Second Circuit Foretells Uphill Battle for Psychic in Fraud Case
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Tasked with convincing the Second Circuit Court of Appeals that the 14 charges her client had been convicted of should be overturned, public defender Allegra Glashausser needed to pull one heck of a legal rabbit out of her hat during oral arguments. Her claim that promising magic that was never delivered isn’t fraud might not have contained enough razzle dazzle to convince the panel of judges.
A French and Canadian citizen was sentenced to 10 years in federal prison for a scam that lasted 20 years and took millions from victims. In defending Patrice Runner, Glashausser summoned the spirit of a Supreme Court of the United States (SCOTUS) precedent from 2023 that ruled against the theory of right-to-control. Was it enough, or did she need another trick up her sleeve?
I’m Absolutely Only Sending This Letter to You
The scale on which Runner operated is staggering. Starting in 1994, Runner began sending “personalized” letters claiming to be from French psychics Patrick Guerin and Maria Duval to U.S. consumers. The names of shell companies such as Zodiac Zone, Destiny Research Center, and National Parapsychology Center were also used.
In the mailings, Runner would state that the psychic had seen a “personalized” vision about the recipient that promised great wealth and success with their assistance — for a fee. This was sent to tens of thousands of recipients per week but presented as a unique offer.
Runner kept this scam going for twenty years and collected more than $175 million from his 1.3 million victims. Arrested in Spain in 2018, he was extradited to the U.S. in 2020. On June 16, 2023, a jury in a federal court in New York found Runner guilty of four counts of wire fraud, eight counts of mail fraud, one count of conspiracy to commit money laundering, and one count of conspiracy to commit mail fraud. In 2024 he was sentenced to 10 years.
It’s All an Illusion
In crafting her defense of Runner, Glashausser leaned on the 2023 SCOTUS decision in Ciminelli v. United States and the right-to-control theory of wire fraud. Under right-to-control, the government had established wire fraud charges by showing that the defendant, who had rigged the bid process for government contracts, had deprived victims of potentially valuable economic information necessary to make discretionary economic decisions.
SCOTUS ruled unanimously that this didn’t match federal fraud statutes, which are targeted toward traditional property interests. Glashausser asserted that the jury had erred in their decision because while Runner had bilked his victims with promises of assistance provided by magic, he was under no obligation to actually produce sorcerous results. In simple terms, Glashausser asked the Second Circuit to extend the principal of Ciminelli to magic goods and services. Their choice to believe in magic was exactly that — their choice, not a traditional property interest.
Glashausser also put forth the theory that Runner provided legitimate value to the recipients through items sold from his astrology business. These included booklets, talismans, and other “magical” trinkets. Again, she claimed that their belief in the supernatural powers of these things shouldn’t be a legal issue for her client.
Content retrieved from: https://www.findlaw.com/legalblogs/federal-courts/second-circuit-foretells-uphill-battle-for-psychic-in-fraud-case/.
