Opinion ID: 198347
Heading Depth: 2
Heading Rank: 1

Heading: Conduct and Participation in Enterprise

Text: 65 Owens's first argument stems from his interpretation of 18 U.S.C. § 1962(c) and Reves v. Ernst & Young, 507 U.S. 170, 183, 113 S.Ct. 1163, 122 L.Ed.2d 525 (1993). Section 1962(c) provides that it shall be unlawful for a person to conduct or participate, directly or indirectly, in the conduct of an enterprise's affairs through a pattern of racketeering activity. 18 U.S.C. § 1962(c) (emphasis added). The indictment against Owens charged him with, inter alia, controlling, heading, and directing a RICO enterprise, rather than simply conducting or participating in the enterprise. Defense counsel highlighted this fact during the charge conference and, accordingly, requested the district court to instruct the jury that a conviction under 18 U.S.C. § 1962(c) must be premised on a finding that Owens directed the enterprise and not on a finding that he merely conducted or participated in the affairs of such enterprise. The government objected, arguing that directing the enterprise is not an element of the offense. The district court offered a compromise to which both parties assented: 66 I think I can tie the government to the indictment but nevertheless properly frame the elements if I add in the concept lower down in the paragraph: A person may be found to participate in the conduct of the enterprise even though he has no part in the management or control of the enterprise. But here, the government has charged, and it must prove, whatever language I find there in the indictment. 67 When the court instructed the jury with respect to this issue, it began by stating that 68 [w]hen you come to evaluate the evidence with respect to those things that I tell you must be proved beyond a reasonable doubt, you can check against the indictment to see what [the government] ha[s] specifically charged. The case has to be proved in the manner that it was indicted. That's the charge that they have made. 69 But then, after giving additional instructions covering fourteen pages of the transcript, the court advised the jury that 70 [t]he third [RICO] element is the requirement that the evidence demonstrate beyond a reasonable doubt that [Owens] conducted or participated in the conduct of the enterprise's affairs by engaging in a pattern of racketeering activity. The term conduct and participate in the conduct of an enterprise includes the performance of acts, functions or duties which are related to the [operation] of the enterprise. A person may be found to participate in the conduct of the enterprise even though he has no part in the management or control of the enterprise. 71 (emphasis added). Owens objected to this instruction and requested that the district court instruct the jury in accordance with what it said at the charge conference, i.e., that the government must prove Owens had some role in directing the affairs of the enterprise. The district court declined to alter its instruction. Owens argues that the court's failure to instruct as he requested constitutes reversible error under Fed.R.Crim.P. 30. In relevant part, Rule 30 provides: 72 At the close of the evidence or at such earlier time during the trial as the court reasonably directs, any party may file written requests that the court instruct the jury on the law as set forth in the requests.... The court shall inform counsel of its proposed action upon the requests prior to their arguments to the jury. 73 When a court fails to honor the dictates of Rule 30, reversal is warranted if defense counsel's closing argument was prejudicially affected. See United States v. Porter, 764 F.2d 1, 11 (1st Cir.1985). 74 It is a close question whether the district court violated Rule 30. The court did, after all, tell the jury that the case must be proved in the manner that it was indicted. Nonetheless, by first telling the jury that it must look to the indictment and then, quite a bit later, instructing it on the elements of 18 U.S.C. § 1962(c), the court may well have left the jury with the impression that Owens need not have directed the enterprise. But assuming that the court's actions violated Rule 30, Owens has not explained how defense counsel's closing arguments were prejudiced. 75 To show prejudice, Owens must establish that he was unfairly prevented from arguing [his] defense to the jury or was substantially misled in formulating and presenting arguments. United States v. Foppe, 993 F.2d 1444, 1451 (9th Cir.1993) (quoting United States v. Gaskins, 849 F.2d 454, 458 (9th Cir.1988)). Here, Owens has neither specified a defense theory the court's promise led him to forego, nor explained how his closing arguments would have differed had the court instructed in precise accordance with his request. Nor is it obvious to us what Owens's counsel otherwise might have done. Hence, the Rule 30 violation, if any, led to no apparent prejudice. 76 Owens's next argument, that the court's instructions on the 18 U.S.C. § 1962(c) offense were in conflict with Reves, also fails. Reves addressed the question whether one must participate in the operation or management of the enterprise itself to be subject to liability under [18 U.S.C. § 1962(c) ]. 507 U.S. at 183, 113 S.Ct. 1163. The Supreme Court has answered this question by holding that a party outside a RICO enterprise is only liable if he or she participates in the operation or management of the enterprise. See id. at 179, 113 S.Ct. 1163. Reves 's analysis does not apply where a party is determined to be inside a RICO enterprise. See United States v. Houlihan, 92 F.3d 1271, 1298-99 (1st Cir.1996), cert. denied, 519 U.S. 1118, 117 S.Ct. 963, 136 L.Ed.2d 849 (1997); United States v. Gabriele, 63 F.3d 61, 68 (1st Cir.1995); United States v. Hurley, 63 F.3d 1, 9 (1st Cir.1995), cert. denied, 517 U.S. 1105, 116 S.Ct. 1322, 134 L.Ed.2d 474 (1996); United States v. Oreto, 37 F.3d 739, 751 (1st Cir.1994). 7 77 There is no question that Owens was an insider to the RICO enterprise. Owens supplied Smith with one to two kilograms of cocaine per week, and the two groups acted in concert with one another on several occasions to facilitate their joint interests (e.g., murdering Rodney Belle). Because Owens was not an outside contractor to the RICO enterprise, Reves is inapposite. The court's instruction accorded with circuit precedent. 78