Opinion ID: 503414
Heading Depth: 3
Heading Rank: 1

Heading: The Trial Court Properly Admitted Evidence of the Script

Text: 54 Defendants Perholtz and Jackson contend that the admission into evidence of the script prepared for Dillon by Perholtz was error. The document, they argue, (1) does not qualify as a co-conspirator statement pursuant to Federal Rule of Evidence 801(d)(2)(E), 16 (2) amounts to proof of uncharged crimes of obstructing the grand jury and suborning perjury, and (3) is far more prejudicial than probative pursuant to Federal Rule of Evidence 403. At trial, only counsel for Root, a codefendant who subsequently was acquitted, objected to the introduction of the script under Rule 403. As no objection was made under Rule 801(d)(2)(E), and the trial court's inquiry differs significantly under these two rules, the plain-error standard applies to appellants' hearsay claims. 55 The Supreme Court has affirm[ed] the validity of the use of co-conspirator statements in trials conducted in federal courts. United States v. Inadi, 475 U.S. 387, 400, 106 S.Ct. 1121, 1129, 89 L.Ed.2d 390 (1986); see also Bourjaily v. United States, --- U.S. ----, 107 S.Ct. 2775, 2783, 97 L.Ed.2d 144 (1987) (emphasizing that the co-conspirator exception is steeped in our jurisprudence). Fed.R.Evid. 801(d)(2)(E) embodies the longstanding doctrine that when two or more individuals are acting in concert toward a common goal, the out-of-court statements of one are not hearsay and are admissible against the others, if made in furtherance of the common goal. United States v. Weisz, 718 F.2d 413, 433 (D.C.Cir.1983), cert. denied, 465 U.S. 1027, 1034, 104 S.Ct. 1285, 1305, 79 L.Ed.2d 688, 704 (1984). The statements of joint venturers may fall within the scope of the Rule, and there is no requirement that a conspiracy be formally charged in the indictment. Fed.R.Evid. 801 Senate Judiciary Committee notes; United States v. Jackson, 627 F.2d 1198, 1216 (D.C.Cir.1980). 56 In order to admit co-conspirator statements, the trial judge must determine that a conspiracy existed, that the co-conspirator and the defendant against whom the statement is offered were members of the conspiracy, and that the statements were made in furtherance of the conspiracy. United States v. Gantt, 617 F.2d 831, 844 (D.C.Cir.1980). The defendants do not specifically challenge the existence of the first two elements. Rather, they rely on Krulewitch v. United States, 336 U.S. 440, 69 S.Ct. 716, 93 L.Ed. 790 (1949), and its progeny, for the proposition that statements made during a subsequent period when the conspirators were engaged in nothing more than concealment of the criminal enterprise, are inadmissible as they are not in furtherance of the conspiracy. Dutton v. Evans, 400 U.S. 74, 81, 91 S.Ct. 210, 215, 27 L.Ed.2d 213 (1970) (plurality opinion) (citing Lutwak v. United States, 344 U.S. 604, 73 S.Ct. 481, 97 L.Ed. 593 (1953), and Krulewitch v. United States, 336 U.S. 440, 69 S.Ct. 716, 93 L.Ed. 790 (1949)). This, however, does not mean that acts of concealment can never have significance in furthering a criminal conspiracy. Grunewald v. United States, 353 U.S. 391, 405, 77 S.Ct. 963, 974, 1 L.Ed.2d 931 (1957). The Grunewald decision indicates that acts of concealment done in furtherance of the main criminal objectives of the conspiracy may be considered to be in furtherance of the conspiracy within the meaning of the co-conspirator hearsay exemption. Id. (emphasis in original). 57 On the facts presented, the trial judge was amply justified in concluding that the script was prepared while the conspiracy [was] still alleged to be continuing, and actively continuing. For example, the scheme relative to the STARS project was continuing, and the parties had not received payments from the PRISM and FIRM contracts. The main purpose of the scheme, to collect government funds from improperly awarded contracts and then distribute the proceeds among the conspirators, had not been fully achieved at the time of the creation of the script. In short, Perholtz's attempts to influence witnesses were not acts of concealment related only to a past objective. They were parts of continuing activity that was essential to and therefore in furtherance of the survival of an ongoing operation. United States v. Del Valle, 587 F.2d 699, 704 (5th Cir.), cert. denied, 442 U.S. 909, 99 S.Ct. 2822, 61 L.Ed.2d 274 (1979). As noted by this court in United States v. Haldeman, 559 F.2d 31 (D.C.Cir.1976) (en banc), cert. denied, 431 U.S. 933, 97 S.Ct. 2641, 53 L.Ed.2d 250 (1977), in explaining its holding that narratives of past events may constitute statements in furtherance of a conspiracy: 58 As the threads of the cover-up began to unravel, it became increasingly important to review what had taken place in order to identify and shore up the loose ends. It became critical for the conspirators to try to ensure that any story they wished to present would not ring false and that any action they were considering would not backfire, a strategy whose success required total familiarity with the facts. 59 Haldeman, 559 F.2d at 110-11 (footnote omitted). In this case, furthering the conspiracy depended upon Dillon's familiarity with the facts as explained by Perholtz in the script. For this additional reason, the script is not hearsay because it is not being offered in evidence to prove the truth of the matter[s] asserted. Fed.R.Evid. 801(c); Anderson v. United States, 417 U.S. 211, 219-20, 94 S.Ct. 2253, 2260, 41 L.Ed.2d 20 (1974). 60 In United States v. Bruner, 657 F.2d 1278 (D.C.Cir.1981), the court rejected a hearsay challenge to evidence introduced during a prosecution for conspiracy to obtain narcotics from physicians for illegal resale. The government introduced into evidence prescriptions containing patients' names and addresses, as well as the names and dosages of the substances to be dispensed. The court upheld admission of the prescriptions noting that the prosecutor did not attempt to prove that the information contained in the prescriptions was correct. The government merely wanted to show that these prescriptions were used to obtain narcotics. Bruner, 657 F.2d at 1284. Similarly, in this case, the government did not intend to show that any particular item contained in the script was true. To the contrary, the purpose was to show that the information in the document was false; to wit, that Dillon knew little about the services supposedly rendered pursuant to various agreements he had made. See Anderson, 417 U.S. at 220 & n. 9, 94 S.Ct. at 2260 & n. 9. 61 Having concluded that evidence of the script is not objectionable on hearsay grounds, the court must now consider whether it should have been excluded under Federal Rule of Evidence 404 17 and 403. 18 See, e.g., United States v. Foskey, 636 F.2d 517, 523 (D.C.Cir.1980). With respect to Rule 404, despite defense counsel's suggestions to the contrary, the evidence was not offered to prove that the defendants are persons of bad character and thus predisposed to commit the crime[s] for which [they are] on trial. Foskey, 636 F.2d at 523; see also Fed.R.Evid. 404 advisory committee notes (bad acts not admissible to prove character as a basis for suggesting the inference that conduct on a particular occasion was in conformity with it). Rule 404 countenances admission of 'bad acts' evidence that is relevant to any material issue in the case except to show the likelihood that, having once fallen into sin, a second slip is likely. United States v. Lavelle, 751 F.2d 1266, 1275 n. 11 (D.C.Cir.) (quoting United States v. James, 555 F.2d 992, 999 (D.C.Cir.1977)), cert. denied, 474 U.S. 817, 106 S.Ct. 62, 88 L.Ed.2d 51 (1985). The evidence is highly probative of efforts to further an ongoing scheme to defraud and demonstrate conscious awareness of guilt on the part of the defendants. See United States v. Hammond, 781 F.2d 1536, 1540 (11th Cir.1986); United States v. Bongard, 713 F.2d 419, 420-21 (8th Cir.1983); United States v. Turner, 485 F.2d 976, 985 (D.C.Cir.1973) (remarks of Leventhal, J.); United States v. Cirillo, 468 F.2d 1233, 1240 (2d Cir.1972), cert. denied, 410 U.S. 989, 93 S.Ct. 1501, 36 L.Ed.2d 188 (1973). 62 With respect to Federal Rule of Evidence 403, it is true that, although evidence is relevant, it may still be excluded under the rule if its probative value is substantially outweighed by unfair prejudice. United States v. Payne, 805 F.2d 1062, 1066 (D.C.Cir.1986); United States v. Hernandez, 780 F.2d 113, 118 (D.C.Cir.1986). The balancing of probative value versus prejudicial effect required by Rule 403 is, of course, committed to the discretion of the trial judge. Carter v. District of Columbia, 795 F.2d 116, 126 (D.C.Cir.1986); see also United States v. Wright, 489 F.2d 1181, 1186 (D.C.Cir.1973) (trial court's discretion not to be disturbed save for grave abuse). It has been stated that, at least in close cases, under Rule 403 the balance is tilted toward admission of evidence. Hernandez, 780 F.2d at 118 (citing United States v. Moore, 732 F.2d 983, 989 (D.C.Cir.1984)). 63 The creation of the script occurred as the scheme to defraud was continuing. See United States v. Sutton, 801 F.2d 1346, 1362 (D.C.Cir.1986); Lavelle, 751 F.2d at 1277; cf. Foskey, 636 F.2d at 525 (bad act occurred over two years prior to offense charged). This type of evidence did not require the jury to pursue a complex chain of inferences arising from circumstantial evidence. Moore, 732 F.2d at 989. Since Dillon's testimony regarding the creation of the script was clearly a question for the jury and not this court, the jury could properly infer that the defendants were conscious of their roles in the scheme. Moore, 732 F.2d at 989 n. 45; Lavelle, 751 F.2d at 1277 n. 14. Furthermore, the script evidence is closely tied to the crimes charged and only indirectly suggests distinct offenses. Payne, 805 F.2d at 1066 n. 5; United States v. McDowell, 762 F.2d 1072, 1075 n. 3 (D.C.Cir.1985). 64 It should also be noted that this case does not involve past acts having little temporal or logical connection to the crimes at issue. Cf. Hernandez, 780 F.2d at 118 (defendant's indecipherable shouting at an earlier fight inadmissible as evidence of motive to possess unregistered gun); Foskey, 636 F.2d at 524 (defendant's bad act consisted of accompanying an individual carrying concealed narcotics). The prosecutor did not infect the case with innuendo tainting the character of the defendants, cf. United States v. Shelton, 628 F.2d 54, 58 (D.C.Cir.1980); Frank v. United States, 262 F.2d 695, 696-97 (D.C.Cir.1958), and did not present copious details of sordid past acts. Cf. United States v. James, 555 F.2d 992, 1000 (D.C.Cir.1977). Nor is it a case where evidence is presented in such a manner as to highlight its inflammatory qualities and de-emphasize its potentially probative aspects. Cf. Carter, 795 F.2d at 128 (long excerpts of newspaper articles containing inflammatory matter read into record). Indeed, the trial judge, in an effort to minimize any prejudicial effect, ordered counsel to refrain from making any reference to the subornation of perjury or to the obstruction of justice. He also charged the jurors that evidence of fabrication does not create an impression of guilt, and, although they might consider it as indicative of consciousness of guilt, they were not required to do so. 65 In sum, the evidence tended to reveal Perholtz's management role in the conspiracy--to show his particular relationship to the conspiracy and to the other conspirators. Bruner, 657 F.2d at 1293. While the evidence was damning ... its introduction was [not] error. Cirillo, 468 F.2d at 1240. Hence, there is no ground upon which to upset the ruling of the trial court on the admissibility of the script.