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United States v. Frank Slevin, William Leslie

Citations: 106 F.3d 1086; 1996 U.S. App. LEXIS 33034Docket: 95-1713

Court: Court of Appeals for the Second Circuit; December 18, 1996; Federal Appellate Court

Narrative Opinion Summary

This case involves the conviction of Frank Slevin for conspiracy to commit mail and wire fraud and multiple counts of mail and wire fraud under 18 U.S.C. §§ 371, 1341, and 1343. Slevin was found guilty in the U.S. District Court for the Southern District of New York, and his appeal challenged the sufficiency of evidence, the relevance of mail use in his scheme, and the court's refusal to hold a full evidentiary hearing on victim losses. From 1988 to 1994, Slevin created fraudulent offshore corporations providing payment and performance bonds to contractors, utilizing a complex network of mail drops and fraudulent documents to maintain a façade of legitimacy. Despite his claims of undercapitalization, the court found compelling evidence of Slevin's intent to defraud, evidenced by his deceptive practices and the use of mailings to further his fraudulent activities. Slevin's conviction was affirmed, with the court ruling that the mailings were crucial to sustaining his fraudulent operation and that the sentencing process was adequate. Slevin was sentenced to 78 months in prison with restitution based on estimated economic harm. The court concluded that all of Slevin's arguments on appeal were without merit. The opinion was authored by Judge Mahoney before his passing, and the decision highlighted the fraudulent nature of Slevin's operations.

Legal Issues Addressed

Mail Fraud and 'In Furtherance' Requirement

Application: The court concluded that mailings of reimbursement checks were integral to Slevin's fraudulent scheme, as they maintained relationships necessary for continued fraudulent activities.

Reasoning: Slevin's fraudulent scheme involved providing bonds to contractors unable to secure them from Treasury-listed companies. He charged a $500 upfront fee and required financial statements and contract lists from contractors, ensuring their reimbursement from the obligees for the premiums paid.

Sentencing and Evidentiary Hearings

Application: The court determined that a full evidentiary hearing on economic losses was not required, as Slevin was allowed to contest the government's claims through cross-examination and submissions.

Reasoning: Regarding sentencing, Slevin claimed the court erred by not holding a full evidentiary hearing on damages. However, the court is not mandated to conduct such a hearing and only needs to provide an opportunity for the defendant to contest the government's claims.

Sufficiency of Evidence in Fraud Convictions

Application: The court found that Slevin's actions constituted a deliberate scheme to defraud, thus sufficient evidence supported his convictions for mail and wire fraud.

Reasoning: Slevin contested the sufficiency of the evidence for his mail and wire fraud convictions, arguing that the evidence only indicated his companies were undercapitalized rather than a fraudulent scheme. However, the court found that Slevin's actions constituted a deliberate scheme to defraud.