United States v. Mitchell
- Summarized by David Treacy , U.S. Bankruptcy Court, Eastern District of Kentucky
- 4 days 18 hours ago
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- 25-4036 (10th Circuit, Mar 23,2026) Not Published
- Tag(s):
-
- Ruling:
- The U.S. Court of Appeals for the Tenth Circuit upheld a debtor/defendant's conviction for making a false bankruptcy declaration in violation of 18 U.S.C. § 152(3) despite the absence of a “materiality” element in the jury instruction, The debtor's proposed instruction omitted a materiality element and the government's instruction included one. Each objected to the other's instruction. The district court drafted an instruction that omitted a materiality element. The debtor did not object before it was issued. The circuit rejected the debtor's plain error argument, calling it "invited error."
- Procedural context:
- Debtor "was indicted for bankruptcy fraud, concealment, false bankruptcy declaration, false bankruptcy oath, and bribery in bankruptcy." The government dropped the concealment and false oath counts, a trial occurred on the three remaining counts, and a jury convicted him on all three counts. On appeal, Debtor's opening brief only addressed the conviction on the false declaration count, and so the Tenth Circuit did not review the other convictions. Debtor argued the district court committed plain error in failing to instruct the jury that materiality is an element of making a false bankruptcy declaration. The circuit court applied its "invited-error doctrine" in rejecting Debtor's argument, stating: "He not only omitted a materiality element in his proposed instruction; he specifically objected to the government’s inclusion of a materiality element. Mitchell’s inducement of the district court to commit the very purported error he now complains about precludes us from setting it aside on appeal."
- Facts:
- Debtor/Defendant Richard Villanueva Mitchell ran an appliance business. Between 2012 and 2015, he borrowed about $500,000 from a hard-money lender, Brad Taylor. Debtor used the funds to buy hundreds of dishwashers, refrigerators, washers, dryers, and ranges worth over $321,000. He then filed a bankruptcy petition and schedules stating he owned total assets worth less than $50,000. He did not list the appliances on his schedules or Statement of Financial Affairs. At his meeting of creditors, he testified that his filings accurately represented his assets and denied having other assets. Debtor also had email communications with Taylor in which Debtor stated he was going to file a bankruptcy case, use it to eliminate creditors "causing him problems," and then sell the appliances to pay Taylor back. Taylor reported the communications to the case trustee, "who described Mitchell's email as 'shocking.'" "The trustee acquired the appliances, sold them, and added the proceeds to the estate." Debtor was then indicted based on his conduct and proceeded to a criminal trial in the U.S. District Court for the District of Utah.
- Judge(s):
- Phillips, Eid, and Federico
ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!
