United States v. Mccaskill

202 Fed.Appx. 70 (6th Cir. 2006)

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Nature of the Case

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Facts

Hoberg sought private financing to build a mill. He sought out the services of Richard Sclar, paying Sclar $2,500 to secure financing for a mill expected to cost about $3,500,000. When Sclar left the country having failed to procure the financing, Sclar's ex-wife, Sheila Greenspan offered to help Hoberg obtain an insurance binder that could be used by Hoberg to obtain funding from a local bank or finance company. Hoberg acceded to Greenspan's offer of assistance. Greenspan contacted Jay Elbel who stated he was the attorney for Nigella Insurance Company whose president was Dan Cimini. Elbel informed Greenspan that Nigella could handle the bonding, or insurance guarantee, for Hoberg's project. Because Nigella was not a double-- or triple--A rated insurer, Greenspan was told that a major insurance company would have to reinsure or provide an insurance wrap, for Nigella's policy. The initial binder price for the bond and the insurance wrap was $35,000, or 1% of the targeted financing amount. The ultimate cost of the bond was to be 10% percent of the loan. Nigella was a sham company created by D an insurance businessman. D learned that Greenspan was interested in obtaining financing and contacted Ardeana Vance of A-Vance Insurance Agency in Detroit, Michigan. Vance was purportedly a licensed insurance broker who could write the policy and secure the necessary wrap from a major insurer such as Kemper or Western Surety Insurance Company. Greenspan thereafter received correspondence on A-Vance Insurance Agency's letterhead, informing her about efforts to obtain the insurance wrap and instructing her to send Hoberg's $35,000 binder to MC&D Service Company. Hoberg wired the money as instructed. Hoberg's deposit was never returned to him even though no bond was ever issued and no financing was ever obtained. Instead, Hoberg's $35,000 was split between McCaskill ($10,000), Vance ($10,000), Cimini ($10,000) and Elbel ($5,000). All four were indicted in a 32-count indictment. The charges against Vance were dismissed before trial. Cimini entered into a plea agreement with the government, and Elbel was placed in a pretrial diversion program. D went to trial. D was found guilty on three counts. D represented himself at trial, although an attorney was appointed to assist D as needed. D was sentenced to 60-month consecutive terms of imprisonment on Counts One and Twenty-five and a 68-month term of imprisonment on Count Thirty-two, for a total custodial sentence of 188 months, a bottom-of-the-guidelines sentence. D appealed.