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David B. Pasquantino, Carl J. Pasquantino, And Arthur Hilts v. United States

• 2004 • 544 U.S. 349 • Rehnquist Court
In the case of David B. Pasquantino, Carl J. Pasquantino, and Arthur Hilts v. United States (2004), the defendants were charged with wire fraud under U.S law for a scheme involving smuggling large quantities of liquor from Maryland to Canada without paying Canadian taxes or duties. The defendants argued that their actions did not constitute wire fraud as they had no legal obligation to pay these taxes themselves; rather it was the responsibility of those who purchased the alcohol in Canada....Open Case
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Chief Rehnquist Court
Term: 2004
Docket: 03-725
544 U.S. 349
125 S. Ct. 1766
161 L. Ed. 2d 619
2005 U.S. LEXIS 3701
Argued: Nov 09, 2004

David B. Pasquantino, Carl J. Pasquantino, And Arthur Hilts v. United States

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Questions presented:
SCOTUS Records

03-725 PASQUANTINO V. UNITED STATES DECISION BELOW: 336 F3d 321 CERT. GRANTED 4/5/2004 QUESTION PRESENTED: Whether the federal wire fraud statute (18 U.S.C. § 1343) authorizes criminal prosecution of an alleged fraudulent scheme to avoid payment of taxes potentially owed to a foreign sovereign, given the lack of any clear statement by Congress to override the common law revenue rule, the interests of both the Legislative and Executive Branches in guiding foreign affairs, and this Court's prior rulings concerning the limited scope of the term "property" as used in the wire fraud statute. LOWER COURT CASE NUMBER: 01-4463, 01-4464, 01-4465

Opinion Summary
AI Abstract

In the case of David B. Pasquantino, Carl J. Pasquantino, and Arthur Hilts v. United States (2004), the defendants were charged with wire fraud under U.S law for a scheme involving smuggling large quantities of liquor from Maryland to Canada without paying Canadian taxes or duties. The defendants argued that their actions did not constitute wire fraud as they had no legal obligation to pay these taxes themselves; rather it was the responsibility of those who purchased the alcohol in Canada. However, the Supreme Court ruled 5-4 against them stating that defrauding a foreign government out of tax revenue can be prosecuted under American wire fraud statute which prohibits fraudulent schemes for obtaining money or property by means of false pretenses transmitted over phone lines or other forms of electronic communication.

Dissent Summary
AI Abstract

In the dissenting opinion for Pasquantino v. United States, Justice Ginsburg argued that the majority's interpretation of wire fraud statute was overly broad and could potentially lead to an international jurisdictional conflict. She pointed out that Canada had not sought extradition or prosecution of the defendants for their evasion of Canadian alcohol taxes, suggesting a lack of interest in enforcing its tax laws abroad. Furthermore, she noted that U.S courts generally do not enforce foreign tax judgments due to concerns about sovereignty and comity among nations. By allowing U.S prosecutors to pursue charges against individuals who defraud foreign governments by evading taxes, she warned it might encourage other countries to prosecute Americans under similar circumstances - something which could strain diplomatic relations between nations.

Opinion written by Justice CThomas
Decided: Apr 26, 2005
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Argued: Oct 05, 2026
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