United States v. Hillman
2011 U.S. App. LEXIS 11962
10th Cir.2011Background
- Hillman was convicted after a jury trial of conspiracy to engage in money laundering, five counts of money laundering, and one count of making false statements to a federal agent.
- Shaffer, Hillman’s girlfriend, used her position in Great-West Life’s annuities department to drain inactive annuity accounts.
- Funds were claimed to come from Shaffer’s grandmother’s trust, a representation Hillman ultimately doubted.
- Over $816,000 was stolen and deposited into Hillman and Shaffer’s joint account; disclosure occurred after a policyholder sought a payout from an inactive annuity.
- Shaffer pleaded guilty to wire fraud in 2007 and agreed to cooperate; Hillman was indicted in 2009 and moved to dismiss the indictment; he was subsequently convicted and sentenced to 60 months’ imprisonment with restitution of $806,096.85.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Grand jury misconduct and indictment dismissal | Hillman argues the grand jury was improperly influenced | Hillman contends misconduct biased indictment | Indictment not dismissed; misconduct not prejudicial enough |
| Pre-indictment witness interview due process | Hillman asserts due process violation from AUSA questioning | Hillman asserts no due process violation | No plain error; no due process violation shown |
| IRS agent trial testimony encroaching on jury | Hillman claims agent's testimony invaded jury’s province | Hillman challenges admissibility of such testimony | No abuse of discretion; testimony admissible |
| Deliberate ignorance instruction sufficiency | Hillman challenges sufficiency for deliberate ignorance theory | Corrales controls; evidence supports actual knowledge and deliberate ignorance | Conviction affirmed; Corrales controls; instruction proper |
Key Cases Cited
- Bank of Nova Scotia v. United States, 487 U.S. 250 (1988) (dismissal of indictment only for substantial prejudice; not automatic for misconduct)
- United States v. Wiseman, 172 F.3d 1196 (10th Cir. 1999) (harmless-error approach after petit jury verdict)
- Kilpatrick, 821 F.2d 1456 (10th Cir. 1987) (misconduct before grand jury; standard for prejudice)
- United States v. Mechanik, 475 U.S. 66 (1986) (harmless-error rule after grand jury defects; verdict supports indictment)
- Bank of Nova Scotia v. United States, 487 U.S. 250 (1988) (see above (listed once))
- Griffin v. United States, 502 U.S. 46 (1991) (conviction sustained when evidence supports one theory of liability)
- United States v. Corrales, 608 F.3d 654 (10th Cir. 2010) (rejects challenging deliberate ignorance when actual knowledge supported)
- United States v. Hilliard, 31 F.3d 1509 (10th Cir. 1994) (deliberate ignorance instruction appropriate when showing purposeful avoidance)
- United States v. Delreal-Ordones, 213 F.3d 1263 (10th Cir. 2000) (example of deliberate ignorance instruction)
- United States v. Lopez-Gutierrez, 83 F.3d 1235 (10th Cir. 1996) (procedural/technical grand jury errors)
- United States v. Apperson, 441 F.3d 1162 (10th Cir. 2006) (prosecutorial misconduct standards before grand jury)
- United States v. Sigma Int’l, Inc., 244 F.3d 841 (11th Cir. 2001) (prosecutorial misconduct standards before grand jury)