Source: https://law.resource.org/pub/us/case/reporter/F2/563/563.F2d.967.76-3391.html
Timestamp: 2018-11-21 00:45:30
Document Index: 223289611

Matched Legal Cases: ['§ 605', '§ 2511', '§ 605', '§ 605', '§ 605', '§ 2511']

563 F.2d 967
Bernard CORNFELD, dba Grayhall, Inc., Defendant-Appellant.
The appellant's primary argument, raised by the first three issues, asks this court to address again the propriety of the investigative conduct of a private telephone company, in light of the Communications Act of 1934, 47 U.S.C. § 605, and Title III of the Omnibus Crime Control Act, 18 U.S.C. § 2511(2)(a)(i).1 Cornfeld alleges that the attachment of the CMC 2600 device, the monitoring of the telephone lines by the tape recorder, and the subsequent disclosure to the F.B.I. of the information secured through these devices were made in violation of federal and state law.
The same issues were presented in United States v. Goldstein, 532 F.2d 1305 (9th Cir. 1976), cert. denied, 429 U.S. 960, 97 S.Ct. 384, 50 L.Ed.2d 327 (1977); see also United States v. Auler, 539 F.2d 642 (7th Cir. 1976), cert. denied, 429 U.S. 1104, 97 S.Ct. 1132, 51 L.Ed.2d 555 (1977). Appellant argues that Pacific's monitoring violated the exceptions previously carved out of § 605, in that it was not reasonable or necessary to tape record or attach additional monitoring devices to the telephones after Chaney first determined in his mind that a blue box was in fact being used. According to Chaney's testimony, this occurred after he had reviewed the 800 INWATS print-out and the series 300 study, and before any devices were actually attached to the telephones. In Goldstein, supra, we re-affirmed our earlier decision in Bubis v. United States, 384 F.2d 643 (9th Cir. 1967), that in the enactment of § 605, Congress did not intend to deprive communications systems of their fundamental right to take reasonable measures to protect themselves and their properties against the illegal acts of a trespasser. Under § 605, it became well established that a telephone company could monitor and disclose telecommunications on its line to the extent "reasonably necessary" to protect its property from fraud. United States v. Goldstein, supra at 1309, and n. 2. But the authority to intercept and disclose wire communications is not unlimited, we noted. The telephone company may only intercept a communication which is a "necessary incident to the rendition of . . . service or . . . (for) the protection of the (company's) rights or property . . .", 18 U.S.C. § 2511(2)(a)(i). While in Bubis, supra at 648, the court reversed a conviction where it was shown that the telephone company had resorted to "unreasonable practices", this court did note that "reasonable methods" included the use of a frequency recording device and limited use of a tape recorder to identify the offending parties. Subsequently, in United States v. Goldstein, supra, we extended this authority to include the authorized release to federal authorities such as the F.B.I., the information gathered.
Appellant next alleges that improper prosecutorial conduct was intended to mislead the jury and resulted in substantial injustice. In this regard, appellant cites various statements made by the prosecutor during his opening argument regarding the forthcoming testimony of several witnesses, various alleged admonitions by the court to the prosecutor concerning the type of questions he was asking, and an alleged innuendo that Cornfeld and a witness were "sleeping together". A review of the transcript fails to indicate that the prosecutor strayed beyond the permissible bounds, either in the opening or closing arguments. Furthermore, the appellant's failure to object at trial requires that he demonstrate plain error in order to win reversal of the conviction on appeal, United States v. Memoli, 449 F.2d 160 (9th Cir. 1971), cert. denied, 405 U.S. 928, 92 S.Ct. 979, 30 L.Ed.2d 801 (1972); Rule 52(b), Fed.R.Crim.Proc., and no such error has been shown. As to the "sleeping together" remark, when read in its full context, it is clear that the remark dealt only with the inquiry as to whether or not the witness and Cornfeld were together at all times and addressed the question of the credibility of the witness in testifying that Cornfeld had no opportunity to use a blue box. The question was an appropriate area of inquiry and only in the most convoluted of readings could it be construed to imply what appellant would have us believe it implied.
The appellant next argues that the prosecutor commented on Cornfeld's failure to testify. During his closing argument, the prosecutor stated that "in a fraud-type case such as this, the individual, the defendant, who has perpetrated the fraud is the one who wants to keep it a secret. . . . In this particular case you have a clever individual who used people to insulate himself from criminal responsibility . . . in a very clever way, by keeping quiet about the blue boxes." Later he stated to the jury that "it is totally illogical, totally illogical, that the defendant could present this story . . .." Read in their full context, the remarks do not indicate a reference to Cornfeld's failure to testify, but rather refer to the assertion that one who engages in criminal activity is not going to make it public knowledge. It is entirely appropriate for the prosecutor to argue to the jury and attempt to explain away the reason for Cornfeld's secrecy in the operation of the blue boxes. The comments were not of such a character that the jury would naturally and necessarily take them to be comments on the failure of the accused to testify, Griffin v. California, 380 U.S. 609, 85 S.Ct. 1229, 14 L.Ed.2d 106 (1965). Furthermore, no objection was made at the time of the comments and they cannot be construed as plain error, United States v. Parker, 549 F.2d 1217 (9th Cir. 1977), cert. denied, 430 U.S. 971, 97 S.Ct. 1659, 52 L.Ed.2d 365 (1977); Rule 52(b), Fed.R.Crim.Proc.
Finally, the appellant argues that the evidence adduced at trial was insufficient to prove guilt beyond a reasonable doubt. The proper standard for determining the sufficiency of the evidence on appeal is "whether the trier of fact could reasonably arrive at its conclusion," Glasser v. United States, 315 U.S. 60, 80, 62 S.Ct. 457, 86 L.Ed. 680 (1942); United States v. Rojas, 458 F.2d 1355, 1356 (9th Cir. 1972). The record indicates that Cornfeld was an incorporator of Grayhall; was listed as president on all telephone bills; used the residence as his principal residence from May, 1974 through January, 1975; was in control of the secretaries; and instructed his secretaries to place overseas calls for himself and his guests. Borland's testimony about her conversation with Cornfeld in mid-October, 1974 indicated that she discussed blue boxes with him and was told to prepare an "800" number list; Cornfeld kept after her to prepare the list. Carson's testimony indicated that there was a blue box at the residence at least as early as late 1971 and that she gave Cornfeld a clear warning about the danger of using the devices.