Moran

Pamela and James Moran appeal their convictions of conspiracy to defraud the United States ( 18 U.S.C. § 371 ), conspiracy to commit wire and mail fraud ( 18 U.S.C. § 371 ), aiding and assisting in the preparation and filing of false federal income tax returns ( 26 U.S.C. § 7206 (2)), mail fraud ( 18 U.S.C. § 1341 ), and wire fraud ( 18 U.S.C. § 1343 ). They contend that the district court erred in four ways: (1) by allowing expert testimony that certain financial transactions were “shams”; (2) by giving allegedly improper Pinkerton instructions to the jury; (3) by admitting codefendant Wayne Anderson’s computer records as coconspirator statements; and (4) by excluding Mrs. Moran’s testimony regarding outside expert opinions she had received about the legality of the Morans’ tax schemes. We find no error in allowing the expert testimony, admitting the computer records, or in the jury instructions. However, because the district court erroneously excluded Mrs. Moran’s testimony as hearsay and did not provide a reasoned basis for excluding it under Federal Rule of Evidence 403, and because this testimony would have comprised a critical element of the Morans’ good faith defense, we…