USA vs. Kimberly Castle
In a rare victory, Mr. Colette was able to successfully argue, over strenuous Government objection, that the evidence in this case did not support the charges relating to bank fraud. The Federal District Court Judge ruled that because the Government did not show that the banks involved, Countrywide Home Loans and Alliance Funding, were FDIC insured, there were no government funds at risk. Because there were no federal funds at risk, there was no federal nexus and accordingly no federal jurisdiction! In spite of glaring holes in the prosecution’s evidence relating to the remaining wire fraud charges, the jury eventually rendered a guilty verdict. That judgment is currently on appeal to the Fifth Circuit, and we are waiting for its decision.