Court Opinion

ID: 9452244
Source: CourtListenerOpinion
Date Created: 2023-08-04 17:34:21.949685+00
Date Added: 2024-06-11T17:33:07.961359
License: Public Domain

SWYGERT, Circuit Judge
(dissenting).
My dissent is based upon several grounds. First, a number of trial errors independently require a reversal of the convictions of all defendants. Additionally, a reversal without remand is required as to certain defendants because the Government’s proof sustained neither a single scheme to defraud the Teamsters’ Pension Fund as charged in the indictment, nor a single, overall conspiracy to violate the mail fraud statute as alleged.
My apology for the length of this dissent rests largely on the fact that the evidence as to many of the loan transactions must be discussed briefly.1 Only then does it become apparent that there was a fatal variance between the charges and the proof and that much irrelevant, prejudicial evidence was submitted to the jury. Moreover, in order to demonstrate that prejudicial trial errors occurred, certain relevant background facts must be stated. Several trial errors will be discussed first.
I.
1. The Impeachment of Hoffa by the Tennessee Conviction
In my opinion the district court committed reversible error in permitting the Government to impeach the defendant Hoffa by his conviction of jury tampering in a federal district court in Chattanooga, Tennessee.2 The impeaching evidence should not have been permitted to be used because of the Government’s ordering of the Chattanooga and Chicago indictments to create an atmosphere of prejudice against all defendants through an otherwise unrelated, factually subsequent conviction of one of them.
The indictment against the defendants in the instant case was returned on June 4, 1963,3 less than one month after Hoffa was indicted for jury tampering in Tennessee. The facts giving rise to the Tennessee charge, however, occurred sometime after those which prompted the prosecution of the present case. At the arraignment in this case in June 1963 all defendants announced that they were ready for trial and offered to waive all pretrial motions in order to obtain a speedy trial. The Government resisted all such efforts, however, stating that it wanted to try the Tennessee case first because it involved “one of the defendants” named in the indictment. The district judge acceded to the Government’s position. The Tennessee case began in January 1964, and Hoffa was convicted of jury tampering on March 4, 1964. Following Hoffa’s Tennessee conviction, all defendants moved for a continuance of the instant trial, which had been set for *717April 27, because of the fear of prejudicial publicity and the use of Hoffa’s conviction for impeachment purposes pending its appeal. These motions were also denied and the trial proceeded as scheduled.
In this manner the Government was permitted to arrange the trial date in this case so that the Tennessee case could be tried first and thereby be used for impeachment purposes even though only a single defendant was involved therein and even though that conviction was for an offense occurring subsequent to the alleged offenses being tried in the instant prosecution. In these circumstances this court should adopt the view expressed by the Pennsylvania Supreme Court in Commonwealth v. McIntyre, 417 Pa. 415, 208 A.2d 257 (1965). In treating a similar situation, that court stated:
Generally, the scheduling of criminal trials is a matter within the discretion of the Commonwealth. We are unwilling to allow opportunity for arranging the trial of cases so that a criminal record might be created where that record would not otherwise exist were the earlier offenses tried promptly.
What we here decide is that on the particular record facts and circumstances of this case the introduction of the defendant’s criminal record of crimes committed subsequent to the charge being tried was unduly prejudicial and unfair. This requires that the conviction be set aside and that a new trial be had. Especially is this so because, in this instance, the prejudice created by the introduction of the subsequent criminal record far outweighed the Commonwealth’s need in the trial of the case, as an evidentiary circumstance, to impeach defendant’s credibility by use of these particular records.
If for some compelling reason the local trial calendar or the orderly administration of criminal justice is better served by trying a subsequent offense first, then a criminal record so created should not be admissible against a defendant in his later trial, * * * 208 A.2d at 261.
Furthermore, there was no waiver by Hoffa’s counsel of an objection to the impeaching testimony. The question of its admissibility was raised both at a pretrial hearing and during the trial in advance of Hoffa’s testimony, when the district judge was asked whether he would permit the disclosure of the Tennessee conviction. The record permits no doubt that its admissibility was challenged on both occasions. The Government objected to a ruling in advance of Hoffa’s taking the stand.4 The judge, however, ruled that he would allow the impeaching question to be asked and answered even though the Tennessee conviction was pending on appeal. Given this ruling, it is understandable from the standpoint of defense trial strategy that no formal objection to the impeaching question was raised when it was put to the witness before the jury and that Hoffa’s counsel argued as he did in reference to the Tennessee conviction in his summation. Once an objection is unqualifiedly interposed, there is no requirement that it be renewed at the risk of waiver.
2. The Letters Used to Impeach Dranow
The defendant Benjamin Dranow testified in his own behalf. At the time of the trial he was under sentence in a federal prison for convictions of mail fraud, income tax evasion, and bail-jumping. His competency had been challenged during the voir dire examination after the district judge disclosed that he had received a long, rambling, and rather incomprehensible telegram from Dranow. During the trial Dranow made frequent outbursts and had many verbal clashes with the judge, the attorneys, the mar*718shals, and even spectators. As a witness he was vulgar and boisterous.5 Repeated defense motions for a mistrial or a severance from Dranow were denied.
During Dranow’s cross-examination, the prosecutor inquired:
Mr. Dranow, did you ever write a letter to S. George Burris in which you told him, “Everything can be blamed on me, and everything that could be put on to me to protect others should be blamed on me. But don’t let that affect your feelings toward me in any way whatsoever.”
Defense counsel objected. The judge overruled the objection with the statement that if the question were answered, it must be “followed up.” The prosecutor assured the court that this would be done. After further objection that the communication inquired about was “after the alleged offense,” the court instructed the jury to consider the matter only as to Dranow for the purpose of impeachment. Motions for a mistrial and a hearing outside the presence of the jury were denied. Dranow, after being shown the letter, which was undated, admitted it was in his handwriting, but said he did not know when he sent it or to whom it was written.6
Dranow was then asked:
Did you write a letter, Mr. Dranow, saying: “I want the following amounts put away for me from each of the following persons each day. I want all this money put in one spot where it will be picked up four or five times a year and enable me to pay for the new place and business: a. The California buildings, $10 per day; b. George Burris, Irving ask George, $10 per day; c. Sam Hyman, George, ask Sam $10 per day; d. Cal Kovens, George ask Cal, $10 per day; e. Glen Hillbom Fashion Mart Building, George ask Glen, $5 per day; f. Lou Gladstone, Milton talk to Lou, $15 per day.” Did you write that, sir?
Objections to this question and motions for severance were again overruled, and the judge again limited the evidence to Dranow. Dranow replied that the letter was in his handwriting, but that he didn’t recall the details of when he had written it or whether it had been delivered to Irving Link.
Irving Link, who had testified during the Government’s case-in-chief, was later recalled as a rebuttal witness. Link testified that Dranow told him in September 1962 that there would be mail addressed to a friend of Dranow’s, Buck Traub, which was meant for Link. Link said that a letter, thus addressed, later proved to contain the two letters about which Dranow was questioned.
Subsequently, the judge refused to admit the letters into evidence. He referred to the prejudicial nature of the letters, noted that an “inference” could be drawn that they referred to Dranow’s other prosecutions, and also commented that “weighing the dangers against the benefits, I am going to protect this record.” Later the judge instructed the jury to disregard the testimony of both Dranow and Link in regard to the letters.7
*719If the communications just discussed were relevant at all, a conclusion subject to considerable doubt, they were admissible only to impeach Dranow.8 Indeed the trial judge so recognized, at all times attempting to limit consideration of the letters by the jury to that defendant. The majority opinion assumes without discussion that the admissibility of these communications against Dranow, attended by cautionary instructions to the jury, effectively disposes of the other defendants’ objections. The possible relevance of the documents to the impeachment of Dranow, however, is not determinative of the most important question raised. The crucial question is whether the disclosure of the contents of the letters was so prejudicial to the other defendants that the prejudice could not be cured by the final exclusion of the letters from the evidence, that is, whether the other defendants were entitled to a severance from Dranow because of the prejudice so injected by the prosecutor.
There is only one answer to this question. The letters were inherently prejudicial to all defendants. Together they conveyed a strong inference of guilt of all; as to those named in the second letter, the inference was inescapable that they were guilty of some misconduct for which they could be blackmailed for an indefinite period of time. Asking a jury to compartmentalize or disregard such evidence was an impossible task.9 There can be little doubt that the prosecutor’s efforts to impeach Dranow in this manner were in fact attempts to inject highly inflammatory material into the case prejudicial to all the defendants. The courts have consistently held that the harm thus created cannot be undone by instructions from the trial court. United States v. Clarke, 343 F.2d 90 (3d Cir. 1965); Scott v. United States, 263 F.2d 398 (5th Cir. 1959); Holt v. United States, 94 F.2d 90 (10th Cir. 1937).
In this circuit, in United States v. Haupt, 136 F.2d 661 (7th Cir. 1943), statements tending to incriminate not only the defendants who made them but also other defendants were admitted only against the defendants who made them, under instructions from the court. We held there that such efforts to limit the evidence to the individual declarants were ineffectual and that the trial court erred in denying the various defendants’ motions for a severance. We stated:
A reading of these statements, however, leaves no room for doubt but that they were damaging not only as to the defendants against whom offered but as to all others. We doubt if it was within the realm of possibility for this jury to limit its consideration of the damaging effect of such statements merely to the defendant against whom they were admitted. We have equal doubt that any jury, or for that matter any court, could perform such a herculean feat. * * *
We are unaware of any procedure which the trial court could have devised, other than a severance, by which these incriminating statements could have been introduced against the defendants making them, without seriously prejudicing the rights of other defendants. Id. at 672.
*720The defendants’ motions for severance from Dranow should have been granted.
3. Communication with the Jury in the Absence of the Defendants
Another trial error concerns a communication by the judge with the jury in the absence of the defendants and their counsel, after the jury had retired to deliberate upon its verdicts.
During the discussion over requested instructions between the district judge and counsel, the judge indicated that he proposed to read the indictment to the jury, but that he did not intend to send a copy of it to the jury room. The defendants did not object to a reading of the indictment, but suggested that certain portions upon which evidence had not been offered be omitted. The judge nevertheless indicated that he intended to read the entire indictment. During his charge, however, he did not read the entire indictment; he omitted certain of the portions to which the defendants had voiced objection and also omitted the allegations contained in seven counts, advising the jury that these counts had been dismissed.
After the jury returned its verdicts, defense counsel inquired whether the jury had a copy of the indictment in its possession during its deliberations. The judge informed them that the jury had in fact been given a copy. It was later disclosed through the testimony of the deputy marshal in charge of the jury that he had received a sealed communication from the jury during the course of its deliberations which he delivered to the judge. On one of the two pages in this note, the following appeared:
1 Document of all counts
2 “ of law on all counts
3 “ of overt acts named
Please return
The second page contained the signature of each member of the jury. It was also disclosed that upon receiving this communication, the judge directed the deputy marshal to deliver the indictment to the jurors and to tell them that “they could have this and nothing more.” Neither Government or defense counsel nor the defendants were notified of this request from the jury, nor were they informed of the judge’s action in response to it, despite the fact that the judge had expressly stated that such notice would be given.10
The action of the district judge in sending the indictment to the jury room without notifying counsel and in communicating with the jury through the deputy marshal out of the presence of the defendants and their counsel was a violation of the defendants’ rights under the sixth amendment, as well as a violation of Rule 43 of the Federal Rules of Criminal Procedure. The decisions in which conduct similar to that condoned by the majority has been condemned are legion. E. g., Shields v. United States, 273 U.S. 583, 47 S.Ct. 478, 71 L.Ed. 787 (1927); Rice v. United States, 356 F.2d 709 (8th Cir. 1966); United States v. Neal, 320 F. 2d 533 (3d Cir. 1963); Jones v. United States, 113 U.S.App.D.C. 352, 308 F.2d 307 (1962); Evans v. United States, 284 F.2d 393 (6th Cir. 1960) ; Little v. United States, 73 F.2d 861 (10th Cir. 1934).
A defendant’s right to be present at all stages of a criminal trial includes the right to be present on those occasions when the judge communicates with the jury during its deliberations on any important matter. “Private communications, even though harmless in themselves, may open the way to abuses and may destroy confidence in legal procedure and the judiciary. Therefore, it is improper for the judge to hold any impor*721tant communication with the jury concerning the case unless openly and with opportunity to the accused to be present and to object and to take exceptions.” Ray v. United States, 114 F.2d 508 (8th Cir.), cert. denied, 311 U.S. 709, 61 S.Ct. 318, 85 L.Ed. 461 (1940).
The majority opinion dwells upon the assistance which the jury may have derived from the indictment in identifying the substantive charges against each defendant, and adverts to the unquestioned rule that a jury may be entitled to have the indictment during its deliberations, citing United States v. Press, 336 F.2d 1003 (2d Cir. 1964), cert. denied, 379 U.S. 965, 85 S.Ct. 658, 13 L.Ed.2d 559 (1965). These observations are irrelevant. The point which the majority fails to emphasize is that the indictment was transmitted to the jury in response to a request which was ambiguous at best, and was accompanied by an oral communication through the marshal that no more information would be furnished — without notice to the defendants and their counsel and without an opportunity to be present to offer comments or objections. This was plain error.
Although the majority does not recognize the judge’s action as error, it does acknowledge that it was “not good practice” for the judge “to have sent the brief message and the indictment” to the jury in the absence of the defendants and their counsel. The majority then concludes that the defendants were not prejudiced thereby. The fault with this conclusion is twofold. First, it is doubtful that a showing of prejudice was required, since the error committed was of constitutional proportions. Shields v. United States, supra; Arrington v. Robertson, 114 F.2d 821 (3d Cir. 1940). In any event, in all the decisions involving communications between court and jury in the absence of defendants, prejudice is strongly presumed and the burden is upon the Government to produce evidence showing that no prejudice resulted. Rice v. United States, supra; Little v. United States, supra. In Walker v. United States, 116 U.S.App.D.C. 221, 322 F.2d 434, 436 (1963), cited by the majority, the court said that “we cannot let [the defendant’s] conviction stand ‘unless the record completely negatives any reasonable possibility of prejudice’ to him arising from the judge’s error.” Second, here a “reasonable possibility” of prejudice to the defendants affirmatively appears in the record. For example, a portion of the indictment not read to the jury during the court’s charge appears as follows:
The action of the defendant, James R. Hoffa, in depositing funds of * * * Local 299 in the * * * [bank at] * * * Orlando, Florida, was being questioned by the court-appointed Board of Monitors for the International Brotherhood of Teamsters * * * in a judicial proceeding in the United States District Court for the District of Columbia * * * as a breach of his fiduciary duties.
Even Government counsel recognized that the jury should not be informed of this and other allegations in the indictment upon which no evidence was offered.11 Yet, the indictment sent to the jury was unexpurged. More importantly, the jury’s note was subject to interpretation as requesting something other than, or in addition to, the indictment. The communication itself indicated that the jury may have been confused and uncertain. In these circumstances, this court should not speculate that no prejudice to the defendants resulted when further inquiry on the part of the jury was immediately foreclosed by the judge through an oral communication by the marshal in the absence of the defendants and their counsel.
*722II.
The indictment in this case was hinged upon the mail and wire fraud statutes, 18 U.S.C. §§ 1341, 1343, which generally proscribe the use of various communications media in the furtherance of schemes to defraud or to obtain money by fraudulent representations. Each of twenty-seven substantive counts contained identical allegations charging the devising and execution of a single, all-inclusive scheme to defraud the Teamsters’ Pension Fund, differing only in the particular interstate transmission alleged to be in furtherance of the scheme. The final count charged a single conspiracy among all the defendants to use the communications media in the execution of the overall scheme which they were alleged to have jointly devised.
The indictment contained allegations of certain background facts preliminary to outlining the alleged scheme. As the central part of this background, it was alleged that in 1955 Hoffa obtained a secret financial interest in Sun Valley, Inc., a Florida corporation engaged in the sale of real estate, and that he also placed $400,000 belonging to the Detroit Teamster Local 299 in the Florida National Bank at Orlando as collateral to secure a loan granted by the bank in that amount to Sun Valley; that Sun Valley thereafter met with financial difficulties and was unable to repay the loan and that the bank therefore refused to release the funds held as security. It was alleged that Dranow formed Union Land and Home Company, Inc. in September 1958 to acquire and succeed Sun Valley, which was then under the process of reorganization under the bankruptcy laws; that Burris, Dranow, and Weinblatt, at Hoffa’s direction and for his benefit, undertook to acquire Sun Valley, to pay its debts and the reorganization costs, and thereby to secure the release of Local 299’s funds from the bank.
The scheme to defraud the Teamsters’ Pension Fund was alleged to have been devised sometime prior to July 2, 1958 by all the defendants. It was allegedly designed to defraud the Fund by the obtainment of loans through false representations. The various roles which each of the defendants was alleged to have played in the fraudulent securement of these loans can be stated in general terms. Dranow, Burris, Kovens, and Weinblatt were alleged to have cooperated in seeking out loan applicants and assisting them in preparing materially false applications to the Fund. Strate and Hyman were alleged to have been among those who submitted such applications. Hoffa was alleged to have used his position as a trustee of the Pension Fund to further misrepresent the facts and thereby influence approval of the loans. The indictment alleged that by virtue of this scheme the defendants diverted more than one million dollars from the proceeds of loans from the Pension Fund to themselves in the form of fees, contracts for services, and control of borrowing corporations, and that more than one hundred thousand dollars of the funds so diverted was used to rehabilitate Sun Valley.
The loans which were alleged to have been included in the scheme devised by the defendants were listed in the indictment. These loans, totalling more than twenty million dollars, included loans:
1) To remodel the New Everglades Hotel, Miami, Florida;
2) To refinance and enlarge the Fontainebleau Motor Hotel, New Orleans, Louisiana;
3) To finance construction of a shopping center, renovation of apartment buildings, acquisition of real property, and payment of mortgages by the Key West Foundation Company, Key West, Florida;
4) To finance the purchase by Casa Marina Hotel Corporation of the Casa Marina Hotel, Key West, Florida;
5) To finance the purchase by LaConcha Hotel Corporation of the LaConcha Hotel, Key West, Florida ;
6) To obtain permanent financing for Four-Three-O-Six Duncan Corporation, Saint Louis, Missouri;
*7237) To finance the purchase by First Berkeley Corporation of buildings known as Connell Buildings and Cornell Buildings, and a leasehold interest in the Beverly Wilshire Health Club, located in the vicinity of Los Angeles, California;
8) To pay off obligations and make improvements to the Cornell Buildings operated by First Berkeley Corporation in Los Angeles, California;
9) To refinance mortgages on the Miracle Plaza Shopping Center, Vero Beach, Florida;
10) To construct North Miami General Hospital, North Miami, Florida;
11) To provide financing for the Miami International Airport Hotel, Miami, Florida;
12) To provide financing for the Birmingham Airport Motel, Birmingham, Alabama;
13) To construct and improve the Causeway Inn, Tampa, Florida;
14) To refinance mortgages and other obligations of Club 300, Upper Saddle River, New Jersey.
From this brief outline of the charges against the defendants, a number of observations become pertinent. In an indictment such as the present one, for all practical purposes there is no difference between the substantive charge of devising and executing a scheme to defraud and the charge of conspiring to commit the substantive offense, that is, unlawfully agreeing to devise and execute the scheme. “A scheme to use the mails to defraud, which is joined in by more than one person, is a conspiracy.” Pinkerton v. United States, 328 U.S. 640, 647, 66 S.Ct. 1180, 1184, 90 L.Ed. 1489 (1946); Cochran v. United States, 41 F.2d 193, 199 (8th Cir. 1930). The Government’s theory of the indictment and the evidence demonstrates this fact. The scheme to defraud was attempted to be shown as an unlawful joint enterprise by the defendants, that is, a conspiracy. Thus, but for the fact that the law permits separate substantive mail and wire fraud counts to be based upon individual communications, the scheme and the conspiracy merged insofar as the evidence related to the proof of them.
Another characteristic of the indictment is its preoccupation with the financial well-being of Sun Valley. In the Government’s efforts to charge and prove a single scheme or conspiracy among all the defendants, Sun Valley became the unifying element. The majority opinion explicitly recognizes that, at least under the Government’s theory of the case, the extrication of Sun Valley from its financial difficulties, for Hoffa’s benefit, was the common object of the alleged scheme to defraud the Pension Fund. Such a cohesive force among the defendants was necessary to avoid the objection that multiple schemes or conspiracies encompassing fewer than all of the defendants were involved. The existence of multiple conspiracies would have necessitated separate trials to avoid a fatal variance in the proof similar to that occurring in Kotteakos v. United States, 328 U.S. 750, 66 S.Ct. 1239, 90 L.Ed. 1557 (1946).
The difficulty in placing Sun Valley in a position of prominence as the central physical objective of the alleged scheme is nevertheless visible in the indictment. The defendants were alleged to have diverted over one million dollars to themselves, yet only one hundred thousand dollars was alleged to have “trickled down” to Sun Valley, a relatively insignificant amount which could have been supplied from any one of several “finders fees” paid by various recipients of loans from the Pension Fund. As the defendant Kovens suggests, had the charge been merely that the defendants devised a scheme to enrich themselves at the expense of the Pension Fund, the task of binding them together would have been manifestly more difficult. It is also significant to note that the last recorded activity in discharging the Sun Valley indebtedness occurred in June 1960 and that the $400,000 belonging to Teamsters Local *724299 was released by the Florida National Bank at Orlando on June 27, 1960.
If the Sun Valley situation was in fact the tying element in this case, then its position calls for an obvious, but seemingly overlooked, clarification. The defendants were not on trial for effecting the reorganization of Sun Valley. The rehabilitation of Sun Valley, or, to use the Government’s epithet, the Sun Valley “bail out,” was not illegal per se. The fact that Hoffa may have had a “secret” interest in Sun Valley or that his actions with respect to it may have been in violation of some duty owed by him to the members of Teamsters’ Local 299 had nothing whatever to do with the crime charged in the indictment. The only legitimate reason for the inclusion of the Sun Valley and Union Land and Home Company operations in the indictment and the submission of evidence in respect to them was to show how these operations may have furnished a motive for, or been the object of, a scheme to obtain loans from the Pension Fund through false and fraudulent representations. Therefore, the Government’s repeated inferences, both during the trial and in this appeal, that Sun Valley could only be associated with skullduggery and other varieties of evil-doing are largely beside the point. If rescuing Sun Valley was an “end,” then for the purposes of this case it could have been no more than the lawful object of a conspiracy to achieve a lawful end by unlawful means.
A similar observation should be made with respect to the aura of criminality cast about the payment of fees (“pay offs”) and other “diversions” from loan proceeds as such.12 The payment of a fee to one who assists in the procurement of a loan, whatever else it may be, is not of itself a fraud upon the lender. Nor are “diversions” fraudulent standing alone, as the trial court recognized in its instructions to the jury, if not in the reception of evidence.
The gist of the crime charged in this case resides in the allegations and evidence submitted in respect to false and fraudulent representations made to the Pension Fund by the defendants. Unless this essential element of the crime was proved, the alleged diversions of money to Sun Valley, although necessary to bind the defendants together, were meaningless. Thus it was incumbent upon the Government to prove that loans were obtained from the Pension Fund through material misrepresentations by the defendants, and also to prove that the defendants had joined together to do precisely this sort of thing for some reason common to all of them. This common object, the Government says, was Sun Valley.
With these premises in mind, an analysis of the evidence reveals a fatal variance from the crimes charged in the indictment, prejudicial to the defendants Strate, Hyman, and Kovens, and a great mass of evidence which was wholly irrelevant to the crimes there charged, prejudicial to all the defendants.
4. Variance in the Proof
The evidence, viewed in the light most favorable to the Government, does not disclose a single scheme to defraud the Pension Fund through misrepresentations in order to.rescue Sun Valley from financial ruin. Instead, the résumé of the evidence which follows tends to show several smaller and distinct schemes, involving different combinations of the defendants and with two or three defendants common to all the schemes, each designed to effect the personal enrichment of the particular members of the scheme. Yet all the evidence relating to all of the loan transactions al*725leged in the indictment was admitted against all the defendants.
(a) The Everglades Hotel Loans
Two loans were made by the Pension Fund to Vaughn B. Connelly13 to finance the renovation of the Everglades Hotel, Miami, Florida. The first loan, $3,300,000, was obtained in January 1959. Kovens was the building contractor. He brought Dranow and Burris into the loan negotiations. Burris helped to prepare the application. Later, Hoffa joined the discussion relating to this application. The evidence shows that Connelly made payments to Dranow total-ling $300,000 in connection with this loan, under suspicious circumstances which the majority opinion has pointed out. The evidence also shows that Connelly paid $15,000 to Hyman Greenberg, Dranow’s brother-in-law, which found its way into Union Land and Home Company to assist in the rehabilitation of Sun Valley. This money, however, was not shown to have come from the Pension Fund loan. Further, no misrepresentations to the Pension Fund in connection with this loan were proved and the indictment did not include a substantive charge based upon any mailings relating to it. Strate and Hyman nowhere appear in connection with this loan.
The second Everglades loan, for $1,000,000, was secured by Connelly in July 1959. Burris and Dranow assisted in the preparation of the loan application and Hoffa was influential in obtaining its approval. No direct misrepresentations appear to have been made in this application, but the evidence does show that at the time the loan was paid out, an inspection, an appraisal, and the execution of a mortgage as a part of the security for the loan had not taken place, and Connelly had not yet paid a required $5,000 “service charge” to the Fund. Assuming that these latter items amounted to material misrepresentations to the Pension Fund, the evidence failed to connect Strate and Hyman with the second Everglades loan, and Kovens can only be connected by inference from his association as the contractor on the hotel. Nor was there any showing that any money from this loan was diverted to Sun Valley.14
(b) The Pelican-Fontainebleau Loans
The Government introduced evidence of four loans made by the Pension Fund to the Pelican State Hotel Corporation, partly owned by the defendant Strate, to refinance and enlarge the Fontainebleau Hotel in New Orleans. These were the only loans with which Strate had any connection. The dates and amounts of these loans are as follows:
1. July 1959 $1,350,000
2. February 1960 2,325,000
3. December 1960 500,000
4. March 1961 500,000
The evidence shows that Dranow and Burris assisted Strate with his applications for these loans and that Hoffa was aware of their efforts and was again instrumental in securing the approval of some of the loans. The evidence also shows the payment of substantial fees and the granting of other concessions by Strate to Dranow and Burris in connection with at least the first two loans. It further shows several misrepresentations made to the Pension Fund with respect to the applications for the second and third loans.15 Finally, the evidence reveals that Strate *726diverted substantial portions of the loan proceeds to his own benefit and that he “came up with” $50,000 for the Sun Valley enterprise. The third and fourth loans, however, were granted after the rehabilitation of Sun Valley had taken place. Further, the evidence failed to disclose that either Hyman or Kovens had any connection with, or knowledge of, the Fontainebleau loans. The majority opinion states that “representatives of Strate contacted Kovens who referred them to Dranow,” as an indication of complicity on the part of Kovens. The evidence shows only that an attorney friend of Strate’s, Cohen, and a Miami restaurant owner, Elliott^ contacted Kovens and unsuccessfully attempted to interest him in financing the Fontainebleau. Later Kovens introduced Elliott to Dranow. Dranow thereafter contacted Strate in New Orleans.
(c) The Key West Foundation Loans
The Pension Fund granted two loans to the Key West Foundation Company, which owned apartment buildings in Key West, Florida. The defendant Hyman and his wife held fifty per cent of the stock in Key West. The first loan, in the amount of $875,000, was obtained in July 1959 through the combined efforts of Hyman and Burris. The evidence indicates that Hyman “invested” $100,000 of the proceeds of this loan in the Union Land and Home Company (Sun Valley) at the suggestion of Burris. No misrepresentations to the Pension Fund were proved as to this loan and the district court dismissed the count in the indictment which recited a mailing relating to it.16
A second loan of $400,000 was granted to Key West in June 1960 to remodel the Poinciana Apartments. The evidence supports the charge that both Hyman and Hoffa made certain misrepresentations to the Pension Fund in regard to the loan application. Hyman’s false statements were flagrant, relating principally to periodic proofs of expenditures which were required to be submitted to the Fund before disbursements could be made on the loans. Hoffa’s misstatements were of a relatively minor nature and occurred while he was arguing in favor of the loan to the trustees of the Fund. They conveyed a false impression that business conditions in Key West were on the upgrade. The proceeds of the second Key West loan were not disbursed by the Pension Fund until the rehabilitation of Sun Valley was an accomplished fact; therefore, no such diversion was proved. Further, neither Kovens nor Strate was shown to have even known about the loans to Key West.17
(d) The LaConcha and Casa Marina Hotel Loans
Late in 1961 Hyman applied to the Pension Fund for loans totalling $650,-000 to finance the purchase of the La Concha and Casa Marina Hotels, Key West, Florida. The loans were approved in January 1962 on Hoffa’s motion. As a condition for the disbursement of $217,000 of the loan proceeds, the Pension Fund required that satisfactory leases of the hotels to a responsible person be executed. Hyman leased the hotels to Charles Lavin, an operator of retirement hotels who had been working for him at a salary of $100 per week for several months, apparently assisting in the establishment of a retirement plan at the hotels. The balance of the loan proceeds were disbursed in March 1962, but Hyman fired Lavin and the hotels were never operated under the leases.
No diversions from loan proceeds were shown and the loans were disbursed long after Sun Valley had been rehabilitated. The other defendants were not connected to the LaConcha-Casa Marina *727transactions, except that Burris was present with Hyman when the appraiser for the Fund inspected the properties.18
(e) The First Berkeley Loans
The Pension Fund made three loans to the First Berkeley Corporation, a real estate corporation in which Burris was the sole stockholder of record.
A loan of $266,000 was granted in January 1960 to acquire the BeverlyWilshire Health Club near Los Angeles. The Government conceded at the trial that no misrepresentations were made in connection with this loan. The second loan to First Berkeley, for $2,966,-000, was granted in March 1960 to acquire the Cornell Buildings in Los Angeles. Burris made several misrepresentations in the loan application concerning First Berkeley’s collateral and financial condition which might have been material considerations in the granting of the second loan, although certain of the misstatements cited by the Government are of questionable significance. The evidence is perhaps sufficient to connect Hoffa and Dranow with this loan by their knowledge of Burris’ activities.19 The evidence, however, failed to establish that any of the loan proceeds went into the Sun Valley rescue operation.
A third loan of $300,000 was granted by the Pension Fund to First Berkeley in April 1961 for improvements in the Cornell Buildings. No misrepresentations concerning this loan were proved. The loan itself was disbursed after Sun Valley had been financially restored. The Government attempted, however, to show some connection between a portion of the loan proceeds and Sun Valley by introducing evidence of a series of complicated transactions involving an earlier loan of $125,000 by John Factor to Irving Link and Murray Randolph. The Government sought to trace the proceeds of this loan through First Berkeley to Dranow and thence to Sun Valley. Finally, it attempted to show that $55,-000 from the third First Berkeley loan was indirectly used to repay the Factor loan. The district court ruled that the Government failed to do so, and dismissed the two counts alleging mailings relating to this loan. The court, however, did not strike the evidence.
Neither Hyman, Strate, nor Kovens was connected with any of the loans to First Berkeley.20
(f) The Good Samaritan Loans
The Government introduced evidence concerning two loans by the Pension Fund to Good Samaritan Hospital, Inc. to finance the construction of the North Miami General Hospital. Burt Sager, a Miami attorney, was the original promoter of the hospital and the organizer of Good Samaritan Hospital, Inc. Sager contacted Kovens in the summer of 1959 and inquired into the possibility of constructing a hospital on property held by Ruedd, Inc., a corporation owned by Kovens. Following several discussions, Sager decided to apply for a loan from the Pension Fund and was introduced to Burris. Burris assisted Sager’s accountant in preparing an application for a loan of $2,300,000. A loan in this amount was first approved by the Fund in September 1959, but no disbursements of loan proceeds were made until late in 1960.
The indictment alleged several misrepresentations with respect to this loan, not in connection with the application itself, but generally relating to conditions placed upon the disbursement of loan proceeds by the Pension Fund. The evidence as to the materiality of these misrepresentations is equivocal at *728best.21 But assuming the materiality of one or more of them by Kovens (concerning his bond as the contractor on the project) and by Hoffa (relating to funds which were to have been made available by investors in the hospital), none of the proceeds of the loan were shown to have been diverted for any purpose, including Sun Valley.22 Kovens got a fee of $200,000 for constructing the hospital, but the reasonableness of his contracting fee was not called into question. The evidence also supports the inference that Kovens contributed $28,000 to assist in the reorganization of Sun Valley. His contribution, however, was not connected to the Pension Fund in any way; in fact, the payment was made before the proceeds of the first Good Samaritan loan were disbursed.
The Pension Fund granted a second loan of $500,000 to Good Samaritan in June 1961 to finance an increase in the size of the hospital. A single immaterial misrepresentation relating to this loan was proved. Eight days after the second loan was approved, during a discussion of an unrelated loan application submitted by Kovens, Hoffa told the Fund trustees that the second loan had been expended in adding another floor to the hospital, when in fact no additional floor had been constructed. The Sun Valley indebtedness had been extinguished before the loan was granted.
Finally, neither Strate nor Hyman had any connection with either of the Good Samaritan loans.23
(g) The ¿306 Duncan Corporation Loan
Fred Strecker, a Pension Fund trustee, sought a Pension Fund loan to refinance property in St. Louis which he had purchased and which he held as the 4306 Duncan Corporation. Hoffa referred Strecker to Burris, who agreed to assist in securing the loan if Strecker would retain Burris’ accounting firm for his business. Burris then took Strecker to Miami where they discussed the loan application with Dranow.
Later Burris contacted Max Federbush, an acquaintance, suggested that Federbush purchase the 4306 Duncan property, and told him he could obtain a loan from the Pension Fund to finance the purchase. Federbush had few resources of his own, but agreed to the proposition and signed without reading a number of papers put before him by Burris. Included in these documents was an application for a Pension Fund loan to 4306 Duncan Corporation, listing Federbush as its president. Burris then brought Strecker and Federbush together and obtained a loan of $15,000 for Federbush to give Strecker as a “down payment” on the property. Some time later, but before the Pension Fund considered the 4306 Duncan application, Burris told Federbush that his loan application had been rejected because of Federbush's prior criminal record and arranged for the return of “his” money. (Weinblatt deposited $15,000 in Federbush’s bank account.)
Strecker attended the Pension Fund meeting at which the loan application was considered. Before the meeting began, Dranow and Burris told him that the application was being presented in the name of a “straw party,” Federbush. Strecker testified that, within the hearing of several of the trustees, he told Hoffa that he objected to the loan application being presented in this *729manner, and that Hoffa replied, “Do you want the loan or not?” The loan was approved on Hoffa’s motion and 4306 Duncan Corporation subsequently received $840,000. Despite the procurement of this loan from the Fund through the connivance of Dranow, Burris, and Hoffa, no diversions or fee payments were proved and Sun Valley was nowhere mentioned or considered. Kovens, Strate, and Hyman were not connected with this transaction in any way.24
The preceding analysis relating to several of the loan transactions charged to be part of a single conspiracy demonstrates that no common design bound all of the defendants together. This case is therefore governed by Kotteakos v. United States, 328 U.S. 750, 66 S.Ct. 1239, 90 L.Ed. 1557 (1946).
In Kotteakos, thirty-two persons25 were charged with a single conspiracy to violate the National Housing Act by inducing financial institutions to grant loans which would then be offered to the Federal Housing Administration for insurance upon applications containing fraudulent information. The evidence, however, proved at least eight different conspiracies to obtain fraudulent loans by separate groups of defendants which had no connection with each other except that the principal defendant acted as a broker to handle the fraudulent applications in all of them. The Supreme Court held that it was reversible error to try all the defendants “en masse for the conglomeration of distinct and separate offenses committed by others.” Id. at 775, 66 S.Ct. at 1253. The Court stated:
The trial court was of the view that one conspiracy was made out by showing that each defendant was linked to Brown in one or more transactions, and that it was possible on the evidence for the jury to conclude that all were in a common adventure because of this fact and the similarity of purpose presented in the various applications for loans.
This view, specifically embodied throughout the instructions, obviously confuses the common purpose of a single enterprise with the several, though similar, purposes of numerous separate adventures of like character. ******
When many conspire, they invite mass trial by their conduct. Even so, the proceedings are exceptional to our tradition and call for use of every safeguard to individualize each defendant in his relation to the mass. Wholly different is it with those who join together with only a few, though many others may be doing the same and though some of them may line up with more than one group.
Criminal they may be, but is not the criminality of mass conspiracy. They do not invite mass trial by their conduct. Id. at 768-769, 773, 66 S.Ct. at 1249-1252.
Thus in Kotteakos, as here, the vice lay in the fact that the prosecution was allowed to proceed on the theory that a generic description of the substantive crime which the defendants were alleged to have conspired to commit was a sufficient common objective so as to make each defendant a codefendant with the others named in the indictment.
Hoffa, Dranow, and Burris were common actors in the majority of those loans in which evidence of fraudulent representations was present. Therefore, as to them, the joinder of multiple subsidiary conspiracies could not have been prejudicial. Kotteakos v. United States, supra. But the participation of Strate and Hyman in only those loans in which they were interested as borrowers and the participation of Kovens in only those loans in which he stood to acquire contracts for services clearly indicate that they were seriously prejudiced by their *730joinder with each other and with the other defendants for a “conglomeration of distinct and separate offenses.”
The evidence as to the defendant Weinblatt was wholly insufficient to find him criminally responsible with respect to any of the loan transactions.
5. Irrelevant and Prejudicial Evidence
It is apparent from the foregoing discussion that a great amount of irrelevant, immaterial evidence was admitted against the defendants. Similar evidence was introduced relating to a number of loans which have not yet been examined. In fact, a substantial number of the loan transactions as to which evidence was offered and received had no logical tendency to prove either the existence or the execution of the scheme to defraud the Pension Fund charged in the indictment, or for that matter, any scheme to defraud the Pension Fund. Loans as to which no evidence of fraud was produced and which had no relation to Sun Valley were irrelevant for any purpose. Evidence with respect to these loans had a prejudicial effect against the defendants not only because of its volume and complexity, but also because it emphasized the mere association of the defendants with each other and with the Pension Fund; moreover, it tended to emphasize the payment of fees and the obtaining of advantages by various defendants even though the Pension Fund was in no way defrauded or harmed. Loans evidencing no fraud but having some relationship with Sun Valley were prejudicial for the same reasons, and even more so, because they amounted to an invitation to the jury to find a conspiracy inherent in the mere association of persons pursuing a lawful venture.
(a) The Miracle Plaza Loan
In June 1960 a Pension Fund loan for $1,100,000 was granted to refinance mortgages on the Miracle Plaza shopping center, Vero Beach, Florida. One of the counts in the indictment alleged the mailing of a letter by a Miami attorney representing the borrower in connection with the loan. It was shown that Kovens was associated in the venture. The mailing was proved, but the Government dismissed the count prior to the submission of the case to the jury. The evidence, however, was not stricken. No facts were introduced suggesting any fraud in connection with the loan or showing that the transaction was in any way linked to Sun Valley.
The Government argues in its brief that “the Miracle Plaza loans were tied to the scheme because Dranow, in promoting the first Berkeley and Fontainebleau deals, repeatedly pointed out this Kovens shopping center, which had been built with Pension Fund money, as one of his Pension Fund triumphs. On the third of these occasions, Strate and Burris were present when Dranow showed off the shopping center.” It is difficult to comprehend how this observation, if correct, would “tie” Miracle Plaza to the scheme charged in the indictment and justify the submission of evidence in respect to it. But the observation is not even supported by the record, which indicates that the shopping center referred to by Dranow was located in Miami Beach, and not in Vero Beach, Florida, where Miracle Plaza was located.
(b) The Miami International Airport Hotel and the Birmingham Airport Motel Loans
The indictment alleged and evidence was introduced concerning two Pension Fund loans to corporations in which George M. Simon, a Miami accountant, was interested. In 1959 a $2,000,000 loan was granted to Airway Hotel, Inc. to finance the construction of the Miami International Airport Hotel. In 1961 an additional loan of $1,000,000 was granted to finance the Birmingham Airport Motel, Birmingham, Alabama. Simon obtained the loans with Burris’ assistance. Burris charged two per cent brokerage fees, totalling $85,000, for his efforts. No misrepresentations with respect to these loans were proved, nor was Sun Valley ever mentioned in connection with them.
Again referring to the Government’s brief, the Government argues, “The *731‘airport hotel’ loans were relevant, not only because they also revealed the usual arrangement of Burris procuring Pension Fund loans for a fee, but also because the loans were obtained for accountant George Simon who, at about the same time (March 1960), participated in the preparation of the fraudulent loan application filed by First Berkeley with the Pension Fund.” (Simon prepared a balance sheet for First Berkeley Corporation from information furnished by Burris.) That Burris charged a two per cent fee, or that Simon had dealings with Burris was totally irrelevant.26 These circumstances did not in any way tend to prove an unlawful agreement to rehabilitate Sun Valley by defrauding the Pension Fund.
(c) The Club 300 Loan
A loan of $900,000 was made by the Pension Fund in 1961 to Club 300, Inc., Upper Saddle River, New Jersey, to finance a motel and bowling alley. The loan was the subject of one of the mail fraud counts in the indictment and three of the overt acts in the conspiracy count. Although the mailing was proved, the Government dismissed the substantive count before the case was submitted to the jury; however, the evidence was not stricken. James Dioguardi, a contractor, first talked to Hoffa about a loan on undeveloped land in New Jersey. Hoffa suggested that Dioguardi contact Burris. Later, Dioguardi consulted Burris regarding a loan for the Club 300. Dioguardi and the defendant Burris’ son Herbert,27 split a five per cent fee from the borrower for preparing the application. There was no evidence of any misrepresentations to the Pension Fund in connection with the loan and all discussions about fees occurred long after Sun Valley had been rehabilitated.
As to the relevance of this loan, the Government states, “The Dioguardi-Club 300 transaction was further evidence of the general pattern of the conspiracy to place fraudulent Pension Fund loans, since it showed that, when Dioguardi told Hoffa in 1961 that he wanted a loan, Hoffa referred him to Burris.” Such a “referral” does not justify the admission into evidence of all the facts concerning the application for, and the granting of, an otherwise unassailable loan. Nor was it evidence of a “pattern” of placing “fraudulent” loans.
(d) The Causeway Inn Loans
Pension Fund loans of $1,500,000 and $350,000 were granted to Causeway Enterprises, Inc. to construct the Causeway Inn, Tampa, Florida. The first loan was approved in October 1960 and the second a few months later. The district court directed a verdict of acquittal on the count in the indictment relating to these loans, but the evidence was not stricken.
Irving Kipnis promoted the Causeway Inn venture.28 His first application for a Pension Fund loan was rejected. Later, he met Burris, who agreed to help secure the loan for a fee. While the application was pending, Burris told Kipnis that he needed some money for Sun Valley immediately and asked him to buy a ten per cent interest in it. Kipnis gave Burris a check for $57,000, allegedly for an “option-loan” interest in Sun Valley, the principal condition being that the money be refunded if the option was not exercised within three years. The check was given to Dranow, who used it to rehabilitate Sun Valley. Burris later received checks from the borrower for $57,000 and $58,000 as fees for his part in securing the loans. In turn, Burris gave Kipnis a check for $57,000 in cancellation of the “option-loan” agreement.
Evidence was introduced to show that Kovens became the contractor on the *732Causeway Inn, but it showed only that Kipnis’ son and son-in-law made the contracting arrangements with Kovens after the first loan was granted.
The Government also introduced evidence of a third loan to Causeway Inn, Inc. In January 1963 Kipnis appeared before the Pension Fund and requested a $1,000,000 loan to be used for the expansion of the Causeway operation through the purchase of an adjacent motel. He also requested that payments on the other loans be suspended for eighteen months because the Causeway Inn was losing money. Upon Hoffa’s motion, these requests were granted by the trustees.
Thus, despite the fact that the first Causeway Inn transaction was shown to have had some relationship with the attempt to rescue Sun Valley, no evidence of fraud with respect to any of the Causeway loans was produced. The Government says that the loans were relevant because they were “tied to Sun Valley,” because “Kovens got the Causeway construction contract,’ and because “Dranow and Burris got fees.”
The Government’s argument illustrates the fundamental error in the admission of much of the irrelevant evidence introduced in this case. The argument assumes that any connection on the part of any of the defendants with each other or with the Pension Fund, however innocent or remote from Sun Valley, was admissible against all the defendants to prove the scheme and conspiracy charged in the indictment. The flaw in such an assumption resides in the notion that a conspiracy is a group of people rather than an act of agreement upon a common objective. United States v. Borelli, 336 F.2d 376, 384 (2d Cir. 1964). The court in Borelli noted with misgiving the tendency to treat conspiracy cases in this manner. Such a practice creates problems of the kind to to which Mr. Justice Jackson referred in Krulewitch v. United States, 336 U.S. 440, 453, 69 S.Ct. 716, 723, 93 L.Ed. 790 (1949) (concurring opinion), when he stated:
When the trial starts, the accused feels the full impact of the conspiracy strategy. Strictly, the prosecution should first establish prima facie the conspiracy and identify the conspirators, after which evidence of acts and declarations of each in the course of its execution are admissible against all. But the order of proof of so sprawling a charge is difficult for a judge to control. As a practical matter, the accused often is confronted with a hodgepodge of acts and statements by others which he may never have authorized or intended or even known about, but which help to persuade the jury of existence of the conspiracy itself. In other words, a conspiracy often is proved by evidence that is admissible only upon assumption that conspiracy existed.
The defendants in this case were faced with similar problems.
Apropos also is Mr. Justice Jackson’s observation that “there generally will be evidence of wrongdoing by somebody.” Id. at 454, 69 S.Ct. at 723. Indeed it can be said that the evidence here indicates that each defendant was guilty of some kind of wrongdoing. But a conviction should not stand if there is a substantial variance between the charge and the proof or if it is based even in part upon immaterial, prejudicial evidence.
In summary, the convictions in this case should be set aside for different reasons, as to the defendants Hyman, Kovens, and Strate because of the variance in the proof, as to the defendant Weinblatt because of the insufficiency of the evidence, and as to the defendants Hoffa, Dranow, and Burris because of reversible trial errors. With regret and reluctance, I am impelled also to say that an intense study of the record convinces me that this prosecution was designed to charge a sprawling, amorphous scheme and conspiracy, in order to allow the presentation of a series of confusing, complex transactions and to abet the introduction of a mass of immaterial, prejudicial evidence. If a person is to *733be prosecuted and punished for his misdeeds, he should be charged with a specific crime and convicted by proper evidence. Moreover, every defendant in a criminal case is entitled to the fundamentals of a fair trial, free of the prejudicial errors that occurred in this case.

. The facts were multifarious and complex. The trial lasted three months. The record consists of approximately 17,000 pages of testimony and trial proceedings.

. United States v. Hoffa, 349 F.2d 20 (6th Cir. 1965), cert. granted, 382 U.S. 1024, 86 S.Ct. 645,15 L.Ed.2d 538 (1966).

. On the same day, in the federal district court for the Southern District of Florida, the Government moved to dismiss an indictment returned in October 1961 which charged Hoffa with mail fraud and conspiracy in connection with the promotion of the Sun Valley enterprise among Teamsters locals and their members.

. If the Government had been successful in this endeavor, the tactic would have permitted the question to be asked even though the court might not have permitted it to be answered.

. As a rather mild illustration, when Dranow was asked on cross-examination whether he had any connection with the Teamsters’ Pension Fund, he replied, “Yes, I’m their representative in the prison. If the prison wants a loan, I will recommend it.”

. The salutation on the letter read “Dear George.”

. The cautionary instruction given reads as follows:
Among the last witnesses you hear in the last testimony you heard was some testimony about a witness by the name of Link, and the cross-examination of Mr. Dranow.
In the course of interrogation of Mr. Dranow and the interrogation of Mr. Link, some reference was made to some letters.
The court instructs you to disregard the testimony of both Mr. Dranow and Mr. Link in regard to those letters, and do not take that into consideration in any way in arriving at your verdict.

. The Government argues in this appeal that the letters were admissible against Dranow because they were received by Link during the existence of the conspiracy and, alternatively, that they were admissible against all defendants as “verbal acts * * * relevant to prove the existence of a conspiracy.” Aside from the fact that this belated argument appears designed to avoid meeting head-on the defendants’ principal contention relating to the inherent prejudice of the letters, the argument is without merit. First, Sun Valley was completely rehabilitated and Local 299 had recovered its funds when the letters were received. Second, the letters could not Qualify as “verbal acts” inasmuch as they were not written in explanation of an independently material act.

. That the letters may have had a deep impact on the jurors is evidenced by the fact that the juror who eventually became the foreman showed alternate juror Pare a newspaper account of the events surrounding the efforts to introduce the letters into evidence.

. The record discloses the following statement by the judge after his charge to the jury:
I request that all parties involved * * * leave with the Marshal your phone numbers at which you can be readily reached in case there is a verdict or in case there is some inquiry made by the jury, so that within an hour's time of the time a question is asked or a verdict is arrived at, we can all assemble here.
Have your clients available if they desire to be here for the verdict or whatever question may be asked.

. During the conference on instructions, the prosecutor, in reply to the judge’s inquiry whether the Government had excluded any reference to the counts which had been dismissed from its proposed jury instructions, stated:
Yes, I did, your Honor. I thought we ought to in fairness to the defendants. I also left out the material with reference to the monitor’s proceedings which was excluded by your Honor—

. As an example of the climate which was created in connection with Sun Valley and the payment of fees, the Government asserts that knowing participation in the conspiracy is shown by the awareness on the part of certain defendants that the “price” of getting Pension Fund loans was to make money available to rehabilitate Sun Valley. While such conduct may be morally reprehensible, it does not amount to a fraud upon the Pension Fund, the crime charged in the indictment, absent some misrepresentation to the Fund.

. Connelly, the principal Government witness, was not named as a coeonspirator, although his position appears to differ from that of defendants Strate and Hyman only in degree.

. The mailing alleged in the first count of the indictment related to this loan. All the defendants were found guilty on this count, the only loan transaction as to which defendants who did not directly participate were accorded joint substantive responsibility.

. Strate was convicted on the substantive counts alleging mailings relating to the first three loans. Hoffa was found guilty on the count relating to the second loan. The remaining defendants were acquitted on all the counts pertaining to the Fontainebleau loans.

. The indictment charged that the Hymans misrepresented that they were the sole owners of Key West stock when in fact they owned only 50%. The trial court held this to be an immaterial misrepresentation following the testimony of a Pension Fund official to the same effect.

. Hyman was found guilty on four counts relating to the second loan. All other defendants were acquitted on these counts.

. Hyman was convicted on two counts relating to the loans. All other defendants were acquitted on these counts.

. Hoffa was convicted on the substantive count alleging a mailing in connection with the second loan. All other defendants were acquitted on this Count.

. Kovens did permit Burris to pledge his stock in Ruedd, Inc. as collateral in obtaining the second loan.

. For example, Hoffa was shown to have represented to the Fund that Dade County, Florida was going to lease and operate the hospital and was investing as much money in it as the Pension Fund. The representations were false. They were made, however, not in connection with the application for the loan, but during a discussion concerning the reduction in the interest rate on the loan from 6%% to 614%.

. The Government expressly conceded its failure to prove an allegation in the indictment that “a substantial portion of this money had been diverted for other purposes.”

. Burris, Dranow, Kovens, and Hoffa were found guilty of certain of the counts relating to the Good Samaritan loans. The other defendants were acquitted on these counts.

. The indictment did not contain a substantive mail fraud count relating to this loan, but three overt acts pertaining to it were included in the conspiracy count.

. Nineteen persons were tried. The cases of thirteen were submitted to the jury. Seven were convicted.

8. Simon was neither indicted nor named as a coeonspirator.

. Herbert Burris, named as a defendant in the indictment, was acquitted at the close of the Government’s case-in-chief. Dioguardi was neither indicted nor named as a coconspirator.

. Kipnis was neither indicted nor named as a coconspirator.