Opinion ID: 712197
Heading Depth: 2
Heading Rank: 3

Heading: The Investigation and Trial

Text: 34 The scheme of corruption began to unravel in August 1990, when LoBue and Don Prisco were indicted for filing false income tax returns and engaging in a racketeering conspiracy in violation of the RICO statute. The Federal Bureau of Investigation contacted Commissioner Marshall during its investigation of LoBue's violation of federal racketeering laws. 35 The FBI case agent for the investigation, Neal O'Malley, testified that during the investigation of LoBue he interviewed and took statements from Louise Marshall. Agent O'Malley interviewed Marshall on three occasions during 1990, concerning her knowledge of the City's garbage pick-up contracts, the Tri-Lux and Gulf Coast Chemical contract, as well as a possible health insurance scam perpetrated by LoBue. 36 In March 1991, LoBue decided to cooperate with the government. 2 Giving statements to O'Malley and the Assistant U.S. Attorney Chris Gair (AUSA Gair), LoBue revealed a host of corrupt schemes and payoffs to the government, including kickbacks on the cable television contract, the water pipeline project, water meters, the HMO insurance policy, twice a week garbage pickups, and the liquor licenses. After debriefing LoBue, Agent O'Malley and AUSA Gair contacted Marshall and told her that LoBue had implicated her in a kickback scheme from the water pipeline project. 37 According to Agent O'Malley, Marshall initially denied the accusation, but later admitted that she became aware of the kickbacks after the city had issued bonds in order to fund the pipeline project and at that time she attempted to join the corruption cesspool. Knowing Albert Tocco to be a powerful figure in the local organized crime operations, Marshall made contact with him and apparently asked him to convince LoBue and Panici to cut her in on a share of the extortion proceeds. After Marshall had cleared it with Tocco, LoBue delivered her three cash payments, totalling between $5000 and $7000. 38 After receiving more information from LoBue, O'Malley returned to Marshall's home with another FBI agent and inquired about other kickbacks from the water meter project and made her aware that LoBue had informed them that she had received total payoffs up to $45,000. She denied receiving $45,000, but did admit that LoBue had given her $4000 to $5000 from a source unbeknown to her. In May 1991, Marshall met Agent O'Malley and AUSA Gair at the AUSA's office, where once again she was questioned about her receiving $20,000 from the pipeline deal and $25,000 from the water meter project. According to Agent O'Malley, Marshall admitted she received $5000 to $7000 from LoBue at the time of the water pipeline project, and that the money probably came from an illegal kickback. 39 At trial, Louise Marshall contradicted Agent O'Malley's testimony, testifying that she never bothered LoBue for money; never asked Albert Tocco to influence LoBue and Panici to allow her to participate in the extortion schemes; and never told Agent O'Malley or AUSA Gair that LoBue gave her $5000 to $7000. 40 At the close of Marshall's direct examination, her counsel objected and asserted that AUSA Gair should not be allowed to cross-examine Marshall for he was not only present but also participated in two of Marshall's interviews. The defendants argued that in all probability AUSA Gair would be called as a witness and thus there would likely be conflict between Agent O'Malley's testimony and that of Marshall. At a sidebar conference, the defendants objected to the questioning, arguing that allowing him to participate as the prosecutor would violate the advocate-witness rule. The district court denied the objections, ruling that there was no violation of the advocate-witness rule because the defendants now stated that they were not going to call AUSA Gair as a witness. Gair conducted the cross-examination of Marshall where the following exchange took place: 41 Q. Commissioner Marshall, isn't it a fact that on April 25th of 1991 you met with Agent O'Malley and myself in your home. 42 A. That I did. 43 Q. And didn't you tell us at that time you went to Nick LoBue and told him that you felt that money was being distributed and that you should be part of the money? 44 A. I never told you that. 45 Q. Commissioner Marshall, isn't it true that Mr. LoBue told you that the contractors needed all the money for their expenses, their material and their labor? 46 A. That is what he told me, but I never told him that I wanted any money from him. And I never told you that I told him I wanted any money. 47