Opinion ID: 2979044
Heading Depth: 2
Heading Rank: 2

Heading: variance from the indictment (issue 2)

Text: When determining whether a variance from the indictment occurred at trial, this court performs a de novo review. United States v. Warman, 578 F.3d 320, 341 (6th Cir. 2009) (citing United States v. Swafford, 512 F.3d 833, 841 (6th Cir. 2008)). In order to reverse a conviction because of a variance between the indictment and the evidence produced at trial, the defendant must establish (1) the existence of a variance and (2) that the variance affected some substantial right. Id. (citing Hughes, 505 F.3d at 587); United States v. Osborne, 545 F.3d 440, 443 (6th Cir. 2008) (quoting United States v. Prince, 214 F.3d 740, 757 (6th Cir. 2000)). A variance occurs when the evidence presented at trial proves facts materially different from the facts alleged in the indictment. Hughes, 505 F.3d at 587 (quoting United States v. Chilingirian, 280 F.3d 704, 711 (6th Cir. 2002)). The variance affects some substantial right when the defendant establishes the variance prejudiced the ability to defend himself or herself or prejudiced the overall fairness of the trial. Id. (citing United States v. Manning, 142 F.3d 336, 339 (6th Cir. 1998)). “Within the context of a conspiracy, a variance constitutes reversible error only if a defendant demonstrates that [she] was prejudiced by the variance and the ‘indictment allege[d] one conspiracy, but the evidence can reasonably be construed only as supporting a finding of multiple conspiracies.’” United States v. Robinson, 547 F.3d at 632, 642 (6th Cir. 2008) (citation omitted). “In making this determination, the evidence must be viewed in a light most favorable to the government.” Id. (citation omitted). This court first examines the record to determine “whether the evidence can ‘reasonably be construed only as supporting a finding of multiple conspiracies’ rather than the single conspiracy alleged in the indictment.” Hughes, 505 F.3d at 587 (quoting United States v. Warner, 690 F.2d 545, 548) (6th Cir. 1982) (citing Kotteakos v. United States, 328 U.S. 750 (1946))). “The principal considerations to determine the number of conspiracies are the existence of a common goal, the nature of the scheme, and the overlapping of the participants in various dealings.” Warman, 578 F.3d at 341-42 (quoting United States v. Smith, 320 F.3d 647, 652 (6th Cir. 2003)). “Whether single or multiple conspiracies have been established is usually a question of fact to be resolved by the jury . . . and [is] to be considered on appeal in the light most favorable to the government.” Id. (citations omitted) (alterations in original). Second, the court must determine whether the variance “substantially influences the outcome of the trial.” Osborne, 545 F.3d at 443 (citations omitted). Variances pose a danger to defendants because of the risk of guilt transference from defendants involved in one conspiracy to defendants involved in another conspiracy. United States v. Caver, 470 F.3d 220, 237 (6th Cir. 2006) (citing Kotteakos, 328 U.S. at 774); see also United States v. Blackwell, 459 F.3d 739, 762 (6th Cir. 2006) (“The inquiry into whether a variance constitutes reversible error focuses on whether a danger exists that the defendant was convicted based on evidence of a conspiracy in which the defendant did not participate.”) (citing United States v. Mack, 837 F.2d 254, 258 (6th Cir. 1988)). Ordinarily, the danger of prejudice can be cured by a cautionary instruction to the jury. Hughes, 505 F.3d at 587. Where a significant amount of evidence unrelated to the defendant is introduced at trial, the court must consider several factors to determine if the variance was prejudicial: (1) the number of conspiracies the evidence establishes, (2) the number of non-conspiratorial co-defendants tried with defendant, and (3) the size of the conspiracy alleged in the indictment. Id. at 587-88 (quoting Blackwell, 459 F.3d at 762). The indictment alleged a single conspiracy to defraud the IRS by Defendant, Shawn Gibson, and Tanisha Summers. Defendant asserts the government produced evidence that she participated in a conspiracy to defraud and embezzle money from the individuals for whom tax forms were prepared and submitted to the IRS. Defendant argues the government elicited testimony from at least twelve individuals who stated they did not receive the full amount of the refund issued by the IRS. Defendant contends no cautionary instruction to the jury was provided. Viewing the evidence presented at trial in a light favorable to the prosecution, Defendant is not entitled to a reversal of her conviction on the basis of a variance. “To prove a single conspiracy, the government need only show that each alleged conspirator had knowledge of and agreed to participate in what he knew to be a collective venture directed toward a common goal.” “[A] single conspiracy does not become multiple conspiracies simply because each member of the conspiracy did not know every other member, or because each member did not know of or become involved in all of the activities in furtherance of the conspiracy.” Robinson, 547 F.3d at 642 (citations omitted). The evidence presented did not create a variance from the one alleged in the indictment. At trial, Carlo Gibson testified Defendant worked for Shawn Gibson. (Trial Tr. 151-52, June 5, 2007.) The third superceding indictment alleged the same. (R. at 104.) Several witnesses testified their tax refunds were deposited into Defendant’s bank account. (Trial Tr. 22-24, June 7, 2007; Trial Tr. 19-20, June 11, 2007.) The indictment alleged the tax refunds would be electronically transferred into bank accounts held by members of the conspiracy. (R. 105.) Defendant disbursed, as tax refunds, some of the money deposited in her accounts by the government to the individuals whose returns had been prepared by members of the conspiracy. (Trial Tr. 37-38, 109, June 11, 2007.) The third superceding indictment alleged the same. (R. at 105.) The evidence presented at trial mirrors the facts alleged in the indictment. Defendant’s assertion that the evidence presented supports the finding of a second conspiracy suffers multiple fatal flaws. First, the facts supporting the conspiracy alleged in the indictment and the facts supporting the second conspiracy alleged by Defendant are identical. Defendant cannot claim she was surprised by the evidence presented. According to Defendant’s theory, the uncharged conspiracy to defraud clients was accomplished by filing tax returns and then not turning over all of the proceeds to the clients. The similarity between the conspiracy alleged in the indictment and the second conspiracy alleged by Defendant undermines the conclusion that multiple conspiracies occurred: the goal of the two alleged conspiracies were the same, the nature of the schemes was identical, and the participants in the two conspiracies overlapped. See Warman, 578 F.3d at 341-42. Second, Defendant has not established that the evidence presented can reasonably be construed only as supporting a finding that two conspiracies occurred. See Robinson, 547 F.3d at 642. Defendant insists the evidence may support the conclusion that two conspiracies occurred. That is not the standard this court applies when reviewing the evidence for a variance. Defendant must prove the evidence must support the conclusion that two conspiracies occurred. Defendant must overcome the deference afforded to the jury’s fact finding role. This court must review the evidence in the light most favorable to the government. With those two constraints, combined with the overlapping evidence explained above, Defendant’s assertion that the evidence may support a finding of more than one conspiracy fails. Even if a variance was created, Defendant cannot establish any prejudice. First, contrary to Defendant’s assertion, the jury was given a cautionary instruction. The instructions given clearly identify the conspiracy as one to defraud the United States. (Trial Tr. 122, June 19, 2007.) The jury was instructed that the indictment alleged Defendant participated in a single conspiracy, and that if the government failed to establish that Defendant was a member of the conspiracy charged in the indictment, the jury must find her not guilty. (Id. at 125-26.) The instructions further cautioned the jury that “proof that a defendant was a member of some other conspiracy is not enough to convict.” (Id. at 126.) Second, where the evidence supporting two conspiracies substantially overlaps, a defendant is not prejudiced when only one of the conspiracies is charged in the indictment. A variance will not be considered material “‘where the allegation and proof substantially correspond, or where the variance was not of a character which could have misled the defendant at trial’ and where it did not ‘deprive the accused of [her] right to be protected against another prosecution for the same offense.’” Hughes, 505 F.3d at 589 (quoting Berger v. United States, 295 U.S. 78, 83 (1935)). The facts in Defendant’s case are similar to the facts in Berger and Osborne. In Berger, eight defendants were charged with a single counterfeiting conspiracy, among other charges. The object of the counterfeiting operation was not alleged in the indictment. At trial, the evidence presented established two conspiracies. Berger, 295 U.S. at 82-83. The object of the first conspiracy, involving two defendants, was to use the counterfeit notes to purchase rings. The object of the second conspiracy, involving three defendants, was to pass the counterfeit notes to tradesmen. The court found the variance harmless because the allegations in the indictment and the proof at trial substantially corresponded and the variance did not mislead the defendant. Id. at 83. In Osborne, the indictment alleged a single mail fraud conspiracy against three defendants. The evidence presented showed Osborne and the other two defendants defrauded the Fruit of the Loom company by submitting false invoices from a modeling agency. The evidence also showed the two defendants other than Osborne conspired to defraud the Fruit of the Loom company through another agency created for that same purpose. The court found that, even if a variance was created, Osborne could not establish sufficient prejudice to reverse his conviction. Osborne, 545 F.3d at 443-44. The court held the jury was appropriately instructed on the conspiracy allegation. Id. at 443. The court found little chance of guilt transference because the case involved only three defendants and two conspiracies, all three individuals were charged with similarly culpable conduct, and the witnesses were careful to specify how they interacted with each individual defendant. Id. at 444. The limited nature of the conspiracy in this case distinguishes it from the facts in Kotteakos. The Supreme Court found the variance was sufficiently prejudicial to require reversal in Kotteakos. There, the indictment named thirty-two defendants and charged them with a conspiracy to defraud financial institutions. The three appellants were convicted, along with four others, by a jury. On appeal, the government admitted the evidence established not one, but eight or more conspiracies, all revolving around one central figure. The Court distinguished Berger because of the difference between the number of defendants and the number of conspiracies. Kotteakos, 328 U.S. at 766-67, 772. The Court explained, when the proofs include more charges and more people with varying degrees of participation, the possibility for a miscarriage of justice increases. Id. at 776.