Opinion ID: 458647
Heading Depth: 2
Heading Rank: 1

Heading: Sufficiency of the Evidence Against Ruis.

Text: 16 Gerald Ruis contends that the evidence was insufficient to support his conviction and, therefore, the district court erred in denying his motions for judgment of acquittal. 6 17 The record discloses that Ruis and Pletcher, who were friends and fellow church members, began in mid-1981 to explore the possibility of building an ethanol plant in Iowa. They concluded that the project was feasible, and while Pletcher went to Florida to seek financing, Ruis continued to do research on ethanol plants and production. When Pletcher did not succeed in obtaining a loan in Florida, Ruis, who was unemployed, went to work for Radio Shack as a salesman. 18 After Pletcher returned from California in February 1982, he told Ruis about Thirion's $250 million loan commitment, the need for a $160,000 advance fee, and IFSG's plan to offer loans to others to raise the required amount. In March, Ruis left Radio Shack and began to work in the IFSG office, assisting Pletcher with paperwork, including the processing of advance fee loan applications. In mid-April, the directors of IFSG decided that Ruis should be appointed Executive Director for Operations with a salary to be set at funding. 19 During March and April, Ruis attended several of the meetings where the advance fee loan program was explained to prospective investors. His participation consisted of taking notes and keeping a list of investors and potential investors. At one meeting in Adrian, Minnesota, Pletcher asked Ruis to discuss the loan program with a prospective investor and his wife, who were divided on the issue of whether to participate. When the wife continued to express reservations, Ruis advised the couple not to invest. At that point, the local sheriff and a county attorney, both of whom had attended the meeting, seized some of the loan applications and related documents being handed out by Pletcher, and left the room followed by Pletcher and Ruis. While Pletcher was talking to the county attorney, Ruis returned to the meeting and led a prayer asking that Pletcher be given wisdom in dealing with any problems. 20 During the period of time that Ruis assisted Pletcher, he received a total of $1,750. 7 He never met Thirion and apparently did not participate in any of the substantive decisionmaking of IFSG. Although he was made a signatory on the IFSG checking account and was referred to in several documents as a vice president of IFSG, Ruis never wrote any checks on the account, nor did he ever function as a vice president of the corporation. Pletcher characterized Ruis' participation in the operation as clerical. Few of the Government witnesses could identify Ruis or recognized his name. On this evidence, the jury convicted Ruis on the conspiracy count, six counts of mail fraud, and one count of inducing interstate travel to defraud. 21 In reviewing challenges to the sufficiency of the evidence, we must view the evidence in the light most favorable to the Government and sustain the verdict if it is supported by substantial evidence. Glasser v. United States, 315 U.S. 60, 80, 62 S.Ct. 457, 469, 86 L.Ed. 680 (1942); United States v. Coronel-Quintana, 752 F.2d 1284, 1292 (8th Cir.1985). The Government is, moreover, entitled to the benefit of all inferences that may reasonably be drawn from the evidence. See, e.g., United States v. Henderson, 770 F.2d 724, 729 (8th Cir.1985); United States v. Netz, 758 F.2d 1308, 1310 (8th Cir.1985); United States v. Richmond, 700 F.2d 1183, 1189 (8th Cir.1983). 22 After carefully reviewing the record, we must agree with Ruis that the evidence, even when viewed in the light most favorable to the Government, is not sufficient to support the jury's verdict. Essential to Ruis' conviction on the substantive fraud counts is a showing that he acted with an intent to defraud. See, e.g., United States v. Bassler, 651 F.2d 600, 604 (8th Cir.1981), cert. denied, 454 U.S. 1151, 102 S.Ct. 1018, 71 L.Ed.2d 305 (1982) (intent an essential element of mail fraud); United States v. Edwards, 516 F.2d 913 (8th Cir.1975) (intent an essential element of the offense of inducing interstate travel to defraud). In our estimation, the Government failed to adduce evidence sufficient to establish that Ruis acted with the requisite criminal intent. The record contains no evidence that he was a knowing participant in a fraudulent scheme. He did not partake in the development of the advance fee program and made no decisions relating to its administration. Nor was the level of his participation in IFSG's affairs substantial enough that an intent to defraud can be inferred from the facts surrounding his actions. See United States v. Wrehe, 628 F.2d 1079, 1082-85 (8th Cir.1980). 23 Similarly, the evidence does not support Ruis' conviction on the conspiracy count. To prove that Ruis participated in a conspiratorial agreement, the Government must show that he knowingly contributed his efforts in furtherance of the illegal objective of the conspiracy. United States v. American Grain & Related Industries, 763 F.2d 312, 315 (8th Cir.1985). Mere knowledge of the existence of a conspiracy or mere association with individuals engaged in illegal conduct is not enough. United States v. Richmond, 700 F.2d at 1190. The Government must demonstrate  'some element of affirmative cooperation or at least an agreement to cooperate' in the objective of a conspiracy. Id. (quoting United States v. Brown, 584 F.2d 252, 262 (8th Cir.1978), cert. denied, 440 U.S. 910, 99 S.Ct. 1220, 59 L.Ed.2d 458 (1979)). The evidence of Ruis' activities falls short of demonstrating the knowing, affirmative cooperation necessary to sustain a conviction for conspiracy. See Richmond, 700 F.2d at 1190-91. Cf. Wrehe, 628 F.2d at 1084-85 (no evidence of actual involvement in or agreement to illegal object of conspiracy). Accordingly, Ruis is entitled to a judgment of acquittal on all counts. 24