The Court of Appeals Remanded for New Trial Finding the District Court Improperly Allowed the Government to Cross-Examine the Defendant on Alleged False Statements that it had no Good Faith Basis for Believing were Actually False

United States v. Abair, No. 13-2498. Abair was purchasing a home in Indiana and two weeks prior to closing, she learned her bank in Russia would not wire the money for the purchase price of the house. To cover the money before closing, she withdrew a few hundred dollars at a time at ATMs and depositing the cash into her Indiana bank. She was charged with violating the currency structuring provisions of 31 U.S.C. § 5324(a)(3) and was convicted after a jury trial. She agreed to sell her home and to forfeit the proceeds to the government. The Court of Appeals held that the district court erroneously applied Federal Rule of Evidence 608(b) by allowing the government to cross-examine her about alleged false statements on a tax return and student financial aid applications, neither of which were at issue in the trial. The government lacked a good faith basis for believing that Abair lied on the tax and financial aid forms and impermissibly asked a serious of accusatory and prejudicial questions about them under Rule 608(b). Regarding the forfeiture issue, the Court declined to make any specific findings because the matter was being remanded for new trial, but noted there was no evidence Abair had been involved in the wide range of wrongdoing justifying the forfeiture of her home’s entire value to the government.