February 15, 2017
from the United States District Court for the Northern
District of Illinois, Eastern Division. No. 12 CR 00402 -
Charles R. Norgle, Judge.
BAUER, EASTERBROOK, and HAMILTON, Circuit Judges.
30, 2012, Defendant-appellant Robert Lunn was charged with
five counts of bank fraud, in violation of 18 U.S.C. §
1344. A jury convicted Lunn on all five counts on October 17,
2014. Lunn now challenges his conviction, arguing that the
district court improperly interfered with his testimony and
failed to provide his requested jury instruction.
owned and operated Lunn Partners, L.L.C., an investment
advisory firm in Chicago, Illinois, that advised mostly
high-net worth clients. In 1999, Lunn invested in Leaders
Bank, a small commercial bank in Oak Brook, Illinois. The
charges in this case stem from Lunn's conduct surrounding
three extensions of credit by Leaders Bank: a line of credit
he obtained for himself; a loan that Lunn arranged for former
Chicago Bulls player Scottie Pippen; and a loan that Lunn
arranged for Robert Geras, a Lunn Partners client.
Personal Line of Credit
2001, Lunn contacted James Lynch, CEO of Leaders Bank,
seeking to obtain a $480, 000 line of credit. Lunn provided
the bank with a December 31, 2000, personal financial
statement attesting that he owned shares of Morgan Stanley
common stock with a market value of $11.5 million. The
statement further attested that he owned shares of Lehman
Brothers common stock with a market value of $5.5 million.
Based on Lunn's purported ownership of a combined $15
million worth of common stocks, the bank provided Lunn the
line of credit. However, the fact was that Lunn no longer
owned the stocks; he had sold them in the 1990s to fund the
launch of Lunn Partners. His brokerage account statements did
not include the stocks, nor did his tax returns report any
dividends earned from the stocks.
January 2004, Lunn sought to increase his line of credit by
$720, 000, bringing the total line of credit to $1.2 million.
submitted a personal financial statement dated December 31,
2003, in support of his request. The statement falsely stated
that Lunn still owned both the Morgan Stanley and Lehman
Brothers stock, but that the market value for the stocks had
fallen to $5.8 million and $1 million, respectively, for a
total of $6.8 million. Lunn's purported ownership of the
stock persuaded Leaders Bank to increase Lunn's credit
April 2004, Lunn sought a $120, 000 increase in his credit
line. Based upon Lunn's purported ownership of $6.8
million in common stock from Morgan Stanley and Lehman
Brothers, bank officials granted Lunn's request;
Lunn's total credit line was then $1.32 million.
September 2002, Lunn contacted Leaders Bank to arrange for a
short-term loan of $1.4 million. The terms of the loan
required that principal and interest be paid back in 45 days.
Lunn told the bank that Pippen sought the loan to purchase an
interest in an airplane, ...