Cleveland v. United States

531 U.S. 12 (2000)

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Nature of the Case

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Facts

Louisiana allows the operation of video poker machines. The owners of the machines must apply for licenses. Goodson and his family formed a limited partnership, and Cleveland (D), a New Orleans attorney assisted Goodson in preparing the application for a video poker license. The application requires that the listed partners were the sole beneficial owners and that no one involved was merely an agent or nominee. The application identified Goodson’s children as the owners and also showed that Goodson and D’s law firm had loaned them the money and that the Goodson was the general manager. The state approved the application and even renewed the license for the next three years. In 1996, the FBI discovered evidence that D and Goodson had participated in a scheme to bribe state legislators to vote in favor of the video poker industry. D was charged with multiple counts of money laundering and racketeering and conspiracy. There were also four counts of mail fraud under 1341. This alleged that D and Goodson were the real owners of the limited partnership. D moved to dismiss the mail fraud counts on grounds that the alleged fraud did not deprive the State of property under 1341. That motion was denied with the court ruling that the licenses constituted property even before they were issued. D was sentenced to 10 years. The Fifth Circuit affirmed.