Opinion ID: 747836
Heading Depth: 2
Heading Rank: 4

Heading: Other Insufficiency Claims

Text: 34 LaBarbara also claims that the evidence was legally insufficient to show that Local 66's activities affected commerce, that funds protected under ERISA were stolen, and that there was a mail-fraud scheme in connection with the mortgage of the union's headquarters. All are meritless. 35 The proof was easily sufficient to meet the affecting commerce standard. See Russell v. United States, 471 U.S. 858, 859 n. 4, 105 S.Ct. 2455, 2456 n. 4, 85 L.Ed.2d 829 (1985); Scarborough v. United States, 431 U.S. 563, 571, 97 S.Ct. 1963, 1967, 52 L.Ed.2d 582 (1977); United States v. American Bldg. Maintenance Indus., 422 U.S. 271, 280, 95 S.Ct. 2150, 2156, 45 L.Ed.2d 177 (1975). Individual crimes need involve only a de minimis effect on interstate commerce, so long as the crime as defined in the statute has a substantial effect. United States v. Lopez, 514 U.S. 549, 558, 115 S.Ct. 1624, 1629, 131 L.Ed.2d 626 (1995); United States v. Leslie, 103 F.3d 1093, 1100 (2d Cir.), cert. denied, --- U.S. ----, 117 S.Ct. 1713, 137 L.Ed.2d 837 (1997). The activities of Local 66, a member of the larger International Laborers Union, involved substantial building construction projects on Long Island and easily satisfied that standard. 36 LaBarbara next argues that his conviction on Count 13, aiding and abetting a violation of 18 U.S.C. § 664, 4 is invalid because the amounts not paid to the Funds as a result of the double-breasting scheme never were assets of the Funds. His argument seems to be that moneys owed to ERISA benefit plans are not assets of such plans until banked. We disagree. Once wages were paid to Local 66 members, Strathmore had contractual obligations to the Funds that constituted assets of the Funds by any common definition. Certainly, an audit of the Funds would have to include such fixed obligations as assets. LaBarbara's acquiescence in the use of Ju-Lin as a vehicle to convert those assets to Barone and to conceal Strathmore's contractual obligations aided or abetted a violation of Section 664. See United States v. Panepinto, 818 F.Supp. 48, 50-51 (E.D.N.Y.1993) (finding no embezzlement with respect to delinquent fund contributions), aff'd, 28 F.3d 103 (2d Cir.1994). But see Young v. West Coast Indus. Relations Ass'n, 763 F.Supp. 64, 74-76 (D.Del.1991), aff'd, 961 F.2d 1570 (3d Cir.1992). Indeed, LaBarbara's accepting kickbacks in return for allowing Strathmore to avoid its obligations to the Funds was the functional equivalent of, and more harmful than, stealing directly from the Funds' bank accounts. 37 As to the sufficiency of the proof of mail fraud in connection with the $4 million mortgage loan from FGH, LaBarbara's arguments merely substitute his view of the evidence for that of the jury. LaBarbara contends that these mail-fraud convictions should be overturned because the government proved a single fraud occurring on the day the loan closed, November 20, 1989, and no mailing was involved. However, the jury was well within reason in concluding that the mailing of the scorecard letter by Dubin to FGH three and one-half weeks before the closing was caused by LaBarbara and was in furtherance of that fraud. The jury could also reasonably conclude that the letter mailed by FGH to National Westminster settling accounts after the closing was caused by LaBarbara and furthered the fraud. See Pereira v. United States, 347 U.S. 1, 8-9, 74 S.Ct. 358, 362-63, 98 L.Ed. 435 (1954) (for mail fraud it is not necessary that use of mails be essential part of scheme but only that mailing is incident to an essential part of scheme and that defendant acted with knowledge that use of mails would follow in ordinary course of business or was reasonably foreseeable). 38 For the foregoing reasons, we reverse the convictions on Counts 4, 5, and 6. Because LaBarbara's sentences on those counts run concurrently with his sentences on other counts, resentencing is unnecessary. Otherwise we affirm.