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The Right to Control Theory of Fraud
The case involves a nonprofit corporation that had authority under state law to award contracts for development projects. One of the board members intentionally drafted selection criteria to favor the petitioner, Lewis Semanelli's company. The board awarded the company a $750 million project and semanelli was subsequently charged with wire fraud. A court of appeals said this can be a kind of wire fraud because right to control assets is a protected property interest.