Opinion ID: 1162526
Heading Depth: 4
Heading Rank: 1

Heading: Concerns and Consequences of the Grand Jury Indictment

Text: In his pretrial pleadings, and on appeal, respondent argued that the counts in the indictment upon which he was tried and convicted in the second trial were the product of a biased grand jury which was prejudiced by perjurious testimony. [177] Specifically, respondent maintained that as a matter of fundamental fairness an accused has the basic right to an indictment returned by a legally constituted and unbiased grand jury. [178] See Costello v. United States, 350 U.S. 359, 76 S.Ct. 406, 100 L.Ed. 397 (1956). Respondent supported this contention by noting that only one of the three grand juries that had investigated him had returned an indictment, and that the indicting grand jury was the only one that had actually heard Conforte's testimony. [179] Further, as noted, respondent argued on appeal that not once during Conforte's grand jury appearance did the prosecution ever question Conforte respecting the specific dates upon which the bribe alleged in Count I took place. [180] Additionally, respondent pointed to the numerous instances detailed above, wherein testimony and evidence adduced at the first trial substantially contradicted and discredited Conforte's testimony. Respondent also argued in his appeal that the prosecution's three amended demands for notices of intention to rely on an alibi defense strongly implied that prior to the first trial federal agents and prosecutors knew, or at least had good cause to suspect, that Conforte's testimony was self-serving and perjurious. Thus, respondent maintained on appeal that his conviction should be reversed because the entire indictment was the product of a grand jury persuaded by perjurious testimony that Judge Claiborne was a corrupt judge. Respondent noted that the prosecution had conceded that the Conforte counts may have distracted the jury in the first trial. Thus, it was likely that the grand jury, in the absence of the evidence discrediting Conforte's scenario, may have been unfairly influenced against respondent by Conforte's testimony. In essence, respondent asserted that the indictment on the counts unrelated to Conforte's accusations was unfairly obtained and that those counts were no more than `the tail of the dog.' [181] See United States v. Hogan, 712 F.2d 757, 761 (2d Cir.1983) (dismissal of indictment is justified if necessary to eliminate prejudice to a defendant or, pursuant to court's supervisory power, to prevent prosecutorial impairment of grand jury's independent role); United States v. Samango, 607 F.2d 877, 882 (9th Cir.1979) ([a]lthough deliberate introduction of perjured testimony is perhaps the most flagrant example of misconduct, other prosecutorial behavior, even if unintentional, can also cause improper influence and usurpation of the grand jury's role.); United States v. Basurto, 497 F.2d 781, 785-87 (9th Cir.1974) (due process considerations prohibit the prosecution from obtaining an indictment based on material testimony known to be perjurious, and conviction was reversed where the prosecuting attorney failed to take appropriate action to cure the indictment after pretrial discovery of the perjury). See also United States v. Bracy, 566 F.2d 649, 655 (9th Cir.1977), cert. denied, 439 U.S. 818, 99 S.Ct. 79, 58 L.Ed.2d 109 (1978). On appeal, however, the specially designated appellate panel concluded: There is no evidence to support [Judge Claiborne's] assertions. The defendant has made no showing, beyond mere speculation, that Conforte gave perjured testimony before the grand jury or at the first trial. Nor has he made any showing that the Government had any reason to believe that Conforte's testimony was perjured. Speculation cannot justify this court's intervention into the grand jury's proceedings. See United States v. Chanen, 549 F.2d 1306, 1312 (9th Cir.1977) (discussing separation of powers reasons for court's refusal to intervene in grand jury proceedings), cert. denied, 434 U.S. 825, 98 S.Ct. 72, 54 L.Ed.2d 83. Under these circumstances, the Government's presentation of Conforte's testimony to the grand jury was not the sort of flagrant misconduct required to justify dismissal of the indictment under the Due Process Clause or our supervisory powers. United States v. Sears, Roebuck & Co., 719 F.2d 1386, 1391-92 (9th Cir.1983), cert. denied, 465 U.S. 1079, 104 S.Ct. 1441, 79 L.Ed.2d 762 (1984). See United States v. Claiborne, 765 F.2d at 792 (footnote omitted). Moreover, the appellate panel concluded that even if Conforte did perjure himself before the grand jury, his testimony was not material to the counts of the indictment unrelated to his allegations and upon which Judge Claiborne was convicted. Id. Accordingly, the panel held that the trial judge committed no abuse of discretion in refusing to dismiss defendant's indictment due to presentation of perjury before the grand jury. Id. (Citation omitted.) Although we cannot fault the legal analysis set forth in the appellate panel's opinion, we must respectfully disagree with the factual predicate upon which that analysis is based. As we have set forth in some detail above, the enormity of the concessions that the government extended to Conforte in exchange for his testimony, and the conclusive nature of the evidence adduced at the first trial contradicting and discrediting Conforte's allegations, persuade us that respondent's allegations of perjury amounted to much more than mere speculation. Additionally, we note that Conforte was not resentenced in accordance with the terms of his agreement with the government until after he had testified before the grand jury and an indictment had been obtained. In Franklin v. State, 94 Nev. 220, 225-226, 577 P.2d 860, 863 (1978), this court stated: By bargaining for specific testimony to implicate a defendant, and withholding the benefits of the bargain until after the witness has performed, the prosecution becomes committed to a theory quite possibly inconsistent with the truth and the [search] for truth. We deem this contrary to public policy, to due process, and to any sense of justice. (Footnote omitted.) Even though respondent was not convicted on the Conforte counts, and the agreement between Conforte and the prosecution expressly provided that its terms were not dependent upon any conviction resulting from Conforte's testimony, we are inclined to view the manner in which the indictment apparently was obtained in the instant case with similar concern. In our view, the facts surrounding the prosecution's presentation of Conforte's testimony to the grand jury implicates issues of public policy, due process and a sense of justice. Moreover, our review of the record indicates that Conforte's testimony could well have had a material effect, not only upon the indicting grand jury, but also upon the outcome of respondent's second trial. At the outset of the investigation, it appears that there was more than a mere casual nexus between the Conforte allegations and the income tax violations for which respondent was ultimately convicted. For example, in September of 1982, the Public Integrity Section of the Justice Department initially obtained access to respondent's 1978 and 1979 income tax returns through an ex parte order issued by Judge Hoffman. The order was issued upon the representations of Justice Department prosecutors that there was reasonable cause to believe based upon information believed to be reliable that respondent may have solicited and accepted bribes from Conforte. [182] Thus, it appears that the initial investigation into respondent's tax returns began as a direct result of Conforte's allegations. Additionally, it cannot be questioned that Conforte's allegations raised serious questions about respondent's honesty and integrity. As we have suggested, Conforte's aspersions on respondent's character were the subject of extensive media attention prior to and during the first trial. Thus, it is likely that the jury venire in the second trial, as well as the indicting grand jury, may well have been exposed to and influenced by Conforte's accusations. [183] Where, as here, the determination of guilt was predicated upon a finding that respondent willfully and knowingly signed materially false income tax returns, Conforte's allegations of corruption may well have had a material impact upon all the counts of the indictment returned by the grand jury, as well as the verdict of guilt rendered by a trial jury from a community exposed to extensive media coverage of these false accusations. At the very least, where respondent's credibility and his wrongful intent were crucial factors in the jury's deliberations, the impact of Conforte's accusations cannot be ignored. Lastly, and significantly, we again observe that by obtaining the release of Claiborne's tax returns for the purpose of investigating Conforte's bribery allegations, the prosecution arguably succeeded in bypassing what appears to be customary steps and routine procedures normally accorded taxpayers in any tax investigation. Specifically, respondent has contended: At any one of these steps, when some mistake or omission has been made by a taxpayer, he may correct the matter in conference or other proceedings. The customary steps include: (a) audit; (b) Intelligence Division investigation; (c) conference between taxpayer and Intelligence Division Supervisor; (d) forwarding the case to IRS Regional Counsel who will notify taxpayer he may ask for a conference, which if requested will not be denied; (e) transfer from IRS Regional Counsel to Justice Department; (f) pre-indictment conference. In the instant case, only the last step was taken, and that only shortly before indictment. [184] In this regard, evidence was presented at this court's hearing on November 24, 1987, indicating that respondent's tax returns for the years 1979 and 1980 reflected tax preparer errors which normally would not have been the basis of any prosecution. [185] In light of this evidence, we are of the opinion that Conforte's allegations unquestionably and materially impacted upon respondent's indictment, his trial and his conviction. More importantly, however, for our purposes, these circumstances cast a substantial shadow upon the fairness and impartiality of the grand jury deliberations that ultimately led to respondent's indictment and conviction. Accordingly, we are constrained to view with measured depreciation the continuing vitality of respondent's conviction as a reliable precursor to further discipline.