Opinion ID: 549775
Heading Depth: 3
Heading Rank: 1

Heading: Conspiracy to Commit an Offense Against the United States

Text: 13 Count 1 of the indictment charges the defendants with conspiracy to defraud or commit an offense against the United States. Defendants Robert Hopkins and Morten Hopkins were convicted of this offense. 14 To establish a conspiracy under 18 U.S.C. Sec. 371 the Government must prove that there was an agreement between two or more persons to defraud the United States or to violate a law of the United States, that one of the persons committed an overt act in furtherance of the conspiracy, and that the defendant possessed the requisite intent to further an unlawful objective of the conspiracy. United States v. Medrano, 836 F.2d 861, 863-64 (5th Cir.), cert. denied, 488 U.S. 818, 109 S.Ct. 58, 102 L.Ed.2d 36 (1988); United States v. Colwell, 764 F.2d 1070, 1072 (5th Cir.1985). The agreement necessary to establish the existence of a conspiracy can be established by circumstantial evidence: 15 [w]here the circumstances are such as to warrant a jury in finding that the conspirators had a unity of purpose or a common design and understanding, or a meeting of minds in an unlawful arrangement, the conclusion that a conspiracy is established is justified. 16 American Tobacco Co. v. United States, 328 U.S. 781, 810, 66 S.Ct. 1125, 1139, 90 L.Ed. 1575 (1946). See also United States v. Cuni, 689 F.2d 1353, 1356 (11th Cir.1982); United States v. Graves, 669 F.2d 964, 969 (5th Cir.1982). There need not be an express or formal agreement; a tacit understanding is sufficient. Ianelli v. United States, 420 U.S. 770, 777 n. 10, 95 S.Ct. 1284, 1289 n. 10, 43 L.Ed.2d 616 (1975); United States v. Martin, 790 F.2d 1215, 1219 (5th Cir.), cert. denied, 479 U.S. 868, 107 S.Ct. 231, 93 L.Ed.2d 157 (1986). 17 A rational jury could easily conclude that the evidence proved the Hopkins' agreement to violate the law. The evidence showed that the Hopkins together conducted meetings for their employees about contributing to a political action committee that Robert Hopkins had formed, that both Hopkins received copies of the by-laws of that political action committee, that both had authority to sign checks for the political action committee, that both were involved in deciding that officers of the savings and loan would be reimbursed for their contributions to the political action committee by way of pay raises and in deciding the amount of those raises, and that both contacted officers of the savings and loan to solicit political contributions which were reimbursed through false cash advances or travel vouchers. A jury could readily infer from these circumstances that Robert and Morten Hopkins shared a unity of purpose or common design to arrange and disguise indirect corporate political contributions. 18 Having presented ample proof of an agreement between the defendants, the next question is whether the Government also satisfactorily proved the defendants' intent to commit an offense against, or defraud the United States. The Supreme Court has defined this element of the crime under Sec. 371: 19 To conspire to defraud the United States means primarily to cheat the government out of property or money, but it also means to interfere with or obstruct one of its lawful governmental functions by deceit, craft or trickery, or at least by means that are dishonest. It is not necessary that the Government shall be subjected to property or pecuniary loss by the fraud, but only that its legitimate official action and purpose shall be defeated by misrepresentation [or] chicane[ry]. 20 Hammerschmidt v. United States, 265 U.S. 182, 188, 44 S.Ct. 511, 512, 68 L.Ed. 968 (1924). See also Dennis v. United States, 384 U.S. 855, 861, 86 S.Ct. 1840, 1844, 16 L.Ed.2d 973 (1966). 21 The statute is designed and intended to protect the integrity of the United States and its agencies, programs and policies. United States v. Burgin, 621 F.2d 1352, 1356 (5th Cir.), cert. denied, 449 U.S. 1015, 101 S.Ct. 574, 66 L.Ed.2d 474 (1980). See also United States v. Winkle, 587 F.2d 705, 708 (5th Cir.), cert. denied, 444 U.S. 827, 100 S.Ct. 51, 62 L.Ed.2d 34 (1979). Moreover, the evidence need not show that a conspirator had specific knowledge of the regulations, nor need it conclusively demonstrate a conspirator's state of mind; [i]t suffices to show facts and circumstances from which the jury reasonably could infer that [a conspirator] knew her conduct was unauthorized and illegal. United States v. Bordelon, 871 F.2d 491, 494 (5th Cir.), cert. denied, --- U.S. ----, 110 S.Ct. 121, 107 L.Ed.2d 82 (1989). 22 There was ample evidence tending to show that defendants Robert and Morten Hopkins knew that their conduct was illegal and unauthorized, and that they intended to interfere with the proper functioning of at least three federal agencies: the Federal Election Commission (FEC), the Federal Savings and Loan Insurance Corporation (FSLIC), and the Federal Home Loan Bank Board (FHLBB). Viewed in the light most favorable to the Government, the evidence showed that both Hopkins received documents which stated that corporate political contributions were illegal. It showed that both were active in deciding how to reimburse employees with corporate funds for their contributions. It showed that both signed forms which indicated that employees were receiving pay raises because their status had changed when in fact the employees received pay raises only so that they could contribute the money to the Hopkins' political action committee. Finally, the evidence showed that both Robert and Morten Hopkins either approved individual reimbursements for political contributions or assured officers of the corporation that they would be reimbursed. From all of this evidence a jury could reasonably infer that the Hopkins were aware that savings and loans were not allowed to make political contributions, and that the steps they took to disguise the contribu tions were designed to evade the Federal Election Commission's reporting requirements. It has long been recognized that efforts at concealment [may] be reasonably explainable only in terms of motivation to evade lawful obligations. See Ingram v. United States, 360 U.S. 672, 679, 79 S.Ct. 1314, 1320, 3 L.Ed.2d 1503 (1959). 7 23 Moreover, a rational jury could also infer from the evidence before it that the Hopkins intended to interfere with the proper functioning of the FSLIC and the FHLBB. 8 The savings and loan that was controlled by the Hopkins was insured by the FSLIC; the FSLIC was under the direction of the FHLBB. The Government introduced testimony from a federal bank examiner regarding the various regulations of savings and loans that were insured by the FSLIC. Those institutions were required to file periodic reports so that their financial health could be monitored and were required to provide bank examiners with a salary schedule so that the examiners could determine the reasonableness of compensation levels. The regulations also provided that a savings and loan could not contribute to political action committees or federal candidates. 24 From the evidence before it the jury could reasonably have inferred that the Hopkins intended to circumvent or violate all of these requirements. Both Hopkins had been bank officials for many years and both had experience with bank examinations. They used corporate funds for a purpose forbidden by both federal election laws and banking regulations. They made or caused to be made false entries in bank records as to officers' true salaries, and falsified bank records as to travel and other business expenses. All of these activities indicate either knowledge of the banking laws or a desire to avoid them, or both. 25 In sum, the Government presented ample evidence of an agreement between Robert and Morten Hopkins to interfere with the proper functioning of the FEC, the FSLIC, and the FHLBB. Accordingly, the Government adequately proved the necessary elements of the offense charged under Sec. 371. 26