Opinion ID: 682433
Heading Depth: 1
Heading Rank: 4

Heading: Hobbs Act & Interstate Commerce

Text: 23 Defendants next challenge the sufficiency of the evidence to support their conviction for violating the Hobbs Act, 18 U.S.C. Sec. 1951(a). In full, Sec. 1951(a) provides: 24 Whoever in any way or degree obstructs, delays, or affects commerce or the movement of any article or commodity in commerce, by robbery or extortion or attempts or conspires to do so, or commits or threatens physical violence to any person or property in furtherance of a plan or purpose to do anything in violation of this section shall be fined not more than $10,000 or imprisoned not more than twenty years, or both. 25 18 U.S.C. Sec. 1951(a) (emphasis added). Defendants contend the evidence was insufficient to establish the required connection of their criminal conduct to interstate commerce. Because the Hobbs Act has been interpreted to reach the outer limit of the Commerce Clause, Stirone v. United States, 361 U.S. 212, 215, 80 S.Ct. 270, 272, 4 L.Ed.2d 252 (1960), evidence indicating Defendants' conduct had a realistic probability, or potential, of affecting interstate commerce, even if no actual effect occurred, is sufficient to support their conviction. United States v. Heidecke, 900 F.2d 1155, 1164 (7th Cir.1990); United States v. Rindone, 631 F.2d 491 (7th Cir.1980). Being essentially an attack on the sufficiency of the evidence to prove the elements of the crime, so long as sufficient evidence was presented from which any rational fact-finder could find this element of the crime satisfied, the conviction must be upheld. United States v. Campbell, 985 F.2d 341, 344 (7th Cir.1993). 26 The parties stipulated that Gerodemos' Indiana restaurant (Mr. G's) was supplied natural gas from outside Indiana. Evidence adduced at trial, viewed in the light most favorable to the Government, United States v. Jean, 25 F.3d 588, 595 (7th Cir.1994), indicated Gerodemos and another gentleman named Arnie Bard oversaw illegal gambling at Mr. G's. Taped phone conversations between Morgano and Nuzzo were introduced, indicating Defendants attempt to extort street tax from both Bard and Gerodemos. If Gerodemos paid any portion of the tax, as the evidence suggests and rationally implies, the interstate commerce requirement of the Hobbs Act is surely satisfied under the so-called depletion of assets theory. This theory provides that commerce is affected when an enterprise, which neither is actively engaged in interstate commerce or customarily purchases items in interstate commerce, has its assets depleted through extortion, thereby curtailing the victim's potential as a purchaser of such goods. United States v. Elders, 569 F.2d 1020, 1025 (7th Cir.1978). See also United States v. Hocking, 860 F.2d 769, 777 (7th Cir.1988) (The fact that a business-firm victim of extortion or attempted extortion purchases supplies that are manufactured or otherwise originate from out of state ... is sufficient proof of a nexus to interstate commerce to trigger a jury finding of a Hobbs Act violation under the depletion of assets theory.), partially rev'd on other grounds, United States v. Levy, 955 F.2d 1098, 1103-04 n. 5 (7th Cir.1992). Because any money Gerodemos paid for street tax reduced the money available to purchase out-of-state natural gas, interstate commerce would be sufficiently affected to satisfy the Hobbs Act. United States v. Boulahanis, 677 F.2d 586, 590 (7th Cir.1982), cert. denied, 459 U.S. 1016, 103 S.Ct. 375, 74 L.Ed.2d 509 (1982) (interstate commerce requirement satisfied because social club paying extortion had less funds from which to purchase usual $68 per month of out-of-state coffee); United States v. Shields, 999 F.2d 1090, 1098 (7th Cir.1993) (lawyers' paying of bribes satisfied interstate commerce requirement because depleted money otherwise available to purchase law supplies from outside state); United States v. Murphy, 768 F.2d 1518, 1530-31 (7th Cir.1985), cert. denied, 475 U.S. 1012, 106 S.Ct. 1188, 89 L.Ed.2d 304 (1986) (same). 27 Defendants disagree that the evidence proved Gerodemos paid any street tax, however, and instead argue that the evidence indicated Gerodemos' partner (Arnie Bard) made all the payments. If so, say Defendants, their conduct had no effect on Gerodemos and thus neither his restaurant nor interstate commerce. We can accept Defendants' view of the evidence, which is not totally without support in the record, and still conclude that the interstate commerce requirement of the Hobbs Act was satisfied. For even if Bard rather than Gerodemos paid the street tax, the evidence clearly indicated that Guzzino, Nuzzo and Morgano attempted to collect money from Gerodemos and, on numerous occasions, threatened him if payment was not made. Attempts to obstruct, delay, or affect commerce coupled with threats, even if unsuccessful and never resulting in the illegal extraction of money, sufficiently affect commerce to satisfy the Hobbs Act. United States v. Cole, 984 F.2d 221, 223 (7th Cir.), cert. denied, --- U.S. ----, 113 S.Ct. 2983, 125 L.Ed.2d 679 (1993). See also Rindone, 631 F.2d at 494 (stating Hobbs Act jurisdiction is satisfied by an implied, even unrealizable, threat to affect the future business operations of the victim if the extortionate demand is not met.). The mere fact Gerodemos was threatened, even if never resulting in actual payment of money to the Defendants, sufficiently affects commerce to satisfy the Hobbs Act. Because ample evidence in the record exists from which the jury could reasonably have found a threat to extort money, if not even a completed extortion, which if acted upon would deplete Gerodemos' assets, the evidence was sufficient to sustain the Hobbs Act interstate commerce element and the convictions are valid.