Opinion ID: 201379
Heading Depth: 2
Heading Rank: 4

Heading: Miscellaneous Assignments of Error.

Text: 43 There are two other issues lurking at the periphery of these appeals: both defendants argue that the district court incorrectly instructed the jury on the bank fraud count and Mrs. Moran urges that the prosecutors' summation misstated both the facts and the law. Before addressing these issues, we turn to a threshold question: are these claims of error foreclosed by the defendants' failure, as appellees, to pursue them during the original appeal ( Moran I )? 44 1. Preclusion. We begin our discussion on a cautionary note: the government did not make a preclusion argument in its main appellate brief, but, rather, frontally addressed the substance of the Morans' assignments of error. We recognized the possibility of preclusion during oral argument and requested supplemental briefing on the point. The government, in its supplemental brief, has argued for preclusion — but its failure to raise the preclusion issue in a timely manner is reason enough to deem it waived. See United States v. Rodriguez-Marrero, 390 F.3d 1 (1st Cir.2004); United States v. Caraballo-Cruz, 52 F.3d 390, 393 (1st Cir.1995). 45 To be sure, we have discretion, in the interests of justice, to overlook this kind of waiver — a lack of developed argumentation — by the government in a criminal case. See, e.g., United States v. Rose, 104 F.3d 1408, 1414 (1st Cir.1997). Even were we prone to exercise that discretion here, it would not profit the government. We explain briefly. 46 In general, available claims of error not raised in an initial appeal may not be raised during subsequent appeals in the same case. See United States v. Abreu-Cabrera, 94 F.3d 47, 49 (2d Cir.1996) (explaining that appellate courts will refuse to consider trial court rulings that could have been raised on an earlier appeal); see also United States v. Ticchiarelli, 171 F.3d 24, 28-29 (1st Cir.1999). Here, however, the Morans were appellees during the first appeal. That juxtaposition may make a material difference where, as here, the judgment from which an appeal is taken is entirely favorable to the appellee and that party, after losing the appeal, then seeks to raise a new issue during a later appeal of an unfavorable judgment. See, e.g., Laitram Corp. v. NEC Corp., 115 F.3d 947, 954 (Fed.Cir.1997); Crocker v. Piedmont Aviation, Inc., 49 F.3d 735, 740-41 (D.C.Cir.1995). Absent a cross-appeal, an appellee can only raise arguments in support of the judgment during the course of an appeal. United States v. Am. Ry. Express Co., 265 U.S. 425, 435-36, 44 S.Ct. 560, 68 L.Ed. 1087 (1924); Martin v. Tango's Restaurant, Inc., 969 F.2d 1319, 1325 (1st Cir.1992). A cross-appeal normally is improper when taken by a defendant from a favorable judgment, Field v. Mans, 157 F.3d 35, 41 (1st Cir.1998), and arguably impermissible when taken by a defendant from a judgment of acquittal in a criminal case. See United States v. Boyd, 958 F.2d 247, 250 (8th Cir.1992); United States v. Williams, 679 F.2d 504, 507 (5th Cir.1982). 47 Given these authorities, we need not decide definitively whether a cross-appeal might have been permitted in connection with the government's earlier appeal of the judgments of acquittal. When an appellee fails to contest a point that is irrelevant unless the main appeal results in reversal or remand, this court, even if a cross-appeal theoretically might have been possible, has been reluctant to find preclusion. See Field, 157 F.3d at 41-42 (abjuring preclusion based solely on a failure to file a procedurally dubious cross-appeal relating to what might [originally] have seemed an entirely redundant point). 48 Let us be perfectly clear. There are times when even an appellee who is defending an entirely favorable judgment must either raise an error purportedly committed by the district court or waive it. Typically, however, this occurs when correction of the error would provide either an alternate or an additional basis for affirmance of a favorable judgment. See, e.g., Schering Corp. v. Ill. Antibiotics Co., 89 F.3d 357, 358-59 (7th Cir.1996). That is not the situation here: the defendants' newly asserted assignments of error — an ostensible flaw in the jury instructions and allegations of prosecutorial misconduct — are claims of legal error which, if sustained, would lead only to a retrial, not to an acquittal. Thus, even apart from the government's waiver, we would likely deem the defendants free to raise the assigned errors for the first time in this proceeding. 49 2. Jury Instructions. We turn next to the jury instructions. The defendants contend that the district court improperly charged the jury on the elements of bank fraud. We examine that contention. 50 The federal bank fraud statute provides in pertinent part: 51 Whoever knowingly executes, or attempts to execute, a scheme or artifice — 52 (1) to defraud a financial institution; or 53 (2) to obtain any of the moneys, funds, credits, assets, securities, or other property owned by, or under the custody or control of, a financial institution, by means of false or fraudulent pretenses, representations, or promises; 54 shall be [punished as provided]. 55 18 U.S.C. § 1344. The Supreme Court has glossed this language, stating that any scheme to defraud a financial institution must employ material falsehoods. Neder v. United States, 527 U.S. 1, 20, 119 S.Ct. 1827, 144 L.Ed.2d 35 (1999) (emphasis omitted). 56 In this case, the lower court instructed the jury, without objection, that it could base a guilty verdict on either subsection (1) or (2), and then explicated each subsection. With regard to section 1344(1), the court defined a scheme to defraud without specifying that the prevarications embodied in the scheme had to be materially false. The court did, however, indicate the necessity of finding material falsehood with regard to section 1344(2)'s obtaining money by false pretenses prong. 57 During oral argument in this court, the government conceded that the district court's section 1344(1) instruction was erroneous for this reason. See United States v. Benjamin, 252 F.3d 1, 6 (1st Cir.2001); United States v. Colon-Munoz, 192 F.3d 210, 221 (1st Cir.1999). It pointed out, however, that neither of the defendants had objected to the instruction during the time frame specified in Fed.R.Crim.P. 30(d) (requiring that objections to jury instructions be made after the judge has charged the jury, but before the jury retires to deliberate). 7 Under these circumstances, our review is limited to plain error. See Fed.R.Crim.P. 30(d), 52(b); see also United States v. Olano, 507 U.S. 725, 731-32, 113 S.Ct. 1770, 123 L.Ed.2d 508 (1993). 58 A party undertaking the rigors of plain error review must carry a heavy burden. Under that regime, an appealing defendant must demonstrate: (1) that an error occurred (2) which was clear or obvious and which not only (3) affected the defendant's substantial rights, but also (4) seriously impaired the fairness, integrity, or public reputation of judicial proceedings. United States v. Duarte, 246 F.3d 56, 60 (1st Cir.2001). Even then, the reviewing court may, but is not required to, rectify the situation. Olano, 507 U.S. at 735-36, 113 S.Ct. 1770. The net result is that plain error review tends to afford relief to appellants only for blockbuster[] errors. United States v. Griffin, 818 F.2d 97, 100 (1st Cir.1987). 59 In this instance, the first two prongs of the test are satisfied. The defendants stumble, however, over the third prong. The assigned error did not affect their substantial rights: the defendants do not and cannot show that the inclusion of an additional materiality instruction had any effect at all on the trial or its outcome. 60 Materiality requires only that a false or omitted statement have a natural tendency to influence, or is capable of influencing, the decision of the decisionmaking body to which it was addressed. Neder, 527 U.S. at 16, 119 S.Ct. 1827 (brackets and internal quotation marks omitted). This court already has noted that the materiality of the falsehoods inherent in the defendants' scheme to defraud was evident. See Moran I, 312 F.3d at 491 & n. 13 (concluding that the bank might well have acted differently had it known of the defendants' interests); see also id. at 496 (Boudin, C.J., concurring) (finding unpersuasive Mrs. Moran's non-materiality argument). On the basis of this record, there is simply no justification for upsetting the verdict on this ground. See Neder, 527 U.S. at 19-20, 119 S.Ct. 1827 (holding failure to instruct on materiality harmless when record contains no evidence that could rationally lead to a contrary finding); United States v. Blastos, 258 F.3d 25, 29 (1st Cir.2001) (same). 61 3. The Summation. The prosecution's closing argument was given by two individuals and in two parts, bracketing the defendants' summations. Mrs. Moran asserts that this bifurcated closing argument so tainted the trial as to deny her due process. This assertion rests on four separate statements attributable to members of the prosecution team. 62 Mrs. Moran maintains that the first two statements misstated the facts. During the initial phase of his summation, one prosecutor said: 63 If you go to Exhibit number 43, minutes of the Board of Directors, January of '87, Nora Moran is present. It talks about how the activities of the Executive Committee are brought up for presentation and the summarization by Mr. Murray. There was testimony they would be summarized, the individual loans might be talked about, they would be brought forth for review and approval. And the records affirmatively show Nora Moran was there that day. She voted in favor of the loan, her loan, involving Puente and Boersner and their finances and made no dissent, no abstention, no disclosure. 64 Another prosecutor made essentially the same comment during the rebuttal phase of the summation. We treat these two statements together. Inasmuch as the defense did not interpose a contemporaneous objection on either occasion, we review only for plain error. See Griffin, 818 F.2d at 99-100. 65 We discern no plain error. The evidence supported a reasonable inference that First American's board of directors voted on the Puente/Boersner loans. The evidence showed that the executive committee approved the loans in December; that the committee's custom and practice was to transmit a complete list of its approved loans to the board; that the board typically would consider, and vote on, the approved loans at the next month's board meeting; and that Mrs. Moran attended that meeting (held in January of 1987). No more was exigible to allow the argument to be proffered. 66 Mrs. Moran suggests that these statements were improper based on the observations subsequently made by the district court in support of its entry of judgment of acquittal. In that decision, the court opined that, even had Mrs. Moran voted on the Puente/Boersner loans, the most that could be said was that she had voted to accept a summary report rather than to ratify or approve those particular loans (as the bank, by the time of the vote, already had committed, and largely disbursed, the funds). 67 Mrs. Moran's suggestion is a non-sequitur. At the close of the evidence, the court allowed the case to go to the jury on a primary theory of liability having two strains — a voting theory and a non-disclosure theory — and a less prominent aiding and abetting theory. Moran I, 312 F.3d at 492 & n. 14. This court found the voting theory insufficiently proven, but found the evidence adequate to support the verdict on both the non-disclosure theory and the aiding and abetting theory. Id. at 492-93. Given this posture of the case, Mrs. Moran's challenge lacks bite. 68 It is common ground that when disjunctive theories are submitted to the jury and the jury renders a general verdict of guilty ... as long as there was sufficient evidence to support one of the theories presented, then the verdict should be affirmed. United States v. Garcia, 992 F.2d 409, 416 (2d Cir.1993) (citing Griffin v. United States, 502 U.S. 46, 49-51, 55-60, 112 S.Ct. 466, 116 L.Ed.2d 371 (1991)). If it does not offend due process to affirm a conviction even though one of several charged theories of guilt had an insufficient evidentiary predicate, see Griffin, 502 U.S. at 51, 112 S.Ct. 466; United States v. Nieves-Burgos, 62 F.3d 431, 434-36 (1st Cir.1995), a fortiori, mere argument in support of that insufficient theory, fairly derived from the record, cannot violate due process. To hold otherwise would eviscerate the Griffin doctrine. 69 Mrs. Moran fares no better on the other aspect of her prosecutorial misconduct claim. This involves her insistence that the prosecutors twice misstated the law (once during the initial phase of the summation and again during the rebuttal phase) when it was said, in effect, that Mr. Moran could not make any legally exculpatory disclosures on behalf of his wife. Here, too, neither statement drew a contemporaneous objection, so appellate review is limited to plain error. See Griffin, 818 F.2d at 99-100. 70 In order to prevail under the four-part plain error regime, see Duarte, 246 F.3d at 60, Mrs. Moran's first obligation is to show that the prosecutors' statements were legally flawed. She has failed to make that showing. 71 As said, there were three routes to finding that Mrs. Moran possessed the scienter necessary to have committed bank fraud. The voting theory implicated banking regulations, uniquely applicable to Mrs. Moran in her capacity as a director of the bank, which required her to inform her fellow directors about any loans in which she had a financial interest and to disqualify herself from voting on them. The non-disclosure theory implicated Mrs. Moran's duty, as the bank's fiduciary, to report her husband's double-dealing. The aiding and abetting theory implicated her knowing assistance to her husband's fraud. Under the latter two theories, Mrs. Moran's criminal intent was premised on knowledge that her husband had breached his ethical duties to the bank. This was what attracted Chief Judge Boudin's concern. See Moran I, 312 F.3d at 494-95 (Boudin, C.J., concurring). 72 This segmentation is critical to our disposition of this aspect of Mrs. Moran's prosecutorial misconduct claim, for the context of the challenged statements makes it clear that they referred to her personal obligation under the voting theory. The prosecutor was arguing, in effect, that Mrs. Moran's obligation to the board of directors could not be deemed satisfied by her husband's alleged disclosure to Noke. This argument restated competent testimony that such a disclosure was insufficient because Noke was a subordinate employee of the bank, not a fellow director. Viewed in this light, the challenged statements can be read as positing that even if Mr. Moran had fulfilled his ethical duty, Mrs. Moran knew that she had an independent, supervening duty to First American's board and nonetheless voted on the loans with full awareness that she had not satisfied that duty. We believe that was within the ambit of permissible advocacy. 73 The worst that can be said is that this strain of argument was ambiguous; it was legally accurate as to one of the prosecution's theories of guilt, arguably inaccurate as to the others, and did not clearly differentiate among them. But context is important, and both times the prosecutor made the challenged statement, it served as the starting point of a discussion of the voting theory. We do not lightly infer that a prosecutor intends an ambiguous remark to have its most damaging meaning or that a jury, sitting through lengthy exhortation, will draw that meaning from the plethora of less damaging interpretations. United States v. Lilly, 983 F.2d 300, 307 (1st Cir.1992) (quoting Donnelly v. DeChristoforo, 416 U.S. 637, 647, 94 S.Ct. 1868, 40 L.Ed.2d 431 (1974)). We make no such inference here. Considering the context of the statements and the fact that no contemporaneous objection was lodged, we must give the prosecutor the benefit of the doubt. See United States v. Taylor, 54 F.3d 967, 979 (1st Cir.1995); Lilly, 983 F.2d at 307. 74 If more were needed — and we doubt that it is — we are satisfied that the judge's charge dispelled any possible confusion. The charge clearly differentiated among the government's three theories. It identified how the regulatory duties of Mrs. Moran, as a director, differed from the general fiduciary duties owed by both defendants, and limned the contours of the aiding and abetting theory. To cinch matters, the court explicitly instructed that if what [the attorneys] have said about the law seems to ... have a different meaning in any way from my instructions on the law, you must be guided only by my instructions. Under these circumstances, we are confident that any prejudice stemming from the challenged statements did not survive the court's charge. There was, therefore, no plain error. See Taylor, 54 F.3d at 977.