United States v. Ransom
2011 U.S. App. LEXIS 12746
| 10th Cir. | 2011Background
- Ransom worked for HUD in Kansas City, KS, supervising ~89 employees and was FLSA-exempt (GS-15).
- A 2001 HUD memo mandated fixed core hours (8:00 a.m.–4:30 p.m.) and in-office presence during official hours.
- Ransom submitted biweekly time records claiming 80 hours, including leave, which his assistant prepared and his supervisor approved.
- HUD investigated anonymous complaints about Ransom’s absences and found he sometimes played tennis or gambled during core hours without leave, while other times using approved leave.
- Investigation showed partial-day absences, missing core hours, and a large positive leave balance due to false reporting; records tied leave to pay.
- Ransom was indicted in 2009 on twenty counts (ten wire fraud, ten theft of public money) spanning 2001–2007, and convicted on all counts; district court denied post-trial motions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Sufficiency of evidence for wire fraud and theft | Ransom argues time records were irrelevant to pay; no direct link to paychecks | Govt. contends leave balance and timekeeping tied to pay consequences | Evidence supported guilt; time records impacted leave and pay consequences |
| Jury instruction correctness | Instruction 15 misstates law and misled jury | Instruction accurately stated applicable law within context | Instruction 15, read with others, did not mislead; proper legal framing |
| Wire fraud vagueness as applied | Statute void for vagueness given lack of direct paycheck-link proof | Presumed link shown; statute properly applied | Ransom’s vagueness challenge rejected; not reached as connection established |
Key Cases Cited
- United States v. Gallant, 537 F.3d 1202 (10th Cir. 2008) (elements of wire fraud require scheme, intent, and wire transmission)
- Neder v. United States, 527 U.S. 1 (U.S. 1999) (materiality of falsehood is required for wire fraud)
- Medlock v. Ortho Biotech, Inc., 164 F.3d 545 (10th Cir. 1999) (reviewing jury instructions for overall accuracy in informing law)
- United States ex rel. Stone v. Rockwell Int'l Corp., 282 F.3d 787 (10th Cir. 2002) (de novo review for constitutional questions)
- United States v. Telluride, 146 F.3d 1241 (10th Cir. 1998) (statutory construction of federal statutes)
- United States v. Hilliard, 31 F.3d 1509 (10th Cir. 1994) (civil violations may inform intent; not to be sole basis for criminal liability)