United States v. Brooks

111 F.3d 365 (1997)

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United States v. Brooks

United States Court of Appeals for the Fourth Circuit
111 F.3d 365 (1997)

  • Written by Sharon Feldman, JD

Facts

Edwin Brooks, his sons John and Steven Brooks, and their company B&D Electric Supply, Inc. (B&D) (defendants) sold electrical parts. B&D had supply contracts with two prime contractors who had contracted with the United States Navy to refit ships. One contract was for motor controllers for a price of $51,500, and the other was for rotary switches for a price of $1,500. The prime contractors’ respective contracts with the Navy exceeded $9,000,000 and $5,000,000. For the motor-controller contract, B&D assembled the motor controllers itself but affixed on the controllers trademarks of an approved military supplier. For the rotary-switch contract, B&D represented that the rotary switches it supplied were new when in fact B&D had assembled or rebuilt them. All four defendants were charged with and convicted of conspiracy and trafficking in counterfeit goods. B&D and Edwin and John Brooks were also indicted for, and convicted of, major fraud against the United States in violation of 18 U.S.C. § 1031(a). B&D and Edwin and John Brooks appealed their major-fraud convictions, arguing that their contracts did not satisfy the $1,000,000 jurisdictional-amount requirement of § 1031(a).

Rule of Law

Issue

Holding and Reasoning (Niemeyer, J.)

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Casebooks

White Collar Crime

Key Terms

  • Major-Fraud StatuteFederal statute, 18 U.S.C. § 1031, that prohibits defrauding the government in connection with government contracts worth more than $1 million. The statute was enacted to deter and punish procurement fraud by government defense contractors and carries severe penalties.

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