Opinion ID: 396196
Heading Depth: 2
Heading Rank: 2

Heading: Improprieties in the Civil Proceedings

Text: 21 Appellants claim that the government may have used the civil proceedings to create incriminating evidence for use at the criminal trial. They note that the government's criminal investigation had begun by the time the early stages of the civil proceedings were underway and that several parties to the civil case were actively cooperating with the government throughout the receivership and attachment proceedings. Appellants assert that they are entitled at least to an evidentiary hearing to determine whether the government manipulated the civil case to create criminal charges and supporting evidence. To buttress this claim, Coven directs our attention to cases in which perjury indictments have been invalidated on the ground that the perjurious testimony was given before improperly convened grand juries or other incompetent tribunals. E. g., Brown v. United States, 245 F.2d 549 (8th Cir. 1957); United States v. Icardi, 140 F.Supp. 383 (D.D.C.1956). Coven also cites decisions which held that the government, purporting to be investigating civil matters, used improper investigatory techniques or civil discovery mechanisms to obtain otherwise unavailable evidence for use in criminal prosecutions. E. g., United States v. Parrott, 248 F.Supp. 196 (D.D.C.1965); United States v. Guerrina, 112 F.Supp. 126 (E.D.Pa.1953). These cases do not support appellants' position. 22 The civil proceedings conducted by receiver Glusband, as well as the preliminary proceedings conducted prior to his appointment, were begun for the legitimate purpose of recovering money owed to MHS and HP. It is clear that Judge Motley had jurisdiction over this matter. Therefore, the incompetent tribunal cases are inapposite. Moreover, we find no evidence that the government used civil discovery mechanisms or otherwise duped appellants into producing incriminating evidence by representing falsely that it was exploring a civil matter. Thus, Parrott and Guerrina do not help appellants. 5 23 The record in this case reveals that a legitimate civil action was brought by the receiver against a company controlled by Coven and O'Connor. In an attempt to refute legitimate claims, Coven and O'Connor presented fraudulent documents to the court and testified falsely at an attachment hearing. That the government, aware that Coven and O'Connor might attempt to defraud the civil tribunal, monitored the civil proceeding intending to prosecute any noted criminal violations does not transform the attachment proceeding into a sham conducted merely to create criminal charges.