Source: https://law.justia.com/cases/federal/appellate-courts/F2/929/582/123936/
Timestamp: 2020-07-04 16:46:29
Document Index: 434388291

Matched Legal Cases: ['§ 371', '§ 1344', '§ 1341', '§ 1957', 'art, 872', '§ 1957', '§ 1957', '§ 1962', '§ 1951', '§ 844', '§ 1962']

United States of America, Plaintiff-appellee, v. Marilyn Kay Kelley, Defendant-appellant, 929 F.2d 582 (10th Cir. 1991) :: Justia
Justia › US Law › Case Law › Federal Courts › Courts of Appeals › Tenth Circuit › 1991 › United States of America, Plaintiff-appellee, v. Marilyn Kay Kelley, Defendant-appellant
United States of America, Plaintiff-appellee, v. Marilyn Kay Kelley, Defendant-appellant, 929 F.2d 582 (10th Cir. 1991)
U.S. Court of Appeals for the Tenth Circuit - 929 F.2d 582 (10th Cir. 1991) April 8, 1991
In a ten-count indictment Marilyn Kay Kelley was charged in one count with conspiring with her daughter, LaDena Dunning, and others to commit bank fraud and mail fraud, in violation of 18 U.S.C. § 371; in four counts with bank fraud in violation of 18 U.S.C. §§ 1344 and 2; in four counts with mail fraud in violation of 18 U.S.C. §§ 1341 and 2; and in one count with money laundering in violation of 18 U.S.C. § 1957(a). Kelley was tried jointly with her daughter, LaDena Dunning. A jury convicted Kelley on all ten counts, and pursuant to the Sentencing Guidelines she was sentenced to fifty months imprisonment on each count to be served concurrently. Kelley now appeals her several convictions and sentences.1
Steve Brown, vice-president of operations for I.T.T.'s Englewood, Colorado office, testified that the approved loan applications received from the local Oklahoma City, Oklahoma office were invariably sent by mail back to the Oklahoma City office. On cross-examination, Brown conceded that some business documents were faxed or sent by Federal Express or other courier, but he still insisted, on redirect examination, that approvals of loan applications were returned to the local Oklahoma City office by mail. Proof of mailing by showing an established business practice to mail is sufficient circumstantial evidence to require submission of the mailing issue to a jury. United States v. Sumnicht, 823 F.2d 13, 15 (2d Cir. 1987); United States v. Brickley, 426 F.2d 680, 684 (8th Cir.), cert. denied, 400 U.S. 828, 91 S. Ct. 55, 27 L. Ed. 2d 57 (1970); United States v. Doran, 299 F.2d 511, 514 (7th Cir.), cert. denied, 370 U.S. 925, 82 S. Ct. 1563, 1565, 8 L. Ed. 2d 504, 505 (1962).
Counsel also argues that any mailing must be in furtherance of the scheme to defraud in order to come within the mail fraud statute. In this regard, counsel points out that, based on telephone conversations, some loan advancements were made before the Oklahoma City office received back the "approved" loan application. Such, however, would not negate the government's evidence that: The usual procedure was for the Oklahoma City I.T.T. office to forward loan applications to its Englewood, Colorado office; the loan applications would then be reviewed and marked approved, if such was the case; the applications would then be returned via the U.S. Mail to Oklahoma City; and finally the loan would be made. In a mail fraud case it is not necessary that the mailing predate the defendant's receipt of the money. United States v. Sampson, 371 U.S. 75, 80-81, 83 S. Ct. 173, 175-76, 9 L. Ed. 2d 136 (1962); United States v. Bottom, 638 F.2d 781, 785 (5th Cir. 1981); Sparrow v. United States, 402 F.2d 826, 829 (10th Cir. 1968). Further, mailings which facilitate concealment of a fraudulent scheme meet the "furtherance" requirement. United States v. Walker, 915 F.2d 1463, 1466 (10th Cir. 1990); United States v. Rauhoff, 525 F.2d 1170, 1176 (7th Cir. 1975). In the instant case there was testimony that if the approved loan application was not in the file at the local Oklahoma City office, there would be an internal investigation which would have disclosed the irregularities.
Counsel next argues that an essential element of both the bank fraud and mail fraud charges was that the banks and I.T.T. suffered an "actual pecuniary loss" as a result of Kelley's fraudulent scheme. Counsel notes that in this regard the indictment did not allege any actual pecuniary loss either to the banks or I.T.T., that the instructions did not inform the jury that an actual pecuniary loss was an essential element of the crimes charged, and further, that there was little or no evidence of any such pecuniary loss. This argument misconceives the law on this matter. The gist of both the bank fraud charges and the mail fraud charges is devising and executing, or intending to execute, a scheme to defraud, and the ultimate success or failure of the scheme is immaterial. In other words, the government does not have to prove that the victim suffered actual pecuniary loss from the scheme. See United States v. Stewart, 872 F.2d 957 (10th Cir. 1989) (listing cases).3 And the truth of the matter is that there was evidence of actual pecuniary loss to the banks and I.T.T. The fact that in one instance, for example, a recoupment was made through the sale of collateral is of no moment.
Counsel also argues that any money laundering transaction was not "in or affecting interstate commerce" as required by the money laundering statute. 18 U.S.C. § 1957(a). In this regard, there was evidence that the automobile Kelley purchased was manufactured in Michigan and was sold to her by a local car agency which was itself engaged in interstate commerce and that monies paid the car agencies by Kelley would, in part, be used to purchase other vehicles and automotive parts from outside Oklahoma. The requirement that the transaction be "in or affecting interstate commerce" must be met in order to confer jurisdiction on federal courts. Such, however, is not an essential element of the crime charged.
The parties are in substantial agreement that the "in or affecting interstate commerce" requirement has been broadly read and that a "minimal effect" on interstate commerce is sufficient to establish federal jurisdiction. In statutes analogous to 18 U.S.C. § 1957 a minimal effect on interstate commerce is sufficient to confer federal jurisdiction. See e.g., United States v. Robinson, 763 F.2d 778, 781 (6th Cir. 1985) (18 U.S.C. § 1962(c)); United States v. Worley, 751 F.2d 348, 351 (10th Cir. 1984) (18 U.S.C. § 1951(a)); United States v. Zabic, 745 F.2d 464, 470 (7th Cir. 1984) (18 U.S.C. § 844(i)); United States v. Rone, 598 F.2d 564, 573 (9th Cir. 1979) (18 U.S.C. § 1962(c)), cert. denied sub. nom., 445 U.S. 946, 100 S. Ct. 1345, 63 L. Ed. 2d 780 (1980). Counsel has not drawn our attention to any case which would suggest a reversal of Kelley's conviction on Count 10. We think the evidence is sufficient to confer federal jurisdiction.
Counsel agrees that before a new trial on the ground of newly discovered evidence may be granted, the allegedly newly discovered evidence must be more than merely impeaching or cumulative. It must also be material to the issues involved and must be such as would probably produce an acquittal. And further, that such a motion is not regarded with favor and should only be granted with great caution. In any event, the denial of a motion for a new trial is addressed to the sound discretion of the trial court. United States v. Page, 828 F.2d 1476, 1478 (10th Cir.), cert. denied, 484 U.S. 989, 108 S. Ct. 510, 98 L. Ed. 2d 508 (1987); United States v. Sutton, 767 F.2d 726, 729 (10th Cir. 1985); and United States v. Ramsey, 726 F.2d 601, 605 (10th Cir. 1984). Our review of the matter convinces us that the present motion does not measure up to that test. This is not a case of a government witness at trial recanting his or her trial testimony. Ms. Quattlebaum was not a government witness at trial. Ms. Quattlebaum's affidavit that her husband, or other government witnesses, testified incorrectly at trial is merely impeaching. The district court did not err in summarily denying the motion for a new trial.
At sentencing, the district court, acting upon a pre-sentence report, added four points to Kelley's base offense level because of her leadership role in the ongoing criminal activity. U.S.S.G. Sec. 3B1.1(a). On appeal, counsel argues this was error. We disagree with counsel. The district court's determination that Kelley had a leadership role is reviewed by us under the clearly erroneous standard. United States v. Beaulieu, 893 F.2d 1177, 1181-82 (10th Cir. 1990), cert. denied, --- U.S. ----, 110 S. Ct. 3302, 111 L. Ed. 2d 811 (1990). The record clearly indicates that Kelley gave orders, came up with ideas, handled the finances, and organized Shannon Financial which was the business entity doing business with the victim banks and I.T.T. To be sure, there were others involved, but the district court's determination that Kelley was a leader in this ongoing criminal activity is not clearly erroneous.
We find nothing in the pre-sentence report which supports the statement that because of possible future employment opportunities and entrepreneurial skills, Kelley, at some future date after her release from prison, would be able to repay $192,092. United States v. Rogat, 924 F.2d 983 (10th Cir. 1991) sheds light on the restitution order.
LaDena Dunning was convicted on three counts, and by separate appeal sought reversal of her convictions and sentences. Except for the district court's restitution order, Dunning's convictions and sentences have now been affirmed contemporaneously with the filing of the present opinion. See United States v. Dunning, 929 F.2d 579 (10th Cir. 1991)
Kelley's reliance on McNally v. United States, 483 U.S. 350, 107 S. Ct. 2875, 97 L. Ed. 2d 292 (1987) is misplaced. There the Supreme Court held that the mail fraud statute does not extend "to the intangible right of the citizenry to good government." Id. at 356, 107 S. Ct. at 2879
The challenge to the restitution order was not raised by Kelley until her reply brief. Accordingly, the government made no mention of the matter in its answer brief, but the issue was fully argued in the companion appeal involving Kelley's daughter. See United States v. Dunning, 929 F.2d 579 (10th Cir. 1991)