Second Circuit – Fraud: United States v. Hild

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United States Court of Appeals for the Second Circuit

Fraud — Intent — Jury instructions

United States v. Hild

23-6136-cr

Judges Calabresi, Park, and Nathan

Background: The defendant appealed from his conviction of securities fraud, wire fraud, bank fraud, and conspiracy. While employed as a chief executive officer he engaged in a multi-year scheme to fraudulently inflate the value of a portfolio of bonds used as collateral to secure cash loans. He argues that the government did not establish intent and a retrial is warranted as the jury was instructed on a right-to-control theory of fraud.

Ruling: The Second Circuit affirmed. The court held that the evidence established that he induced lenders into loaning money to his company by misrepresenting the value of his collateral. Also, while the jury instructions on a right-to-control theory of fraud is no longer valid under Ciminelli v. United States, 598 U.S. 306 (2023), no retrial is necessary as he was convicted on a theory of fraud that remains valid.

Brian A. Jacobs, of Morvillo Abramowitz Grand Iason & Anello, for the defendant-appellant; Scott Hartman, assistant United States attorney, for the appellee.

Oral argument audio