even though statute, face, contains element.5 involving different named explained why element: 13 "The statutory expressly require [fraudulent injurious] intent. Originally defraud' "deceive' officer inadvertently course To avoid every missing section.'' 852 212, (1988). 14 correct, contained, did, short, there here neither warranting us adopt.6 15 "trap unwary,'' suggested "every officer.'' F.2d, 215. construction, " [I]nnocent enterprise'' "unwise,'' see Brief Petitioner fit construction.7 16 provision's text.8 change, argues, establishes previously compass, Congress' hardly means conduct question. 246 (1955) ("Subsequent amendments clarified changed th[e earlier] principle.''). three words-"fails refund''-simply refunds; those persuasive one. H.R. Conf. Rep. 102-630, p. 513 (1992) (" [F]ailure constitute law. Language bill clarification.''). finally that, extent ambiguous, supports interpretation fraudulent essential knowing explained, however, proscription. lenity, therefore, play. ---, ---- (1997) (slip op., 17-18). need charge aimed anyone, defense hoped students, someone else due lenders fisc suffer loss. *** 19 reasons stated, Affirmed. syllabus constitutes part prepared Reporter Decisions convenience reader. Detroit Timber & Lumber Co., 200 321, 337, 26 282, 287, 50 499. 1992, amended renamed Family Program. Amendments Pub.L. 102-325, §411(a)(1), 106 510. pre-1992 conduct, refer since consolidated requirements §668.22. 59 Fed.Reg. 61211 (1994). 99-498, §490(a), 1491. Whitlock, 663 1094, 1102 (C.A.D.C.1980); Wester, 90 592, 595 (C.A.1 1996); Castiglia, 894 533, 537 (C.A.2), cert. denied, 497 1004, 110 3238, 111 749 (1990); Thomas, 610 1166, 1174 (C.A.3 1979); Duncan, 598 839, 858 (C.A.4), 444 871, 148, 62 (1979); McCord, 33 1434, 1448 1994), denied sub nom. Haley 515 1132, 115 2558, 132 812 (1995); Woods, 877 477, 479 (C.A.6 1989); Crabtree, 979 1261, 1266 1992), 510 878, 114 216, 217, 126 173 (1993); Ness, 665 248, 249 (C.A.8 1981); Wolfswinkel, 44 782, 786 (C.A.9 1995); Evans, 42 586, 589 (C.A.10 1994); Morales, 978 650, 652 (C.A.11 1992). Section 656 currently provides "connected capacity Reserve bank'' related organization commits "embezzles, abstracts, purloins misapplies moneys, credits'' organization. Ratzlaf 135, 655, 615 (1994), bear our today. decided only, context currency structuring, knowledge illegality 31 §5322(a) framed. involve regarding whether, addition must defraud.'' "working definition'' reads: [W]illful consciously, voluntarily, exercised control interfered rights funds' true owner(s), person, while exercise law.'' argues erred knew violated 21-22. However, challenge cross-petition decision, know law us. reads forgery, fails $20,000 both.'' §495, 631.

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