The following excerpt is from U.S. v. Brutzman, 731 F.2d 1449 (9th Cir. 1984):
We cannot agree that the trial court abused its discretion in concluding that the probative value of the evidence was not outweighed by its potential prejudicial effect. The misuse of the funds directly established the fraudulent nature of the scheme. See United States v. Krohn, 573 F.2d 1382, 1388-89 (10th Cir.), cert. denied, 436 U.S. 949, 98 S.Ct. 2857, 56 L.Ed.2d 792 (1978).
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