Smith v. Mattox

Kenneth D. Ross and James H. Adams appeal from the judgment entered following their conviction for wire fraud, interstate transportation of money taken by fraud, and conspiracy to commit mail fraud, wire fraud, interstate transportation of money obtained by fraud, and money laundering. The Government persuaded the jury that Ross and Adams conspired to obtain money for their personal use and benefit from two financially troubled insurance companies by falsely representing that the loans were to be used solely for business purposes. To disguise their intent to channel part of the funds for their personal use and benefit, and to escape detection by state insurance regulators, Ross and Adams and their co-conspirators created shell corporations and contrived deceptive paper transactions that had no economic substance.