Wire Fraud

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7^th Circuit Court of Appeals

Case Name: United States of America v. Bruce Lee

Case No.: 22-1293

Officials: Wood, Lee, and Pryor, Circuit Judges.

Focus: Wire Fraud

Lee orchestrated a fraudulent scheme targeting the Chicago White Sox. Assisted by two White Sox employees, Lee managed to acquire a substantial number of game tickets at discounted rates or entirely free. These tickets were subsequently resold by Lee through online platforms, yielding him considerable profits. Eventually, Lee faced conviction on charges of wire fraud, a violation of 18 U.S.C. 1343. The indictment explicitly called for the forfeiture of Lee’s unlawfully obtained gains, a request to which Lee did not raise any objections. However, a disagreement arose regarding the precise monetary value subject to forfeiture.

In this legal process, the court inadvertently omitted the entry of a preliminary forfeiture order as required by Fed. R. Crim. P. 32.2(b)(2), which would specify the exact amount due and the properties eligible for forfeiture. Nevertheless, the court fulfilled all other necessary steps for forfeiture, including granting Lee notice and the opportunity to contest the government’s sought-after amount. The court orally declared the forfeiture during the sentencing proceedings, in addition to imposing an 18-month prison term, ordering restitution, and imposing the obligatory special assessment. Unfortunately, the written judgment failed to incorporate the forfeiture aspect.

Following further legal actions, the court concluded that rectifying the forfeiture order had been delayed beyond a reasonable timeframe. Consequently, the court declined to amend the written judgment to mirror its previously pronounced oral sentence.

The Seventh Circuit upheld most aspects of Lee’s conviction, including challenges to the indictment, the court’s denial of his acquittal motion, and the imposed sentence. However, the appellate court reversed the decision regarding forfeiture. It directed the district court to utilize Federal Rule of Criminal Procedure 36 for amending the judgment, thus ensuring the inclusion of forfeiture in the specific amount determined by the court – an amount totaling $455,229.23.

Affirmed in part, reversed in part, remanded

Decided 08/09/23

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