Opinion ID: 793659
Heading Depth: 3
Heading Rank: 2

Heading: The Jury Instructions on Counts 1-3

Text: 89 We review a claim of error in jury instructions de novo, reversing only where, viewing the charge as a whole, there was a prejudicial error. United States v. Aina-Marshall, 336 F.3d 167, 170 (2d Cir.2003) (citing United States v. Tropeano, 252 F.3d 653, 657-58 (2d Cir.2001)). In conducting this review, we examine the charges as a whole `to see if the entire charge delivered a correct interpretation of the law.' United States v. Bala, 236 F.3d 87, 94-95 (2d Cir.2000) (citation omitted); see also United States v. Carr, 424 F.3d 213, 218 (2d Cir.2005). An erroneous instruction, unless harmless, requires a new trial. Anderson v. Branen, 17 F.3d 552, 556 (2d Cir.1994). An error is harmless only if it is `clear beyond a reasonable doubt that a rational jury would have found the defendant guilty absent the error.' Carr, 424 F.3d at 218 (quoting Neder v. United States, 527 U.S. 1, 18, 119 S.Ct. 1827, 144 L.Ed.2d 35 (1999)). 90 While it may not always be erroneous to fail to give an instruction, a charge which is given must be correct. De novo review leads us to [find] error if we conclude that a charge either fails to adequately inform the jury of the law, or misleads the jury as to a correct legal standard. United States v. Doyle, 130 F.3d 523, 535 (2d Cir.1997) (citation omitted). Even so, a defendant may challenge the failure of the district court to provide a charge sought. Where a defendant claims that a district court erred for failing to give his requested instruction, we overturn the conviction only if 'that instruction is legally correct, represents a theory of defense with basis in the record that would lead to acquittal, and the theory is not effectively presented elsewhere in the charge.' Id. at 540 (citation omitted). 91
92 Quattrone claims that both charges incorrectly explained the nexus requirement in that each allowed the jury to convict without finding that Quattrone knew that the relevant subpoena or document request called for documents he sought to destroy. Quattrone also argues forcefully that the second portion of that section of the charge, presented in the alternative, is error. He argues that the instruction allowed the jury to find a nexus as a matter of law merely if it found that Quattrone  had reason to believe [the documents] were within the scope of the grand jury's investigation. 93 The paragraphs of the charge preceding the language in question accurately describe the nexus requirement. See Aguilar, 515 U.S. at 598-600, 115 S.Ct. 2357. However, the charge then incorrectly instructs the jury how to determine if the nexus requirement has been met. The first portion of the application section told the jury in effect that if it found that Quattrone merely called for the destruction of documents that were within the scope of those sought by the subpoenas, that finding alone satisfied the nexus element. Clearly, that instruction is not a correct formulation of the law. Under the charge, as given, any defendant who urges the destruction of documents might run afoul of section 1503 (or 1505) without any proof that the defendant knew the documents were subject to a subpoena (or document request). More is required; a defendant must know that his corrupt actions are likely to affect the . . . proceeding. Id. at 599, 115 S.Ct. 2357. 25 94 The government relies principally on the argument that given the proof at trial, it would have been impossible for the jury to conclude that Quattrone acted corruptly without also finding that he was aware that the documents affected by his Endorsement Email were covered by subpoena or document requests. Appellee Br. 64-65. The government's argument proceeds from the premise that the general nexus instructions were appropriate and that the district court correctly charged the jury with respect to corrupt intent. The government further contends that the general sections of each charge correctly explained the requirement that Quattrone had to know of the relevant proceedings. The government asserts that the jury could not have found Quattrone acted corruptly unless it concluded that Quattrone believed that his actions would obstruct justice by causing documents responsive to the subpoenas to be destroyed. Appellee Br. 65. 95 The government presents a forceful and thoughtful argument. However, that argument overlooks a glaring deficiency in the court's charge. When the court finally explained to the jury how to apply the law to the facts, it eviscerated the nexus requirement. It removed the defendant's specific knowledge of the investigatory proceedings and the subpoenas/document requests from the obstruction equation. It left a bare-bones strict liability crime. Given the court's instruction for the nexus determination, all that need be proven was that an investigation had called for certain documents and that the defendant had ordered the destruction of those documents. Although wrongful intent, corrupt intent, and the nexus requirement were correctly defined, the charge, as a whole, relieved the jury of having to make those findings in assessing criminal liability. 96 In order to uphold a conviction premised upon erroneous instructions, we must find it clear beyond a reasonable doubt that a rational jury would have found the defendant guilty absent the error. Neder, 527 U.S. at 18, 119 S.Ct. 1827. Neder instructs that reviewing courts 97 will often [have to] . . . conduct a thorough examination of the record. If, at the end of that examination, the court cannot conclude beyond a reasonable doubt that the jury verdict would have been the same absent the error — for example, where the defendant contested the omitted element and raised evidence sufficient to support a contrary finding — it should not find the error harmless. 98 Id. 99 Quattrone's theory of the case relied on several innocent explanations for his conduct and each has some basis in the record. Among these, Quattrone testified that he had no wrongful intent and that he was not aware that the investigations were focusing on IPO-allocation issues germane to Tech Group activity. J.A. 397-98 (Tr. 1787-90). While the government did offer proof that Quattrone knew that the grand jury and the SEC sought Tech IPO-allocation related documents, we cannot say that the proof convinces us beyond a reasonable doubt that the error was harmless. See Neder, 527 U.S. at 17, 119 S.Ct. 1827. That conclusion finds strong support in the deficiency of the court's charge. Under the charge, the jury was allowed to convict Quattrone of obstruction regardless of whether he intended such. Quattrone's defense of lack of knowledge of the specific focus of the investigation of Tech Group IPO activities was eliminated from the jury's consideration. Accordingly, the judgment of conviction with regard to Counts 1 and 2 must be vacated and the case remanded for retrial. 26 100
101 In his Reply Brief, filed after the Supreme Court's decision in Arthur Andersen, Quattrone correctly contends that the section 1512(b) instruction was erroneous because the district court understandably 28 told the jury that it need not find any nexus between Quattrone's actions and the pending investigations. Reply Br. 23. In its Supplemental Brief filed the day before oral argument, the government argues that the section 1512(b) instruction error was harmless beyond a reasonable doubt because the instruction referred specifically to the SEC and grand jury investigations and because the court provided a nexus charge for Counts 1 and 2. Gov. Supp. Br. 8-9. We disagree. 102 The government's proceedings argument falls short of establishing harmless error. The thrust of that argument is that because the district court effectively charged that the jury had to find that Quattrone acted with the knowingly . . . corrupt[] intent to cause the withholding of documents or testimony from the grand jury and SEC investigations or to cause the destruction of documents with intent to impair the object's . . . availability for use in the grand jury and SEC investigations, there was no reasonable probability Quattrone was wrongly convicted. Id. According to the government, the nexus was self evident under the facts of this case. Id. 103 The burden of establishing harmlessness is on the government. See, e.g., Gutierrez v. McGinnis, 389 F.3d 300, 303 (2d Cir.2004) (propounding upon harmless error rules in context of habeas petition). 29 Here, there was more than a failure to charge an essential element of the crime charged. The court informed the jury that a prerequisite to criminal liability — some nexus between the effort to tamper with or withhold documents pertaining to the relevant proceeding and awareness that such conduct was likely to affect the proceeding — was inapplicable. Given this error, the disputed evidence of Quattrone's awareness as to whether the investigations called for documents to be culled as a result of his Endorsement Email, and the inadequacy of the nexus charges on Counts 1 & 2, we cannot confidently say that if a rational jury was properly instructed, it is clear to us beyond a reasonable doubt that they would have convicted Quattrone on Count 3. Accordingly, the conviction on Count 3 must be vacated, and the case remanded to the district court for retrial.