{"ID":63500,"name":"Ciminelli v. United States","href":"https:\/\/api.oyez.org\/cases\/2022\/21-1170","view_count":0,"docket_number":"21-1170","additional_docket_numbers":null,"manner_of_jurisdiction":"Writ of \u003Ci\u003Ecertiorari\u003C\/i\u003E","first_party":"Louis Ciminelli","second_party":"United States","timeline":[{"event":"Granted","dates":[1656565200],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/55138"},{"event":"Argued","dates":[1669615200],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/55179"},{"event":"Decided","dates":[1683781200],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/55265"}],"lower_court":{"ID":7,"name":"United States Court of Appeals for the Second Circuit","href":"https:\/\/api.oyez.org\/taxonomy\/term\/7"},"facts_of_the_case":"\u003Cp\u003EIn 2012, New York Governor Andrew Cuomo launched an initiative, known as the \u201cBuffalo Billion\u201d initiative, to develop the greater Buffalo area. Alain Kaloyeros strategically secured a highly influential role in the initiative and used that role to award contracts to certain developers of his choosing based on his knowledge and control over the process. Once the scheme came to light, the participants were charged and convicted of conspiracy to engage in wire fraud. In 2018, a jury returned a verdict of guilty on all counts, and the defendants were sentenced to prison terms of varying lengths.\u003C\/p\u003E\n\u003Cp\u003EOn appeal, the U.S. Court of Appeals for the Second Circuit affirmed the wire fraud convictions, relying on a \u201cright-to-control theory\u201d of wire fraud that allows for conviction on \u201ca showing that the defendant, through the withholding or inaccurate reporting of information that could impact on economic decisions, deprived some person or entity of potentially valuable economic information.\u201d\u003C\/p\u003E\n","question":"\u003Cp\u003EDoes the Second Circuit\u2019s \u201cright to control\u201d theory of fraud state a valid basis for liability under the federal wire fraud statute?\u003C\/p\u003E\n","conclusion":"\u003Cp\u003EThe Second Circuit\u2019s right-to-control theory cannot form the basis for a conviction under the federal fraud statutes because the right to control is not grounded in a traditional property interest. Justice Clarence Thomas authored the unanimous opinion of the Court.\u003C\/p\u003E\n\u003Cp\u003EThe federal wire fraud statute prohibits the use of interstate wires for \u201cany scheme or orifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises.\u201d When the statute was enacted, the common understanding of the verb \u201cto defraud\u201d related to property rights. Although lower courts have interpreted the statute to include interests unconnected to traditional property rights, the Supreme Court in McNally v. United States, 483 U.S. 350 (1987), held that the statutes protect only individual property rights. The right-to-control theory has no roots in a traditional property interest and thus cannot be the basis for a conviction under the federal fraud statutes.\u003C\/p\u003E\n","advocates":[{"advocate":{"ID":35719,"name":"Michael R. 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