Opinion ID: 726055
Heading Depth: 3
Heading Rank: 1

Heading: Counts 4-29: Substantive Mail Fraud Convictions for Sales to Coffaro, Wallace and Groeger

Text: 43 Each of the defendants was convicted of some but not all of the mail fraud counts pertaining to the sale of art to Coffaro, Wallace and Groeger. We conclude that the evidence suffices to support these convictions. 44 An individual may be convicted under the federal mail fraud statute for devis[ing] or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises. 18 U.S.C. § 1341. As relevant to this case, the elements of a mail fraud violation are: (1) a scheme to defraud (2) money or property, and (3) the use of the mails to further the scheme. United States v. Wallach, 935 F.2d 445, 461 (2d Cir.1991); see United States v. Altman, 48 F.3d 96, 101 (2d Cir.1995). 45 The Amiels do not contest that the evidence sufficed to prove the second or third prong of the mail fraud statute--they used the mails in furtherance of property sales. They do, however, contest the sufficiency of the evidence pertaining to the first prong--the existence of a scheme to defraud. 46 To establish the existence of a scheme to defraud, the government must prove that the defendants possessed fraudulent intent. United States v. Schwartz, 924 F.2d 410, 420 (2d Cir.1991). The jury could convict the Amiels on the charges pertaining to the dealers, at least on an aiding and abetting theory, which was charged in the indictment, if it concluded that the Amiels acted with knowledge that their products would be sold through the misrepresentations of the dealers. U.S. v. Zambrano, 776 F.2d 1091, 1097 (2d Cir.1985). 4 The evidence summarized above supports this conclusion, because it supports two inferences about each defendants' state of mind: she knew the works were fake, and she knew the dealers would pass them off as genuine. 47 We readily reach this conclusion as to Kathryn and Sarina Amiel. The jury was presented with extensive evidence that Sarina was forging artists' signatures with her mother Kathryn's knowledge and encouragement. On two separate occasions Coffaro complained to Kathryn about the poor quality of signatures, and she replied that the signatures would be better when Sarina returned from college. Wallace returned two unsigned pieces to Sarina, only to retrieve the same pieces two days later bearing signatures. Hilda warned Susan St. Marie not to attract attention to the business because of what is going on in the back with my granddaughter. Kniebihler told Kathryn that all of the pieces created in Secaucus were fake, but later discovered that the Amiels were selling these pieces to Flemming Hall as genuine limited-editions. 48 Likewise, the evidence more than suffices to support the conclusion that Kathryn and Sarina knew that their dealers were defrauding the public. Kniebihler warned Kathryn that Coffaro was a crook who specialized in fake prints. Coffaro complained at length to all three defendants about the poor quality of the forged signatures--this supports an inference that the defendants knew that he was representing the works as genuine. Groeger told all three defendants that he was having trouble with California galleries--they were becoming suspicious about the authenticity of prints originating from the Amiels. And, in a meeting with all three defendants, Wallace insisted on receiving certificates of authenticity with his purchases, which had to indicate that he was planning on representing the works as genuine. Finally, the quote Sarina posted on the wall of the Island Park facility implies that she, and anyone who saw it, at least suspected that the dealers were making fraudulent claims to the public. 5 49 Although the evidence presented against Joanne was weaker than against Kathryn and Sarina, it was sufficient to support her conviction on the counts pertaining to Coffaro and Groeger. 6 Joanne was present at the meeting in which Coffaro complained to the Amiels that the quality of their artwork was deteriorating, and in which Kathryn promised him certificates of authenticity for all of the works he purchased. Having heard that she was privy to Coffaro's complaints and demands, the jury could have inferred Joanne's guilty knowledge. This inference is also supported by Groeger's testimony. Joanne attended a meeting in which Groeger told the defendants that his California galleries were becoming suspicious of the number of Miro prints placed on the market through the Amiels. The Amiels assured him that they would protect him on the California market and avoid placing too many prints on the west coast. Additionally, when Upstairs Gallery was raided, Joanne told Groeger that she would help him obtain some documentation to back up artwork that proved to be fraudulent. These facts support an inference of guilty knowledge. 50