Opinion ID: 323383
Heading Depth: 1
Heading Rank: 1

Heading: proof of the allen scheme and participation by the defendants.

Text: 4 Defendant Allen and one other were fugitives at the time of trial. Other defendants pleaded guilty early in the trial. The trial then proceeded on two counts charging Collins and one count charging each of the other three defendants now appealing. There was eye-witness testimony as to the association between the defendant Collins and Allen, but the Government relied wholly on circumstantial evidence to connect defendants Wilson, Evans and Patton with Allen. The latter three argue on appeal that the evidence was insufficient to prove that they had guilty knowledge concerning the checks and acted in concert as part of one common scheme. 5 Taking the view of the evidence most favorable to the Government, it is summarized as follows. 6 On various dates in October and December, 1971, American Oil Company issued at Chicago and processed for mailing a number of checks payable to retail dealers. The checks involved in this case were issued to dealers at points distant from Chicago and were deposited to various bank accounts in the Chicago area within a short period after the dates of issuance. Although the Government did not produce any of the payees to testify that the checks had not been received or that the indorsements were forged, the cashier of the American Oil Company testified that in each instance the Company had issued replacement checks and requested the First National Bank of Chicago, on which they were drawn, to stop payment on the original checks. Presumably personnel of the Company were satisfied that the checks had gone astray. 7 Ronald Hayes testified that in October, 1971, Allen told him that if Hayes would permit Allen to deposit a check in Hayes' bank account, they would split the proceeds. If asked about the check, Hayes was to say that he won it gambling. Hayes gave Allen a deposit slip for Hayes' account and Allen later told Hayes that Allen had deposited a check. These conversations occurred approximately October 26. 8 On October 27, First National Bank received by mail a deposit slip and check for deposit to the savings account of defendant Marie Evans. The check was American Oil Company Check #766789, dated October 13, 1971, in the amount of $3,982.77. It was payable to Peter Fuel Co., Oakland, Maryland and was indorsed 'Peter Fuel Corp.-- F. W. Peters Dist. Marie Evans.' Her balance before the deposit was $52.27. On November 1, she withdrew $3,900.00 in cash and the withdrawal slip bears the notation 'Refund Check.' On November 4, she withdrew $134.04 in cash, leaving a balance of $1.00, the minimum required to keep the account open. When questioned later by postal authorities, she said she deposited the check as a favor to a man she had recently met in the company of Johnnie Mae Wilson and who had said he won it gambling. She said she had given him the proceeds but had not seen him again. The mailing of the deposit to the bank was the mailing charged in Count 2 on which Mrs. Evans was found guilty. 9 On October 23, there was a deposit to the checking account of Johnnie Mae Wilson (not a defendant, presumably because the deposit was not made by mail). The deposit consisted of an American Oil Company Check #768874, dated October 21, 1971, in the amount of $6,199.40. It was payable to Laurie Kirby, Lake City, Florida and indorsed 'Laurie Kirby Johnnie M. Wilson.' 10 On October 29, the Standard Bank received by mail a deposit slip and check for deposit to the checking account of Albert Wilson, Jr. and Idell Wilson, the parents of defendant Maxine Wilson. The check was American Oil Company Check #768875, dated October 21, 1971, in the amount of $3,877.17. It was payable to Knoxoil Co., Knoxville, Tennessee and was indorsed 'Knoxoil Co. Frank Marcus Pres. Albert Wilson Jr.' On November 9, the Standard Bank processed a check on the Wilson account payable to cash in the amount of $3,800.00. When later questioned, defendant Wilson said she had deposited the check to her father's account as a favor to a man she had recently met and who said he had won it gambling. She had given him $3,800.00 of the proceeds and had not seen him again. The mailing of the deposit was the mailing charged in Count 7, on which Miss Wilson was found guilty. 11 Lee Davis (named in the indictment as a participant but not a defendant) testified that in late November, 1971, he met defendant Collins while looking for work. A few days later, Collins introduced Davis to Allen. Collins told Davis in Allen's presence that he could make some money by opening a bank account and turning over the deposit slips to Allen. On December 11, Davis opened a checking account under the name of Harry T. Bell at the Olympia State Bank and brought the slips and envelopes to Collins. Collins told Davis he would contact Allen and checks would be deposited in the bank account by mail. When notified that the checks had cleared, Davis was to arrange for people to withdraw from the account. 12 On December 30, 1971, olympia State Bank received by mail a deposit slip and check for deposit to the Bell account. The check was American Oil Company Check #782134, dated December 22, 1971, in the amount of $1,131.37. It was payable to R. L. Maxwell, Ruleville, Mississippi and was indorsed 'R. L. Maxwell Pay to the Order of Harry T. Bell Harry T. Bell.' Collins later instructed Davis to withdraw $1,000.00 and Davis wrote a check for $1,000.00 payable to his uncle who cashed it at the bank on January 8, 1972. Davis, kept $300.00 and gave the balance to Collins and Allen. The mailing of the deposit was the mailing charged in Count 8, on which Collins was found guilty. 13 On January 4, Olympia State Bank received by mail a deposit slip and check for deposit to the Bell account. The check was American Oil Company Check #782135, dated December 22, 1971, in the amount of $1,644.66. It was payable to R. B. McCorkle, Greenville, South Carolina and was indorsed 'R. B. McCorkle Pay to the Order of Harry T. Bell Harry T. Bell.' Shortly before, Davis had mailed a bank envelope at Collins' request. Later, Collins instructed Davis to withdraw the proceeds. On January 13, Davis cashed a Bell Check for $1,500.00, payable to cash, and took $1,100.00 to Collins and Allen. The mailing of the deposit was the mailing charged in Count 9, on which Collins was found guilty. 14 At the time Davis turned over the $1,100.00, Allen indicated he was mailing a $3,000.00 deposit to the Bell account. On January 14, Olympia State Bank received a deposit slip and check for deposit to the Bell account. The check was American Oil Company Check #782176, dated December 22, 1971, in the amount of $3,050.21. It was payable to Tom M. Phillips, Jasper, Georgia and was indorsed 'Tom M. Phillips, Harry T. Bell For Deposit Only.' Unlike the other checks involved, the American Oil Company stop payment order arrived in time to prevent the clearing of this check at First National Bank and it was returned to Olympia State Bank on January 19. Collins told Davis to have people make withdrawals of $1,000.00 each, but when Davis sent a friend to the Olympia State Bank on Jaruary 23 to cash a check, the friend was arrested. 15 On January 10, the North Shore National Bank received by mail an American Oil Company Check #782177, dated December 22, 1971, in the amount of $7,285.62. It was payable to Geo. W. Pickering Co., Salem, Massachusetts and was indorsed 'Geo. W. Pickering Pres Mary A. Patton savings Account #124772.' Because there was no deposit slip, a teller made one out for deposit to the savings account of defendant Mary Patton. The correct account number was 149118. The previous balance had been $327.94, $3.87 more than a loan outstanding against the account. On January 28, Mary Patton withdrew $5,000.00, $4,500.00 in cash and a $500.00 personal money order. She told the teller she was going to buy a car. On January 31, she withdrew $2,289.49, leaving a balance of $324.07, the exact amount of the loan held against the account. Also, on January 31, the $500.00 personal money order was cashed in the name of Cleveland Compton. The mailing of the deposit was the mailing charged in Count 11, on which Mrs. Patton was found guilty. 16 Preston Hawkins, Jr. testified that in late December, 1971, he won $1,000.00 from Allen gambling. Allen offered him an American Oil Company check but Hawkins refused it and Allen later paid him by other means. Hawkins saw that Allen had a number of American Oil Company checks drawn to different names and Allen said Hawkins could make money by cashing one of them. Hawkins refused. Hawkins also testified that defendant Evans was his neighbor and Cleveland Compton and Johnnie Mae Wilson, who lived together, also were neighbors and also visited back and forth. Hawkins had seen Allen talking with Compton and had seen Compton with several American oil Company checks in large amount. 17 It seems clear that Allen had a means for obtaining recently issued American Oil Company checks at times during October and December, 1971. Since they were to be mailed to dealers in distant locations, it could be expected that some period would elapse before the failure to receive the check could be reported to American Oil. In the interim, checks could be deposited in personal accounts of confederates, the time allowed for clearance would expire, and the money could be withdrawn. There is ample evidence that defendant Collins joined Allen (and Davis) in the enterprise. Indeed, Collins makes no claim on appeal that the evidence was insufficient. 18 We think there is sufficient circumstantial evidence to link the other defendants with Allen in knowing participation in his scheme. 19 Similarities between the Evans, Maxine Wilson and Mary Patton transactions, on the one hand, and the Collins transaction in which Allen's participation was directly shown, and the transactions which Allen proposed to Hayes and Hawkins are themselves persuasive that there was an Allen scheme in which each defendant participated. The checks involved are all of one maker and all came promptly into the possession of the persons depositing them. This fact with other circumstances indicates that all the checks came through Allen. Defendant Evans, Johnnie Mae Wilson and Cleveland Compton knew each other. Compton's contact with Allen and possession of American Oil Company checks were directly established. Defendant Evans' implausible exculpatory statement indicated that Johnnie Mae Wilson may have had a similar experience and was similar to the exculpatory statement given by Maxine Wilson and the explanation suggested by Allen to Hayes. The similar Johnnie Mae Wilson transaction involved a check of the same date and immediately prior in sequence to the check deposited by the defendant Maxine Wilson in her parents' account. The check deposited by defendant Mary Patton was issued the same date and immediately followed in sequence the check deposited by Allen in the Bell account on January 14. The $500.00 personal money order which represented part of the proceeds of the check deposited into the Patton account was cashed by Cleveland Compton. Although the failure of the payees to receive the checks and the forgery of their indorsements was not directly proved, the fact that these several checks payable to persons considerable distances from chicago were negotiated in the Chicago area within a short period after issuance, and the willingness of American Oil Company to issue replacement checks are a sufficient basis for the inference that they were stolen, 1 and, of course, recently stolen so as to permit the inference of guilty knowledge on the part of the defendants into whose accounts they went without plausible explanation. 2 20 We think these circumstances sufficiently establish the existence of an integral Allen scheme in which each defendant knowingly participated and either mailed or caused the mailing charged against him or her, whether each defendant was aware of the identity and participation of the other defendants or not. 21 Even where a number of defendants are charged with having conspired together, the Government need not prove that defendants knew each other's identity or had direct contact with each other, although they must know of each other's existence. United States v. Varelli, 407 F.2d 735, 742 (7th Cir. 1969); United States v. Nasse, 432 F.2d 1293, 1297 (7th Cir. 1970), cert. denied, 401 U.S. 938, 91 S.Ct. 927, 28 L.Ed.2d 217. 22 Here the indictment did not charge conspiracy. In each count, one defendant on trial is charged, together with Allen, with having deposited and caused to be deposited certain mail in execution of a described scheme. It is alleged that the defendants on trial, Allen, and others devised the scheme. The identity of the Allen scheme being sufficiently established, and also the knowing participation in it by the defendant in a particular count, we think there is no sound reason why that defendant need be proved to have known of the activities of other defendants other than Allen in order to prove that defendant's guilt on that count. 23 It is not essential that the indictment contain a separate count charging conspiracy in order to take advantage of the doctrines peculiar to conspiracy. United States v. Joyce, 499 F.2d 9, 16 (7th Cir. 1974). In a prosecution for mail fraud, once agreement to a scheme has been adequately established, any party to the agreement is responsible for the acts and declarations of another party in furtherance of the common scheme, whether or not he knew of or agreed to any specific mailing. United States v. Joyce,supra. 24