United States v. Bowman

Background

The case involves the steamship Dio, owned by the United States and operated by a private company for the Emergency Fleet Corporation, a corporation wholly owned by the United States. The ship was on a voyage to Rio de Janeiro. The accused were the ship’s master and engineer, an agent of the Standard Oil Company in Rio, and a local merchant; the British merchant was not captured. The indictment alleges the crew ordered 1,000 tons of fuel, received only 600 tons, but arranged for payment for 1,000 tons and divided the money for the undelivered 400 tons.

Reasoning

The central question was whether the federal crime that punishes false claims and conspiracies to defraud a corporation in which the United States is a stockholder applies when the conduct occurs on the high seas or in a foreign port. The District Court dismissed the count charging the offense on the high seas for lack of jurisdiction. The Court reversed. It explained that Congress intended protection for the Government’s operations abroad and on its ships, and similar provisions in the same chapter naturally reach acts committed at sea or in foreign ports. The Court also noted a statute allowing trial where an offender is found.

Real world impact

The ruling sends the case back for trial and permits federal prosecutors to pursue frauds committed against U.S. government corporations on U.S. ships abroad. It preserves the Government’s ability to protect the Fleet Corporation and other government property from schemes that occur at sea or in foreign ports. The British defendant’s situation remains for later determination if he is captured.