United States v. Sturm

870 F.2d 769 (1st Cir. 1989)

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Nature of the Case

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Facts

Sturm (D) obtained a $110,000 loan for the purchase of an Aero Commander aircraft for $214,000. The aircraft was secured by granting a purchase money mortgage in connection with other related collateral including the plane's logbooks. D fell behind in his loan payments but made them up when the lender called. The lender then learned that D had other financial problems and repossessed the plane. The logbooks were not taken. They eventually learned the value of the logbooks and asked D for their return. D told them he did not know where they were but could help find them for a fee. D told the lenders that he was not interested in the residual value of the aircraft as he was going to declare bankruptcy. The lender contacted the FBI, and phone calls with D were taped. D told the lender that the books made the aircraft worth $45,000 more and that he could find the books if he were given $20,000. The lender agreed to the price and D was given money by two undercover FBI agents who questioned him about the lender paying for property that was already owned by them; D replied in such a fashion that he knew the books rightfully belonged to the lender. D was immediately arrested. D was convicted of attempted extortion under the Hobbs Act. D appealed.