Opinion ID: 165851
Heading Depth: 2
Heading Rank: 1

Heading: Conspiracy Between Naylor and Dowlin

Text: 27 A conspiracy under 18 U.S.C. § 371 requires the government to prove: (1) the existence of an agreement; (2) to break the law; (3) an overt act; (4) in furtherance of the conspiracy's object; and (5) that the two willfully entered into the conspiracy. 4 See United States v. Hanson, 41 F.3d 580, 582 (10th Cir.1994). While all five of these elements must be present, the essence of any conspiracy is the agreement or confederation to commit a crime. Id. (citations and quotations omitted). Further, [t]he nature of a conspiracy, with its attendant aspects of secrecy, often requires that elements of the crime be established by circumstantial evidence. United States v. Nall, 949 F.2d 301, 305 (10th Cir.1991). 28 An agreement may be inferred from a unity of purpose or common design and understanding among conspirators to accomplish the objects of the conspiracy. United States v. Kendall, 766 F.2d 1426, 1431 (10th Cir.1985). Similarly, an agreement may be inferred from the joint appearance of defendants at transactions and negotiations furthering the conspiracy, the relationship among co-defendants, and their mutual representations to third parties. See United States v. Evans, 970 F.2d 663, 669 (10th Cir.1992); United States v. Grimes, 967 F.2d 1468, 1471-72 (10th Cir.1992). 29 Both defendants argue the government introduced insufficient evidence to prove that they entered into an agreement to break the law or that Dowlin did so knowingly or willfully. Although both concede Dowlin willingly participated in Naylor's businesses, their argument is that Dowlin did not know Naylor's activities were fraudulent. Therefore, our analysis of the conspiracy focuses on whether the government introduced sufficient evidence for a rational jury to find that Dowlin knew of the illegality of Naylor's schemes and agreed to participate in them. We find there was sufficient evidence. 30 As an initial matter, Dowlin was not an uninformed office assistant. She substantially assisted Naylor in the day-to-day operations of the companies Naylor had set up to promote the investments. For example, she was Secretary-Treasurer of their company, Dos Brisas, and corporate documents authorized her to trade on the gold certificates. She assisted Naylor in preparing paperwork supplied to investors and others, and had access to his written correspondence and faxes, including some that demonstrated the programs were not likely to ever produce revenue, even if they were real. Dowlin also accessed investor money, which she was responsible for during Naylor's absences. She traveled with Naylor to London on one business trip. 31 In addition to her involvement with the operational side of Naylor's businesses, Dowlin appeared at meetings with investors. Her representations at these meetings played into the charitable instincts of investors and reinforced the credibility of Naylor's statements about benefitting Philippine and Wyoming humanitarian projects. Dowlin also falsely represented to some investors that she was a certified public accountant when she was not; Naylor represented to other investors that Dowlin had worked as an accountant at KPMG. In short, the evidence supports a conclusion that Dowlin was aware of the dubious prospects of Naylor's ventures, but did not reveal to investors what she knew about the schemes at a time she was benefitting from them. 32 Further, Dowlin knew that the funding she and Naylor received was not being spent on investment projects, but for personal gain. For instance, following a meeting with investors on October 15, 1998, Dowlin and Naylor received a $400,000 investment in exchange for assurances of large, short-term returns. That same day, the defendants used the funds to obtain a cashier's check to purchase a 1999 Lincoln Navigator in Dowlin's name, and a short time later, bought a home. Dowlin also deposited investor money into her own bank accounts and used the money for personal or family expenses, such as providing cash to her children, paying her son's mortgage, and paying a grandchild's private school tuition. 33 Based on these facts, a rational jury could have found beyond a reasonable doubt that Dowlin knew Naylor's activities were fraudulent and that she willingly participated in his schemes. Accordingly, the evidence was sufficient to support the conspiracy convictions. 34