U.S. v. Marston
- Summarized by Bodie Colwell , Preti Flaherty, LLP
- 12 years 3 months ago
- Citation:
- U.S. v. Marston, No. 11-2100 (B.A.P. 1st Cir. Sept. 20, 2012)
- Tag(s):
-
- Ruling:
- The First Circuit Court of Appeals reversed one count of the judgment for bankruptcy fraud against Marston (Count Four) and affirmed one count of the judgment against Marston (Count One) from the U.S. District Court for the District of New Hampshire.
Discussing the meaning of "use" in the bankruptcy petition in relation to names used by the debtor, the Court found that the requirement on the petition was not ambiguous and required Marston to include the names she used to obtain credit cards, including Susan Blake and Kristy Kromer. Additionally, the Court found that the government did not provide evidence that at the time that the bankruptcy petition was filed, there was still extant claims against Marston which would need to be included on Schedule E. Thus, the Court reversed Count Four.
- Procedural context:
- Ramie Marston appeals her convictions, after a jury trial, for two counts of bankruptcy fraud. The convictions stemmed from a pro se petition for bankruptcy that Marston filed in March 2009 under Chapter 7. The prosecution alleged that Marston failed to include in the petition information related to her past fraudulent use of credit cards that she obtained under the names of two acquaintances--Susan Blake and Kristy Kromer.
- Facts:
- A debtor who files such a bankruptcy petition has to identify "All Other Names used by the Debtor in the last 8 years (include married, maiden, and trade names)." Marston wrote "Marston, Robbi" in answer to that question, but she did not mention the names of Susan Blake or Kristy Kromer. She then signed under penalty of perjury that the information she provided in the petition was "true and correct." A debtor must also identify creditors of different classes in separate schedules. In Schedule E, which asks for all creditors with unsecured priority claims, Marston listed Susan Blake as holding a $50,000 claim incurred on February 3, 2009, of which $46,000 was entitled to priority. In Schedule F, which asks for all creditors holding unsecured nonpriority claims, Marston listed Susan Blake as holding a disputed $50,000 claim incurred on September 22, 2007. Marston made no reference to the credit card issuers that had issued the cards in Susan Blake's name. Again, Marston's signature under penalty of perjury represented that the information in the schedules was "true and correct to the best of my knowledge, information, and belief."
Eventually, the petition was dismissed on Marston's own motion after the United States Trustee challenged her right to a discharge. On April 27, 2011, Marston was charged with five counts of bankruptcy fraud, 18 U.S.C. § 152, each count alleging that she had made a false statement in her application or schedule. The two counts ultimately submitted to the jury alleged as follows:
--COUNT ONE: that Marston had used the names Kristy Kromer and Susan Blake but knowingly and fraudulently failed to disclose this as required in the petition.
--COUNT FOUR: that Marston knowingly and fraudulently failed and refused to disclose debts to Bank of America, BMW Bank of North America, and American Express.
Martson appealed the convictions arguing that the evidence was insufficient for a reasonable jury to convict on either count.
- Judge(s):
- Boudin, Hawkins and Dyk
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