Justia U.S. 7th Circuit Court of Appeals Opinion Summaries

The case revolves around Gerald Sewell, who responded to a post on Craigslist, seeking a sexual encounter. The post was made by an undercover FBI agent posing as a 15-year-old girl. The conversation between Sewell and the agent quickly turned sexual, with plans to meet later the same day. Sewell drove from Missouri to Illinois to meet the supposed minor, only to be arrested upon arrival.Sewell was indicted for attempted enticement of a minor and for traveling across state lines with intent to engage in illicit sexual conduct. He pleaded not guilty and requested a jury instruction on entrapment. The district court denied this request, finding no evidence of persistent persuasion by the undercover agent or reluctance by Sewell. The court concluded that the government had used the sting operation to solicit the crime without inducing Sewell. Sewell was convicted on both counts and sentenced to concurrent ten-year sentences.In the United States Court of Appeals for the Seventh Circuit, Sewell appealed the district court's denial of an entrapment instruction. The court, after reviewing the case, found no evidence of inducement, only solicitation of the crime, which is insufficient to put the entrapment defense before the jury. The court noted that it was Sewell who encouraged the supposed minor to meet for a sexual rendezvous, and he set aside any misgivings he may have had to drive across state lines to meet her. The court concluded that the government had furnished Sewell the ordinary opportunity to commit the charged crime, and he eagerly took it. The court affirmed the district court's decision, denying Sewell's requested entrapment instruction. View "USA v. Sewell" on Justia Law

The case revolves around Echo Scheidt, who was convicted for knowingly providing false information on a Firearms Transaction Record (ATF Form 4473) during five separate gun purchases. Scheidt resold the firearms, two of which were later used in shootings, including a murder. The false statements pertained to her residential address, which she misrepresented in the forms. The authorities traced the firearms back to her after the shootings.The district court indicted Scheidt on five counts of knowingly making a false written statement likely to deceive a firearms dealer, in violation of 18 U.S.C. § 922(a)(6), and one count of knowingly making a false statement to a government agent, in violation of 18 U.S.C. § 1001(a). Scheidt moved to dismiss the five § 922(a)(6) counts, arguing that the statute criminalized conduct protected by the Second Amendment. The district court denied the motion, stating that the conduct prohibited by § 922(a)(6) does not enjoy Second Amendment protection. Scheidt pleaded guilty to all counts and was sentenced to 18 months' imprisonment.In the United States Court of Appeals for the Seventh Circuit, Scheidt appealed her conviction, arguing that § 922(a)(6) violates the Second Amendment. She contended that her right to purchase a firearm was conditioned on completing ATF Form 4473 and that § 922(a)(6) further conditioned her right to possess a firearm by demanding honesty. However, the court disagreed, stating that ordinary information-providing requirements, like those imposed by ATF Form 4473 and enforced through criminal statutes like § 922(a)(6), do not infringe the right to keep and bear arms. The court affirmed her conviction, concluding that the Second Amendment does not immunize purchasers from knowingly providing misstatements in ATF Form 4473. View "USA v. Scheidt" on Justia Law

Jan Kowalski, an attorney, was accused of using her position to hide her brother's assets during his bankruptcy proceedings. She allegedly concealed around $357,000 in her attorney trust account and made false statements under oath to cover up the concealment. Kowalski was charged with four counts of bankruptcy fraud and one count of concealing assets from the bankruptcy trustee. She pleaded guilty to the charge of concealing assets.Prior to her trial, Kowalski had been involved in her brother's bankruptcy proceedings, where she used her attorney trust account to hide her brother's assets from his creditors and the bankruptcy trustee. She also made false statements under oath and fabricated documents to cover up her actions. The bankruptcy trustee confronted Kowalski with inconsistencies between her personal bank records and her earlier testimony, but she continued to lie under oath.Kowalski was sentenced to 37 months' imprisonment by the United States District Court for the Northern District of Illinois, Eastern Division. The court applied two sentencing enhancements: the § 2B1.1(b)(10)(C) sophisticated-means enhancement, and the § 3B1.3 abuse of position of trust enhancement. Kowalski appealed her sentence, arguing that the district court erred in applying these enhancements and that her sentence was substantively unreasonable.The United States Court of Appeals for the Seventh Circuit affirmed the district court's decision. The court found that Kowalski had indeed used sophisticated means to commit the offense and had abused her position of trust. The court also found her sentence to be substantively reasonable. View "United States v. Kowalski" on Justia Law

The case involves Patrick Hancock, who pleaded guilty to unlawful possession of a firearm as a convicted felon. His federal sentence was enhanced on the grounds that he also violated Indiana Code § 35-44.1-2-6, which makes it a felony for a civilian to impersonate a law enforcement officer. Hancock appealed his sentence, challenging the Sentencing Guidelines enhancement. The evidence supported the district court’s findings that Hancock represented himself as a police officer by wearing various law enforcement paraphernalia.The district court applied a four-level sentencing enhancement, finding that Hancock's attire was sufficient to prove by a preponderance of the evidence that § 2K2.1(b)(6)(B) applied. The court sentenced Hancock to 48 months in prison to be followed by three years of supervised release. The district court varied upward from the Sentencing Guidelines range because it found that Hancock’s crime involved “extreme conduct” and that greater punishment was needed to deter future criminal conduct.In the United States Court of Appeals For the Seventh Circuit, the court affirmed the district court’s decision. The court rejected Hancock’s argument that he did not intend to deceive anyone at Costco into thinking he was a law enforcement officer. The court also rejected Hancock’s argument that Indiana’s false impersonation statute violates the First Amendment. The court held that the statute was narrowly tailored to serve the government’s compelling public interest in preserving public safety and protecting the reputation of law enforcement. View "USA v. Hancock" on Justia Law

The case revolves around a traffic stop in Urbana, Illinois, where a police officer pulled over a car driven by Prentiss Jackson due to unlit head and taillights. Upon approaching the vehicle, the officer smelled unburnt marijuana. Jackson was asked to exit the car and was informed that he and the vehicle would be searched. However, Jackson fled the scene, and during his escape, a gun fell from his waistband. Jackson, a felon, was subsequently indicted for possessing a firearm. He moved to suppress the evidence of the gun, arguing that it was the product of an unlawful search.The district court denied Jackson's motion to suppress the evidence. Jackson had conditionally pleaded guilty, preserving his right to appeal the denial of his motion to suppress. He was convicted and sentenced to 72 months' imprisonment. In another case, his supervised release was revoked for unlawfully possessing a firearm, among other things.On appeal to the United States Court of Appeals for the Seventh Circuit, Jackson argued that the officer did not have probable cause to search him or the car, contending that the smell of unburnt marijuana does not provide probable cause under Illinois law. The court disagreed, affirming the district court's decision. It held that the officer had probable cause to search Jackson and the vehicle, based on the totality of the circumstances, including the smell of unburnt marijuana. The court also noted that while possession of marijuana is legal in Illinois under certain circumstances, the state retains laws restricting the packaging and use of marijuana. The smell of unburnt marijuana, therefore, provided probable cause for a violation of state law. View "USA v. Jackson" on Justia Law

Maria Elvia Smith, a Mexican citizen, was denied legal status in the U.S. by immigration authorities. Smith had been married to a U.S. citizen, Arlo Henry Smith, Sr., who filed a Form I-130 petition to classify her as his immediate-relative spouse. However, Arlo died while the petition was pending, and it automatically converted to an I-360, Widow(er) Petition. The U.S. Citizenship and Immigration Services (USCIS) and the Board of Immigration Appeals denied Smith's I-360 petition, concluding that she failed to prove by a preponderance of the evidence that her marriage to Arlo was bona fide for immigration purposes. This conclusion was based on evidence of Smith's continued relationship with her ex-husband and her inconsistent statements to immigration officials.Smith sued the United States Attorney General, USCIS, and the Board, alleging that they improperly denied her I-360 petition and violated her Fifth Amendment right to due process. The United States District Court for the Eastern District of Wisconsin dismissed her complaint, finding that she did not plausibly allege that USCIS and the Board acted improperly in denying her petition, acted without observance of the procedure required by law, or substantively violated the Fifth Amendment’s Due Process Clause.On appeal, the United States Court of Appeals for the Seventh Circuit affirmed the district court's decision. The court found that the agencies had considered the evidence, applied the proper standards and burden of proof, and validly elected not to credit Smith’s statements in light of her past untruthfulness. The court also found that the agencies had complied with the procedures required by law and that Smith had received all the process due to her. Finally, the court rejected Smith's claim that the agencies violated her procedural and substantive due process rights under the Fifth Amendment. View "Smith v. Garland" on Justia Law

David Lewicki was part of a group that attempted to rob Humberto Pelayo, resulting in Pelayo suffering permanent injuries. Lewicki claimed he did not inflict the injuries and had tried to protect Pelayo. However, the jury found him guilty of attempted robbery causing serious bodily injury, and he was sentenced to 65 years in prison as a habitual offender. Lewicki's conviction and sentence were affirmed by the state courts.Lewicki then sought federal relief, arguing that his appellate lawyer had been ineffective for not arguing that his Sixth Amendment right to a speedy trial had been violated. The district court agreed, issuing a conditional writ of habeas corpus. The court found that Lewicki's lawyer's failure to raise the speedy trial argument amounted to ineffective assistance of counsel. However, the court did not find that Indiana had violated the Speedy Trial Clause. Instead, it ordered Indiana to release Lewicki unless it provided him with a new appeal.The United States Court of Appeals for the Seventh Circuit reversed the district court's decision. The appellate court found that the district court had erred in granting relief based on ineffective assistance of counsel without finding that Lewicki had been prejudiced by his lawyer's failure to raise the speedy trial argument. The court explained that ineffective assistance of counsel requires both deficient performance and prejudice. The court also found that Lewicki did not have a strong speedy-trial claim. Despite a nearly three-year delay between his charge and trial, the court found that Lewicki had not shown prejudice from the delay. The court noted that Lewicki's own lawyer had proposed multiple continuances, and Lewicki had not shown that evidence was lost or memories faded due to the delay. The court also noted that little of Lewicki's time in custody could be attributed to the delayed trial of the attempted-robbery charge. Therefore, the court reversed the district court's decision and upheld Lewicki's conviction and sentence. View "Lewicki v. Emerson" on Justia Law

The case revolves around Lee Hofmann, who controlled multiple businesses, including Games Management and International Supply. Games Management borrowed approximately $2.7 million from Citizens Equity First Credit Union (the Lender), with Hofmann guaranteeing payment. When Games Management defaulted and Hofmann failed to honor his guarantee, the Lender obtained a judgment against Hofmann. In 2013, Hofmann arranged for International Supply to pay the Lender $1.72 million. By 2015, International Supply was in bankruptcy, and a trustee was appointed to distribute its assets to creditors.The bankruptcy court held a trial, during which expert witnesses disagreed on whether International Supply was solvent in 2013. The Trustee's expert testified that it was insolvent under two of three methods of assessing solvency, while the Lender's expert testified that it was solvent under all three methods. The bankruptcy judge concluded that International Supply was insolvent in August 2013 and directed the Lender to pay $1.72 million plus interest to the Trustee. The district court affirmed this decision.The case was then brought before the United States Court of Appeals for the Seventh Circuit. The Lender argued that the only legally permissible approach to defining solvency is the balance-sheet test. However, the court disagreed, stating that the Illinois legislation does not support this view. The court also noted that the Lender had not previously argued for the balance-sheet test to be the exclusive approach, which constituted a forfeiture. The court concluded that the bankruptcy judge was entitled to use multiple methods to determine solvency. The court affirmed the district court's decision, requiring the Lender to pay $1.72 million plus interest to the Trustee. View "Stone v. Citizens Equity First Credit Union" on Justia Law

AsymaDesign, LLC, a company that operated a virtual-reality ride in a shopping mall, entered into a lease with CBL & Associates Management, Inc. Following complaints about noise from the ride, CBL relocated it within the mall, as permitted by the lease. The new location proved unprofitable, leading AsymaDesign to stop paying rent, resulting in eviction and subsequent dissolution under the Illinois Limited Liability Company Act. Nearly four years later, George Asimah, the former owner of the LLC, filed a lawsuit against CBL under 42 U.S.C. §1981 and state contract law, alleging racial discrimination when CBL did not allow the LLC extra time to pay its rent.The district court dismissed the suit on the grounds that Asimah was not the real party in interest, as the lease was held by AsymaDesign, not Asimah personally. An amended complaint added AsymaDesign as an additional plaintiff, but this was also dismissed as untimely. The court ruled that although Illinois law allows a dissolved LLC a "reasonable time" to wind up its business, AsymaDesign had not begun to litigate until almost five years after its dissolution, exceeding the benchmark allowed by Illinois law.In the United States Court of Appeals for the Seventh Circuit, AsymaDesign filed a notice of appeal. However, the notice was signed only by George Asimah, who is not a lawyer and therefore cannot represent AsymaDesign or anyone other than himself. The court ruled that only a member of the court's bar (or a lawyer admitted pro hac vice) can represent another person or entity in litigation. AsymaDesign's sole argument was that anyone may represent an Illinois corporation in federal court, which the court dismissed as misguided. Consequently, the appeal was dismissed. View "Asimah v. CBL & Associates Management, Inc." on Justia Law

Sun Holdings purchased a workers’ compensation policy from American Zurich Insurance, which required Sun to reimburse American Zurich for the first $250,000 of each claim. American Zurich fulfilled its obligations under the policy, but Sun did not. When Sun received bills, it ignored them without explanation or justification. American Zurich invoked the policy’s dispute-resolution clause, which called for arbitration in Illinois under New York law and the rules of the American Arbitration Association. During the arbitration, Sun offered a series of weak excuses, which the arbitrators dismissed. The arbitrators ordered Sun to pay what American Zurich claimed (approximately $1.1 million plus 9% interest from the time each bill was due) and added almost $175,000 in attorneys’ fees as a sanction for frivolous defense.American Zurich applied to the United States District Court for the Northern District of Illinois for enforcement of the arbitration award. Sun argued that the arbitrators had exceeded their authority by directing it to pay the insurer’s legal fees, citing two sentences in the contract. The district court disagreed with Sun and ordered it to pay the award in full.The case was then brought before the United States Court of Appeals for the Seventh Circuit. The court held that the arbitrators had interpreted the contract when they concluded that its reference to legal fees did no more than adopt the American Rule, which allows each side to pay its own lawyers but does not forbid sanctions for frivolous litigation. The court stated that whether the arbitrators were right or wrong in their interpretation was not its concern. The court also noted that Sun's arguments were requests to contradict the arbitrators’ findings, which the Federal Arbitration Act forbids. The court affirmed the district court's decision and issued an order for Sun to show cause why sanctions should not be imposed for its frivolous appeal. View "American Zurich Insurance Company v. Sun Holdings, Inc." on Justia Law