2006 D e c i sion s O p inion s of the U nit e d S t at e s C our t of Appe al s for the Thir d C ir c uit 4-13-2006 

# U SA v . Groff P r e c e de nt i al or N on-P r e c e de nt i al : N on-P r e c e de nt i al D ocke t N o . 05-1634

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Thi s de c i sion i s br ou ght t o you for f r e e a nd ope n a c c e s s b y the O p inion s of the U nit e d S t at e s C our t of Appe al s for the Thir d C ir c uit at V i l l a nova U nive r sity S choo l of L a

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w . vi l l a nova . e du . Re c omme nde d C it at ion " U SA v . Gr off " (2006). 2006 D e cisio n s . P ape r 1270. http://d i git alc ommon s .l a

w . vi l l a nova . e du/thir dc ir c uit_2006/1270T he H onor abl e H ar ol d A . A ckerm an, Seni orD i s t r i ctJ udge fort he D i s t r i ctof N ew * J er s ey , s i t t i ng bydes i gnat i on. NOT PRECEDENTIAL

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v. M A RL I N G RO FF, A ppel l ant O n A p p ea l from the U n it ed S tat es D istri ct C o u rt f o r th e E a ste rn D istric t o f P e n n sy lv a n ia D i s t r i ctJ udge: T he H onor abl e R onal d L . B uckw al t er

D i s t r i ctC our tN o. : 00- C R - 00310 Subm i t t ed Pur s uantt o T hi r d C i r cui tL . A . R . 34. 1( a)

M ar ch 31, 2006 B e f o re : S M IT H a n d C O W E N , C i rcui tJud ges, a n d A C K E R M A N , D is tr i ct Judge * ( Fi l ed: A pr i l 13, 2006) OPI NI ON O F THE COURT S M IT H , C i r cui tJudge . A ppel l antM ar l i n G r off w as i ndi ct ed, t r i ed and c onvi ct ed bya j ur y , and s ent ence dT he D i s t r i ctC our thad j ur i s di ct i on pur s uantt o 18 U . S. C . § 3231. W e have 1 j ur i s di ct i on pur s uantt o 28 U . S. C . § 1291. 2 on t hr ee c ount s forvi ol at i ng 18 U . S. C . § 1341 ( m ai l fr aud) , one countforvi ol at i ng 18 U . S. C . § 1001 ( m aki ng fal s e s t at ement s ) , and tw o count s forvi ol at i ng 18 U . S. C . § 1001 and § 2 ( ai di ng and abe t t i ng t he maki ng of fa l s e s t at ement s ) . G r off ha s appea l ed the D i s t r i ctC our t ’ s deni al of: ( 1) hi s M ot i on forJ udgm entof A cqui t t al pur s uantt o Feder al R ul e of Cri m i nal Pr ocedur e 29; ( 2) hi s M ot i on fora M i s t r i al on t he gr ound t hathe w as p rejud iced b ythe D istri ct C o u rt ’s de layin issuing a c u rati v e ins tru cti o n u n ti l fi n al j u ry i ns t ruct i ons ; and ( 3) hi s M ot i on forD i s m i s s al of the I ndi ctm entforal l eged vi ol at i ons of t he SpeedyT r i al A ct , 18 U . S. C . § 3161 et s eq . W e w i l l aff

i r m t he j udgm entof the D i s t r i c tC o u r ti n i t s e n t i r e t y. 1 I. G rof f h as a b ac h elor’s d eg ree in ac co u n ti n g an d is a ce rt ifi ed p u b li c a cc o u n tant. In 1990, t he Sm al l B us i nes s A dm i ni s t r at i on ( “SB A ”) guar ant eed tw o l oans obt ai ned by G r off. G r off de faul t ed on the l oans i n 1991. A ft erbuy i ng t he l oans fr om t he l ender s , t he SB A s oughtpaym enton t he out s t andi ng bal ance of $437, 000 fr om G r off. I n a s er i es of t hr ee s t at ement s t o t he SB A , G r off unde r r epor t ed hi s avai l abl e l i qui d as s et s and di d not re p o rt a p p ro x im a tely$ 5 5 1 ,0 0 0 th a t h e h a d re c e iv e d f ro m a f o rm e r b u sin e ss p a rtn e r in 1 9 9 2 . Gr o f

f h a d a s k e d h i s f

o r me rp a r t n e rt o i s s u e t h e f u n d s i n c h e c k s ma d e o u tt o h i s t wo c h ild re n a n d v a rio u s re lig io u s in stitu tio n s, b u t G ro f f h a d a c tu a llyo p e n e d a c c o u n ts in h is chil dren’s nam es, dep osi t ed thei r checks i n these accoun t s, and con t i nu ed to exerci se3

contr ol overt hes e funds . G r off c ont ends t hathe w as r el y i ng on t he advi ce of hi s at t or ney du ri ng t hese ev ents . A tG r off’ s arr ai gnm enton J ul y20, 2000, a tr i al dat e w as s etforSept ember25, 2000. O n Sept ember19, 2000, t he D i s t r i ctC our tgr ant ed a c ont i nuance j oi nt l yr eques t ed b ythe p arti es f

o r th e sa k e o f c o n d u cti n g the v o lum ino u s an d co m p li ca ted d o cu m en tary di s coveryr equi r ed byt he ca s e. T he D i s t r i ctC our tdi d nots eta tr i al dat e att hi s t i m e, and appar ent l yr el i ed on the part i es t o expl i ci t l yr eques ta tr i al dat e ats om e l at ert i m e. O n M ar ch 1, 2001, defe ns e couns el s entt he D i s t r i ctC our ta l et t er , compl ai ni ng a b o u t d if f ic u ltie s in a rr a n g in g m e e tin g s w ith th e g o v e rn m e n t to p e rf o rm d is c o v e ry. D efe ns e couns el s t at ed i n t hi s l et t er , “I am re l uct ant l yr eques t i ng t hi s C our tt o i nt ervene a n d to s c h e d u le a h e a ri n g to a d d re s s th e o b v io u s im p e d im e n ts to p ro c e e d in g w ith tr ia l. A ddi t i onal l y , I am hopeful t hatt he C our tw i l l s eta tr i al dat e and c ons i dera M ot i on byt he defe ns e t o pr ecl ude anyt es t i m onyfr om G overnm entw i t nes s es t hatm ayt ouch on d isc o v e ryw h ich h a s b e e n . . . w ill f u llya n d w ro n g f

u llyw ith h e ld f

ro m th e d e f

e n se .” A t a su b se q u e n t co n f

e re n c e c a ll m e d iate d b yth e D istric t C o u rt, th e p a rties a g re e d to a ttem p t to r es ol ve thei rdi s coveryi s s ues , and the di s coverypr oces s cont i nued. O n February27, 2002, att he governm ent ’ s r eques t , t he D i s t r i ctC our ts eta new t r i al dat e of M ay6, 2002. G r off then r eques t ed an a ddi t i onal cont i nuance on A pr i l 29, 2002, and a ne w t r i al dat e of M ar ch 10, 2003 w as s et . O n M ar ch 4, 2003, t he governm ent m oved foranothercont i nuance beca us e a mat er i al w i t nes s w oul d be unava i l abl e on4

M a rc h 1 0 . D u rin g a c o n f e re n c e c a ll o n M a rc h 5 , 2 0 0 3 , the D istric t C o u rt g ra n ted th is cont i nuance butdi d nots eta new t r i al dat e att hatt i m e. O n M ar ch 16, 2003, t he D i s t r i ct C o u rt p re p a re d a w ritten o rd e r se tti n g o u t it s f in d in g s in su p p o rt o f

th is c o n tin u a n c e , b u t, appar ent l yi nadvert ent l y , t he D i s t r i ctC our tfai l ed t o fi l e thi s w r i t t en or der . O n M ay28, 2003, t he D i s t r i ctC our ts eta new t r i al dat e of Sept ember8, 2003. O n A ugus t20, 2003, t he governm ent ’ s couns el m oved foranothercont i nuance , ci t i ng a conf l i ctw i t h her a ttac h m e n t to a n o th e r tria l, an d th e D istric t C o u rt g ra n ted a f in a l co n tin u a n c e u n til Ja n u a ry5 , 2 0 0 4 , the a c tu a l d a te o f th e trial. O n D ece m ber31, 2003, G r off f i l ed hi s M ot i on t o D i s m i s s t he I ndi ctm ent , al l egi ng vi ol at i ons of the SpeedyT r i al A ct . O n J anuary5, 2004, i m m edi at el ybefor e the s t ar tof t he tr i al , t he D i s t r i ctC our tdeni ed thi s m ot i on. A tt he end of t hi s fi r s tdayof tr i al , t he D i s t r i ctC our ts etfor t h i t s fac tual bas i s fordeny i ng t hi s m ot i on and r evea l ed t o t he part i es t he exi s t ence of the w r i t t en or dert hati thad pr epar ed butnotfi l ed on M ar ch 16, 2003. N e a r th e e n d o f

th e trial, th e g o v e rn m e n t ca lled S B A S p e c ial A g e n t M a rtin C a rro ll as a w itn ess. C arro ll rea d sev era l l ett ers p rep are d b yan S B A loan o ff icer into the rec o rd i n an ef for tt o r ebuta def

ens e cont ent i on t hatt her e w as a l ack of comm uni cat i on betw een t he SB A and G r off dur i ng t he r el evantevent s . T he l oan off i ceri n ques t i on had pr evi ous l yt es t i fi ed dur i ng t he tr i al buthad nott es t i fi ed aboutt he l et t er s . O ne of the l et t er s , m arked Exhi bi t58, w as addr es s ed t o one of G r off’ s pr i orat t or ney s and cont ai ned in ef fe ct a su m m aryo f th e g o v ern m en t’ s all eg ati o n s reg ard ing G rof f’sO n r evi ew of a Rul e 29( c) m ot i on, w e w i l l s us t ai n a j ur yver di cti f, vi ew i ng t he 2 evi dence i n a l i ghtm os tfavor abl e t o t he governm ent , a r at i onal t r i erof fa ctcoul d have f o u n d th a t th e g o v e rn m e n t es tab lish e d th e e lem e n ts o f th e c rim e b e y o n d a re a so n a b le d o u b t. See U

ni t ed Stat es v. D ent , 1 4 9 F . 3 d 1 8 0 , 1 8 7 (3d C ir . 1 9 9 8 ). 5 m i s r epr es ent at i ons , m os t l ypr es ent ed i n t he form of ac cus at or yques t i ons . D ur i ng t he r eadi ng of thi s l et t er , defe ns e couns el obj ect ed t o i t s admi s s i on i nt o evi dence , and the D i s t r i ctC our toverrul ed the obj ect i on. A ft ert he compl et i on of C arr ol l ’ s r eadi ng of the l et t er , how ever , t he D i s t r i ctC our ton i t s ow n m ot i on concl uded thatt hi s l et t ers houl d not h a v e b e e n a d m itte d b e c a u s e it w a s in th e f o rm o f a rg u m e n ts a n d n o t f

a c tu a l s ta te m e n ts . T he D i s t r i ctC our tdi d noti s s ue a c ur at i ve i ns t ruct i on t o t he j ur yatt hi s t i m e. A tt he D i s t r i ctC our t ’ s pr om pt i ng, defe ns e couns el m oved fora mi s t r i al . L at ert hatday , t he D istric t C o u rt d e n ied th is M o tio n f o r a M istria l. T he fol l ow i ng day , dur i ng fi nal j ur yi ns t ruct i ons , t he D i s t r i ctC our ti ns t ruct ed, “N ow , one of the exhi bi t s y ou w on’ thave i s an exhi bi tw hi ch w as num ber58 w hi ch w as an exhi bi ton a pl ai n pi ece of pape rw hi ch w as . . . s entbyt he SB A t o couns el fort he d e f e n d a n t. T h a t ex h ib it w a s re a d to y o u b u t th e n a s I r e re a d it, I d e ter m in e d th a t it c o n tain e d a lo t o f

re f e re n c e to q u e stio n s a n d n o t re f e re n c e to f

a c t. . . . I’d a sk y o u to dis regar d it . ” E xh i bit58 w as not s ent back w i t h the j urydu ri ng i t s del i berat i on s. II. W i t h r es pectt o G r off’ s M ot i on forJ udgm entof A cqui t t al , w e fi nd no err or i n t he 2 D i s t r i ctC our t ’ s deni al of thi s m ot i on. I n l i ghtof G r off’ s educa t i on and pr ofes s i onal sta tu s a s a c e rtifie d p u b lic a c c o u n tan t, an d in lig h t o f th e m a n n e r in w h ich h e n o m in a llyW e re v ie w a D is tr ic t C o u rt ’s d e n ia l o f a m is tr ia l f

o r a b u s e o f

d is c re tio n . See U

ni t ed 3 S ta tes v . H

a k im , 344 F. 3d 324, 328 ( 3d C i r . 2003) . O uri nqui r yfocus es on t he al l eged p re ju d ic e to th e d e f

e n d a n t. See U

ni t ed Stat es v. W

r ight

- B aker , 7 8 4 F . 2 d 1 6 1 , 1 7 5 (3d C ir . 1 9 8 6 ). G ro f f a lso a rg u e s th a t th e D istric t C o u rt’s c u ra tiv e in stru c tio n w a s to o v a g u e to 4 i dent i fyt he di s put ed l et t er , butw e fi nd t hatt he D i s t r i ctC our t ’ s cur at i ve i ns t ruct i on, i ncl udi ng t he l et t er ’ s exhi bi tnum berand a br i ef de s cr i pt i on of the natur e of the l et t er , w as s u f f i c i e n tt o i d e n t i f

y t h e l e t t e rt o t h e j u r y. 6 di ver t ed funds t o ot her s w hi l e ac tual l ym ai nt ai ni ng contr ol of the funds , a r at i onal t r i erof fac tcoul d have c oncl uded thatt he governm enthad es t abl i s hed bey ond a r eas onabl e doubt t hatG r off ha d act ed w i t h t he nec es s aryi nt entt o defr aud the SB A w hen mi s r epr es ent i ng th e f u ll ex ten t o f

h is a ss e ts, re g a rd les s o f a n ya d v ice th a t h e m a yh a v e re c e iv e d f ro m h is a t t o r n e y. W ith re sp e c t to G ro f

f ’s M o tio n f

o r a M istria l, w e f

in d th a t th e D istric t C o u rt d id notabus e i t s di s cr et i on bydeny i ng t hi s m ot i on. W hethera del ayi n gi vi ng a cur at i ve 3 i ns t ruct i on over comes the pr es um pt i on t hatj ur i es w i l l fol l ow s uch i ns t ruct i ons depends o n th e c ir c u m s ta n c e s o f th e c a s e . S e e H

a k im , 344 F. 3d at330. I n l i ghtof the fa ctt hatt he cont entof the l ett erdi d noti nt r oduce a nynew fac t s butr atherm er el ydupl i cat ed the governm ent ’ s ar gum ent s att r i al , w e fi nd t hatt he D i s t r i ctC ourt ’ s del ayi n pr ovi di ng a c u ra tiv e in stru c tio n u n til th e ju ry ’s f in a l in stru c tio n s d id n o t ca u se a n yin c u ra b le p re ju d ice . A c c o rd in g ly , the D istric t C o u rt d id n o t ab u se its d isc re tio n b yf a ili n g to g ra n t a m istria l. 4 W hethert he D i s t r i ctC our tpr oper l ydeni ed G r off’ s M ot i on t o D i s m i s s t heW e fi nd t hatdefe ns e couns el ’ s s t at ementi n t he M ar ch 1, 2001, l et t ert hatcouns el w as 5 “hopef ul t hatt he C our tw i l l s eta tr i al dat e” di d notcons t i tut e an e xpl i ci tr eques tforan end t o t he cont i nuance t hatt he def ens e had or i gi nal l yr eques t ed, par t i cul ar l yi n l i ghtof d ef en se c o u n sel’s sub seq u en t agre em en t t o att em p t t o reso lve th e u n d erly ing d isco v ery i s s ues ci t ed i n t he l et t erand the cont i nuat i on of di s coveryt her eaf t erw i t houtanyfur t her r eques tbyt he def

ens e fora tr i al dat e. 7 I ndi ctm entpur s uantt o t he SpeedyT r i al A cti s a cl os eri s s ue. I n U ni t ed Stat es v. Lat t any , 982 F. 2d 866 ( 3d C i r . 1993) , w e hel d t hatt he SpeedyT r i al A ctal l ow ed open- ended c o n tin u a n c e s b u t w e a ls o d is c o u ra g e d th e iru s e . See i d. at883. A s w e not ed i n Lat t any , “[a ] di s t r i ctcour t ’ s r el i ance on t he part i es t o advi s e i tw hen theyar e r eadyfort r i al . . . can i nt er fer e w i t h t he SpeedyT r i al A ct ’ s purpos e of i ns ur i ng pr om ptt r i al of cr i m i nal cas es fort he pr ot ect i on of the publ i c as w el l as t he def endant . ” I

d. a t 8 7 6 n .1 4 ; see al

so 18 U . S. C . § 3161( h) ( 8) ( A ) ( excl udi ng per i ods of del ayr es ul t i ng fr om a cont i nuance i f the j udge gr ant ed s uch a c ont i nuance “on the bas i s of hi s fi ndi ngs t hatt he ends of j us t i ce ser ved byt aking such an acti on ou t w ei gh t he b esti nter est o f th e p u b lic and the def

endant in a sp e e d ytrial” ). F in a lly , w e h e ld th a t su c h c o n tin u a n c e s m u st n o t b e u n re a so n a b le in le n g th , e v e n w h e n th e d e f e n s e a g re e s to th e c o n tin u a n c e . See Lat t any , 982 F. 2d at882. T he open- ended c ont i nuance gr ant ed byt he D i s t r i ctC our ton Sept ember19, 2000, ul t i m at el ydel ay ed the tr i al fr om i t s or i gi nal dat e of Sept ember25, 2000, unt i l M ay6, 2 0 0 2 , w ith s u b s e q u e n t c o n tin u a n c e s d e la y in g th e a c tu a l tr ia l d a te u n til J a n u a ry 5 , 2 0 0 4 . E ven though w e fi nd t hatt he part i es w er e compl i ci ti n t hi s i ni t i al del ayi ns ofaras t hey j oi nt l yr eques t ed the cont i nuance , w e have s om e doubtaboutw hethert hi s i ni t i al del ay 5 w a s o f a re a so n a b le le n g th in lig h t o f th e p u b lic’s in ter e st in a sp e e d ytrial.B ygr ant i ng t he part i es an open- ended c ont i nuance r athert han a c ont i nuance w i t h a 6 fi xed t erm , t he D i s t r i ctC our tfai l ed t o pr ovi de the part i es w i t h anygui dance as t o t he l evel of di l i gence t hatthe publ i c’ s i nt er es ti n a s peedyt r i al r equi r ed. M or eover , by r el y i ng on t he part i es t o r eques ta new t r i al dat e, r athert han gr ant i ng a fi xed cont i nuance a n d e x ten d in g it as n e c e ss a ry , the D istric t C o u rt f a iled to p e rf

o rm a n yp e rio d ic r eas s es s m entof w hethert he publ i c’ s i nt er es ti n a s peedyt r i al w as s t i l l out w ei ghed byt he d i s c o v e r y - r e l a t e d n e e d s o f t h e p a r t i e s . Ac c o r d i n g l y , a s we h a v e p r e v i o u s l ys t a t e d , “ we s t r ongl yur ge di s t r i ctcour t s her eaf t ernott o w ai tand r el yon couns el t o i nfor m t hem w hen defe ndant s ar e r eadyt o go t o t r i al , buti ns t ead t o s etdeadl i nes . I f i tl at erappea r s t hat ci r cumst ance s r equi r e pos tponementof anydeadl i ne s o s et , appr opr i at e fi ndi ngs s how i ng th a t th e in ter e sts o f

ju stic e re q u ire a f

u rth e r c o n tin u a n c e c a n b e m a d e c o n tem p o ra n e o u sly w i t h anyor derext endi ng t he t i m e. ” Lat t any , 982 F. 2d at883. 8 N o n ethe less, u n d er Lat t any , ours t andar d of r evi ew of the D i s t r i ctC our t ’ s gr antof a n o p e n -e n d e d c o n tin u a n c e is a b u s e o f d is c re tio n . See 982 F. 2d at883. U nus ual di s covery - r el at ed i s s ues pr ovi de a gr ound undert he SpeedyT r i al A ctforgr ant i ng a c o n tin u a n c e th a t is s u f

f ic ie n tly lo n g to a llo w th e p a rt ie s to p re p a re a d e q u a te ly f o r t ri a l. See 18 U . S. C . § 3161( h) ( 8) ( B ) ( i i ) ( al l ow i ng t he D i s t r i ctC our tt o cons i der , w hen gr ant i ng c o n tin u a n c e s, “ [ w ]h e th e r th e c a se is s o u n u su a l o r so c o m p lex . . . tha t itis u n re a so n a b le t o expec tadequa t e pr epar at i on . . . fort he tr i al i t s el f w i t hi n t he t i m e l i m i t s es t abl i s hed by this section ”). M o reo v er, un d er Lat t any, th e f a c t th a t th e D istric t C o u rt w a s a ttem p tin g to acc om m odat e the def

ens e as w el l as t he governm enti s r el evantt o oureval uat i on of the D is tr ic t C o u rt ’s e x e rc is e o f its d is c re tio n . See 982 F. 2d at883. C ons equent l y , al t hough w e cont i nue t o di s cour age the us e of ope n- ended c ont i nuance s , i ncl udi ng i n futur e ca s es s i m i l art o t hi s one, w e do notfi nd t hatt he D i s t r i ctC our tabus ed i t s di s cr et i on bygr ant i ng 6 t hi s cont i nuance .Fi nal l y , w e fi nd no m er i ti n G r off’ s cont ent i on t hatt he D i s t r i ctC our tvi ol at ed the

SpeedyT r i al A ctbyi nadvert ent l yfai l i ng t o fi l e the w r i t t en or deri tpr epar ed on M ar ch 16, 2 0 0 3 . W h ile a d istric t co u rt c a n n o t re tro a c tiv e lyf in d th e f a c ts n e c e ss a ryto g ra n t a c o n tin u a n c e a f

ter th e d e f

e n d a n t m a k e s a m o tio n to d ism iss u n d e r th e S p e e d yT ria l A c t, se e U n itedS ta tes v . C a rr a sq u ill o , 6 6 7 F . 2 d 3 8 2 (3d C ir . 1 9 8 1 ), a d istri ct co u rt nonethel es s need notpl ace t he nec es s aryfi ndi ngs i nt o t he r ecor d att he t i m e of gr ant i ng th e c o n tin u a n c e . See U ni t ed Stat es v. R i ver a C ons t . C o. , 8 6 3 F . 2 d 2 9 3 , 2 9 7 (3d C ir . 1988) . W e fi nd t hatt he D i s t r i ctC our t ’ s pr epar at i on of the w r i t t en or derdemonst r at es th a t itre a c h e d th e n e c e ss a ryf in d in g s a t th e tim e o f

g ra n tin g th e c o n tin u a n c e , d e sp ite its in a d v e rt e n t f

a ilu re to a c tu a lly f

ile th e o rd e r. I n s um , fort he r eas ons s etfor t h above, w e w i l l aff i r m the j udgm entof the D i s t r i ct C o u r ti n i t s e n t i r e t y.