Opinion
19-CR-602 (RA)
05-14-2021
UNITED STATES OF AMERICA v. MICHAEL HILD, Defendant.
JURY CHARGE
I. TABLE OF CONTENTS
A. INTRODUCTORY REMARKS ............................................................................................................................... 4
B. ROLE OF THE COURT ....................................................................................................................................... 4
C. ROLE OF THE JURY .......................................................................................................................................... 5
D. ROLE OF COUNSEL .......................................................................................................................................... 6
E. PRESUMPTION OF INNOCENCE AND BURDEN OF PROOF .................................................................................... 6
F. SYMPATHY OR BIAS ........................................................................................................................................ 8
G. ALL PERSONS EQUAL BEFORE THE LAW .......................................................................................................... 9
H. WHAT IS AND IS NOT EVIDENCE ...................................................................................................................... 9
I. DIRECT AND CIRCUMSTANTIAL EVIDENCE .................................................................................................... 10
J. WITNESS CREDIBILITY .................................................................................................................................. 12
K. INTEREST IN OUTCOME ................................................................................................................................. 13
L. GOVERNMENT EMPLOYEE WITNESS .............................................................................................................. 13
M. ACCOMPLICE/COOPERATING WITNESS TESTIMONY ....................................................................................... 14
N. IMPEACHMENT BY PRIOR INCONSISTENT STATEMENT ................................................................................... 16
O. PREPARATION OF WITNESSES ........................................................................................................................ 17
P. UNCALLED WITNESSES - EQUALLY AVAILABLE ........................................................................................... 17
Q. PERSONS NOT ON TRIAL ............................................................................................................................... 18
R. USE OF AUDIO RECORDINGS AND TRANSCRIPTS ............................................................................................ 18
S. CHARTS AND SUMMARIES - NOT ADMITTED AS EVIDENCE ........................................................................... 18
T. CHARTS AND SUMMARIES - ADMITTED AS EVIDENCE................................................................................... 19
U.STIPULATIONS OF FACT ................................................................................................................................. 19
V. DEFENDANT'S TESTIMONY ............................................................................................................................ 19
II. SUBSTANTIVE INSTRUCTIONS ........................................................................................................... 19
A. SUMMARY OF THE INDICTMENT ..................................................................................................................... 20
B. CONSPIRACY AND SUBSTANTIVE COUNTS ..................................................................................................... 21
C. COUNT THREE: SECURITIES FRAUD ............................................................................................................... 22
1. The Indictment and the Statute ............................................................................................................... 22
2. Elements of the Offense .......................................................................................................................... 24
3. First Element - Fradulent Act ................................................................................................................ 24
4. Second Element - Knowledge, Intent and Willfulness ........................................................................... 28
5. Third Element - Instrumentality of Interstate Commerce ...................................................................... 30
D. COUNT FOUR: WIRE FRAUD ........................................................................................................................... 32
1. The Indictment and the Statute ............................................................................................................... 32
2. Elements of the Offense .......................................................................................................................... 32
3. First Element - Exitence of Scheme or Artifice to Defraud ................................................................... 33
4. Second Element - Knowing Participation in Scheme with Intent to Defraud ........................................ 35
5. Third Element - Use of Interstate Wires ................................................................................................ 37
6. Special Interrogatory ............................................................................................................................. 38
E. COUNT FIVE: BANK FRAUD ........................................................................................................................... 38
1. The Indictment and the Statute ............................................................................................................... 38
2. Elements of the Offense .......................................................................................................................... 39
3. First Element - Existence of a Scheme or Artifice ................................................................................. 39
4. Second Element - Intent to Defraud....................................................................................................... 41
5. Third Element - Bank was Federally Insured ........................................................................................ 41
F. AIDING AND ABETTING AND WILLFULLY CAUSING ....................................................................................... 42
G. COUNT ONE: CONSPIRACY TO COMMIT SECURITIES FRAUD .......................................................................... 44
1. Elements of the Offense .......................................................................................................................... 45
2. First Element - The Existence of a Conspiracy ..................................................................................... 46
3. Object of the Conspiracy ........................................................................................................................ 48
4. Second Element - Membership in the Conspiracy ................................................................................. 48
5. Third Element - Overt Acts .................................................................................................................... 50
H. COUNT TWO: CONSPIRACY TO COMMIT WIRE AND BANK FRAUD ................................................................. 52
1. The Indictment and the Statute ............................................................................................................... 52
2. Elements of the Offense .......................................................................................................................... 52
3. Objects of the Conspiracy ...................................................................................................................... 52
4. Special Interrogatory ............................................................................................................................. 53
I. TIME OF OFFENSE ......................................................................................................................................... 53
J. VENUE .......................................................................................................................................................... 54
III. DELIBERATIONS OF THE JURY ..................................................................................................... 54
A. RIGHT TO SEE EVIDENCE AND COMMUNICATION WITH THE COURT ............................................................... 54
B. NOTES ........................................................................................................................................................... 55
C. DUTY NOT TO RESEARCH OR DISCUSS THE CASE .......................................................................................... 55
D. DUTY TO DELIBERATE AND UNANIMOUS VERDICT ........................................................................................ 56
E. DUTIES OF FOREPERSON ............................................................................................................................... 57
F. RETURN OF VERDICT .................................................................................................................................... 57
G. ALTERNATE JURORS ..................................................................................................................................... 58
H. CONCLUSION ................................................................................................................................................. 59
I. GENERAL INSTRUCTIONS
A. Introductory Remarks
Members of the jury, you have now heard all of the evidence in the case as well as the final arguments of the parties. You have paid careful attention to the evidence, and I am confident that you will act together with fairness and impartiality to reach a just verdict.
Now it is time for me to instruct you as to the law that governs this case. There are three parts to these instructions. First, I'm going to give you some general instructions about your role, and about how you are to decide the facts of the case. Most of these instructions would apply to just about any trial. Second, I'll give you some specific instructions about the legal rules applicable to this particular case. Third, I'll give you some final instructions about procedure.
Listening to these instructions may not be easy. It is important, however, that you listen carefully and concentrate. You'll notice that I'm reading these instructions from a prepared text. It would be more lively, no doubt, if I just improvised. But it's important that I not do that. The law is made up of words, and those words are very carefully chosen. So when I tell you the law, it's critical that I use exactly the right words.
You'll have copies of what I'm reading in the jury room to consult, so don't worry if you miss a word or two. But for now, listen carefully and try to concentrate on what I'm saying.
B. Role of the Court
My duty at this point is to instruct you as to the law. It is your duty to accept these instructions of law and to apply them to the facts as you determine them. With respect to legal matters, you must take the law as I give it to you. If any attorney has stated a legal principle different from any that I state to you in my instructions, it is my instructions that you must follow. You must not substitute your own notions or opinions of what the law is or ought to be.
But nothing I say is evidence. If I commented on the evidence at any time, do not accept my statements in place of your recollection or your interpretation. It is your recollection and interpretation that govern. Also, do not draw any inference from any of my rulings. The rulings I made during trial are no indication of any view on my part. You should not seek to find from my rulings any such view or opinion on my part, nor should you otherwise speculate as to what I may think.
At times I may have directed a witness to be responsive to questions, to pause when an objection had been made by counsel, or to keep his or her voice up. At times I asked a question myself. Any questions that I asked, or instructions that I gave, were intended only to clarify the presentation of evidence. You should draw no inference or conclusion of any kind, favorable or unfavorable, with respect to any witness or either party in the case, by reason of any comment, question, or instruction of mine. Nor should you infer that I might have any views as to the credibility of any witness, as to the weight of the evidence, or as to how you should decide any issue that is before you. That is entirely your role.
C. Role of the Jury
As members of the jury, you are the sole and exclusive judges of the facts. You pass upon the evidence. You determine the credibility of the witnesses. You resolve such conflicts as there may be in the testimony. You draw whatever reasonable inferences you decide to draw from the facts as you have determined them, and you determine the weight of the evidence.
This is your sworn duty as you have taken the oath as jurors to determine the facts. As I mentioned, any opinion I might have regarding the facts is of absolutely no consequence.
D. Role of Counsel
It is the duty of the attorneys to object when the other side offers testimony or other evidence that the attorney believes is not properly admissible. It is my job to rule on those objections. Therefore, why an objection was made or why I ruled on it the way I did is not your concern. You should draw no inference or conclusion from the fact that an attorney objects to any evidence. Nor should you draw any inference from the fact that I might have sustained or overruled an objection.
From time to time, the lawyers and I had conferences out of your hearing. These conferences involved procedural and other legal matters, and none of the events relating to these conferences should enter your deliberations at all.
The personalities and the conduct of counsel in the courtroom are also not in any way at issue.
E. Presumption of Innocence and Burden of Proof
Now, I will instruct you on the presumption of innocence and the government's burden of proof in this case. The defendant has pleaded not guilty. By doing so, he denies all of the charges in the Indictment. Thus, the government has the burden of proving the charges against him beyond a reasonable doubt. The defendant does not have to prove his innocence. On the contrary, the defendant is presumed innocent of all the charges contained in the Indictment. This presumption of innocence was in the defendant's favor at the start of the trial; it continued in his favor throughout the entire trial; it is in his favor even as I instruct you now; and it continues in his favor during the course of your deliberations in the jury room.
The presumption of innocence is removed if and only if you, as members of the jury, are unanimously satisfied that the government has sustained its burden of proving the guilt of the defendant as to a particular count of the Indictment beyond a reasonable doubt.
The question that naturally comes up is, what is a reasonable doubt? The words almost define themselves. It is a doubt founded in reason and arising out of the evidence in the case, or the lack of evidence. It is doubt that a reasonable person has after carefully weighing all the evidence. Reasonable doubt is a doubt that appeals to your reason, your judgment, your experience, your common sense.
If, after a fair and impartial consideration of all the evidence, you do not have an abiding conviction of the defendant's guilt with respect to a particular count of the Indictment-in sum, if you have such a doubt as would cause you, as prudent persons, to hesitate before acting in matters of importance to yourselves-then you have a reasonable doubt, and, in that circumstance, it is your duty to acquit the defendant of that count.
On the other hand, if after a fair and impartial consideration of all the evidence, you do have an abiding belief of the defendant's guilt as to a specific count of the Indictment, such a belief as you would be willing to act upon without hesitation in important matters in the personal affairs of your own life, then you have no reasonable doubt, and under such circumstances it is your duty to convict the defendant of that count.
One final word on this subject. Reasonable doubt does not mean beyond all possible doubt. It is practically impossible for a person to be absolutely and completely convinced of any disputed fact which by its nature is not susceptible to mathematical certainty. It follows that the law in a criminal case is that it is sufficient if the guilt of the defendant is established beyond a reasonable doubt, not beyond all possible doubt. For those of you who have served as jurors in civil cases, it is not a mere preponderance of the evidence standard. The government's burden is heavier than that.
Moreover, the government is not required to prove the essential elements of the offense by any particular number of witnesses. The testimony of a single witness may be sufficient to convince you beyond a reasonable doubt of the existence of the essential elements of the offense you are considering if you believe that the witness has truthfully and accurately related what he has told you.
F. Sympathy or Bias
Under your oath as jurors, you are not to be swayed by sympathy or prejudice. You are to be guided solely by the evidence in this case, and the crucial, bottom-line question that you must ask yourselves as you sift through the evidence is: has the government proven the guilt of the defendant as to any of the counts beyond a reasonable doubt?
It is for you alone to decide whether the government has proven that the defendant is guilty solely on the basis of the evidence or lack of evidence and subject to the law as I explain it to you. It must be clear to you that once you let fear or prejudice, or bias or sympathy interfere with your thinking, there is a risk that you will not arrive at a true and just verdict.
If you have a reasonable doubt as to the defendant's guilt, you must not hesitate for any reason to find a verdict of acquittal. But on the other hand, if you should find that the government has met its burden of proving the defendant's guilt beyond a reasonable doubt, you should not hesitate because of sympathy or any other reason to render a verdict of guilty.
The question of possible punishment of the defendant is of no concern to the jury and should not enter into or influence your deliberations. The duty of imposing a sentence rests exclusively upon the Court. Your function is to weigh the evidence in the case and to determine whether or not the defendant is guilty beyond a reasonable doubt, solely upon the basis of such evidence. Under your oath as jurors, you cannot allow a consideration of the punishment which may be imposed upon the defendant, if he is convicted, to influence your verdict, in any way, or, in any sense, to enter into your deliberations.
Similarly, it would be improper for you to allow any feelings you might have about the nature of the crimes charged to interfere with your decision-making process. Your verdict must be based exclusively upon the evidence or the lack of evidence presented in this courtroom.
G. All Persons Equal Before the Law
In reaching your verdict, you must remember that both parties stand equal before the jury in the courts of the United States. The fact that the government is a party and the prosecution is brought in the name of the United States does not entitle the government or its witnesses to any greater consideration than that accorded to any other party. By the same token, you must give the government no less deference. It would also be improper for you to consider, in reaching your decision as to whether the government sustained its burden of proof, any personal feelings you may have about the defendant's race, religion, national origin, gender, sexual orientation, or age, either perceived or actual. All persons are entitled to the same presumption of innocence and the government has the same burden of proof with respect to all persons. Your verdict must be based solely on the evidence or the lack of evidence.
H. What Is and Is Not Evidence
In determining the facts, you must rely upon your own recollection of the evidence. The evidence in this case is the sworn testimony of the witnesses, the exhibits received in evidence, and the stipulations of the parties.
Testimony that I have stricken or excluded, however, is not evidence and may not be considered by you in rendering your verdict. Also, if certain testimony was received for a limited purpose, you must follow the limiting instruction I gave you, and use the evidence only for the purpose I indicated.
The only exhibits that are evidence in this case are those that were received in evidence. Exhibits marked for identification but not admitted are not evidence, nor are demonstrative aids or materials that were used only to refresh a witness's recollection.
As I told you at the start of this case, statements and arguments by lawyers are not evidence, because the lawyers are not witnesses. What they have said to you in their opening statements and in their summations is intended to help you understand the evidence to reach your verdict. However, if your recollection of the facts differs from the lawyers' statements, it is your recollection that controls.
For the same reasons, you are not to consider a lawyer's questions as evidence. It is the witnesses' answers that are evidence, not the questions.
Finally, as I have mentioned, any statements that I may have made do not constitute evidence. It is for you alone to decide the weight, if any, to be given to the testimony you have heard and the exhibits you have seen.
I. Direct and Circumstantial Evidence
Generally, there are two types of evidence that you may consider in reaching your verdict. One type of evidence is direct evidence. Direct evidence is testimony by a witness about something he knows by virtue of his own senses-something he has seen, felt, touched, or heard. For example, if a witness testified that when he left the house this morning, it was raining, that would be direct evidence about the weather.
Circumstantial evidence is evidence from which you may infer the existence of certain facts. For example, assume that when you arrived at the courthouse this morning the sun was shining and it was a nice day. Assume that the courtroom blinds were drawn and you could not look outside. As you were sitting here, someone walked in with an umbrella, which was dripping wet. Then a few minutes later, another person entered with a wet raincoat. Now, because you cannot see outside of the courtroom, you cannot tell whether or not it is raining. So you have no direct evidence of that fact. But on the combination of facts that I have asked you to assume, it would not be unreasonable for you to conclude that it had been raining.
That is all there is to circumstantial evidence. You infer on the basis of reason and experience and common sense from one established fact the existence or non-existence of some other fact.
As you can see, the matter of drawing inferences from facts in evidence is not a matter of guesswork or speculation. An inference is a logical, factual conclusion that you might reasonably draw from other facts that have been proven. Many material facts-such as what a person was thinking or intending-can rarely be proved by direct evidence.
Circumstantial evidence is as valuable as direct evidence. The law makes no distinction between direct and circumstantial evidence, but simply requires that, before convicting the defendant, the jury must be satisfied of the defendant's guilt beyond a reasonable doubt, based on all the evidence or lack of evidence in the case, circumstantial or direct.
There are times when different inferences may be drawn from the evidence. The government asks you to draw one set of inferences; the defendant asks you to draw another. It is for you, and for you alone, to decide what inferences you will draw.
J. Witness Credibility
You have had the opportunity to observe the witnesses. It is now your job to decide how believable each witness was in his testimony. You are the sole judges of the credibility of each witness and of the importance of his testimony.
You should carefully scrutinize all of the testimony of each witness, the circumstances under which each witness testified, the impression the witness made when testifying, the relationship of the witness to the controversy and the parties, the witness's bias or impartiality, the reasonableness of the witness's statement, the strength or weakness of the witness's recollection viewed in the light of all other testimony, and any other matter in evidence that may help you decide the truth and the importance of each witness's testimony.
In other words, what you must try to do in deciding credibility is to size a witness up in light of his demeanor, the explanations given, and all the other evidence in the case. How did the witness appear? Was the witness candid, frank, and forthright; or, did the witness seem to be evasive or suspect in some way? How did the way the witness testified on direct examination compare with how the witness testified on cross-examination? Was the witness consistent or contradictory? Did the witness appear to know what he was talking about? Did the witness strike you as someone who was trying to report his knowledge accurately? These are examples of the kinds of common sense questions you should ask yourselves in deciding whether a witness was, or was not, truthful.
In passing upon the credibility of a witness, you may also take into account any inconsistencies or contradictions as to material matters in his testimony. If you find that any witness has willfully testified falsely as to any material fact, you have the right to reject the testimony of that witness in its entirety. On the other hand, even if you find that a witness has testified falsely about one matter, you may reject as false that portion of his testimony and accept as true any other portion of the testimony. A witness may be inaccurate, contradictory, or even untruthful in some aspects, and yet be truthful and entirely credible in other aspects of his testimony.
The ultimate question for you to decide in passing upon credibility is: did the witness tell the truth before you? It is for you to say whether his testimony at this trial was truthful in whole or in part.
K. Interest in Outcome
In evaluating the credibility of witnesses, you should take into account any evidence that the witness who testified may benefit in some way from the outcome in this case. Such an interest in the outcome creates a motive to testify falsely and may sway the witness to testify in a way that advances his or her own interests. Therefore, if you find that any witness whose testimony you are considering may have an interest in the outcome of the trial, then you should bear that factor in mind when evaluating the credibility of his or her testimony and accept it with great care.
This is not to suggest that every witness who has an interest in the outcome of a case will testify falsely. It is for you to decide to what extent, if at all, the witness's interest has affected or colored his testimony.
L. Government Employee Witness
You have heard testimony from an employee of the government. The fact that a witness may be employed by the federal government does not mean that his testimony is necessarily deserving of more or less consideration or greater or lesser weight than that of an ordinary witness.
In this context, defense counsel may attack the credibility of such a witness on the ground that his testimony may be colored by a personal or professional interest in the outcome of the case.
It is your decision, after reviewing all the evidence, whether to accept the testimony of the government employee witness and to give to that testimony the weight you find it deserves.
M. Accomplice/Cooperating Witness Testimony
You have heard witnesses who testified that they were actually involved in the crimes charged in the Indictment.
Experience will tell you that the government frequently must rely on the testimony of witnesses who participated in the alleged crimes at issue. The government must take its witnesses as it finds them and frequently must use such testimony in a criminal prosecution because otherwise it would be difficult or impossible to detect and prosecute wrongdoers.
The testimony of such accomplices and cooperating witnesses is properly considered by the jury. If accomplices and cooperating witnesses could not be used, there would be many cases in which there was real guilt and conviction should be had, but in which convictions would be unobtainable.
For these very reasons, the law allows the use of testimony from accomplices and cooperating witnesses. Indeed, it is the law in federal courts that the testimony of an accomplice or cooperating witness may be enough in itself for conviction, if the jury believes that the testimony establishes guilt beyond a reasonable doubt.
Because of the possible interest an accomplice or cooperating witness may have in testifying, the testimony should be scrutinized with special care and caution. The fact that a witness is an accomplice or cooperating witness can be considered by you as bearing upon his credibility. However, it does not follow that simply because a person has admitted to participating in one or more crimes, that he is incapable of giving a truthful version of what happened.
Like the testimony of any other witness, accomplice witness testimony should be given such weight as it deserves in light of the facts and circumstances before you, taking into account the witness's demeanor, candor, the strength and accuracy of a witness's recollection, his background, and the extent to which his testimony is or is not corroborated by other evidence. You may consider whether accomplice witnesses or cooperating witnesses-like any other witnesses called in this case-have an interest in the outcome of the case, and if so, whether it has affected their testimony.
You heard testimony about agreements between the government and certain witnesses. I must caution you that it is no concern of yours why the government made an agreement with a witness. Your sole concern is whether a witness has given truthful testimony here in this courtroom before you.
In evaluating the testimony of accomplice and cooperating witnesses, you should ask yourselves whether the accomplice or cooperating witness would benefit more by lying, or by telling the truth. Was his testimony made up in any way because he believed or hoped that he would somehow receive favorable treatment by testifying falsely? Or did he believe that his interests would be best served by testifying truthfully? If you believe that the witness was motivated by hopes of personal gain, was the motivation one which would cause him to lie, or was it one which would cause him to tell the truth? Did this motivation color his testimony?
If you find that the testimony was false, you should reject it. However, if, after a cautious and careful examination of the accomplice witness's testimony and demeanor upon the witness stand, you are satisfied that the witness told the truth, you should accept it as credible and act upon it accordingly.
As with any witness, let me emphasize that the issue of credibility need not be decided in an all-or-nothing fashion. Even if you find that a witness testified falsely in one part, you still may accept his or her testimony in other parts, or may disregard all of it. That is a determination entirely for you, the jury.
N. Impeachment by Prior Inconsistent Statement
You have heard evidence that a witness may have made a statement on an earlier occasion which counsel argues is inconsistent with the witness's trial testimony. Evidence of a prior inconsistent statement is not to be considered by you as affirmative evidence bearing on the defendant's guilt. Evidence of the prior inconsistent statement was placed before you for the more limited purpose of helping you decide whether to believe the trial testimony of the witness who allegedly contradicted himself. If you find that the witness made an earlier statement that conflicts with his trial testimony, you may consider that fact in deciding how much of his or her trial testimony, if any, to believe.
In making this determination, you may consider whether the witness purposely made a false statement or whether it was an innocent mistake; whether the inconsistency concerns an important fact, or whether it had to do with a small detail; whether there is a motive to fabricate; whether the witness had an explanation for the inconsistency, and whether that explanation appealed to your common sense.
It is exclusively your duty, based upon all the evidence and your own good judgment, to determine whether the prior statement was inconsistent, and if so how much, if any, weight to be given to the inconsistent statement in determining whether to believe all or part of the witness's testimony.
O. Preparation of Witnesses
You have heard evidence during the trial that some witnesses have discussed the facts of the case and/or their testimony with lawyers.
You may consider that fact when you are evaluating a witness's credibility. But I should tell you that there is nothing unusual or improper about a witness meeting with lawyers before testifying so that the witness can be aware of the subjects he will be questioned about, focus on those subjects, and have the opportunity to review relevant exhibits before being questioned about them. Such consultation helps conserve your time and the Court's time. In fact, it would be unusual for a lawyer to call a witness without such consultation.
The weight you give to the fact or the nature of the witness's preparation for his testimony and what inferences you draw from such preparation are matters completely within your discretion.
P. Uncalled Witnesses - Equally Available
There are people whose names you heard during the course of the trial that did not appear in court to testify. I instruct you that each party had an equal opportunity or lack of opportunity to call any of these witnesses. Therefore, you should not draw any inferences or reach any conclusions as to what they would have said if they had been witnesses in this case. Their absence should not affect your judgment in any way about what any witness would have testified about if he or she had been called as a witness.
You should remember my instruction, however, that the law does not impose on the defendant in a criminal case the burden or duty of calling any witnesses or producing any evidence whatsoever, and that the burden always rests with the government to prove a defendant's guilt beyond a reasonable doubt.
Q. Persons Not On Trial
You may not draw any inference, favorable or unfavorable, towards the government or the defendant, from the fact that any person in addition to the defendants is not on trial here. You also may not speculate in any way as to the reason or reasons why other persons are not on trial. Those matters are wholly outside your concern and have no bearing on your function as jurors.
R. Use of Audio Recordings and Transcripts
Audio recordings have been admitted into evidence in this case. This evidence was lawfully obtained, and properly admitted in this case. Whether you approve or disapprove of the recording of these conversations may not enter your deliberations. I instruct you that these recordings were made in a lawful manner and that no one's rights were violated, and that the government's use of this evidence is entirely lawful.
You must, therefore, regardless of any personal opinions, give this evidence full consideration along with all the other evidence in the case in determining whether the government has proved beyond a reasonable doubt the guilt of the defendant.
To help your listening, transcripts have also been prepared. In this case, those transcripts were admitted into evidence along with the audio recordings. The purpose of these transcripts is to aid you in your understanding of the recordings themselves.
S. Charts and Summaries - Not Admitted As Evidence
There have been a number of summary charts and exhibits that were shown to you but not admitted into evidence. At the time they were shown to you, I have noted this fact to you. For these charts and exhibits that were not admitted into evidence, they serve merely as summaries and analyses of testimony and documents in the case and are here to act as visual aids for you. It is the underlying evidence and the weight which you attribute to it that gives value and significance to these charts. To the extent that the charts conform to what you determine the underlying facts to be, you should accept them. To the extent that the charts differ from what you determine the underlying evidence to be, you may reject them.
T. Charts and Summaries - Admitted As Evidence
Now, some of the exhibits that were admitted into evidence were in the form of charts and summaries. For these charts and summaries that were admitted into evidence, you should consider them as you would any other evidence.
U. Stipulations of Fact
In this case you have heard evidence in the form of stipulations that contain facts that were agreed to be true. In such cases, you must accept those facts as true.
V. Defendant's Testimony
A defendant in a criminal case never has any duty to testify or come forward with any evidence. This is because, as I have told you, the burden of proof beyond a reasonable doubt remains on the government at all times, and each defendant is presumed innocent. In this case, Mr. Hild did testify and he was subject to cross-examination like any other witness. You should examine and evaluate his testimony just as you would the testimony of any other witness.
II. SUBSTANTIVE INSTRUCTIONS
I will turn now to my instructions to you relating to the charges brought against the defendants in this case.
A. Summary of the Indictment
The defendant Michael Hild has been formally charged in an Indictment. The Indictment contains five counts, or charges. I will, at times, refer to each count by the number assigned to it in the Indictment. You should know that there is no significance to the order of these numbers or the specific number of counts charged, and indeed my instructions will follow a different order than the order in which the various counts appear in the Indictment. In your deliberations and in reaching your verdict, you must consider each count separately.
The Indictment in this case is not evidence. It merely describes the charges made against the defendant. It is a set of accusations. It may not be considered by you as evidence of the guilt the defendant. Only the evidence or lack of evidence decides that issue.
Count One of the Indictment charges the defendant with securities fraud conspiracy. Specifically, Count One charges that, from at least in or about September 2015 through in or about May 2019, the defendant, who was the chief executive officer of Live Well Financial, conspired to commit securities fraud by falsely inflating the value of a portfolio of bonds in order to fraudulently induce securities dealers and a financial institution into loaning more money to Live Will Financial.
Count Two of the Indictment charges that, from at least in or about 2015 through at least in or about May 2019, the defendant conspired to commit bank and wire fraud by engaging in a similar scheme to fraudulently induce securities dealers and a financial institution into loaning more money to Live Will Financial.
As I will explain in more detail in a few moments, a conspiracy is a criminal agreement to violate the law. The other charges in the Indictment, which are set forth in Counts Three, Four, and Five, allege what are called “substantive” violations. Unlike a conspiracy charge, which is a charge of agreeing to commit certain offenses, the substantive counts allege the actual commission of criminal offenses.
The three substantive charges in the Indictment are as follows. Count Three charges the defendant with a substantive count of securities fraud. Count Four charges the defendant with a substantive count of wire fraud. Count Five charges the defendant with a substantive count of bank fraud.
The defendant denies all allegations.
That is a summary of all five counts in the Indictment. In a moment, I will instruct you on each of these charges in more detail. At the outset, however, let me instruct you that you must consider each count separately, and you must return a separate verdict of guilty or not guilty on each count. Whether you find the defendant guilty or not guilty as to one offense should not affect your verdict as to any other offense charged.
B. Conspiracy and Substantive Counts
As I have just described, there are certain counts in the Indictment that are conspiracy counts, while others are what are referred to as substantive counts. Unlike the conspiracy charges, which allege agreements to commit certain offenses, the substantive counts are based on the actual commission of offenses, or aiding others to actually commit offenses.
A conspiracy to commit a crime is an entirely separate and different offense from the substantive crime which may be the object of the conspiracy. Congress has deemed it appropriate to make conspiracy, standing alone, a separate crime, even if the object of the conspiracy is not achieved. This is because collective criminal activity poses a greater threat to the public's safety and welfare than individual conduct, and increases the likelihood of success of a particular criminal venture.
The essence of the crime of conspiracy is an agreement or understanding to violate other laws. Thus, if a conspiracy exists, even if it fails, it is still punishable as a crime. Consequently, in a conspiracy charge there is no need to prove that the crime that was the objective of the conspiracy was actually committed.
By contrast, the substantive counts require proof that the crime charged was actually committed, but do not require proof of an agreement. Of course, if a defendant both participates in a conspiracy to commit a crime and then actually commits that crime, that defendant may be guilty of both the conspiracy and the substantive crime, as I will instruct you shortly.
We will turn first to the substantive charges in the Indictment, which are more convenient to consider before the conspiracy charges.
C. Count Three: Securities Fraud
1. The Indictment and the Statute
Count Three charges the defendant with the crime of securities fraud. Securities fraud is a violation of Title 15, United States Code, Section 78j(b). That statute provides, in pertinent part:
It shall be unlawful for any person directly or indirectly, by the use of any means or instrumentality of interstate commerce or of the mails, or of any facility of any national securities exchange . . . [t]o use or employ, in connection with the purchase or sale of any security registered on a national securities exchange or any security not so registered, or any securities-based swap agreement any manipulative or deceptive device or contrivance in contravention of such rules and regulations as the Commussion may prescribe as necessary or appropriate in the public interest or for the protection of investors.
This law is also know as Section 10 of the Securities Exchange Act. I will now provide some helpful background information on that statute.
The 1934 Securities Exchange Act was the second of two laws passed by Congress to provide a comprehensive plan to protect the investing public in the purchase and sale of securities that are publicly distributed.
The stock market crash of 1929 led to much legislation in the area of federal regulation. Included in this legislation was the Securities Act of 1933, and the creation of the Securities and Exchange Commission. The Securities Act was enacted to protect the investing public in the purchase of stock that is publicly distributed. The Act provides a comprehensive plan requiring full and fair disclosure of all important facts in connection with the distribution of securities. Such disclosures are designed to enable the investing public to make realistic appraisals of the merits of securities so that investors can make informed investment decisions.
When it enacted the Securities Act, Congress recognized that the purchase of a stock or bond is different from the purchase of a vegetable bought in a grocery store, in that the average investor is not in a position to make a personal investigation to determine the worth, quality, and value of securities.
Following enactment of the Securities Act of 1933, which requires full and fair disclosures relating to the offering of stock to the investing public, Congress enacted the Securities Exchange Act of 1934 to ensure fair dealing and outlaw deceptive and inequitable practices by those selling or buying securities on the securities exchanges, in over-the-counter markets, or in face-to-face transactions. Among the primary objectives of the Exchange Act are the maintenance of fair and honest security markets and the elimination of manipulative practices that tend to distort the fair and just price of stock or bonds. Congress recognized that any deceptive or manipulative practice that influenced or related to trading activity undermined the function and purpose of a free market.
2. Elements of the Offense
To establish a violation of Section 10(b) of the Securities and Exchange Act, the government must prove each of the following elements beyond a reasonable doubt:
First, that in connection with the purchase or sale of securities, such as bonds, the defendant did any one or more of the following:
(1) employed a device, scheme or artifice to defraud, or
(2) made an untrue statement of a material fact or omitted to state a material fact which made what was said, under the circumstances, misleading, or
(3) engaged in an act, practice or course of business that operated, or would operate, as a fraud or deceit upon a purchaser or seller;
Second, that the defendant acted knowingly, willfully, and with the intent to defraud; and
Third, that the defendant used, or caused to be used, any means or instruments of transportation or communication in interstate commerce or the use of the mails in furtherance of the fraudulent conduct.
I will discuss each element in turn.
3. First Element - Fradulent Act
The first element that the government must prove beyond a reasonable doubt is that, in connection with the purchase or sale of securities, such as bonds, the defendant did any one of the following:
(1) employed a device, scheme or artifice to defraud, or
(2) made an untrue statement of a material fact or omitted to state a material fact which made what was said, under the circumstances, misleading, or
(3) engaged in an act, practice or course of business that operated, or would operate, as a fraud or deceit upon a purchaser or seller.
To prove this element, it is not necessary for the government to prove all three types of unlawful conduct in connection with the purchase or sale of securities. Any one will suffice. You must, however, be unanimous as to which type of unlawful conduct, if any, the defendant committed.
Let me now explain some of these terms.
“ Device, Scheme, or Artifice to Defraud”
A device, scheme or artifice is merely a plan for the accomplishment of an objective. Fraud is a general term that embraces all of the various means that individuals devise to take advantage of others. It includes all kinds of manipulative and deceptive acts, whether by making false statements or otherwise. The fraud or deceit need not relate to the investment value of the securities involved in this case, and need not involve a specific oral or written statement.
“ False Statements and Omissions”
A statement, representation, claim or document is false if it is untrue when made and was then known to be untrue by the person making it or causing it to be made. A representation or statement is fraudulent if it was falsely made with the intention to deceive. The failure to disclose information may also constitute a fraudulent representation if the defendant was under a legal, professional, or contractual duty to make such a disclosure, the defendant actually knew such disclosure was required to be made, and the defendant failed to make such disclosure with the intent to defraud. Even in the absence of a legal, professional, or contractual duty to make such a disclosure, a duty to disclose can arise when a defendant makes partial or ambiguous statements that require further disclosure to avoid being misleading. Intentionally deceitful statements of half-truths or the concealment of material facts, and the expression of an opinion not honestly entertained also may constitute false or fraudulent statements under the statute.
Deception need not be premised upon spoken or written words alone. The arrangement of the words, or the circumstances in which they are used may convey the false and deceptive appearance. If there is deception, the manner in which it is accomplished does not matter.
“ In Connection With”
You cannot find that the government has proven the first element unless you find that the defendant participated, or agreed to participate, in fraudulent conduct that was “in connection with” a purchase or sale of securities. I instruct you that the bonds at issue in this case are securities within the meaning of federal law.
The requirement that the fraudulent conduct be “in connection with” a purchase or sale of securities is satisfied so long as there was some nexus or relation between the allegedly fraudulent conduct and the sale or purchase of securities. Fraudulent conduct may be “in connection with” the purchase or sale of securities if you find that the alleged fraudulent conduct “touched upon” a securities transaction. You need not find that the defendant actually participated in any specific purchase or sale of a security if you find that the defendant participated, or agreed to participate, in fraudulent conduct that was “in connection with” a “purchase or sale” of securities.
It is no defense to an overall scheme to defraud that the defendant was not involved in the scheme from its inception or played only a minor role with no contact with the investors and purchasers of the securities in question. A person who comes in at a later point with knowledge of the scheme's general operation, although not necessarily all of its details, and intentionally acts in a way to further the unlawful goals, becomes a member of the scheme and is legally responsible for all that may have been done in the past, in furtherance of the criminal objective, and all that is done thereafter.
Even if a defendant participated in the scheme to a lesser degree than others, he is, nevertheless, equally guilty so long as the defendant became a member of the scheme to defraud with knowledge of its general scope and purpose.
Nor is it necessary for you to find that the defendant was or would be the actual seller of the securities. It is sufficient if the misrepresentation or omission of material fact involved the purchase or sale of securities.
By the same token, the government need not prove that the defendant personally made the misrepresentation or that he omitted the material fact. It is sufficient if the government establishes that the defendant caused the statement to be made or the fact to be omitted. With regard to the alleged misrepresentations and omissions, you must determine whether the statements were true or false when made, and, in the case of alleged omissions, whether the omissions were misleading.
“ Material Fact”
If you find that the government has established beyond a reasonable doubt that a statement was false or a statement was omitted rendering the statements that were made misleading, you must next determine whether the statement or omission was material under the circumstances. The word “material” here refers to the nature of the false or misleading statements. We use the word “material” to distinguish between the kinds of statements we care about and those that are of no real importance. Matters that are “material” may also include fraudulent half-truths or omissions of material fact. A material fact is one that a reasonable person would have considered important in making his or her investment decision. That means that if you find a particular statement of fact or omission to have been untruthful or misleading, before you can find that statement or omission to be material, you must also find that the statement or omission was one that would have mattered to a reasonable person in making their decision.
Any testimony that you may have heard from any witness with respect to whether a particular fact would or would not have been important to him in general reflect that witness's individual views. Although you may consider such testimony, it is not controlling. It is for you to determine whether a particular fact would have been significant to a reasonable person in making an investment decision. In considering whether a statement or omission was material, let me caution you that it is not a defense if the material misrepresentation or omission would not have deceived a person of ordinary intelligence. Nor does a disclaimer regarding the accuracy of information necessarily render that information immaterial, although it may have some bearing on the Defendant's intent. It is your decision to determine how much weight, if any, to give any such fact. Once you find that the offense involved the making of material misrepresentations or omissions of material facts, it does not matter whether any of the victims involved were careless, gullible, or even negligent, or that they might have uncovered the scheme on their own had they probed more deeply.
Nor does it matter whether the alleged unlawful conduct was or would have been successful, or whether the defendant profited or would have profited as a result of the alleged scheme. Success is not an element of a violation of Section 10(b). If, however, you find that the defendant expected to or did profit from the alleged scheme, you may consider that in relation to the element of intent, which I will discuss in a moment.
4. Second Element - Knowledge, Intent and Willfulness
The second element that the government must establish is that the defendant acted knowingly, willfully and with intent to defraud. A person acts “knowingly” when he acts voluntarily and deliberately rather than mistakenly or inadvertently. To act “willfully” means to act voluntarily and with a wrongful purpose. “Intent to defraud” in the context of the securities laws means to act knowingly and with intent to deceive.
The question of whether a person acted knowingly, willfully and with intent to defraud is a question of fact for you to determine, like any other fact question. This question involves one's state of mind.
Direct proof of knowledge and fraudulent intent is almost never available. It would be a rare case where it could be shown that a person wrote or stated that as of a given time in the past he or she committed an act with fraudulent intent. Such direct proof is not required. The ultimate facts of knowledge and criminal intent, though subjective, may be established by circumstantial evidence, based upon a person's outward manifestations, his or her words, his or her conduct, his or her acts and all the surrounding circumstances disclosed by the evidence and the rational or logical inferences that may be drawn therefrom.
What is referred to as drawing inferences from circumstantial evidence is no different from what people normally mean when they say, “use your common sense.” Using your common sense means that, when you come to decide whether a defendant possessed or lacked an intent to defraud, you do not limit yourself to what the defendant said, but you also look at what he did and what others did in relation to the defendant and, in general, everything that occurred. Circumstantial evidence, if believed, is of no less value than direct evidence. In either case, the essential elements of the crime charged must be established beyond a reasonable doubt.
In order for you to find the defendant guilty of securities fraud, the government need only prove that the defendant acted with an intent to deceive, manipulate or defraud. The government need not show that the defendant acted with an intent to cause harm.
At this point, let me advise you that since an essential element of the crime charged is intent to defraud, it follows that “good faith, ” as I will define that term, on the part of a defendant is a complete defense to a charge of investment adviser fraud. A defendant has no burden to establish a defense of good faith. The burden is on the government to prove fraudulent intent and consequent lack of good faith beyond a reasonable doubt. Under the anti-fraud statutes, even false representations or statements or omissions of material facts do not amount to a fraud unless done with fraudulent intent. An honest belief in the truth of the representations made by a defendant is a complete defense, however inaccurate the statements may turn out to be.
In considering whether or not a defendant acted in good faith, however, you are instructed that a belief by a defendant, if such belief existed, that ultimately everything would work out so that no investors would lose any money or that particular investments would ultimately be financially advantageous for clients does not necessarily constitute good faith. No amount of honest belief on the part of a defendant that the scheme will ultimately make a profit for the investors will excuse fraudulent actions or false representations by him or her.
As a practical matter, then, to prove the charge against the defendant, the government must establish beyond a reasonable doubt that the defendant knew that his conduct was calculated to deceive and that he nevertheless associated himself with the alleged fraudulent scheme.
5. Third Element - Instrumentality of Interstate Commerce
The third and final element of the securities fraud counts is that the government must prove beyond a reasonable doubt that the defendant knowingly used, or caused to be used, the mails or the instrumentalities of interstate commerce in furtherance of the scheme to defraud.
Let me first note that it is unnecessary for the government to prove both the mails or an instrumentality of interstate commerce was used in furtherance of the fraudulent scheme. Only one of the above - either the mails or an instrumentality of interstate commerce - is enough. But you must be unanimous as to at least one.
In considering this element, it is not necessary for you to find that the defendant was or would have been directly or personally involved in any mailing or the use of an instrumentality of interstate commerce. If the conduct alleged would naturally and probably result in the use of the mails or an instrumentality of interstate commerce, this element would be satisfied. Nor is it necessary that the items sent through the mails or communicated through an instrumentality of interstate commerce did or would contain the fraudulent material, or anything criminal or objectionable. The matter mailed or communicated may be entirely innocent so long as it is in furtherance of the scheme to defraud or fraudulent conduct.
The use of the mails or an instrumentality of interstate commerce need not be central to the execution of the scheme or even be incidental to it. All that is required is that the use of the mails or an instrumentality of interstate commerce bear some relation to the object of the scheme or fraudulent conduct.
In fact, the actual purchase or sale of a security need not be accompanied by the use of the mails or an instrumentality of interstate commerce, so long as the mails or instrumentalities of interstate commerce are used in furtherance of the scheme and the defendant was still engaged in actions that are part of a fraudulent scheme when the mails or the instrumentalities of interstate commerce were used.
The use of the term “mails” is self-explanatory, and includes the United States Mail and Federal Express and other commercial mail couriers. The term instrumentality of interstate commerce means instruments, devices and means of conducting trade, commerce, transportation, or communication among any two states, or between this country and a foreign country.
D. Count Four: Wire Fraud
1. The Indictment and the Statute
Count Four charges the defendant with the crime of wire fraud. Specifically, it charges that from at least in or about September 2015 through at least in or about May 2019, the defendant engaged in a scheme to commit wire fraud by engaging in a scheme to fraudulently induce securities dealers and a financial institution into loaning more money to Live Well than they otherwise would have extended.
Wire fraud is a violation of Title 18, United States Code, Section 1343. That statute provides, in pertinent part:
Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice, shall be [guilty of a federal crime.
2. Elements of the Offense
For this count, the government must prove the following three elements:
First, the defendant employed a device, scheme, or artifice to defraud or obtain money or property by false pretenses, representations or promises;
Second, the defendant participated in the scheme or artifice to defraud, with knowledge of its fraudulent nature and with specific intent to defraud; and
Third, in the execution of the scheme, the defendant used, or caused to be used, interstate wires.
I will discuss each in turn.
3. First Element - Exitence of Scheme or Artifice to Defraud
As to the first element, a “scheme or artifice” is simply a plan for the accomplishment of an object. A scheme to defraud is any plan, device, or action to obtain money or property by means of false or fraudulent pretenses, representations, or promises reasonably calculated to deceive persons of average prudence.
“Fraud” is a general term that embraces all the various means that human ingenuity can devise and that are resorted to by an individual to gain advantage over another by false representations, suggestions, or suppression of the truth or deliberate disregard for the truth.
Thus, a “scheme to defraud” is any plan, device, or course of action to deprive another of money or property by means of false or fraudulent pretenses, representations, or promises. It is a plan to deprive another of money or property by trick, deceit, deception, swindle, or overreaching.
In order to establish a scheme to defraud, the government need not show that the defendant made a misrepresentation. A scheme to defraud can exist even if the scheme did not progress to the point where misrepresentations would be made. In addition, even if you find that the statements the government contends were made or contemplated by the defendant in furtherance of the scheme were literally true, you can still find that the first element of the wire fraud statute has been satisfied if the statements and/or conduct of the defendant were deceptive. You may also find the existence of such a scheme if you find that the defendant conducted himself in a manner that departed from traditional notions of fundamental honesty and fair play in the general business life of society.
A scheme to defraud need not be shown by direct evidence, but may be established by all the circumstances and facts in the case.
A “pretense, representation, or statement” is fraudulent if it was made falsely and with intent to deceive. A statement may also be fraudulent if it contains half-truths or if it conceals material facts in a manner that makes what is said or represented deliberately misleading or deceptive.
The failure to disclose information may also constitute a fraudulent representation if the defendant was under a legal, professional, or contractual duty to make such a disclosure, the defendant actually knew such a disclosure was required to be made, and the defendant failed to make such disclosure with the intent to defraud.
“ Material Fact”
The false or fraudulent representation or concealment must relate to a material fact or matter. I previously defined the phrase “material fact” in instructing you on Count Three, and you should use the same definition with respect to Count Four.
In order to satisfy this first element, the government must also prove that the alleged scheme contemplated depriving another of money or property. It is not necessary for the government to establish that the defendant you are considering actually realized any gain from the scheme or that any particular person actually suffered damages as a consequence of the fraudulent scheme. You must concentrate on whether there was such a scheme, not on the consequences of the scheme.
In this regard, a person is not deprived of money or property only when someone directly takes his money or property from him. Rather, a person is also deprived of money or property when that person is provided false or fraudulent information that, if believed, would prevent him from being able to make informed decisions about what to do with his money or property. In other words, a person is deprived of money or property when he is deprived of the right to control that money or property. And he is deprived of the right to control that money and property when he receives false or fraudulent statements that affect his ability to make discretionary economic decisions about what to do with that money or property.
If you find that the government has sustained its burden of proof that a scheme to defraud did exist, as charged, you next should consider the second element.
4. Second Element - Knowing Participation in Scheme with Intent to Defraud
The second element of wire fraud that the government must establish beyond a reasonable doubt is that the defendant devised or participated in the fraudulent scheme knowingly, willfully, and with the specific intent to defraud.
The words “devised” and “participated” are words that you are familiar with and, therefore, I do not need to spend much time defining them for you. To “devise” a scheme to defraud is to concoct or plan it. To “participate” in a scheme to defraud means to associate oneself with it with a view and intent toward making it succeed. While a mere onlooker is not a participant in a scheme to defraud, it is not necessary that a participant be someone who personally and visibly executes the scheme to defraud.
In order to satisfy this element, it is not necessary for the government to establish that the defendant originated the scheme to defraud. It is sufficient if you find that a scheme to defraud existed, even if originated by another, and that the defendant you are considering, while aware of the scheme's existence, knowingly participated in it.
As I have previously noted, before the defendant may be convicted of the fraud charged here, he must also be shown to have acted knowingly and willfully and with a specific intent to defraud.
I have previously defined the terms “knowingly” and “willfully, ” and you are to follow those instructions here.
In the context of the wire fraud statute, an individual acts with specific intent to defraud if he engages or participates in a fraudulent scheme with some realization of its fraudulent or deceptive character and with an intention to be involved in the scheme to defraud and to help it succeed with a purpose of causing harm to the victim. The government need not prove that the intended victims were actually harmed; only that such harm was contemplated. Actors are presumed to intend the natural and probable consequences of their actions. So when the necessary result of the actor's scheme is to injure others, fraudulent intent may be inferred from the scheme itself.
The question of whether a person acted knowingly, willfully, and with specific intent to defraud is a question of fact for you to determine, like any other fact question. This question involves one's state of mind. As I instructed you earlier, direct proof is not required to establish the defendant's state of mind. You may rely on circumstantial evidence to establish the defendant's state of mind.
Because an essential element of the wire fraud offense charged in Count Four is specific intent to defraud, it follows that “good faith” on the part of the defendant is a complete defense to a charge of wire fraud. You should follow the instructions I gave earlier on good faith. As I previously stated, a belief by the defendant, if such belief existed, that ultimately everything would work out does not by itself constitute good faith.
5. Third Element - Use of Interstate Wires
The third and final element that the government must establish beyond a reasonable doubt as to the wire fraud count is that interstate or foreign wire facilities were used in furtherance of the scheme to defraud.
The “interstate” or “foreign” requirement means that the wire communication must pass between two or more states as, for example, a transmission of computer or telephone signals between New York and another state, such as Connecticut, or a territory, such as the U.S. Virgin Islands, or between the United States and another country.
It is not necessary for the defendant to be directly or personally involved in any wire communication, as long as the communication is reasonably foreseeable in the execution of the alleged scheme to defraud in which the defendant is accused of participating. In this regard, it would be sufficient to establish this element of the crime if the evidence justifies a finding that the defendant caused the wires to be used by others; and this does not mean that the defendant himself must have specifically authorized others to execute a wire communication. When one does an act with knowledge that the use of the wires will follow in the ordinary course of business, or where such use of the wires can reasonably be foreseen, even though not actually intended, then he causes the wires to be used. Incidentally, this wire communication requirement is satisfied even if the wire communication was done by a person with no knowledge of the fraudulent scheme, including a victim of the alleged fraud.
The use of the wire need not itself be fraudulent. Stated another way, the wire communication need not contain any fraudulent representation, or even any request for money. It is sufficient if the wires were used to further or assist in carrying out the scheme to defraud.
Let me also add the following: only the wire communication must be reasonably foreseeable, not its interstate or foreign component. Thus, if you find that the wire communication was reasonably foreseeable, and the interstate or foreign wire communications actually took place, then this element is satisfied even if it was not foreseeable that the wire communication would cross state or national lines.
6. Special Interrogatory
If, and only if, you conclude that the government has proved beyond a reasonable doubt that the defendant is guilty of participating in the wire fraud scheme in Count Four, you must then determine whether the scheme affected a financial institution.
For the purposes of this interrogatory, a “financial institution” may be either a bank whose deposits are insured by the Federal Deposit Insurance Corporation, or an organization which finances or refinances debt secured by an interest in real estate whose activities affect interstate commerce.
To be affected by a scheme to defraud means that the financial institution either suffered an actual loss or was exposed to a new or increased risk of loss as a result of the scheme to defraud.
E. Count Five: Bank Fraud
1. The Indictment and the Statute
Count Five charges the defendant with the crime of bank fraud. Specifically, it charges that from at least in or about March 2017 through at least in or about May 2019, the defendant engaged in a scheme to defraud a federally-insured bank by misrepresenting the value of certain collateral in order to induce the bank to make loans secured by the collateral in greater amounts than those that the bank would otherwise extend.
Bank fraud is a violation of Title 18, United States Code, Section 1344. That statute provides, in pertinent part:
Whoever knowingly executes, or attempts to execute, a scheme or artifice
(1) to defraud a financial institution; or
(2) to obtain any of the moneys, funds, credits, assets, securities, or other property owned by, or under the custody or control of, a financial institution, by means of false or fraudulent pretenses, representations, or promises; shall be [guilty of a federal crime].
2. Elements of the Offense
For this count, the government must prove the following three elements:
First, that there was a scheme to defraud a bank or a scheme to obtain money owned by or under the custody or control of a bank by means of materially false or fraudulent pretenses, representations, or promises;
Second, that the defendant executed or attempted to execute the scheme with the intent either to defraud the bank or to obtain money or funds owned by or under the custody or control of the bank; and
Third, that the bank involved was federally insured.
3. First Element - Existence of a Scheme or Artifice
The first element of bank fraud is that that there was a scheme to defraud a bank or a scheme to obtain money owned by or under the custody or control of a bank, by means of false or fraudulent pretenses, representations, or promises;
This element requires proof of the existence of only one of these. That is, either that there existed a scheme to defraud a bank or a scheme to obtain property under the custody or control of a bank by means of fraudulent pretenses, representations, or promises.
In order to prove the first theory of bank fraud, that there was a “scheme to defraud a bank, ” the government must prove beyond a reasonable doubt that there was a pattern or course of conduct concerning a material matter designed to deceive a federally-insured bank into releasing property.
In order to prove the second theory of bank fraud, the government must prove beyond a reasonable doubt that there was a scheme to obtain money or property owned by or under the custody and control of a bank or credit union by means of false or fraudulent pretenses, representations or promises. A representation is fraudulent if it was falsely made with the intent to deceive. Deceitful statements of half truth, the concealment of material facts, and the expression of an opinion not honestly entertained may constitute false or fraudulent representations under the statute.
The deception need not be premised upon spoken or written words alone. The arrangement of the words, or the circumstances in which they are used may convey a false and deceptive appearance. If there is intentional deception, the manner in which it is accomplished does not matter.
With respect to the second theory of bank fraud, it is not necessary that the false or fraudulent pretenses, representations, or promises were made directly to the bank itself. It is sufficient if they were made to any person, so long as the false or fraudulent pretenses, representations or promises were the mechanism naturally inducing the bank (or custodian of bank property) to part with money in its control.
As to either theory, the deception need not be premised upon spoken or written words alone. The arrangement of the words, the omission of words, or the circumstances in which they are used may convey a false and deceptive appearance. If there is intentional deception, the manner in which it is accomplished does not matter.
The false or fraudulent representation or concealment must relate to a material fact or matter. I previously defined the phrase “material fact” in instructing you on Count Three, and you should use the same definition with respect to Count Five.
4. Second Element - Intent to Defraud
The second element of bank fraud is about the defendant's intent. There are two ways that this element can be met.
The first way this element can be met is if the defendant executed, attempted to execute, or participated in the scheme or artifice knowingly, willfully, and with the intent to defraud the bank.
The second way this element can be met is if the defendant executed or attempted to execute the scheme knowingly and willfully and with the intent to obtain money or funds owned or under the custody or control of the bank.
I have already provided you with the definitions of “knowingly, ” “willfully, ” and “intent to defraud, ” and you should apply those same definitions here.
5. Third Element - Bank was Federally Insured
The third element the government must prove beyond a reasonable doubt is that the bank was insured by the Federal Deposit Insurance Corporation at the time of the execution of the alleged scheme to defraud.
It is not necessary for the government to prove that the defendant knew that the bank was insured by the Federal Deposit Insurance Corporation. The government must prove, however, that the defendant intended to defraud a financial institution or to obtain money or funds owned or under the custody or control of the financial institution.
F. Aiding and Abetting and Willfully Causing
The substantive counts I have instructed you on today - Counts Three, Four, and Five -also charge the defendant with what is called aiding and abetting and willfully causing a crime.
Aiding and abetting and willfully causing a crime are simply alternative manners of committing a substantive crime. For example, if the government proves beyond a reasonable doubt that the defendant committed the securities fraud alleged in Count Three, then you need not consider whether the defendant aided and abetted the offense or willfully caused it with respect to that count. If, however, you find that the government did not prove beyond a reasonable doubt that the defendant engaged in securities fraud, to continue using Count Three as an example, you should consider whether the government has nonetheless proved beyond a reasonable doubt that the defendant aided and abetted someone else in the commission of securities fraud or willfully caused the commission of securities fraud, as alleged in that count. And again, while I have used Count Three as an example, these concepts of aiding and abetting and willfully causing are alleged in Counts Four and Five of the Indictment as well. First I will explain aiding and abetting and then I will explain what it means to willfully cause a crime.
Aiding and Abetting
A defendant can be convicted of committing a crime if he helps someone else to commit the crime.
Under the federal aiding and abetting statute, whoever “aids, abets, counsels, commands, induces or procures” the commission of an offense is punishable as a principal. A person who aids and abets another to commit a crime is just as guilty of that crime as if he had personally committed it. You may thus find a defendant guilty if you find beyond a reasonable doubt that the government has proven that someone committed the offense, and that the defendant helped or assisted that person in the commission of the offense.
The first requirement of aiding and abetting liability is that somebody else has committed the crime at issue. The defendant cannot be convicted of aiding and abetting if nobody committed the underlying crime. But if you do find that the underlying crime at issue was committed by someone other than the defendant, you should consider whether the defendant aided or abetted the person who actually committed the crime.
To aid and abet another to commit a crime, the defendant must have willfully and knowingly associated himself in some way with the crime, and he must have willfully and knowingly sought by some act to help make the crime succeed. Participation in a crime is willful if action is taken voluntarily and intentionally.
The mere presence of the defendant in a place where a crime is being committed, even coupled with knowledge that a crime is being committed, is not enough to make him an aider and abettor. A defendant's acquiescence in the criminal conduct of others, even with guilty knowledge, is not enough to establish aiding and abetting. An aider and abettor must have his own affirmative interest in the criminal venture.
To determine whether the defendant aided and abetted the commission of the crime, ask yourself these questions:
Did someone other than the defendant commit the crime at issue?
Did the defendant participate in the crime charged as something that he wished to bring about?
Did he associate himself with the attempt to commit the crime by other people knowingly and willfully?
Did he seek by his actions to make their criminal venture succeed?
If so, the defendant is an aider and abettor, and therefore he is guilty of the offense under consideration. If not, then he is not an aider and abettor, and he is not guilty of the offense under consideration unless you find that he committed the offense directly or willfully caused it.
Willfully Causing a Crime
The second way that the defendant can be found guilty of the crime without having personally committed the conduct that meets all the elements that I defined earlier is by willfully causing someone else to commit the crime. Under federal law, “[w]however willfully causes an act to be done which if directly performed by him or another would be an offense against the United States [shall be guilty of a crime].”
The meaning of the term “willfully caused” can be found in the answers to the following questions:
First, did the defendant take some action without which the crime would not have occurred?
Second, did the defendant intend that the crime would be actually committed by others?
In answering these questions, I instruct you that the person who actually performed the act or acts need not have any criminal purpose or intent. If the defendant willfully caused an act that, had he performed it directly, would make him guilty of the crime charged, then he is guilty of the crime charged just as if the defendant himself had actually committed it.
G. Count One: Conspiracy to Commit Securities Fraud
Earlier in these instructions, I explained to you that a conspiracy to commit a crime is an entirely separate and different offense from the substantive crime which may be the object of the conspiracy. Now that I have discussed the substantive counts charged in the Indictment, I will discuss the elements of the conspiracy charges in the Indictment.
Count One charges Michael Hild with participating in a securities fraud conspiracy in violation of Title 18, United States Code, Section 371. Specifically, it charges that from at least in or about September 2015 through at least in or about May 2019, the defendant conspired to commit securities fraud by falsely inflating the value of a portfolio of bonds in order to fraudulently induce securities dealers and a financial institution into loaning more money to Live Will Financial. The Indictment lists the overt acts - which I'll explain to you later - that are alleged to have been committed in furtherance of the conspiracy charged in Count One.
Title 18, United States Code, Section 371 provides in relevant part: “If two or more persons conspire . . . to commit any offense against the United States . . . and one or more of such persons do any act to effect the object of the conspiracy, each. . .” is guilty of a crime. As I will explain, a conspiracy is a kind of criminal partnership - an agreement of two or more people to join together to accomplish some unlawful purpose. The essence of the crime of conspiracy is an agreement or understanding to violate other law. If a conspiracy exists, even if it should fail in its purpose, it is still punishable as a crime.
1. Elements of the Offense
In order to sustain its burden of proof with respect to the conspiracy charged in Count One, the government must prove beyond a reasonable doubt each of the following three elements:
First, the existence of the conspiracy charged in the Indictment; in other words, that there was, in fact, an agreement or understanding to commit the object of the conspiracy, which for this count is securities fraud.
Second, that a defendant knowingly and willfully became a member of the conspiracy, with intent to further its illegal purpose, that is, with the intent to commit the object of the charged conspiracy; and
Third, that any one of the conspirators - not necessarily the defendant, but any one of the parties involved in the conspiracy - knowingly committed at least one overt act in furtherance of the conspiracy.
Now let us separately consider the three elements.
2. First Element - The Existence of a Conspiracy
The first element is simply the existence of a conspiracy. A conspiracy is an agreement, or an understanding, by two or more persons to accomplish one or more unlawful objectives by working together.
To meet its burden of proof on this element, the government must prove that there was an agreement between two or more people. The government is not required to show, however, that two or more people sat down at a table and entered into a solemn pact, orally or in writing, stating that they have formed a conspiracy to violate the law and spelling out all of the details of the plans and the means by which the unlawful object was to be carried out, or the part that each of the persons who is a party to the conspiracy was going to play. Common sense will tell you that when people in fact undertake to enter into a criminal conspiracy, much is left to unexpressed understanding. Conspirators do not usually reduce their agreements to writing. They do not typically broadcast their plans publicly.
By its very nature, a conspiracy is almost always secret in its origin and execution. It is enough if two or more people, in some way or manner, impliedly or tacitly come to an understanding to violate the law. Express language or specific words are not required to indicate assent or agreement to form the conspiracy. You need only find that two or more people entered into the unlawful agreement alleged in the indictment in order to find that a conspiracy existed. In determining whether there has been an unlawful agreement as alleged in Count One, you may judge the proven acts and conduct of the alleged conspirators that were taken to carry out the apparent criminal purpose. The old adage, “actions speak louder than words, ” is applicable here. Disconnected acts, when taken in connect with one another, can show a conspiracy or an agreement to secure a particular result just as satisfactorily and conclusively as more direct proof.
When people enter into a conspiracy to accomplish an unlawful end, they become agents or partners of one another in carrying out the conspiracy. In determining the factual issues before you, you may take into account any acts done or statements made by any of the alleged coconspirators during the course of the conspiracy, even though such facts or statements may not have been made in the presence of the defendant or may have been made without his knowledge. Of course, proof concerning the accomplishment of the object of a conspiracy may be the most persuasive evidence that the conspiracy itself existed, but it is not necessary, as I have said, that the conspiracy actually succeeded for you to conclude that it existed. In deciding whether the conspiracy charged in Count One existed, you may consider all of the evidence of the acts, conduct and statements of the alleged conspirators and the reasonable inferences to be drawn from that evidence.
It is sufficient to establish the existence of the conspiracy if, after considering all of the relevant evidence, you find beyond a reasonable doubt that the mind of at least two alleged conspirators met in an understanding way, and that they agreed, as I have explained, to work together to accomplish the object or objective of the conspiracy charged in Count One.
3. Object of the Conspiracy
The object of a conspiracy is the illegal goal or goals the co-conspirators agree or hope to achieve. As I have mentioned, the object of the conspiracy charged in Count One of the indictment is securities fraud. In order to prove that the defendant is guilty of the conspiracy offense charged in Count One, the government must establish beyond a reasonable doubt that that defendant agreed with others to commit securities fraud.
As I noted, the substantive offense alleged in Count Three of the indictment is charged as the object of the conspiracy. This is permissible. A crime may be punished for its own sake, and it may also be an object of a conspiracy. However, you must consider them separately. A defendant may be guilty of one and not the other, and you may consider whether the defendant committed the substantive count when determining whether the defendant committed the conspiracy. I ask that you apply the instructions I have already given regarding Count Three in assessing whether the government has proven the object of the conspiracy charged as Count One of the indictment.
4. Second Element - Membership in the Conspiracy
If you find that the government has proven beyond a reasonable doubt that the conspiracy charged existed, then you must consider the second element of the crime. The second element the government must prove beyond a reasonable doubt to establish the offense of conspiracy is that the defendant knowingly and willfully became a member of the alleged conspiracy.
I have already instructed you on the definitions of knowingly and willfully and you should apply those definitions here.
In deciding whether the defendant was, in fact, a member of the conspiracy, you should consider whether that defendant knowingly joined the conspiracy. Did he participate in it with knowledge of its unlawful purpose and with the specific intention of furthering its objective?
It is not necessary for the government to show that a defendant was fully informed as to all of the details of the conspiracy in order for you to infer knowledge and intent on his part. To have guilty knowledge, a defendant need not have known the full extent of the conspiracy, or all of the activities of all the conspiracy all of the conspiracy participants. Similarly, it is not necessary for a defendant to have known every other member of the conspiracy. In fact, a defendant may know and have conspired with only one other member of the conspiracy and may still be considered a co-conspirator. Nor is it necessary for a defendant to have received any monetary benefit from his participation in the conspiracy, or to have a financial stake in the outcome of the alleged joint venture. It is enough if a defendant participated in the conspiracy unlawfully, knowingly, and willfully, as I have defined those terms.
The duration and extent of the defendant's participation has no bearing on the issue of that defendant's guilt. A defendant need not have joined the conspiracy at the outset. A defendant may have joined the conspiracy at any time in its progress, and a defendant will be held responsible for all that was done before he joined and all that was done during the conspiracy's existence while he was a member. Each member of a conspiracy may perform separate and distinct acts. Some conspirators may play major roles, while other play minor roles in the scheme, and an equal role is not what the law requires. In fact, even a single act may be sufficient to draw a defendant within the scope of the conspiracy.
It is important for you to note that the defendant's participation in the conspiracy must be established by independent evidence of his own acts or statements, as well as those of the other alleged co-conspirators, and the reasonable inferences that may be drawn from them.
I want to caution you, however, that a defendant's mere presence at the scene of the alleged crime does not, by itself, make him a member of the conspiracy. Similarly, mere association with one or more members of the conspiracy does not automatically make the defendant a member. A person may know, or be friendly with, a criminal, without being a criminal himself. Mere similarity of conduct or the fact that they may have assembled together and discussed common aims and interests does not necessarily establish membership in the conspiracy.
I also want to caution you that mere knowledge or acquiescence, without participation, in the unlawful plan is not sufficient. Moreover, the fact that the acts of a defendant, without knowledge, merely happen to further the purposes or objectives of the conspiracy, does not make the defendant a member. More is required under the law. What is necessary is that the defendant must have participated with knowledge of at least some of the purposes or objectives of the conspiracy and with the intention of aiding in the accomplishment of those unlawful ends. The government is not required to prove that the members of the alleged conspiracy were successful in achieving any or all of the objects of the conspiracy.
5. Third Element - Overt Acts
The third element of Count One that the government must prove is the commission of an overt act. In particular, the government must show beyond a reasonable doubt that at least one overt act was committed in furtherance of the conspiracy charged in Count One by at least one of the co-conspirators - not necessarily a defendant.
The purpose of the overt act requirement is clear. There must have been something more than mere agreement; some overt step or action must have been taken by at least one of the conspirators in furtherance of the conspiracy.
Let me put it colloquially. The overt act element is a requirement that the agreement went beyond the mere talking stage, the mere agreement stage. The requirement of an overt act is a requirement that some action be taken during the life of the conspiracy by one of the coconspirators to further the conspiracy.
For the government to satisfy the overt act requirement, it is not necessary for the government to prove all of the overt acts alleged in the Indictment or even any of the overt acts contained in the Indictment. Indeed, you may find that overt acts were committed that were not alleged at all in the Indictment. In short, it is sufficient for the government to show that the defendant or one of his alleged co-conspirators knowingly committed an overt act - whether specifically charged in the Indictment or not - in furtherance of the conspiracy. You must be unanimous on at least one such overt act.
You are further instructed that the overt act need not have been committed at precisely the time alleged in the Indictment. It is sufficient if you are convinced beyond a reasonable doubt that an overt act occurred while the conspiracy was in existence.
In considering this element, you should bear in mind that an overt act, standing alone, may be an innocent, lawful act. Frequently, however, an apparently innocent act sheds its harmless character if it is a step in carrying out, promoting, aiding or assisting the conspiratorial scheme. You are therefore instructed that the overt act does not have to be an act that in and of itself is criminal or constitutes an object of the conspiracy.
H. Count Two: Conspiracy to Commit Wire and Bank Fraud
1. The Indictment and the Statute
Count Two charges the defendant with conspiracy to commit wire and bank fraud, in violation of Title 18, United States Code, Section 1349. Specifically, it charges that from at least in or about 2015 through at least in or about May 2019, the defendant conspired to commit bank and wire fraud by engaging in a scheme to fraudulently induce securities dealers and a financial institution into loaning more money to Live Will Financial than they otherwise would have extended.
Title 18, United States Code, Section 1349, provides that any person who conspires to commit bank or wire fraud shall be guilty of a crime.
2. Elements of the Offense
In order to sustain its burden of proof on this charge, the government must prove beyond a reasonable doubt the following elements:
First, that the charged conspiracy existed; and
Second, that the defendant knowingly and willfully became a member of the alleged conspiracy during the applicable time period.
I have already instructed you on these elements in connection with Count One, and you should apply those instructions here.
3. Objects of the Conspiracy
As I previously explained, the objects of a conspiracy are the illegal goal or goals the coconspirators agree or hope to achieve. The Indictment charges two such unlawful purposes in connection with Count Two. You should keep in mind that you need not find that the conspirators agreed to accomplish each one of these objects. An agreement to accomplish any one of these objects is sufficient. Here, the objects of the conspiracy are (a) wire fraud, and (b) bank fraud. Although the finding of one unlawful objective is sufficient to satisfy the illegal purpose element, I instruct you that you, the jury, must unanimously agree on which object, if any, was the specific object or objects of the alleged conspiracy. If the government fails to prove beyond a reasonable doubt that at least one of the unlawful objectives alleged in Count Two was in fact an objective of the conspiracy, or if you cannot unanimously agree as to which of the unlawful objects alleged in the Indictment have been proven beyond a reasonable doubt, then you must find the defendant not guilty as to Count Two.
4. Special Interrogatory
If, and only if, you conclude that the government has proved beyond a reasonable doubt that the defendant is guilty of participating in the wire fraud conspiracy in Count Two, you must then determine whether the objective of the scheme was to affect a financial institution. I have previously instructed you, in connection with Count Four, on what it means for a wire fraud scheme to affect a financial institution, and you should follow those instructions here.
I. Time of Offense
As to each Count in the Indictment, various date ranges are alleged. It is sufficient if you find that the charged conduct that occurred around the dates set forth in the Indictment.
This is also a good opportunity to instruct you that it does not matter if a specific event or transaction is alleged to have occurred on or about a certain date, and the evidence indicates that in fact it occurred on another date. The law only requires a substantial similarity between the dates alleged in the Indictment and the dates established by the testimony and other evidence.
J. Venue
Now, in addition to dealing with the elements of each of the offenses, you must also consider the issue of venue as to each offense, namely, whether any act in furtherance of the unlawful activity occurred within the Southern District of New York. The Southern District of New York encompasses the following counties: New York County (i.e., Manhattan), Bronx, Westchester, Rockland, Putnam, Dutchess, Orange and Sullivan Counties. Anything that occurs in any of those places occurs in the Southern District of New York.
It is sufficient to satisfy the venue requirement if any act by anyone in furtherance of the crime charged occurred within the Southern District of New York. To satisfy this venue requirement only, the government need not meet the burden of proof beyond a reasonable doubt. It need not meet that standard on the venue requirement and the venue requirement only. The government meets its burden of proof if it establishes by a preponderance of the evidence- simply tips the scale in its favor-that an act in furtherance of the crime occurred within the Southern District of New York. A preponderance of the evidence means that something is more likely than not.
III. DELIBERATIONS OF THE JURY
A. Right to See Evidence and Communication with the Court
Ladies and gentlemen of the jury, that concludes the substantive portion of my instructions to you. You are about to go into the jury room and begin your deliberations. I will send all of the exhibits to the jury room on a computer but if you would like printed copies of certain exhibits as well let us know. If you want any of the testimony read back, you may also request that. Please remember that it is not always easy to locate what you might want, so be as specific as you possibly can in requesting exhibits or portions of the testimony. If you want any further explanation of the law as I have explained it to you, you may also request that.
Your requests for exhibits or testimony-in fact any communications with the Court- should be made to me in writing, signed, dated, and timed by a foreperson you will choose, and given to one of the court security officers. I will respond to any questions or requests you have as promptly as possible, either in writing or by having you return to the courtroom so I can speak with you in person. In any communication, please do not tell me or anyone else how the jury stands on any issue until after a unanimous verdict is reached and announced in open court by your foreperson.
B.
If any of you have taken notes throughout this trial, I want to emphasize to you, as you are about to begin your deliberations, that notes are simply an aid to memory. Notes that any of you may have made may not be given any greater weight or influence than the recollections or impressions of other jurors, whether from notes or memory, with respect to the evidence presented or what conclusions, if any, should be drawn from such evidence. All jurors' recollections are equal. If you can't agree on what you remember the testimony was, you can ask to have the transcript read back.
C. Duty Not to Research or Discuss the Case
Although during your deliberations you may discuss the case with your fellow jurors, you must not communicate with or provide any information to anyone else by any means. You may thus not use any electronic devices or social media platforms to communicate with anyone any information about this case or to conduct any research about this case until I accept your verdict.
D. Duty to Deliberate and Unanimous Verdict
Momentarily, you will retire to decide the case. Your function is to weigh the evidence in this case and to determine the guilt or lack of guilt of the defendant with respect to each count charged in the Indictment. You must base your verdict solely on the evidence or lack of evidence and these instructions as to the law, and you are obliged on your oath as jurors to follow the law as I instruct you, whether you agree or disagree with the particular law in question.
It is your duty as jurors to consult with one another and to deliberate with a view to reaching an agreement. Each of you must decide the case for himself or herself, but you should do so only after a consideration of the case with your fellow jurors, and you should not hesitate to change an opinion when convinced that it is erroneous. Discuss and weigh your respective opinions dispassionately, without regard to sympathy, without regard to prejudice or favor for either party, and adopt that conclusion which in your good conscience appears to be in accordance with the truth. You are not to discuss the case until all jurors are present. Nine or ten or even eleven jurors together is only a gathering of individuals. Only when all jurors are present do you constitute a jury, and only then may you deliberate.
The verdict must represent the considered judgment of each juror. In order to return a verdict, it is necessary that each juror agree to the verdict. Your verdict must be unanimous. However, you are not bound to surrender your honest convictions concerning the effect or weight of the evidence for the mere purpose of returning a verdict or solely because of the opinion of other jurors. Each of you must make your own decision about the proper outcome of this case based on your consideration of the evidence and your discussions with your fellow jurors. No juror should surrender his or her conscientious beliefs solely for the purpose of returning a unanimous verdict.
Remember at all times, you are not partisans. You are judges-judges of the facts. Your sole interest is to seek the truth from the evidence in the case.
If you are divided, do not report how the vote stands and, if you have reached a verdict, do not report what it is until you are asked in open court.
E. Duties of Foreperson
I referred a moment ago to a foreperson. You should by your own vote select one of you to sit as your foreperson. The foreperson doesn't have any more power or authority than any other juror, and his or her vote or opinion doesn't count for any more than any other juror's vote or opinion. The foreperson is merely your spokesperson to the Court. He or she will send out any notes, and when the jury has reached a verdict, he or she will notify the marshal that the jury has reached a verdict, and you will come into open court and give the verdict.
F. Return of Verdict
After you have reached a verdict, you will all fill in the form that has been given to you, sign and date it, and advise the marshal outside your door that you are ready to return to the courtroom. There is one verdict form for the entire jury; each juror does not receive their own verdict form. The verdict form lists the questions that you must resolve based on the evidence and the instructions that I have given you. When the form is complete, it will be marked as a Court Exhibit.
I will stress that each of you must be in agreement with the verdict which is announced in court. Once your verdict is announced by your foreperson in open court and officially recorded, it cannot ordinarily be revoked.
G. Alternate Jurors
At this time, the first twelve jurors will begin their deliberations in the case. The final three-all of whom are alternates-won't deliberate at this time. Nevertheless, the alternate jurors are not quite excused. While the jury conducts its deliberations, you do not have to be in court, but you should give Ms. Cavale phone numbers where you can be reached, because it is possible that one or more of you could be needed to deliberate if a juror is unable to continue. Ms. Cavale will call you when deliberations are completed so that you will know you are completely finished. Between now and then, you must continue to observe all the restrictions I have instructed you on throughout the trial. That is, you must not discuss this case with anyone, including your fellow alternate jurors, the other jurors, other people involved in the trial, members of your family, friends, co-workers, or anyone else. And until a verdict is reached, as I have already instructed, you may not communicate with anyone about the case in any way. If anyone approaches you and tries to talk to you about the case, please report that to me, through Ms. Cavale, immediately.
Do not listen to or watch or read any news reports concerning this trial if there were to be any; do not do any research on the Internet or otherwise. The reason for this of course is that should you be asked to participate in reaching a verdict in this case, the only information you will be allowed to consider is what you learned in this courtroom during the trial. Please accept my heartfelt gratitude for your service.
I'm sorry that you will likely miss the experience of deliberating with the jury but the law provides for a jury of twelve persons in this case. So before the rest of the jury retires to the jury room, if you have any clothing or objects there you are asked to pick them up and to withdraw before any deliberations start. Without discussing the case, you may also say your goodbyes to your fellow jurors.
H. Conclusion
Members of the jury, this concludes my instructions to you. Remember that your verdict must be rendered without fear, without favor, and without prejudice or sympathy. I am sure that if you listen to the views of your fellow jurors and apply your own common sense, you will reach a fair verdict.