United States v. Meredith
685 F.3d 814
| 9th Cir. | 2012Background
- Defendants-Appellants Lynne Meredith, Teresa Giordano, and Gayle Bybee were convicted at trial of conspiracy to defraud the United States, mail fraud, false representation of a Social Security number, passport fraud, and failure to file income tax returns; they operated businesses (We the People, Free the People, Sovereignty Pure Trusts, Liberty International) that taught tax evasion and sold “pure trusts.”
- Meredith and colleagues pursued a scheme built around “pure trusts” and tax-evading strategies taught at seminars and in books; they opened bank accounts using trust identification numbers.
- Spatola’s amended returns and other clients’ actions were guided by Meredith’s materials, with co-defendants providing specific instruction and drafting correspondence.
- The indictment charged 81 overt acts (including misdemeanors) underpinning a felony conspiracy count and various mail-fraud counts; Counts 13-14 alleged false SSN representations, Count 15 passport fraud, Counts 16-35 misdemeanors for failure to file taxes.
- The district court sentenced Meredith to 121 months, Bybee to 60 months, and Giordano to 40 months; Giordano’s restitution order was remanded for recalculation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| First Amendment applicability to tax-evading schemes | Meredith argues tax-evading advocacy is protected | Meredith argues speech alone cannot sustain crimes | Convictions upheld where speech was integral to crime |
| Overt acts include misdemeanors in conspiracy | Giordano contends misdemeanors cannot support conspiracy | Government argues overt acts may include misdemeanors | Overt acts can include misdemeanors; convictions sustained |
| Jury instructions on failure to file tax returns | Giordano challenges potentially conflicting instructions | No abuse of discretion; instructions coherent | Instructions not reversible error |
| Restitution order adjustments | Giordano seeks proper calculation | Restitution improperly calculated | Giordano’s restitution vacated and remanded for recalculation; Meredith restitution affirmed subject to adjustments |
Key Cases Cited
- United States v. Freeman, 761 F.2d 549 (9th Cir. 1985) (speech integral to crime exception applied to tax evasion)
- United States v. Green, 592 F.3d 1057 (9th Cir. 2010) (co-schemers' foreseeable acts liable; conspiracy evidence sufficiency)
- Spies v. United States, 317 U.S. 492 (1934) (over acts and conspiracy must be supportable; felony with lesser offenses not automatically underlying)
- United States v. Dahlstrom, 713 F.2d 1423 (9th Cir. 1983) (distinguish incitement imminent lawless action from integral crime)
- United States v. Persichilli, 608 F.3d 34 (1st Cir. 2010) (§408(a)(7)(B) vague or expansive but not vague; requires purposeful alteration)
- United States v. Mousavi, 604 F.3d 1084 (9th Cir. 2010) (willfulness requires specific intent)