United States v. Alex v. Stein

Alex V. Stein appeals his convictions and sentence for mail fraud, wire fraud, securities fraud and money laundering. He argues that mailings by a state government agency warning investors of his fraudulent scheme did not constitute a violation by him of the mail fraud statute. He also challenges the jury instructions on the money laundering counts. He further contends his sentence is invalid because the district court applied the guidelines for money laundering rather than the guidelines for fraud, and because his sentence included an enhancement for obstruction of justice. Finally, he argues there is insufficient evidence to support his conviction on Count 8 of the mail fraud counts.

We have jurisdiction under 18 U.S.C. § 1291 . We reverse Stein’s convictions for money laundering on Counts 35, 36 and 37. We also reverse his conviction on Count 8 of the mail fraud counts. We affirm all other convictions, but vacate Stein’s sentence and remand for resentencing.

DISCUSSION

A. Mail Fraud

In 1987, examiners from the United States Securities and Exchange Commission and the State of Oregon Securities Section interviewed Stein and began investigating his operations. Stein told Nancy…