Supreme Court Upholds Fraudulent Inducement Theory in Kousisis

July 10, 2025  |  New York Law Journal

In the Second Circuit, mail/wire fraud prosecutions have required more than proof of deceit; the government has also had to prove intent to cause financial injury. In Kousisis v. United States, 145 S. Ct. 1382 (2025), the Supreme Court rejected that position when it upheld the “fraudulent inducement” theory of mail/wire fraud. Under that theory, a defendant is guilty of fraud when false statements are used to obtain money or property, regardless of an intent to cause financial harm. In their latest article for the NYLJ, “Supreme Court Upholds Fraudulent Inducement Theory in Kousisis,” Morvillo Abramowitz Grand Iason & Anello Partners Elkan Abramowitz and Jonathan S. Sack examine the Court’s unanimous opinion in Kousisis along with the three concurring opinions. These three opinions express concern over language in the Court’s opinion which could be read to stretch criminal liability too far. 

Supreme Court Upholds Fraudulent Inducement Theory in Kousisis