Ronald V. Cloud purchased the Cal-Neva Lodge, a hotel and casino complex located in the Lake Tahoe area on the California–Nevada border, for $10 million. Cloud was a sophisticated 68-year-old entrepreneur who was experienced in buying and selling real estate and had real estate holdings valued at more than $65 million. He also had experience in banking and finance, having been the founder and chairman of Continental National Bank of Fresno. After two years of mounting operation losses, Cloud closed the CalNeva Lodge and actively began seeking a new buyer. Cloud met with Jon Perroton and orally agreed to transfer the lodge to Perroton for approximately $17 million. Perroton met with an executive of Hibernia Bank (Hibernia) to discuss a possible loan to finance the purchase of the lodge. Perroton made multiple false representations and presented false documents to obtain a $20 million loan from Hibernia. In particular, Perroton misrepresented the sale price for the lodge ($27.5 million) and stated that $7.5 million had already been paid to Cloud. An escrow account was opened with Transamerica Title Company (Transamerica). Cloud and his attorney and Perroton met at Transamerica to sign mutual escrow instructions. Cloud reviewed the instructions and noticed that the sale price and downpayment figures were incorrectly stated at $27.5 million and $7.5 million, respectively, and that the Hibernia loan was for $20 million, almost $3 million above what he knew to be the true sale price. Cloud signed the escrow instructions. Later, Cloud signed a settlement statement containing the same false figures and a grant deed to the property. The sale closed on January 23, 1985, with Hibernia making the $20 million loan to Perroton. Subsequently, when the loan went into default, Continental Insurance Company (Continental) paid Hibernia its loss of $7.5 million on the bank’s blanket bond insurance policy. The United States sued Cloud for aiding and abetting a bank fraud, in violation of federal law (18 U.S.C. Sections 2 and 1344). The jury convicted Cloud of the crime and ordered him to make restitution of $7.5 million to Continental. Cloud appealed. Has Cloud acted ethically in this case? Is Cloud guilty of aiding and abetting a bank fraud? United States v. Cloud, 872 F.2d 846, Web 1989 U.S. App. Lexis 4534 (United States Court of Appeals for the Ninth Circuit)