Opinion ID: 330025
Heading Depth: 1
Heading Rank: 4

Heading: the trial court properly instructed the jury.

Text: 51 Bush submits that the court gave four prejudicial instructions on scheme to defraud, duty to disclose, responsibility for decision making, and a summary instruction on defendant's duty to the city and to the mayor. We approve these instructions mainly for the reasons that are stated earlier in this opinion, all of which are based on the premise that Bush's conduct amounted to a crime cognizable under the mail fraud statute. 52 The first instruction 10 dealt with the scheme to defraud and advised the jury that deprivation of honest and loyal services of a public official or failure to disclose material information comes within the meaning of the statute. We think that there was authority for this instruction under United States v. Barrett, supra; United States v. George, supra; And United States v. Rowe, 56 F.2d 747, 749 (2d Cir.), Cert. denied 286 U.S. 554, 52 S.Ct. 579, 76 L.Ed. 1289 (1932). Since the deceitful concealment of material facts can be considered actual fraud the trial judge's instruction was appropriate. Lustiger v. United States, 386 F.2d 132, 138 (9th Cir. 1967), Cert. denied 390 U.S. 951, 88 S.Ct. 1042, 19 L.Ed.2d 1142 (1968); Cacy v. United States, 298 F.2d 227, 229 (9th Cir. 1961). 53 The second instruction 11 to which Bush objects concerns his duty of disclosure. He contends that the central error in the instruction is that it states that he had a duty imposed by law to disclose his interest. In Bush's view, the instruction is incorrect because no such law exists. As previously discussed, however, United States v. George, Supra, plainly states that an employee owes his employer a duty of loyalty which includes a duty not to conceal facts known to him which he has reason to believe are material to the employer's conduct of its business and affairs. Thus, Bush's duty to disclose need not be based upon the existence of some statute prescribing such a duty. Rather, his duty in this case was predicated upon the right of city officials to negotiate for and award the O'Hare display advertising contract with all relevant facts before them. Bush's introduction of Robert Dell to Commissioner Downes without an accompanying disclosure of his ownership of DAAI, his recommendation of DAAI to Deputy Mayor Duba without disclosure of his interest and his recommendation to Commissioner Downes concerning a profit-generating advertising display while, at the same time, denying that he had any interest in DAAI, constitute material misrepresentations and involve the concealment of material facts. 54 The third contested instruction informed the jury that (t)he fact that the defendant did not himself have responsibility for the evaluation, awarding or administration of contracts does not change his duty of disclosure. Once again under decisions discussed extensively heretofore, United States v. Proctor & Gamble Co., supra, and United States v. George,supra, Bush, as an employee of the City of Chicago, owed a fiduciary duty of loyalty to his employer. Consequently, it is immaterial whether or not he had direct responsibility for the contracts. His duty of disclosure remained the same in either situation. 55 The fourth and last challenged instruction 12 did not, as Bush contends, virtually direct the jury to bring back a finding of guilty. Rather, the instruction simply stated that the jury may find the existence of a scheme within the meaning of the mail fraud statute if it should find, from all the evidence, that Bush devised a scheme in which he would breach his duty of disclosure. 56 This instruction, however, must be considered in the context in which it was given. Viewing it together with the court's charge on intent, this instruction did not direct the jury to return a guilty verdict. Thus, immediately after giving the instruction here at issue, the court charged the jury that: 57 The defendant claims that he did not have the specific intent previously defined in these instructions and he has offered evidence of his good faith in forming Dell Airport Advertising, Inc., and in seeking and in performing the airport advertising contract and the renewal of that contract. This contention of good faith is based on his testimony that he did not know that he had the duty of disclosure previously defined in these instructions, that is, the duty to disclose his ownership of Dell Airport Advertising, Inc., to the Mayor and other officers of the City who had responsibility in connection with the awarding of the airport advertising contract. 58 Defendant has thus offered evidence that he did not know that any failure to disclose would violate a duty imposed by law. Unless outweighed by evidence to the contrary, the law presumes that every person knows what the law forbids and what the law requires to be done. Specific intent is an element of the crime charged in the indictment. Therefore, evidence that defendant failed to disclose because he did not know he had a duty to disclose is to be considered by the jury in determining whether or not the defendant acted or failed to act with the required specific intent. You cannot find the defendant guilty unless you find beyond a reasonable doubt that he had the specific intent previously defined and that he did not act in good faith. 59 Additionally, the court instructed the jury with respect to Bush's duty to disclose that: 60 Except for this Illinois statute (requiring municipal employees earning $20,000 per year or more to file verified statements of economic interests), at all times described in the indictment there has not been any other Illinois statute or municipal ordinance of the City of Chicago requiring a person holding a municipal position, including the defendant's position, to disclose and report his interest in and income from any company or entity doing business with the city by which he was employed. Evidence has been introduced that defendant filed a correct, verified written statement of economic interest with the County Clerk before July 1, 1972 and before April 30, 1973. You may consider this evidence in deciding whether or not the defendant acted in good faith. 61 Since the charge to the jury with respect to Bush's duty of disclosure accurately reflects the state of the law, and because the charge required a finding of specific intent to defraud as a prerequisite to a finding of guilt and informed the jury that good faith was a complete defense, no error can be attributed to the instructions here at issue. 62 Accordingly the judgment of conviction is affirmed in all respects. 63 Affirmed.