United States v. Martin S. Wolfson

Martin S. Wolfson appeals from his conviction of fraud by wire in violation of 18 U.S.C. § 1343 (two counts) and of conspiracy to commit the same acts under 18 U.S.C. § 371 (one count). We affirm his conviction but vacate the sentence imposed by the district court and remand the matter for resentencing.

I. The Facts.

We state the facts in the light most favorable to the government. Glasser v. United States, 1942, 315 U.S. 60, 80 , 62 S.Ct. 457, 469 , 86 L.Ed. 680 .

This is the second case that has come before us involving the use of a bank charter, issued by the government of St. Vincent, West Indies, to deceive people into thinking there is a real bank. See United States v. Federbush, 9 Cir., 1980, 625 F.2d 246 . In the case at bar, as in Federbush , the “bank” can properly be described as a “fraud,” a “bustout,” a “scam or flimflam,” like “the Bank of Sark.” Id. at 250 .

Here, the “bank” carried the impressive name First London Bank and Trust Company. It consisted of a paper charter, one Kevin Krown, who owned the charter, an address in Kingstown which turned out to be a “Pet’s Gift Shop,” and a telephone number there, manned by a lady named Roseanne. Krown, in New York, had…