Neder v. United States, 527 U.S. 1, 6 (1999)

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6

NEDER v. UNITED STATES

Opinion of the Court

and he obtained almost $3 million unrelated to any work actually performed.

Neder was indicted on, among other things, 9 counts of mail fraud, in violation of 18 U. S. C. § 1341; 9 counts of wire fraud, in violation of § 1343; 12 counts of bank fraud, in violation of § 1344; and 2 counts of filing a false income tax return, in violation of 26 U. S. C. § 7206(1). The fraud counts charged Neder with devising and executing various schemes to defraud lenders in connection with the land acquisition and development loans, totaling over $40 million. The tax counts charged Neder with filing false statements of income on his tax returns. According to the Government, Neder failed to report more than $1 million in income for 1985 and more than $4 million in income for 1986, both amounts reflecting profits Neder obtained from the fraudulent real estate loans.

In accordance with then-extant Circuit precedent and over Neder's objection, the District Court instructed the jury that, to convict on the tax offenses, it "need not consider" the materiality of any false statements "even though that language is used in the indictment." App. 256. The question of materiality, the court instructed, "is not a question for the jury to decide." Ibid. The court gave a similar instruction on bank fraud, id., at 249, and subsequently found, outside the presence of the jury, that the evidence established the materiality of all the false statements at issue, id., at 167. In instructing the jury on mail fraud and wire fraud, the District Court did not include materiality as an element of either offense. Id., at 253-255. Neder again objected to the instruction. The jury convicted Neder of the fraud and tax offenses, and he was sentenced to 147 months' imprisonment, 5 years' supervised release, and $25 million in restitution.

The Court of Appeals for the Eleventh Circuit affirmed the conviction. 136 F. 3d 1459 (1998). It held that the District Court erred under our intervening decision in United States

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