Oral Arguments, with Context

USA v. McCandless — 9th Cir. (Oct 15, 2026)

Oral Arguments, with Context

Show Notes

The Ninth Circuit hears Kelly McCandless's appeal from an apartment-construction fraud case in Idaho. He and two partners planned to build a property with bank financing; he could earn an ownership share by completing the construction. Prosecutors said he inflated subcontractor bills and used unauthorized signatures to draw overpayments from the loan, keeping the difference. A jury convicted him of wire fraud and aggravated identity theft. The question is whether misusing the subcontractors' identities was central to the fraud, or simply incidental to overbilling. A lien can secure a contractor's claim against property for unpaid work; a lien waiver gives up that protection for the work it covers. The second issue is restitution: payment to compensate victims for their losses. McCandless will argue that the ownership interest he gave up should reduce the amount owed. The district judge rejected that credit, finding he never earned the interest because he had not finished the project.

USA v. McCandless (No. 24-4105) — U.S. Court of Appeals for the Ninth Circuit, argued October 15, 2026.

Sources:

Argument audio — official Ninth Circuit recording: https://cdn.ca9.uscourts.gov/datastore/media/2026/10/15/24-4105.mp3

Case and argument date — official Ninth Circuit media archive: https://www.ca9.uscourts.gov/cases/streams-videos/archive?case=24-4105&hearingDate=2026-10-15

Background and restitution ruling — District of Idaho Doc.123, July 29, 2025; prior district-court order, not this appeal’s outcome: https://www.govinfo.gov/content/pkg/USCOURTS-idd-4_22-cr-00032/pdf/USCOURTS-idd-4_22-cr-00032-2.pdf

Trial background — U.S. Attorney report, July 3, 2024; prosecution account of prior proceedings: https://www.justice.gov/usao-id/pr/rexburg-man-convicted-wire-fraud-and-aggravated-identity-theft-sentenced-more-5-years

Aggravated identity theft — 18 U.S.C. § 1028A: https://www.law.cornell.edu/uscode/text/18/1028A

Identity use at the crux of the crime — Dubin v. United States, 599 U.S. 110 (2023): https://www.supremecourt.gov/opinions/22pdf/599us1r34_p86b.pdf

Victim restitution — 18 U.S.C. § 3663A: https://www.law.cornell.edu/uscode/text/18/3663A

Construction liens — Idaho Code § 45-501: https://legislature.idaho.gov/statutesrules/idstat/Title45/T45CH5/SECT45-501/

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