Summary
The United States Court of Appeals for the Second Circuit affirmed the conviction of Michael Hild for securities fraud, wire fraud, bank fraud, and conspiracy following a trial in the Southern District of New York. On appeal, Hild challenged the sufficiency of the evidence and argued that a new trial was required due to erroneous jury instructions invalidated by the Supreme Court’s decision in Ciminelli v. United States. The appellate court concluded that sufficient evidence supported the conviction and that any instructional error did not warrant retrial because the jury also convicted him on a theory that remains valid post-Ciminelli.
Topics
Practice areas
Questions Presented
- Whether the evidence was sufficient to support Hild’s convictions for securities fraud, wire fraud, bank fraud, and conspiracy.
- Whether the erroneous jury instruction on the right‑to‑control theory of fraud, invalidated by Ciminelli v. United States, warrants a new trial under Yates.
Holdings
- The government’s evidence was legally sufficient; the convictions are affirmed.
- The error is harmless because Hild was convicted on a traditional fraud theory that remains valid; the conviction is affirmed.
Key quotations
“We conclude that sufficient evidence supports Hild’s conviction and that he is not otherwise entitled to a retrial. Accordingly, we AFFIRM the judgment of the district court.”
“Although we agree that, under Ciminelli, the district court erred in instructing the jury on a right‑to‑control theory of wire fraud, we conclude that Hild is not entitled to a new trial because he was convicted on a theory of fraud that remains valid post‑Ciminelli.”
Factual background
Live Well Financial, Inc., led by CEO Michael Hild, inflated the reported value of its bond portfolio by submitting inflated prices to Interactive Data Corporation, which lenders relied on to set loan amounts. The scheme involved a “Scenario 14” pricing model and later a “Scenario 4” model that produced bond valuations well above market values, allowing Live Well to obtain cash loans far exceeding the bonds’ true worth.
Procedural history
Hild was convicted at trial of securities fraud, wire fraud, bank fraud, and conspiracy. He moved for judgment of acquittal and a new trial, both denied. He appealed, also raising a claim that a jury instruction based on the now‑invalid right‑to‑control theory (Ciminelli) required a new trial.