Background
A jury convicted Charles Lacona of two counts of wire fraud and one count of money laundering stemming from a scheme to fraudulently obtain Paycheck Protection Program loans and purchase a Cadillac. Lacona moved for acquittal, arguing insufficient evidence of interstate commerce, constructive amendment of the indictment, and prosecutorial misconduct. The district court denied the motion and sentenced Lacona to twenty-four months in prison.
The court’s reasoning
The court held that the government proved the interstate commerce element by showing that processing fees for the loans traveled from Colorado to Missouri and New Jersey. It found that Lacona knowingly used digital mediums to communicate with an out-of-state bank, foreseeing the use of interstate wires. The court rejected the constructive amendment argument, noting the indictment and instructions consistently alleged a single scheme. It also found no prosecutorial misconduct, as the prosecutor accurately summarized evidence from payroll records rather than mischaracterizing witness testimony.
What it means going forward
The decision reinforces that using digital banking portals to communicate with out-of-state institutions satisfies the interstate commerce requirement for wire fraud, even if the defendant did not personally transmit the specific wire communication.