United States v. David T. Braunstein

Appellant David T. Braunstein (“Braun-stein”) appeals the district court’s order denying his motion for attorney’s fees pursuant to the Hyde Amendment, 18 U.S.C. § 3006A. Braunstein asserts that he incurred approximately $200,000 in attorney’s fees defending against sixteen federal criminal charges of wire fraud, interstate transportation of goods obtained by fraud, and money laundering. He claims that under the Hyde Amendment, the government is required to pay his attorney’s fees because the prosecution was “vexatious, frivolous, or in bad faith.” We have jurisdiction pursuant to 28 U.S.C. § 1291 , and, as we find the prosecution was frivolous, we now reverse.

I.

FACTS and PROCEDURAL HISTORY

A. Braunstein’s Business Dealings With Apple Latin America

Braunstein is a businessman who bought and sold computers, often through two companies he owned, Pacific Rim Technologies Corporation and Almacén. Braun-stein maintained a computer distribution company in California and a computer retail store and refurbishing plant in Tijuana, Mexico. From September 1993 through April 1996, Braunstein bought computers from the Apple Latin America Company (“ALAC”). ALAC is a subdivision of Apple…