Summary
This Seventh Circuit Court of Appeals opinion affirms the mail fraud, money laundering, and conspiracy convictions of defendants Gary Matthews and Monte Brannan. While reviewing the substantive merits of the appeals, the court extensively criticizes defense counsel for failing to comply with Seventh Circuit Rule 30 and Federal Rule of Appellate Procedure 28 regarding appellate briefing requirements. Consequently, the court orders counsel to show cause why they should not face sanctions for these procedural violations and false certifications of compliance.
Topics
Practice areas
Questions Presented
- Whether the evidence was sufficient to support the mail fraud convictions.
- Whether the evidence was sufficient to support the money laundering convictions.
- Whether the evidence was sufficient to support the conspiracy to commit money laundering conviction.
- Whether the district court erred by failing to remove an inattentive juror.
- Whether the district court erred by failing to sever charges prior to trial.
- Whether the district court erred in evidentiary rulings and proposed jury instructions.
- Whether the appellants complied with Circuit Rule 30(b)(1) and (d).
Holdings
- The convictions are affirmed because a rational trier of fact could find the essential elements of mail fraud beyond a reasonable doubt.
- The convictions are affirmed because the jury could find that the defendants knowingly engaged in financial transactions to conceal the source of illicit proceeds.
- The conviction is affirmed because the evidence shows an agreement and overt act in furtherance of the money‑laundering scheme.
- The challenge is waived because the defendants failed to object at trial despite being warned of the juror’s inattentiveness.
- The claim is waived because the defendants never moved to sever charges before trial.
- The appellants failed to comply; they are ordered to show cause why they should not be sanctioned $2,000 each.
Key quotations
“We must affirm if “any rational trier of fact could have found the essential elements of the crime beyond a reasonable doubt.”” (at 424)
Factual background
Matthews and Brannan managed GEM Hospitality, LLC, a redevelopment project in Peoria. They diverted project revenue intended for lenders to personal accounts, using checks labeled as project management. The jury found sufficient evidence of mail fraud and money laundering based on the scheme and the defendants' control of the funds.
Procedural history
The district court convicted Matthews and Brannan of mail fraud, money laundering, and conspiracy. The defendants appealed, raising sufficiency of the evidence, alleged juror bias, joinder issues, evidentiary rulings, jury instructions, and failure to comply with Circuit Rule 30. The Seventh Circuit reviewed the record and affirmed the convictions.
Remand instructions
Appellants must show cause within 14 days why they should not be fined $2,000 each for violations of Circuit Rule 30(b)(1) and (d).