DEI Fraud Cases Fail Materiality

Updated: 2025.08.29 1M ago 2 sources
If race- or sex-based preference schemes are unconstitutional, then misstatements about meeting those schemes’ 'goals' cannot be material to obtaining benefits under the wire‑fraud statute. Courts also limit wire‑fraud to schemes targeting 'property,' which discretionary tax abatements may not be. Together, this undercuts using fraud prosecutions to police DEI compliance. — It reframes DEI enforcement as a legal overreach that collides with Supreme Court doctrine, reshaping how prosecutors, cities, and agencies can pursue identity‑based targets.

Sources

Solving a Fiscal Crisis With AI
2025.08.29 90% relevant
The St. Louis wire‑fraud case over M/WBE eligibility is cited to argue that, because race‑ and sex‑based preferences are unconstitutional, alleged misrepresentations could not be material for obtaining tax abatements; the Trump DOJ reversing course underscores the legal shift.
Even Federal Prosecutors Still Practice DEI
Ilya Shapiro 2025.08.28 100% relevant
The St. Louis case against developers Sidarth Chakraverty and Victor Alston, reversed by interim U.S. Attorney Thomas Albus, with citations to Students for Fair Admissions and Kousisis v. United States.
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