Opinion ID: 6360
Heading Depth: 2
Heading Rank: 3

Heading: Single Overarching Conspiracy

Text: 44 The final point of error asserted by the Government involves the court's dismissal of the indictment against Purdom and Schehin on the basis that a prior prosecution of these defendants for conspiracy to defraud the United States by impeding or obstructing the IRS's collection of 1984 income taxes (H-90-438), bars prosecution of these same defendants in the subsequent indictment for conspiracy in the case sub judice. (H-90-343-SS). The district court found a single overarching conspiracy encompassing both indictments, and accordingly found that the Double Jeopardy Clause had been violated. The court also found that the principle of collateral estoppel bars the subsequent prosecution of the defendants by the Government. 45 Prior to the indictment sub judice, Schehin and Purdom, along with other defendants, were charged with conspiracy and tax evasion (H-90-438). The conspiracy in H-90-438 involved seven individuals, including Schehin and Purdom, who devised a scheme to funnel money into Texas City Joint Venture (TCJV) and later called the distributions from that corporation loans to avoid paying taxes. The events and transactions which form the basis of the indictment occurred in 1984 and 1985. In short, the defendants contracted to purchase eighty-nine acres of land in Texas City in July, 1984, but in November, 1984, TCJV actually conducted the purchase. TCJV temporarily took title and flipped the property to another investment group, making a profit of $887,864.21. The money was placed in the TCJV checking account and was treated as a loan. No taxes were paid on this income. 46 In order to prove a violation of double jeopardy, the defendants have the burden of demonstrating that the two conspiracies charged are actually one overarching conspiracy. United States v. Henry, 661 F.2d 894 (5th Cir.1981), cert. denied, 455 U.S. 992, 102 S.Ct. 1619, 71 L.Ed.2d 853 (1982). Once the defendant makes out a prima facie double jeopardy claim, the burden shifts to the Government to prove that separate offenses are charged. United States v. Strickland, 591 F.2d 1112 (5th Cir.1979) cert. denied, 444 U.S. 963, 100 S.Ct. 449, 62 L.Ed.2d 375 (1979); United States v. Nichols, 741 F.2d 767 (5th Cir.1984), cert. denied, 469 U.S. 1214, 105 S.Ct. 1186, 84 L.Ed.2d 333 (1985). 47 To determine whether the Double Jeopardy Clause has been violated by a successive conspiracy prosecution, the district court must review the entire record in view of five factors: (1) time, (2) persons acting as co-conspirators, (3) the statutory offenses charged in the indictments, (4) the overt acts charged by the Government or any other description of the offense charged which indicates the nature and scope of the activity which the Government sought to punish in each case, and (5) places where the events alleged as part of the conspiracy took place. United States v. Marable, 578 F.2d 151 (5th Cir.1978). 48 In examining the five factors as applied to the facts of this case, it is evident that the two charged conspiracies do overlap in time. However, such a factor alone is not dispositive. The co-conspirators are not the same except for Purdom and Schehin. The activities of Purdom and Schehin in each of these conspiracies were similar in some respects involving the arrangement of funds as earnest money and the transfer of funds for purchases, but were different in object and scope. 49 The statutory offenses charged and the overt acts in the conspiracies negate a finding of a single overarching conspiracy. Factually, the objects of the two conspiracies are different and the manners in which the defendants sought to pursue their goals were separate and distinct. Additionally, there were completely separate transactions in each charged conspiracy which further support the conclusion that separate conspiracies, rather than one overarching conspiracy existed. 50 The examination of the conspiracies in light of the five factors does not support a finding of a single conspiracy, and the district court's finding of such, and dismissing the indictment on that basis, is in error. 51 Along with its finding of one overarching conspiracy encompassing the two indictments, the district court found that the jury's verdict acquitting Schehin and Purdom of fraudulently obtaining money and cheating on their taxes, which required a finding of guilt for merely counselling, inducing or procuring the commission of a crime, required the jury to necessarily find that Purdom and Schehin did not have the intent to defraud. Accordingly, the court found that the Government was collaterally estopped from relitigating the issue of intent in any subsequent prosecution. 52 The doctrine of collateral estoppel bars relitigation of issues of ultimate fact which have already been determined by a valid and final judgment. Ashe v. Swenson, 397 U.S. 436, 90 S.Ct. 1189, 25 L.Ed.2d 469 (1970). 53 This court did not find that there was one overarching conspiracy encompassing the two indictments, and accordingly must examine the issue of intent as to both indictments to determine whether a finding of no intent to defraud in one indictment necessarily requires a similar finding in the other indictment. 54 The defendants have failed to prove that the jury's acquittal was based upon a finding of a lack of intent to defraud, and not upon another element. The nature and object of the intent in each conspiracy are not the same, and such a conclusion cannot be presumed. Various inferences can be drawn from the jury's acquittal and the defendants are not able to eliminate all other possible findings to conclude that the jury's verdict was based upon the defendants' lack of intent. Accordingly, the court's dismissal of this indictment based upon collateral estoppel is in error. 55 The district court's order dismissing the indictment on all grounds is REVERSED AND REMANDED.