Opinion ID: 672320
Heading Depth: 2
Heading Rank: 1

Heading: The Evidence and Defendant's Offer to Stipulate

Text: 11 Jemal's defense was essentially that he was an innocent landlord who had no involvement in the bust-out scheme perpetrated by Levy and others. He sought to impeach Levy and the government's other witnesses by demonstrating that they were testifying because of deals they had made with the government, by showing their past tendency to lie, their past crimes, and, with regard to Levy, by his history of drug abuse. 12 Over continuous objections, the government introduced evidence of prior crimes Jemal had allegedly committed, ostensibly to show Jemal's knowledge of the nature of a bust-out scheme and his intent to perpetrate one. Kassin testified that Jemal had been one of his partners in a bust-out of a store called SBL Trading in 1976 or 1977; Jemal had served as SBL Trading's landlord and had received 25% of the profits. Kassin also testified that he had operated a bust-out in 1979 of which Jemal was aware and from which Jemal had wanted to purchase discounted merchandise. Finally, Kassin testified that he had operated a bust-out in 1982 or 1983 which moved into a building housing one of Jemal's businesses--a business which then ceased operations (apparently implying that Jemal decided to use the space for the bust-out scheme). 13 Richard Beda testified that in 1986 Jemal had purchased damaged clocks from him so that he could stage a flood and file an insurance claim (allegedly a regular practice of Jemal). Beda also testified that during a bust-out operation he had operated in 1985, Jemal had advised him to make a lease agreement similar to that later entered into by Capital Merchandise. 14 Just before trial, Jemal voiced his opposition to the introduction of this prior bad acts evidence. His counsel stated: 15 This case should be distinguished from one in which we acknowledge that the defendant was either an employee or an officer of the corporation, that he was committing some acts which were otherwise innocent. Then the issue of the defendant's knowledge becomes important. The issue of his intent becomes important. In this case, our contention, quite simply, is that the defendant was not involved. The government alleges that my client was a signatory on the checking account and that he used the name Mike Levy as an alias. We deny that the defendant ever signed a check or had any power to sign any checks. We deny that my client used the name Mike Levy. 16 Defense counsel continued that in order to preclude the introduction of the prior bad acts evidence: 17 I'm prepared to stipulate that if the government can establish that my client was the signatory on the checking account, and that if he participated in the other acts as described by Norman Levy, that they can find that the defendant had the requisite knowledge and intent as far as the mail fraud is concerned. 18 Nonetheless, the district court ruled that the prior bad acts testimony was admissible as showing modus operandi, intent, and lack of mistake. The court indicated that its probative value outweighed any undue prejudice and that it was too difficult to obtain a useful stipulation on intent in this case. Id. 19 Defense counsel then offered a new stipulation saying: 20 [w]ith regard to the Count 1 of the indictment charging conspiracy, I would stipulate to all of the elements of the--of that count of the indictment, save the defendant's membership in the conspiracy. With regards to Counts 2 through 7 alleging mail fraud, I would submit that the only issue remaining is the issue of acting in concert. And even with regard to the issue of acting in concert, I will stipulate that if the government--if the jury finds that the testimony of Norman Levy is truthful, then the jury may find that the defendant had the requisite intent and may consider the remaining elements of acting in concert. 21 After considering this stipulation, the court concluded that [e]ven with the proposal ..., I think it's highly relevant under the issue of knowledge of what bust-outs are, how they operate. I think it works also as evidential on the issue of lack of mistake, so that even though intent may not be in play, those others certainly are. 22 Finally, after the prosecution had presented fifteen witnesses, defense counsel again raised the Rule 404(b) issue, offering to stipulate that: 23 Levy testified that David Jemal committed the following acts: 1. Knowingly and intentionally entering into a fictitious lease arrangement. 2. Participating in the preparation and back-dating of corporate documents. 3. Supplying false financial information to Dun & Bradstreet, and to creditors. 4. Ordering merchandise on behalf of Capital Merchandise, Inc. 5. Selling merchandise by Capital Merchandise, Inc. By his plea of not guilty David Jemal denies having committed any of these acts. If you find that the government has proven beyond a reasonable doubt any one or more of the acts alleged above, then I instruct you that you must find that the defendant possessed the requisite knowledge and intent. 24 Relying on its prior rationale, the district court again rejected the offer to stipulate, but it did give limiting instructions to the jury with respect to the use of the bad acts evidence.