On this point two issues arise, first was the mailing an essential part of the scheme, and second did the mailing further the execution of the fraudulent scheme the defendant suggests that the mailing of the application was only an innocuous step in the process; "innocent in and of itself… merely tangentially related to the fraud… and far from furthering the execution of the fraud, occurs after the fraud has come to fruition" (Reed, O. Shedd, P. Morehead, J. & Pagnattaro, M. 2008). To the Court however, the mailings constitute activity which while not potentially "an essential element of the scheme" was incident to an essential part of the scheme or a step in the plot" (Reed, O. Shedd, P. Morehead, J. & Pagnattaro, M. 2008). The mailing of the title applications and the subsequent issuance of Wisconsin tags to the retailers completed the fraudulent process, for as the court contends "the success of Schmuck's venture depended on his continuous harmonious relations with, and good reputation, among retail dealers" (Reed, O. Shedd, P. Morehead, J. & Pagnattaro, M. 2008). Without the "successful passage of the title among the various parties" the scheme would have collapsed.

Why does the Supreme Court conclude that mail fraud existed in this case?

The Court in this case explicates the concept of mailings as an integral function of the determination of mail fraud however; the mailings do not have to be at the core of a fraudulent scheme, rather "a mailing that is incident to an essential part of the...

Shedd, P. Morehead, J. & Pagnattaro, M. 2008). Schmuck's scheme while not complicated depended on the efficient and timely transfer of title which was facilitated through the mailing of the title application by dealers "on behalf of his retail customer" (Reed, O. Shedd, P. Morehead, J. & Pagnattaro, M. 2008). The Court understanding that title was instrumental to the completion of the scheme focused their analysis on the mailings as a requisite piece of the fraud. Reasoning that Schmucks could not have continued the scheme without title transfer, the Court states that "although the registration-form mailings may have not contributed directly to the duping of either the retail dealers or the customers, they were necessary to the passage of title, which in turn was essential to the perpetuation of Schmuck's scheme" (Reed, O. Shedd, P. Morehead, J. & Pagnattaro, M. 2008). As an ancillary action in the implementation and completion of the fraud scheme, the title application conveyance nonetheless "satisfies the mailing element of the mail fraud offense" (Reed, O. Shedd, P. Morehead, J. & Pagnattaro, M. 2008).
References

Legal Dictionary. (N.D.). Factual Basis. Legal Dictionary. Retrieved March 11, 2011

from http://dictionary.lacriminaldefenseattorney.com/factual/factual-basis.html

Reed, O. Shedd, P. Morehead, J. & Pagnattaro, M. (2008). The Legal and Regulatory

Environment of Business 14th Edition.