Opinion ID: 772930
Heading Depth: 2
Heading Rank: 3

Heading: The Motions for Post-Judgment Relief.

Text: 25 Subsequent to the filing of those appeals, in April 1999, Nash, Carey's campaign manager and a key witness against Carey and Hamilton at the disciplinary hearing before the IRB, pled guilty to a further count of mail fraud and one count of making false statements in connection with a rebilling scheme. In this scheme Nash caused the IBT (instead of the Carey Campaign) to pay three invoices totaling $21,532.17 of Carey Campaign expenses. In his testimony at his plea hearing, Nash described the rebilling scheme as follows: 26 [T]he November Group provided services to both the [IBT] and the Ron Carey Campaign. As the campaign manager for [Carey], I often received invoices from the November Group for services provided to the Carey campaign. Because of the pressing concerns about financing for the Carey campaign in or about September of 1996, I told an employee of the November Group to rebill to the [IBT] certain November Group invoices that had been sent to the Carey campaign. 27 As a result of my directions to the November Group employee and later Martin Davis, president of the November Group, arranged for these three Carey campaign invoices, totaling approximately $21,532, to be rebilled to the [IBT]. 28 Testimony of Nash at April 20, 1999 hearing before Hon. Denise L. Cote, S.D.N.Y., in United States v. Jere Nash, 51 97 CR. 944, at p. 17. 29 Nash also admitted at the plea hearing that he had lied to the government about his knowledge of, and participation in, the rebilling scheme. Based on this new information about Nash, on April 6, 1999, Carey moved in the district court for an order directing the IRB to consider Carey's motion for relief from judgment under Rule 60(b) of the Federal Rules of Civil Procedure and under the rules of the Consent Decree. The district court issued an order referring Carey's and Hamilton's motions to the IRB noting that should the IRB, in its sole discretion, be of the opinion that it is desirable that the IRB review these [Rule] 60(b) motions it is free to do so. United States v. IBT, No. 88 Civ. 4486 (S.D.N.Y. May 5, 1999). 4 Because the new evidence concerning Nash's fraud arguably brought into question Nash's credibility, and because the IRB had relied on Nash's testimony in the earlier hearing, the IRB accepted the opportunity to review Hamilton's and Carey's applications for relief from judgment. 30 After briefing from the parties but without a hearing, the IRB issued a Supplemental Decision on July 19, 1999, denying both motions for post-judgment relief. The IRB determined that Nash did not commit perjury during the IRB hearing, let alone on a material issue that would likely change the outcome of the hearing. The IRB reasoned that, even absent Nash's testimony, there was ample evidence before the IRB to support its prior decision that Carey breached his fiduciary duties when he failed to inquire into the IBT political contributions that resulted in a benefit to his campaign and that Hamilton embezzled funds from the IBT to benefit Carey's campaign. Thus, the IRB found that Carey and Hamilton did not establish circumstances warranting relief from judgment. 31 The IRB requested that the district court enter an order affirming the Supplemental Decision. Carey and Hamilton submitted objections and asked the district court to reverse the Supplemental Decision, but the district court affirmed the decision of the IRB. Carey Post-Judgment Motion, 1999 WL 673340. Carey appeals.