Prosecutors tend to extend the reach of white-collar criminal statutes until the judiciary, at some point, pushes back—the Supreme Court’s decision vacating the conviction of former Virginia Governor Robert McDonnell being the most recent high-profile example.1
In this article, we discuss another case in which the government’s expansive interpretation of federal statutes was narrowed by judicial interpretation—the Second Circuit’s May 23, 2016, decision reversing the $1.2 billion judgment against Bank of America’s Countrywide mortgage unit and a former Countrywide executive under the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA). In United States ex rel. Edward O’Donnell v. Countrywide,2 the U.S. Court of Appeals for the Second Circuit held that the Department of Justice’s civil prosecution, premised on violations of the mail and wire fraud statutes,3 was flawed because it established, at most, a breach of contract. The government failed to allege or prove that the defendants acted with fraudulent intent.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
