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No. 21-1170October Term 2022Decided May 11, 2023

Docket 21-1170October Term 2022 (2022–2023)

Louis Ciminelli, Petitioner v. United States, et al.

Depriving someone of useful economic information alone is not enough for a federal fraud conviction under the rejected right-to-control theory.

Case status

Current stage
Decided
Latest event
Decision released May 11, 2023
Case Accepted
Arguments HeardNov 28, 2022
Decision ReleasedMay 11, 2023
What it's about

The Court unanimously ruled for Louis Ciminelli, holding that federal wire-fraud law does not allow convictions based on the Second Circuit’s “right-to-control” theory. Losing complete and accurate economic information is not traditional property, so it cannot by itself support a federal fraud conviction.

Question presented

Whether the Second Circuit’s “right to control” theory of fraud—which treats the deprivation of complete and accurate information as a species of property fraud—states a valid basis for liability under the federal wire fraud statute, 18 U.S.C. § 1343?

Case path

United States Court of Appeals for the Second Circuit / Decision released May 11, 2023

Area

Decided Supreme Court case

Briefing

What it's about

The Court rejected the Second Circuit's “right to control” theory and reversed and remanded Ciminelli's case. It said federal fraud laws do not treat a person's right to complete and accurate economic information as traditional property.

Impact

Federal prosecutors cannot rely solely on the right-to-control theory in fraud cases. Defendants whose cases rested on that theory may challenge convictions or charges based on it.

What's next

Lower courts must apply the decision and cannot use the right-to-control theory as a basis for federal fraud liability. Ciminelli's case returns for further proceedings consistent with the Court's decision.

What did the Supreme Court rule in Ciminelli?

The Court rejected the right-to-control theory of federal fraud and reversed and remanded the case. Useful economic information alone is not traditional property.

Who is affected by the Ciminelli decision?

Federal prosecutors and defendants in cases relying on the right-to-control theory are affected. Courts cannot treat lost decision-making information alone as property fraud.

What happens next in Ciminelli?

The case returns for further proceedings under the Court's rule. Lower courts must assess fraud claims without using the rejected right-to-control theory.

Decision

Decision record

What the Court decided

Depriving someone of useful economic information alone is not enough for a federal fraud conviction under the rejected right-to-control theory.

Result
Reversed

Impact

People facing federal fraud charges in the Second Circuit are affected. Prosecutors cannot rely only on withholding complete economic information to prove property fraud. For example, affecting someone’s discretionary economic choice alone cannot support a conviction under this theory. The ruling reversed and remanded Ciminelli’s case. Future federal fraud cases must involve a traditional property interest, not a right to control economic information.

Not official Court text.

Timing

Decided May 11, 2023

The Court released its decision 164 days after oral argument on November 28, 2022. The median for cases argued in November is 160 days.

Based on 35 merits cases argued in November since 1995.Argument and decision days