SW Legal studies in Business

U.S. Law and Courts Applied to Fraud Executed from Another Nation Via New York
Description Appeals court upheld the conviction of a U.S. citizen who worked for the United Nations and used wire fraud to steal money from the U.N. by falsifying invoices submitted from another nation. U.S. law applies because Congress intended the statute to cover such foreign acts and U.S. courts has jurisdiction since the fraud went through New York banks.

Topic Criminal Law
Key Words Jurisdiction; Venue; Extraterritorial Application
C A S E   S U M M A R Y
Facts Kim was convicted of wire fraud. Kim, a New York resident, was assigned by the U.N. to be in charge of U.N. travel in Croatia, where Kim was stationed. He worked with two travel agents in Croatia and France to defraud the U.N. of over one-half million dollars by inflating the travel invoices. Kim moved to have the conviction overturned, contending that the federal court in New York did not have jurisdiction or venue over the matter.
Decision Conviction affirmed. While there is a presumption against the extraterritorial application of U.S. criminal law to American citizens, the presumption is overcome when it is clear that Congress intends the statute to cover conduct that occurs outside the U.S. The statute concerning wire fraud specifically applies to "foreign commerce," and so the law applies to this case. The federal court in New York has jurisdiction over the case because, although Kim was in Croatia, the wire fraud involved transmissions through New York. The venue of New York was also proper because the wire fraud was sent through Chase Manhattan bank in New York, which Kim knew to be the bank used for payment.
Citation U.S. v. Kim, 246 F.3d 186 (2nd Cir., 2001)

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