Opinion ID: 497966
Heading Depth: 2
Heading Rank: 2

Heading: Fraudulent Transactions--One Play Act or Three?

Text: 10 In Richerson's indictment and at his trial the Government characterized the Pool Offshore fraud as one conspiracy. On appeal, Richerson contends that the evidence actually proved that he was involved in three separate conspiracies, if any. Richerson argues that the first of these three separate conspiracies was limited to obtaining personal assets through Henry Billiot, Sr., Henry Billiot, Jr., Ebdon Rodriguez, Ace Electric, Universal Electric, and Primary Electric. Richerson contends that the second, separate conspiracy was limited to the loan he received from Louisiana Offshore Air-conditioning & Electrical Services, Inc. (LOAES), through Leonard Cable. Richerson asserts that a third, separate conspiracy was limited to the stock that he acquired in Baytron, Inc., through James Edwards. 11 1. Personal Assets Obtained Through Billiot, Rodriguez, Ace, Universal, and Primary. According to Richerson the first conspiracy was limited to obtaining kickbacks of personal assets through Billiot, Ebdon Rodriguez, Ace, Universal Electric Company, Billiot's son, Henry Billiot, Jr., and Primary Electric Service and Supply Company. 12 At trial, Billiot testified that Richerson asked him for various things and that he obtained these things through electrical vendors. The vendors then recovered their costs by submitting false or inflated invoices to Pool Offshore. For example, Billiot had a vendor deliver an ice maker to Richerson and submit an inflated invoice to Pool to cover the cost. At trial Richerson contended that Billiot was simply an extravagant, eccentric, wealthy genius who, liking him, gave him expensive gifts. The jury, by convicting Richerson on three counts, apparently rejected this argument. 13 Billiot testified that Richerson asked him to get a Jeep that Richerson had seen while visiting Ace. To get this Jeep, 5 Billiot paid an Ace employee approximately $15,000.00 with a check drawn on Universal Electric Company (Universal). 6 Ace repaid Universal for this $15,000.00. Ace then submitted false invoices, with false charges to a particular drilling rig, to Pool Offshore to recover this $15,000.00. Billiot arranged for approval of the false invoices by the drilling superintendent of the rig charged. Billiot approved the false Ace invoices himself. Finally Billiot had Richerson approve the false Ace invoices. 7 Pool Offshore then paid the false Ace invoices. 14 Billiot arranged the purchase of a new Chevrolet Corvette that Richerson asked for. Billiot told his son, Henry Billiot, Jr., to submit a false Primary Electric Service and Supply Company (Primary Electric) 8 invoice to Pool Offshore for $19,110.00 to cover the cost of the Corvette. Billiot testified that Richerson approved this invoice after being told that it would cover the Corvette. Pool Offshore then paid this Primary Electric invoice and Primary Electric wrote a check to Universal for $18,459.72. The next day Billiot signed a Universal check payable to a Chevrolet dealer for $18,459.72. With this Universal check, Billiot, Jr. purchased the Corvette, signing the registration papers and bill of sale in Richerson's name. 9 15 Richerson, Billiot, Rodriguez and Billiot, Jr. had two meetings to discuss cover up plans after Pool Offshore and its parent, Enserch Corporation began to investigate Billiot's electrical equipment purchases. At one meeting Rodriguez testified that Richerson said that he would give money out of his freezer to pay for Henry for the Corvette that night. At the second meeting Richerson suggested paying someone to stop the investigation. 16 2. Loan Obtained Through LOAES and Cable. Richerson states that the second conspiracy involved Leonard Cable and his company, Louisiana Offshore Air Conditioning & Electrical Services, Inc. (LOAES). LOAES sold equipment to Pool Offshore. Between 1979 and 1985 LOAES received from Pool Offshore a total of $2,499,000.00, representing more than 80% of LOAES's gross revenues for the period. Leonard Cable loaned 10 Richerson $10,000.00 in cash. Cable made the loan as a favor to Pool Offshore, and as a favor to Richerson himself so that Pool Offshore would continue to buy from LOAES. 17 Cable attempted to recoup this $10,000.00 through a false invoice submitted to Pool Offshore for Cat-Eye explosion proof lights for rig 454. Billiot called Cable and said that he could not justify those lights on that rig. Billiot instructed Cable to void the invoice and to call someone else at Pool Offshore to tell them that the lights had been returned. Billiot then assisted two of Cable's employees in rebilling the $10,000.00. Cable also acknowledged that some of his employees had given kickbacks totalling approximately $40,000.00 to Pool Offshore employees and recouped these kickbacks through false invoices. 18 3. The Stock Obtained Through Baytron, Inc. According to Richerson, the third conspiracy involved Baytron, Inc. and its founder James Edwards. Richerson purchased 350 shares, or 35% of the outstanding stock, of Baytron, Inc. between 1979 and 1981. 11 After Richerson left Pool Offshore on August 31, 1981, Baytron employed Richerson as an executive vice-president. In December 1982 Baytron fired Richerson. Although Pool Offshore had made significant purchases from Baytron for several years, Pool Offshore never bought anything from Baytron after December 1982. Pool Offshore's parent, Enserch Corporation, a publicly held corporation, had a written conflict of interest policy. Enserch's written policy prohibited employee acceptance of gifts, other than nominal gifts, from vendors and required that employees disclose any conflict of interest. Richerson signed several letters acknowledging the policy but repeatedly failed to disclose his Baytron, Inc. stock on conflict of interest disclosure statements.