Ciminelli v. United States
In brief
The Supreme Court overturned the Second Circuit’s judgment and sent Louis Ciminelli’s case back, ruling that the right-to-control theory cannot support a federal fraud conviction.
- Where it stands
- Decided
Decided 9-0 · May 11, 2023 · Opinion by Justice Thomas
- 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.
- Who it affects
- The ruling says the right to valuable economic information needed for economic decisions is not traditional property under federal fraud law.
Summary: written with AI from the case record.
What it's about
Losing complete and accurate economic information is not traditional property, so it cannot by itself support a federal fraud conviction.
The case clarifies that federal fraud statutes protect traditional property interests, not every loss of useful economic information.
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?
What the Court decided
Holding
Because the right to valuable economic information needed to make discretionary economic decisions is not a traditional property interest, the Second Circuit’s right-to-control theory cannot form the basis for a conviction under the federal fraud statutes. 13 F. 4th 158, reversed and remanded.
- Result
- Reversed
The vote
What's next
The case now returns to the lower court for further proceedings. The ruling leaves open whether the Government may retry Ciminelli for fraud involving valuable contracts, along with other case-specific issues.
Why it matters
Justice Alito said the opinion did not resolve case-specific questions about the indictment (the formal criminal charge), whether trial error changed the outcome, or whether the Government could retry Ciminelli for fraud involving valuable contracts.
Documents
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More questions
- What did the Supreme Court decide in Louis Ciminelli’s case?
- The Court ruled unanimously that the theory cannot support a federal fraud conviction, overturned the judgment, and sent the case back.
- What was the Second Circuit’s right-to-control theory?
- The theory treated losing complete and accurate economic information needed for economic decisions as a property loss under federal fraud law.
- What practical effect does the Ciminelli ruling have?
- It means a federal fraud conviction cannot rest solely on losing valuable economic information under the right-to-control theory.
- What remains unresolved in Ciminelli’s case?
- The decision did not resolve questions about the indictment or whether trial error changed the outcome. It also left open whether the Government may retry him for fraud involving valuable contracts.
- What happens next for Louis Ciminelli?
- The case returns to the lower court for further proceedings after the Supreme Court overturned the judgment.
Sources
Primary materials plus reporting. Best-effort analysis: this explainer relies on a mix of primary materials and trusted secondary sources. Official filings and opinions remain authoritative.