United States v. Philip Kostoff, Paul Kostoff, Ronald Rossi, John R. Dubos, Kenneth L. Stevenson

Defendants were charged, along with Sean Shanahan, with conspiracy to violate 18 U.S.C. § 1014 , bank credit fraud, and 18 U.S.C. § 1341 , mail fraud, in violation of 18 U.S.C. § 371 . There were also six additional substantive counts charging violations of 18 U.S.C. § 1014 and 18 U.S.C. § 2 , aiding and abetting. The jury found against all appellants on Count I, the conspiracy count; against Philip Rostoff on Counts II through VII; against Paul Rostoff on Counts II and III; against Stevenson on Count II; against Rossi on Count VI; and against Dubos on Count VII. All defendants appeal based on the jury instructions, contending that there was error resulting 1) from the lack of jury instructions as to mail fraud, and 2) from changing jury instructions after counsel’s closing arguments. They also object to the failure to allow evidence or instructions as to materiality.

Other issues include whether or not there was sufficient evidence to support a single conspiracy theory; whether the admission of the death threat was prejudicial error; whether it was error to deny suppression motions; and whether certain overt acts should have been stricken from the indictment. Stevenson also…