Opinion ID: 474866
Heading Depth: 2
Heading Rank: 2

Heading: FNCF Business Records

Text: 13 Defendant's next argument is that the district court erred in admitting into evidence certain records seized from FNCF offices. The documents in question included transaction statements (the documents FNCF sent to customers confirming orders), trade tickets CF forms reflecting a customer's order,advertising materials, copies of cancelled checks, client files (documents on which FNCF retained data regarding customers , correspondence, and client account agreements. 14 The government argues that these documents were admissible under two theories. The government argues first that the documents were not offered for the truth of the matters asserted and, thus, were not hearsay under Rule 801(c). Alternatively, the government argues that if the records were hearsay, they were admissible under the business records exception set out in Rule 803(6). The district court admitted the records under Rule 803(6).
15 Defendant's attack on the district court's conclusion is twofold. First, defendant points out that in order to lay the requisite foundation for the evidence to be admissible under Rule 803(6), the government relied in part on the testimony of an FBI agent. Defendant asserts that the use of this testimony was impermissible because the agent was not ... the proper custodian of the record as contemplated by Rule 803(6). To support his argument, defendant relies heavily on Calhoun v. Baylor, 646 F.2d 1158 (6th Cir.1981), where, in affirming the district court's exclusion of evidence, we stated: Rule 803(6) is inapplicable because the witness ... played no role in the creation or compilation of the records and was therefore in no position to attest to their reliability. 646 F.2d at 1162. From that, defendant argues that in this circuit only those individuals who play a role in the creation or compilation of records can be used to lay the requisite foundation under Rule 803(6). While this argument is not without some appeal, we are unable to accept it. 16 To accept defendant's interpretation of the passing statement in Calhoun would put this circuit at odds with every other circuit and commentator known by this court to have addressed the issue. Similarly, for us to have held in Calhoun that only those who play a role in the creation or compilation of records can testify to lay the foundation would have required us to overrule our earlier holding in United States v. Reese, 568 F.2d 1246 (6th Cir.1977). In Reese, the authenticating witness did not have control over or a personal knowledge of the evidence contained in the record at issue. Nevertheless, we held that the records in question were admissible since the employee had knowledge of the [business'] regular practice[s]. 568 F.2d at 1252. See also United States v. Wables, 731 F.2d 440, 449 (7th Cir.1984) (citing Reese to support the holding that [t]he witness [used to lay the foundation] need only have knowledge of the procedures under which the records were created.). 17 Thus, contrary to defendant's argument, there is no reason why a proper foundation for application of Rule 803(6) cannot be laid, in part or in whole, by the testimony of a government agent or other person outside the organization whose records are sought to be admitted. When a witness is used to lay the foundation for admitting records under Rule 803(6), all that is required is that the witness be familiar with the record keeping system. See Wallace Motor Sales, Inc. v. American Motors Sales Corp., 780 F.2d 1049, 1061 (1st Cir.1985); Wables, 731 F.2d at 449; NLRB v. First Termite Control Co., 646 F.2d 424, 427 (9th Cir.1981); Elizarraras v. Bank of El Paso, 631 F.2d 366 (5th Cir.1980); Reese, 568 F.2d at 1252; 4 J. Weinstein & M. Berger, Weinstein's Evidence p 803(6), at 803-178 (1985) (The phrase 'other qualified witness' should be given the broadest interpretation; he need not be an employee of the entity so long as he understands the system.). 18 In urging that the district court erred, defendant's second argument is that the records should not have been admitted because they were untrustworthy and inaccurate. Rule 803(6) expressly provides that evidence otherwise admissible under Rule 803(6) is to be excluded if the source of information or the method or circumstances of preparation indicate lack of trustworthiness. On the issue of trustworthiness, as with other evidentiary holdings, the trial court is given great latitude. Mississippi River Grain Elevator, Inc. v. Bartlett & Co., Grain, 659 F.2d 1314, 1319 (5th Cir.1981). Thus, on review, we will reverse the district court's decision only if we find a clear abuse of discretion. See, e.g., State Office Systems, Inc. v. Olivetti Corp., 762 F.2d 843, 845 (10th Cir.1985); Guest v. Bailes, 448 F.2d 433, 437 (6th Cir.1971). 19 Deference to the district court's evidentiary ruling is particularly appropriate when, as here, the question of admissibility is close, and the district court has exercised its discretion in favor of admitting the evidence. It is well established that federal law favors the admission of evidence which has any probative value at all. See, e.g., Brooks v. Chrysler Corp., 786 F.2d 1191, 1198 (D.C.Cir.1986); United States v. 1,291.83 Acres of Land, 411 F.2d 1081, 1086 (6th Cir.1969) (pre Federal Rules of Evidence case). This principle is applicable in civil and criminal cases, see, e.g., Young v. Illinois Central Gulf R.R., 618 F.2d 332, 337 (5th Cir.1980) (civil); United States v. Carranco, 551 F.2d 1197, 1200 (10th Cir.1977) (criminal); and has been applied by several courts in dealing with Rule 803(6), see, e.g., Ollag Construction Equipment Corp. v. Goldman, 665 F.2d 43, 46 (2d Cir.1981); United States v. Holladay, 566 F.2d 1018, 1020 (5th Cir.), cert. denied, 439 U.S. 831, 99 S.Ct. 108, 58 L.Ed.2d 125 (1978); United States v. Carranco, 551 F.2d at 1200. 20 In his argument on this issue, defendant asserts that the district court erred in admitting the record in question because in closing argument the government took the position that defendant's poor record keeping practices were indicative of his intent to defraud customers. The government's argument was based on the absence of records rather than the unreliability of the records which were recovered. The fact that records were missing or unavailable does not evidence a clear abuse of discretion in the district court's finding that the records were trustworthy. Instead, it is an argument which best goes to the weight to be given that evidence. Once a foundation is laid, in the absence of specific and credible evidence of untrustworthiness, the proper approach is to admit the evidence and permit the jury to determine the weight to be given the records. Accord Wallace Motor Sales, Inc. v. American Motors Sales Corp., 780 F.2d at 1061; United States v. Panza, 750 F.2d 1141, 1150 (2d Cir.1984); see also 4 J. Weinstein & M. Berger, Weinstein's Evidence p 803(6), at 803-211 (The jury's function should not be reduced by excluding relevant evidence unless the court is reasonably assured that the result of the litigation will be less reliable if the evidence is revealed to the jury.)
21 Our conclusion that the district court's admission of this evidence is not reversible error is supported by a second, independent reason; that is, we accept the government's argument that the records were not offered for the truth of the matter asserted and thus were not hearsay. Fed.R.Evid. 801(c). In addressing the question of whether the documents at issue were hearsay, we begin by determining what the evidence offered to prove. 22 In the instant case, the government relied heavily on defendant's mere possession of the records. For example, in closing argument the government reminded the jury of evidence relating to a specific transaction. The government noted that, according to trial testimony, on one occasion a customer was informed that FNCF did not have certain records. However, noting that the records which are now at issue had been seized during the search, the government argued that defendant did indeed have records he had earlier denied that he possessed. During closing argument, the government urged the conclusion that defendant lied to customers when, as a reason for not returning funds, he said that he did not possess the records. If the jury accepted the government's evidence that (1) the records were in defendant's possession, and (2) that, as a reason for not returning the funds, defendant told customers that the records no longer existed at his place of business, it could find that defendant intended to defraud those customers. Since this finding would not be contingent on the truth of the matters asserted in the documents, the documents were not hearsay. See, e.g., United States v. Anello, 765 F.2d 253, 261 (1st Cir.) (handwritten messages discovered in wastebasket in business of one conspirator not hearsay when offered to establish conspirators' knowledge of each other), cert. denied, --- U.S. ----, 106 S.Ct. 411, 88 L.Ed.2d 361 (1985); United States v. Arrington, 618 F.2d 1119, 1126 (5th Cir.1980) (utility bills not hearsay when offered to prove residence of defendant in house searched), cert. denied, 449 U.S. 1086, 101 S.Ct. 876, 66 L.Ed.2d 812 (1981); United States v. Mejias, 552 F.2d 435, 446 (2d Cir.) (hotel receipt, luggage invoice, and travel agency business card admissible when offered to establish connection between defendant and motel where drug transactions had occurred), cert. denied, 434 U.S. 847, 98 S.Ct. 154, 54 L.Ed.2d 115 (1977). 23 We therefore affirm the district court's admission of this evidence for two independent reasons. First, we hold that the records were admissible under Rule 803(6). Second, we hold that the evidence was not hearsay as defined by Rule 801(c). 24