Opinion ID: 505838
Heading Depth: 2
Heading Rank: 1

Heading: sufficiency of the evidence

Text: 8 Reynolds first urges that the evidence at trial was insufficient to prove his guilt on any count beyond a reasonable doubt. The standards for appellate review of an insufficiency challenge place a very heavy burden on a defendant. United States v. Rodolitz, 786 F.2d 77, 79 (2d Cir.), cert. denied, --- U.S. ----, 107 S.Ct. 102, 93 L.Ed.2d 52 (1986). The verdict of a jury must be sustained if there is substantial evidence, taking the view most favorable to the Government, to support it. Glasser v. United States, 315 U.S. 60, 80, 62 S.Ct. 457, 469, 86 L.Ed. 680 (1942). On appeal, a jury verdict must be affirmed if any rational trier of fact could have found the essential elements of the crime. Jackson v. Virginia, 443 U.S. 307, 319, 99 S.Ct. 2781, 2789, 61 L.Ed.2d 560 (1979). ATS Conspiracy and ATS Wire Fraud 9 In order to convict Reynolds for the ATS conspiracy under 18 U.S.C. Sec. 371, the government had to prove that he agreed to and participated in a scheme that he knew had an illegal objective. United States v. Gleason, 616 F.2d 2, 17 (2d Cir.1979), cert. denied, 444 U.S. 1082, 100 S.Ct. 1037, 62 L.Ed.2d 767 (1980). The knowledge aspect of a conspiracy charge requires that a defendant participate in the charged scheme with some knowledge of its unlawful aims and objectives, United States v. Heinemann, 801 F.2d 86, 93 (2d Cir.1986), cert. denied, --- U.S. ----, 107 S.Ct. 1308, 94 L.Ed.2d 163 (1987). The government does not have to prove that the accused knew every objective of the conspiracy, every detail of the scheme's operation, or the identity of every coconspirator. Gleason, 616 F.2d at 16. 10 There is ample evidence in the record to support the jury's conclusion that Reynolds participated in the ATS conspiracy to defraud potential and actual distributors of home energy conservation devices. See United States v. Bentley, 825 F.2d 1104, 1107 (7th Cir.) (sufficient evidence of knowing participation in a scheme where salesmen told false tales about their background, other customers' successes, and the firm's expertise and standing), cert. denied, --- U.S. ----, 108 S.Ct. 240, 98 L.Ed.2d 198 (1987). Evidence at trial proves that in sales training sessions with two ATS distributors, Hebert and Wolverton, Reynolds misrepresented the successes of other ATS distributors and the possibility of profiting from selling ATS products. In addition, he acted as a telephone reference to potential distributors Zawol and Douglass. Reynolds represented to Zawol that he had enjoyed great success selling ATS products and that ATS was a good company run by good people. In fact, Reynolds had never acted as an ATS distributor, and he knew that distributors were charged retail--not wholesale--prices for ATS products. Moreover, as discussed below, he was aware that there was reason to doubt Wiley's integrity. 11 Appellant further contends that there was insufficient evidence to support his conviction for the ATS wire fraud scheme (Count III). We need not tarry over evidence of Reynolds' commission of this crime because a conspiracy member may be held responsible for the substantive offenses committed by his coconspirators, provided that those offenses were reasonably foreseeable consequences of the unlawful agreement. Pinkerton v. United States, 328 U.S. 640, 646-48, 66 S.Ct. 1180, 1183-84, 90 L.Ed. 1489 (1946); United States v. Ciambrone, 787 F.2d 799, 809 (2d Cir.), cert. denied, ---U.S.----, 107 S.Ct. 668, 93 L.Ed.2d 720 (1986). Because we uphold Reynolds' conviction for the ATS conspiracy and because committing fraud over the telephone was an easily foreseeable consequence of that conspiracy, Reynolds' ATS wire fraud conviction must also be affirmed. SCS Wire Fraud 12 Reynolds' paramount challenge is that the government did not present sufficient evidence to sustain his aiding and abetting conviction for the SCS wire fraud scheme (Count VII). Despite the heavy burden that an appellant asserting such a claim must bear, we find on this count Reynolds successfully carried that load. Here no rational juror could have found him guilty beyond a reasonable doubt of aiding and abetting the SCS wire fraud scheme. 13 We begin with the statute. Under 18 U.S.C. Sec. 2(a) (1982), [w]hoever commits an offense against the United States or aids, abets, counsels, commands, induces or procures its commission, is punishable as a principal. The legal standards applicable to prosecution on a theory of aiding and abetting are well-settled. 14 To convict a defendant of aiding and abetting the government must prove (1) commission of the underlying crime, (2) by a person other than the defendant, (3) a voluntary act or omission by the person charged as an aider or abettor, with (4) the specific intent that his act or omission bring about the underlying crime. 15 .... To prove the existence of (3) and (4), the evidence must demonstrate that the person charged joined the venture, shared in it, and that his efforts contributed towards its success. 16 .... 17 ... [A] general suspicion or knowledge [of illegality is] ... not enough. 18 United States v. Zambrano, 776 F.2d 1091, 1097 (2d Cir.1985). Thus, the government in the instant case had the burden of proving that Reynolds joined the SCS scheme, acted with the specific intent to defraud potential SCS distributors through the use of the wires, and that he contributed to the scheme's success. See 18 U.S.C. Sec. 1343 (1982) (wire fraud). 19 The evidence the government presented to support this charge consists of three checks to Reynolds drawn on the SCS account: check # 314 dated November 9, 1982 for $1,100; check # 381 dated December 27, 1982 for $1,100; and check # 404 dated February 22, 1983 for $2,200. The first two checks apparently were payments to Reynolds for conducting sales training sessions for SCS distributor Sandry and ATS distributor Wolverton. In his testimony before the grand jury--read into the trial record--Reynolds admitted that he provided sales training to Sandry. But neither Sandry nor Wolverton testified at trial. Hence, there is no proof regarding Reynolds' conduct or his statements at those training sessions. In fact, there was no testimony presented at trial linking Reynolds to the SCS scheme to defraud distributors. 20 Faced with this dearth of evidence respecting Reynolds' intent to join the SCS program, the government conveniently conflates the proof of Reynolds' membership in the similar ATS conspiracy by alleging that this evidence also proves he aided and abetted the SCS scheme. The government's attempt to lump together the two separate conspiracies is shown, for example, in its brief, which states that from the facts that Reynolds participated in the training program in both ATS and SCS; that he misrepresented his role in ATS to distributors; that he had no prior experience in selling security systems before agreeing to work with SCS; the jury properly concluded that Reynolds aided and abetted the SCS fraudulent scheme in his capacity as an SCS trainer. 21 Even drawing all reasonable inferences in the government's favor to sustain the jury's guilty verdict, we are unable to agree that a juror could rationally infer from the three checks, one SCS training session, and his membership in the distinct ATS conspiracy that Reynolds aided and abetted the SCS wire fraud plan. Quite the contrary, it is apparent that in order to reach its verdict the jury must have engaged in false surmise and rank speculation. See United States v. Starr, 816 F.2d 94, 99 (2d Cir.1987). Thus, Reynolds' conviction as an aider and abettor of the SCS scheme charged in Count VII rests on a reed too slender to support it and must be reversed.