Opinion ID: 793659
Heading Depth: 2
Heading Rank: 5

Heading: Quattrone's Challenges to Evidence Excluded

Text: 129 Quattrone next challenges the district court's exclusion of evidence relating to events occurring after the Endorsement Email, internal discussions among LCD attorneys about whether to issue broad document-preservation notices, and emails by Quattrone tending to establish a practice of responding to subordinate's emails by endorsing their actions.
130 Quattrone argues that because the district court allowed the government to introduce his false exculpatory statement of January 2003 to Lynch, Quattrone should have been allowed to introduce evidence of events occurring during the two-year interim between December 2000 and January 2003 that explain how Quattrone could be mistaken when he told Lynch in 2003 that he was not aware of the grand jury investigation in late 2000. Specifically, Quattrone sought to offer evidence that he was not reprimanded by his employer, had been promoted to its executive board, had not been called as a witness or interviewed in connection with the grand jury or SEC investigations, and that the investigations ended without criminal charges being filed against CSFB or its employees. See Appellant Br. 85-90; Reply Br. 43. The government counters that Quattrone succeeded in introducing evidence supporting his contention that he was mistaken and asserts that the remaining evidence was properly excluded under Rule 403. 34 Appellee Br. 103. Quattrone points out that the district court excluded the evidence only on relevance grounds. Reply Br. 43 (citing J.A. 142, 430-31, 499 (Tr. 783-85, 1918-24, 2191-92)). 131 Although appellate review of evidentiary determinations is extremely deferential, see e.g., United States v. Malpeso, 115 F.3d 155, 162 (2d Cir.1997), the district court incorrectly concluded that the evidence proffered by Quattrone was not relevant to a fact of consequence in the case. The threshold relevance inquiry requires only that evidence have some tendency to make a fact of consequence more or less probable than it would be without the evidence. FED. R. EVID. 401. In determining the relevance of circumstantial evidence, it will often be useful to consider the chain of inferences arising from proffered evidence. Under this test, so long as a chain of inferences leads the trier of fact to conclude that the proffered submission affects the mix of material information, the evidence cannot be excluded at the threshold relevance inquiry. See United States v. Ravich, 421 F.2d 1196, 1204 n. 10 (2d Cir.1970) (Friendly, J.) (rejecting common law inference upon inference test and noting that drawn out inferential chains do not defeat relevance but subject challenged evidence to Rule 403 considerations). 132 Here, we conclude that the evidence did have a tendency to make more or less probable the fact that Quattrone was simply mistaken when he misspoke to Lynch. The government's theory of the misstatement was that it was an intentionally false exculpatory statement and was therefore relevant to show Quattrone's guilt. The evidence Quattrone offered related to the question of whether it would be reasonable for Quattrone to forget about the investigation over the two-plus years after December 2000. The inferences to be drawn from the evidence would run as follows: after the Endorsement Email, Quattrone received no indication that the investigations were important; he could have concluded that the investigations were unimportant; unimportant events are sometimes forgotten; Quattrone forgot about the investigations; Quattrone therefore had an innocent reason for the misrepresentation; when Quattrone made the misrepresentation, he was merely mistaken, not lying. Of course, this line of reasoning is attenuated and open to attack due to reliance on inductive reasoning. See MUELLER & KIRKPATRICK, supra, § 83, at 409-411 & nn. 47-48. But that is a question generally to be addressed by the Rule 403 balancing test. And while that balancing test need not always be explicitly set out by the trial judge, the record makes clear that the trial judge excluded the evidence solely at the threshold relevance determination. See J.A. 141-42; 430-31; 499 (Tr. 783-85; 1918-24; 2191-92). Accordingly, it was error to exclude this evidence as irrelevant. 133 Although the error may have been harmless — Quattrone was able to introduce his testimony and corroborative testimony from Dollard that Quattrone innocently forgot about the investigations because he was ill and had been wrongly informed by Dollard — the matter may once again be before the district court on retrial. 35 Accordingly, there is no need for us to adjudicate the question. We note the court's error here only to caution the district court to consider the prejudicial offset of this evidence against its probative value before making a decision to accept or reject the evidence. 134
135 Quattrone next argues that he should have been permitted to introduce evidence regarding LCD's internal discussions concerning distribution of broad document preservation notices. 36 Quattrone presses that this evidence should have been admitted on four grounds. First, he contends that it bore on the reasonableness of his actions, i.e., in the absence of document preservation notices, it was proper to encourage employees to follow normal document destruction practices. Appellant Br. 92-93. Second, Quattrone argues that the excluded evidence would have allowed him to contest testimony of Brodsky and McCarthy 37 that suggested (in Quattrone's view) that Quattrone should have known that the Endorsement Email was improper. Appellant Br. 93-94 (citing J.A. 216, 255-56; 322-23). Third, he argues that the evidence bore on the credibility of Quattrone's defense because [i]f the lawyers with perfect knowledge of the subpoenas had concluded that preservation notices should be sent on only two IPOs, then why should Quattrone have known that documents on hundreds of IPOs had to be preserved? Appellant Br. 94. Finally, Quattrone claims that the excluded evidence would have allowed him to argue more effectively that he should not be held personally accountable for CSFB's failure to ensure that documents were preserved as required by the government's subpoenas. Appellant Br. 94-95. 136 The government responds that communications among LCD lawyers have no bearing on Quattrone's Endorsement Email when Quattrone knew that the grand jury and SEC investigations called for documents related to the allocation process. Appellee Br. 106. Second, the government argues that McCarthy and Brodsky were cross-examined extensively on the document-preservation policy and the failure to send document preservation notices regarding broad categories of documents. Appellee Br. 106 (citing A 213-14; A 281-82, 287 (Tr. 1063-66; 1329-32; 1352-55)). Third, the government presses that Quattrone's proffered evidence was completely irrelevant because uncommunicated, internal deliberations not involving Quattrone have no bearing on Quattrone's actions. Appellee Br. 107. Finally, the government argues that Quattrone's last contention highlights his attempt to blame others for his conduct, while the government's case was based upon Quattrone's actual knowledge of the subpoenas passed to him by others. Appellee Br. 107. 137 The district court did not abuse its discretion in excluding this evidence. Quattrone seeks in essence to absolve himself from liability arising from the Endorsement Email because CSFB attorneys did not stay CSFB's document-retention/destruction policy. None of the LCD discussions with regard to document preservation notices were ever communicated to Quattrone. The case was tried on the theory that when Quattrone became aware of the investigations he wrongfully intended to obstruct justice and to engage in witness tampering. The fact that others, notably CSFB's in-house counsel, did not issue document-preservation notices could not absolve Quattrone from criminal liability. The asserted misfeasance of CSFB's attorneys is not a defense to criminal liability for Quattrone's knowing attempt to thwart two investigations. 138 We also reject the contention that the internal deliberations of LCD lawyers were relevant to combat unfair impressions left with the jury by Brodsky and McCarthy that someone in Quattrone's position, who claimed that he thought the investigations related to another business area of the bank, should have realized that the investigations called for Tech Group documents. Appellant Br. 94. The record belies Quattrone's assertion. McCarthy testified, as did Quattrone, that CSFB bankers would not have a duty to preserve documents (absent a preservation notice) if they were unaware that litigation or a subpoena called for specific documents. See J.A. 213 (Tr. 1065). Additionally, Brodsky testified that there was no broad document-retention notice sent out until December 7, 2000, and that Quattrone had not seen the relevant subpoenas. J.A. 287 (Tr. 1352-55). Brodsky also testified that he believed that Quattrone had not done anything wrong when he sent the Endorsement Email. J.A. 291 (Tr. 1371). 139 Lastly, the evidence of alleged misfeasance by CSFB's LCD attorneys, if any, would have no bearing on the question of whether Quattrone, who was aware of the investigations, acted with innocent or with wrongful intent. The district court was confronted with the rare instance where the logical relationship between the evidence to be offered — LCD's internal, uncommunicated discussions — and the conclusion to be reached — Quattrone's innocent mens rea — would be stretched to the point where a trial court could conclude within the exercise of its discretion that the evidence did not have any tendency to make more or less probable the fact of consequence. See MUELLER & KIRKPATRICK, supra, § 83, at 410-11. Accordingly, we see no error in the exclusion of the internal deliberation of LCD lawyers.
140 Quattrone also questions the exclusion of what he terms evidence of similar reinforcing emails to establish that Quattrone had a practice of responding to (or forwarding on) emails from subordinates in an attempt to achieve compliance with CSFB directives. Appellant Br. 95-97; Reply Br. 48-49. Quattrone argues that the evidence 38 should have been admitted pursuant to Federal Rule of Evidence 404(b) as proof of prior acts in order to establish Quattrone's innocent intent. Specifically, Quattrone contends that his prior acts were relevant to establish that when he sent the Endorsement Email roughly twenty-four hours after beginning to draft his response, he did not act with deliberate, corrupt intent. Instead, he merely reinforced the message of a fellow employee: follow the document retention policy. The district court excluded the evidence on the ground that the emails were insufficient to establish within the meaning of Federal Rule of Evidence 406 a habit of reflexively responding to subordinates' email suggestions. 141 Rule 404(b) deals with a specialized but important application of the general rule excluding circumstantial use of character evidence. Consistently with that rule, [ i.e. Rule 404(a),] evidence of other crimes, wrongs, or acts is not admissible to prove character as a basis for suggesting the inference that conduct on a particular occasion was in conformity with it [in essence propensity reasoning]. However, the evidence may be offered for another purpose, such as proof of motive, [intent,] opportunity, and so on, which does not fall within the prohibition. FED. R. EVID 404, Adv. Cmte Notes, 1972 Proposed Rules, Note to Subd. (b). While prosecutors generally employ prior bad acts evidence, sometimes defense counsel seize upon the standard to admit useful prior act evidence. See, e.g., id., Adv. Cmte. Notes, 1991 Amendments. To be admissible under Rule 404(b) the evidence must serve a non-propensity purpose. See, e.g., United States v. Aboumoussallem, 726 F.2d 906, 911-12 (2d Cir. 1984) (evidence that co-conspirators had duped other couriers into carrying drugs admissible to prove defendant was duped where charge was knowingly importing drugs, subject to Rule 403 balancing). 142 We conclude that because the similar reinforcing emails were not competent Rule 404(b) evidence, the trial court did not err in excluding them. 39 Quattrone seeks to justify the emails on the basis that they establish his intent and disavows that the evidence is relevant only for propensity purposes. But propensity would be the only basis for justifying the evidence. The emails relate to Quattrone's intent only if one could infer that Quattrone acted in conformity with past patterns of shooting off quick emails to subordinates. The inference, of course, is that Quattrone must have done so for innocent purposes. This is a clear example of the propensity reasoning that Rule 404(a) prevents. Dubbing the emails circumstantial evidence of Quattrone's intent merely obfuscates the analysis — they are relevant only if an inference is drawn that Quattrone acted in conformity with a character trait or habit. 40 VI. Remand to Another Judge 143 Quattrone's final request is that any further proceedings below be reassigned to a different judge. Quattrone contends that the trial judge is no longer impartial with regard to his case and that numerous [media] observers have already questioned the impartiality of the district court. Appellant Br. 101 (footnote omitted). The government counters that Quattrone's claims are insufficient to meet the standard necessitating remand to another judge and argues forcefully that Quattrone's complaints are based upon a media campaign orchestrated to present the trial judge in a negative light. Appellee Br. 122. Furthermore, the government argues that certain remarks by the court that could be considered intemperate are insufficient grounds for reassignment and notes that this is Quattrone's third attempt to obtain a new trial judge. Appellee Br. 122-23. While we question the significance of the numerous observers['] accounts cited by Quattrone's counsel, 41 we ultimately conclude that on remand the interests of all involved would best be served by another judge. We further note that our action does not imply any personal criticism of the trial . . . judge. United States v. Robin, 553 F.2d 8, 10 (2d Cir.1977) (per curiam) (denial of rehearing en banc). 144 In order [t]o reassign a case on remand, we [must] find that `the facts might reasonably cause an objective observer to question [the judge's] impartiality. U.S. v. Londono, 100 F.3d 236, 242 (2d Cir.1996) (quoting Pescatore v. Pan Am. World Airways, Inc., 97 F.3d 1, 21 (2d Cir.1996)) (alteration in original). Yet we may also remand to another judge absent such proof of partiality where reassignment is advisable to preserve the appearance of justice. Robin, 553 F.2d at 10 (discussing standard as factor but characterized as separate ground for remand in Londono ). 145 This case has already endured two full trials before the same dedicated jurist. In our view, the contentions of the parties in this difficult and complex matter have taken a toll on all involved. We conclude that the better decision is that the case be reassigned to another judge upon remand. While we have considered the government's arguments and do not find evidence that the trial judge made any inappropriate statements leading us to seriously doubt his impartiality, portions of the transcript raise the concern that certain comments could be viewed as rising beyond mere impatience or annoyance. Ultimately we believe that the interest and appearance of justice are better served by reassignment.