A federal appeals court on Friday, July 11, partially overturned the convictions of former Baltimore City State’s Attorney Marilyn Mosby, vacating her 2024 mortgage fraud conviction but upholding her perjury convictions related to early withdrawals from her retirement account during the COVID-19 pandemic.
In a split decision, the U.S. Court of Appeals for the Fourth Circuit ruled that the trial court issued an improper jury instruction regarding venue, which rendered Mosby’s mortgage fraud conviction invalid. The panel also reversed the related forfeiture order of a Longboat Key, Florida condo, originally deemed to be the proceeds of the alleged fraud.
The opinion, authored by Circuit Judge Stephanie D. Thacker, found that the trial judge’s instruction “erroneously overbroad” jury guidance effectively relieved the government of its burden to prove venue for the mortgage fraud charge. Thacker stated the instructions improperly told jurors they did not need to find that the crime was committed in Maryland, only that related acts occurred there.
“Those instructions went so far as to say that the Government did not need to ‘prove that the crime itself was committed in this district,’” Thacker wrote.
Background of the Case
Mosby, who served as Baltimore’s chief prosecutor from 2015 to 2023, was indicted by a federal grand jury in 2022 on two counts of perjury and two counts of mortgage fraud in connection with her purchase of two vacation properties in Florida.
Prosecutors alleged she falsely claimed financial hardship under the CARES Act to withdraw \$90,000 from her retirement account, and submitted false information on mortgage applications, including a fraudulent gift letter.
At her perjury trial, Mosby claimed the form she signed was “fundamentally ambiguous,” arguing her statements were based on legitimate fears that the pandemic could impact her travel business, Mahogany Elite. But the court and jury disagreed, concluding that the company had no revenue, operations, or expenses at the time.
She was convicted of both perjury counts on November 9, 2023, and later convicted of one count of mortgage fraud on February 7, 2024. U.S. District Judge Lydia Kay Griggsby sentenced Mosby to three years of supervised release, with one year of home confinement, and ordered the forfeiture of the Florida property.
Appellate Court’s Split Ruling
While the panel unanimously upheld the perjury convictions, Judge Paul V. Niemeyer dissented on the mortgage fraud ruling. In his partial dissent, Niemeyer argued that the evidence clearly demonstrated venue in Maryland, citing Mosby’s actions in the state—including signing the fraudulent gift letter, transmitting it via internet, and instructing her husband to wire funds from Maryland.
“She also engaged her husband to wire the funds from Maryland in support of the gift letter,” Niemeyer wrote. “Those were all elements of the crime, which justified its trial in Maryland.”
Legal and Practical Implications
The appellate decision reaffirms the importance of proper jury instructions in criminal trials, particularly on the matter of venue, which is constitutionally required to be proven by the government. While Mosby avoids a felony conviction for mortgage fraud, her perjury convictions still stand, leaving her with a criminal record and ongoing professional ramifications.
The U.S. Attorney’s Office for the District of Maryland and Mosby’s legal team have not yet issued statements following Friday’s decision.
