USA v Brian Fenner
- Summarized by Jonathan Batiste , Rensselaer Polytechnic Institute
- 7 months 4 days ago
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- Nos. 23-2177 & 24-1089 (7th Circuit, Jul 01,2025) Published
- Tag(s):
-
- Ruling:
- The U.S. Court of Appeals for the 7th Circuit affirmed Defendants’ convictions. Rudimentary math and attention to detail do not constitute expert testimony. The allowance of summary witness testimony due to an abuse of discretion is harmless if it does not substantially influence the verdict. There is no reasonable probability that the erroneous admission of out-of-court testimony affects a verdict that other evidence supports. Ex post facto arguments about state laws are not fit for federal convictions. Restitution is based on actual losses and is not reduced by speculative adjustments.
- Procedural context:
- Defendants were charged and convicted of federal crimes in district court because of their fraudulent schemes. Defendants appealed the convictions to the U.S. Court of Appeals, requesting a new trial.
- Facts:
- Defendants engaged in a fraudulent scheme to defraud other creditors of the value of their claims against collateralized property. Defendants provided towing services to bankrupt debtors in exchange for paying the costs of the debtors’ bankruptcies and obtained mechanic’s liens against the property they towed under state law. Defendants disincentivized the property owners and other creditors from paying off the mechanic’s liens by fraudulently inflating the value of the liens. They conducted sham auctions, ensuring they would receive the property, and acquired clean titles to the vehicles by lying to the Indiana Bureau of Motor Vehicles (BMV) about the legitimacy of the auctions. They then sold the property, grossing over a million dollars from the sale of around one hundred vehicles. Federal law enforcement indicted Defendants after the BMV reported their activity. Another creditor sued Defendants. A special agent served as a summary witness in Defendants’ trial, summarizing admissible business records. An FBI forensic accountant delivered testimony summarizing Defendants’ bank records. Lastly, the government introduced statements made in a pre-indictment interview. The jury convicted Defendants in 2023 based on the evidence presented at trial. The district court sentenced Defendants to prison and ordered them to pay restitution of $49,045.84, the value of other creditors’ losses related to the fraudulent sales of collateral.
- Judge(s):
- Easterbrook, Jackson-Akiwumi, and Kolar
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