United States v. John Woodley, United States of America v. John Woodley

The United States appeals an order imposing monetary sanctions against it. John M. Woodley cross-appeals his convictions for 36 counts of mail fraud, 18 U.S.C. § 1341 , four counts of tax evasion, 26 U.S.C. § 7201 , and four counts of filing false tax returns, 26 U.S.C. § 7206 , as well as court-ordered restitution.

The parties raise a multitude of issues. We affirm in part and reverse in part.

BACKGROUND

I. Offenses

Woodley was an attorney driven by greed. His convictions stem from his representation of a former client, Elizabeth Lynn. Before her death, she formed a trust and appointed herself sole trustee. The trust became landlord of the White Pine Care Center, a Nevada nursing home, and charged White Pine rent for the use of its real property. She named her accountant, Gerald Shaw, Wood-ley and Thomas Stephens as successor co-trustees.

She also formed Imperial Bristlecone, Inc. and owned all of its 500 shares. Imperial took over White Pine’s operation in 1984 after Lynn evicted her lessees. After her death in 1984, Woodley fraudulently converted Imperial’s stock ownership by altering and falsifying corporate documents. He split the ownership with Shaw. As the…