Ciminelli v. United States

Welcome to Supreme Court Opinions. In this episode, you’ll hear the Court’s opinion in Ciminelli v United States. In this case, the court considered this issue: Does the Second Circuit’s “right to control” theory of fraud state a valid basis for liability under the federal wire fraud statute? The case was decided on May 11, 2023. The Supreme Court held that The Second Circuit’s right-to-control theory cannot form the basis for a conviction under the federal fraud statutes because the right to control is not grounded in a traditional property interest. Justice Clarence Thomas authored the unanimous opinion of the Court. The federal wire fraud statute prohibits the use of interstate wires for “any scheme or orifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises.” When the statute was enacted, the common understanding of the verb “to defraud” related to property rights. Although lower courts have interpreted the statute to include interests unconnected to traditional property rights, the Supreme Court in McNally v United States held that the statutes protect only individual property rights. The right-to-control theory has no roots in a traditional property interest and thus cannot be the basis for a conviction under the federal fraud statutes. The opinions are presented here in its entirety, but with citations omitted. If you appreciate this episode, please subscribe. Thank you.