United States v. Taansen Sumeru

MEMORANDUM

After a joint trial, a jury convicted Jerome Hall and Taansen Sumeru of seven counts of securities fraud, and aiding and abetting securities fraud, in violation of 15 U.S.C. §§ 77q(a), 77x and 18 U.S.C. § 2 ; and seven counts of wire fraud, and aiding and abetting wire fraud, in violation of 18 U.S.C. §§ 2 , 1343. Sumeru was also convicted of one count of money laundering conspiracy, in violation of 18 U.S.C. § 1956 (h); and two counts of failing to file his income tax returns, in violation of 26 U.S.C. § 7203 . We have jurisdiction over this appeal pursuant to 28 U.S.C. § 1291 , and we affirm in all respects.

I. There Was Sufficient Evidence For A Rational Jury To Conclude That The Certificates Of Deposit Were Securities.

Viewing the evidence in the light most favorable to the government, a rational trier of fact could have found that the certificates of deposit offered and sold by Hall and Sumeru were investment contracts and thus “securities” within the meaning of the Securities Act of 1933, 15 U.S.C. § 77a et seq. See Hocking v. Dubois, 885 F.2d 1449, 1455 (9th Cir.1989) (en banc).

It is undisputed that Sattva Bank’s investors invested their money in the CDs…