Supreme Court of the United States

Cleveland v. United States

November 7, 2000531 U.S. 12

Summary

Justice Ginsburg delivered the unanimous opinion holding that Louisiana video poker licenses are not property in the State’s hands for purposes of the federal mail fraud statute, 18 U.S.C. § 1341. The State’s authority to issue and control those licenses is regulatory, not proprietary, despite the fees and revenues associated with licensing. The Court also rejected the Government’s argument that obtaining property in the recipient’s hands independently satisfies the statute: the object of the fraud must be property in the victim’s hands. Relying additionally on lenity and the absence of a clear congressional statement expanding federal criminal jurisdiction into traditional state regulatory matters, the Court reversed the Fifth Circuit’s judgment and remanded. There were no separate opinions.

Holding

  • Whether Louisiana has a property interest in video poker licenses sufficient to support a federal mail fraud prosecution for fraudulent license applications.. Louisiana video poker licenses are not property in the government regulator’s hands, and fraudulently obtaining licenses of this kind does not violate § 1341.
  • Whether the statute’s reference to obtaining money or property creates an independent offense satisfied by property arising only in the recipient’s hands.. Section 1341 requires that the object of the fraud be property in the victim’s hands; its two descriptions of fraudulent schemes do not create independent offenses permitting prosecution merely because the recipient acquires property.

Docket 99-804

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