Opinion ID: 777545
Heading Depth: 2
Heading Rank: 4

Heading: Szur's Remaining Claims

Text: 65 Szur argues that the district court unconstitutionally impaired his right to present a defense by excluding evidence from which he could argue that he had made efforts to thwart, rather than further, the ends of the conspiracy. Specifically, Szur challenges the district court's exclusion of evidence that, he contends, proves he attempted to shut down the Wall Street office and that his efforts to do so were met with physical violence. 66 At trial, Szur offered the testimony of P.J. Seto, who worked at the Wall Street office, to the effect that Szur tried to close the office due to unhappiness with the way it was being run. In a proffer, Szur referred to two instances of violence allegedly related to the conspiracy: (1) during the period when Szur was attempting to close the Wall Street office, Seto observed Szur emerge from a room at the Wall Street branch after meeting with some of the co-conspirators, including Kaplun, and that it appeared that Mr. Szur's face had been beaten and that Mr. Szur was crying; and (2) a week or two later, Kaplun or another co-conspirator took Seto to an office where Seto witnessed a bloody scene and was told that a registered salesperson who had formerly been at JSS had been beaten. 67 The district court excluded the foregoing evidence at trial as both irrelevant and potentially unfairly prejudicial under Rule 403 of the Federal Rules of Evidence. That rule provides for the exclusion of relevant evidence if its probative value is substantially outweighed by the danger of unfair prejudice, confusion of the issues, or misleading the jury, or by considerations of undue delay, waste of time, or needless presentation of cumulative evidence. Fed.R.Evid. 403. 68 [W]e review evidentiary rulings for abuse of discretion. United States v. Sewell, 252 F.3d 647, 650 (2d Cir.), cert. denied, ___ U.S. ___, 122 S.Ct. 382, 151 L.Ed.2d 291 (2001); see also United States v. Salameh, 152 F.3d 88, 110 (2d Cir.1998) (reiterating that we will second-guess a district court's Rule 403 determination `only if there is a clear showing that the court abused its discretion or acted arbitrarily or irrationally' (quoting United States v. Valdez, 16 F.3d 1324, 1332 (2d Cir.1994))). In this case, Szur invites us to apply a heightened standard of review because the district court's exclusion of a portion of Seto's testimony deprived him of the opportunity to present a defense. We decline the invitation. 69 Although we recognize that a criminal defendant has a fundamental right to present a defense, see Chambers v. Mississippi, 410 U.S. 284, 302, 93 S.Ct. 1038, 35 L.Ed.2d 297 (1973), that right remains subject to countervailing public interests. Lurie v. Wittner, 228 F.3d 113, 133 (2d Cir.2000) (internal quotation marks omitted), cert. denied, 532 U.S. 943, 121 S.Ct. 1404, 149 L.Ed.2d 347 (2001). As we said in United States v. Blum, 62 F.3d 63, 67 (2d Cir.1995), such a right must be balanced against a court's leave to set reasonable limits on the admission of evidence. Thus, even where the exclusion of evidence affects the defense case, we afford judges broad latitude in excluding evidence that poses an undue risk of `harassment, prejudice [or] confusion of the issues,' and review their evidentiary determinations for abuse of discretion. Id. (quoting Delaware v. Van Arsdall, 475 U.S. 673, 679, 106 S.Ct. 1431, 89 L.Ed.2d 674 (1986)) (alterations in original). 70 At trial, the district court found that Seto's proposed testimony regarding the first incident was irrelevant because we don't know what went on in the room, even if there had been a beating, whether in fact it is related to a falling out among alleged coconspirators or to something else. The district court similarly found that the evidence regarding the second incident was irrelevant. The district court also determined, as to both incidents, that the slight probative value of the incidents was clearly outweighed by the danger of unfair prejudice to Kaplun. 71 Szur has failed to show that the district court abused its discretion or acted irrationally or arbitrarily in excluding Seto's testimony. See Salameh, 152 F.3d at 110. Given Seto's incomplete knowledge regarding the alleged instances of violence about which he sought to testify, the questionable relevance of the evidence, the substantial potential prejudice to Kaplun, and the likelihood that it would sow confusion in the mind of the jury, we see no reason to disturb the district court's ruling.
72 Szur next argues that he should not have received upward adjustments in his sentence for a leadership role in the offenses, pursuant to U.S.S.G. § 3B1.1, because co-defendant Slutsky conceived, organized, managed, and primarily profited from the fraudulent scheme. In essence, Szur argues that because of the significant disparity between his and Slutsky's roles, he should not receive the maximum four-level upward adjustment for the fraud offenses. He similarly contends that he should not have received a two-level upward adjustment for the money laundering offenses, arguing that he was neither a leader nor an organizer of the money laundering activity. 73 `The sentencing court's findings as to the defendant's role in the offense will be overturned only if they are clearly erroneous.' United States v. Zichettello, 208 F.3d 72, 107 (2d Cir.2000) (quoting United States v. Farah, 991 F.2d 1065, 1068 (2d Cir.1993)), cert. denied sub nom. Lysaght v. United States, 531 U.S. 1143, 121 S.Ct. 1077, 148 L.Ed.2d 954 (2001). Section 3B1.1(a) of the Guidelines provides for a four-level increase if the criminal activity involved five or more participants and the defendant was an organizer or leader. U.S.S.G. § 3B1.1(a). [A] prerequisite to a section 3B1.1(a) enhancement is that the district court makes specific factual findings that (i) the defendant was an organizer or leader, and (ii) the criminal activity involved five or more participants, or was otherwise extensive. United States v. Escotto, 121 F.3d 81, 85 (2d Cir.1997). See generally United States v. Beaulieau, 959 F.2d 375, 379-80 (2d Cir.1992) (Whether a defendant is considered a leader depends upon the degree of discretion exercised by him, the nature and degree of his participation in planning or organizing the offense, and the degree of control and authority exercised over the other members of the conspiracy.). 74 In this case, the district court rejected Szur's arguments against the upward adjustments based on Szur's role in the fraud, and imposed the four-level increase prescribed by § 3B1.1(a). It is not disputed that more than five participants were involved in the fraud activity, and the district court found at sentencing that Szur acted in a leadership role: 75 He [Szur] and Slutsky conceived the scheme and he was to receive half of the proceeds of the sale of the U.S. Asset stock. It was from his share of the proceeds that the others who sold stock from the other offices were paid. Mr. Szur was involved in the recruitment of others to sell the U.S. Asset stock and the stock was sold from the offices of Mr. Szur's firm. Mr. Szur recruited defendants Weinstein and Gold as well as [another co-defendant]. Mr. Szur plainly approved the opening of each of the offices and oversaw the sale of the U.S. Asset stock. Mr. Szur was the owner of the firm and active participant in the scheme, ultimately responsible for the control of the branch offices and a principal beneficiary of the crime through the expansion of his firm. He plainly qualifies as an organizer and leader of the criminal activity. 76 The district court's findings are supported by the trial record. Thus, the enhancement under § 3B1.1(a) was not error. 77 We likewise reject Szur's argument that the district court erred in imposing a two-level upward adjustment under § 3B1.1(c) 10 for a leadership role in the money laundering activity. At sentencing, the district court made the following findings: 78 It was Mr. Szur who was responsible for instructing Mr. Slutsky and M[s]. Lakin how the transfers were to be made, and he explained that the funds were not to be paid directly to J.S. Securities, but to other accounts as he directed.... Mr. Szur, therefore, was the leader of this money laundering activity. 79 Again, the district court's factual findings with respect to Szur's role in the money laundering offenses are fully supported by the trial record. We therefore affirm Szur's two-level enhancement under § 3B1.1(c).
80 Finally, Szur argues that his sentence violates the Supreme Court's holding in Apprendi v. New Jersey, 530 U.S. 466, 120 S.Ct. 2348, 147 L.Ed.2d 435 (2000). Szur argues that, under Apprendi, the district court was not permitted to make the following increases to his total offense level under the Guidelines: (1) a thirteen-level increase under the fraud guideline based on the amount of the fraud; (2) a four-level increase for his leadership role in the fraud offenses; (3) a one-level increase on the money laundering counts based on the amount of money laundered; and (4) a two-level increase for his role in the money laundering offenses. We disagree. 81 In Apprendi, the Supreme Court held that [o]ther than the fact of a prior conviction, any fact that increases the penalty for a crime beyond the prescribed statutory maximum must be submitted to a jury, and proved beyond a reasonable doubt. Id. at 490, 120 S.Ct. 2348. On the conspiracy, wire fraud, and Travel Act charges, Szur was exposed to a maximum sentence of five years for each count. See 18 U.S.C. §§ 371, 1343, and 1952(a)(3). On the falsification of books and records counts, the maximum possible sentence was ten years per count. See 15 U.S.C. § 78ff. For money laundering, 18 U.S.C. § 1956 provides for a maximum sentence of twenty years. 82 Szur was sentenced to 70 months' imprisonment, which, although greater than the statutory maxima he faced on some counts, did not exceed the twenty-year statutory maximum he could have received on the money laundering counts. Thus, his Apprendi claim is wholly without merit. See United States v. Thomas, 274 F.3d 655, 664 (2d Cir.2001) (en banc) (The constitutional rule of Apprendi does not apply where the sentence imposed is not greater than the prescribed statutory maximum for the offense of conviction.); see also United States v. Rivera, 282 F.3d 74, 76-77 (2d Cir.2002) (per curiam) (holding that courts are to proceed on a count-by-count basis [i]n assessing whether a defendant has received an impermissible sentence under Apprendi ). 83