UNITED STATES OF AMERICA v. JAMES J. KELLY, JR. - Articles

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UNITED STATES OF AMERICA v. JAMES J. KELLY, JR.

Posted by: Karen Belcher on Feb 8, 2024

Court: 6th Circuit Court (Published Opinions)

Attorneys 1: ON BRIEF: Charles A. Haas, Livonia, Michigan, for Appellant.

Attorneys 2: ON BRIEF: Jennifer M. Rubin, Pooja A. Boisture, UNITED STATES DEPARTMENT OF JUSTICE Washington, D.C., for Appellee.

Judge(s): SILER, NALBANDIAN, and MATHIS, Circuit Judges.

Court Appealed: Appeal from the United States District Court for the Eastern District of Michigan at Detroit

MATHIS, Circuit Judge. Under the Bank Secrecy Act, individuals with foreign bank accounts containing $10,000 or more must annually file a Report of Foreign Bank and Financial Accounts (“FBAR”) with the U.S. Department of the Treasury. An individual who fails to file an FBAR by the deadline risks civil penalties. If the failure to file was accidental, the government can assess a penalty of up to $10,000. If, however, the failure to file was willful, the civil penalty grows exponentially.

The government sued James Kelly to recover civil penalties, claiming that Kelly willfully failed to timely file FBARs for 2013, 2014, and 2015. The district court granted summary judgment to the government. Because Kelly’s failure to file was a willful violation of the Bank Secrecy Act, we affirm.

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