Court Opinion

ID: 9469503
Source: CourtListenerOpinion
Date Created: 2023-08-05 02:41:58.581682+00
Date Added: 2024-06-11T17:41:24.965596
License: Public Domain

HEANEY, Circuit Judge,
dissenting.
The only issue in the trial below was whether the defendant’s exchange of cash for food stamp coupons, in March of 1981, was done with knowledge that such exchanges are illegal. The government thus properly offered the direct testimony of a USD A official to the effect that, during 1976 and 1978 visits with the defendant, the official informed him of the prohibition on cash exchanges. The government also introduced, as public business records under Rule 803(8), two memoranda written by the official in connection with the two visits. The government contends these records were not offered to prove “prior bad acts” under Rule 404, but were offered only to confirm the official’s testimony as to what he told the defendant during the two visits.
The majority notes without holding that the memoranda might “arguably” be admissible under Rule 803(8). See, supra, at 1215, n.5. That exception to the hearsay rule, however, excludes in criminal cases the introduction of matters observed by “law enforcement personnel.” In the present case, records of USD A “compliance visits” would thus appear to be outside the exception under Rule 803(8). In any event, the majority’s holding recognizes that when the records sought to be introduced facially involve prior misconduct, their introduction is governed by Rule 404.
Here, the memoranda incorporate a variety of unproven and unfairly prejudicial assertions of misconduct. The 1976 memorandum describes an allegedly high redemption rate for coupons at the defendant’s grocery and the possibility that unspecified “violations” could be causing it. The memo specifically asserts a sharp rise in redemptions without an accompanying rise in sales. It also characterizes the defendant’s business as charging high prices while offering less food stocks than competitors. The 1978 memo mentions an earlier “warning letter,” although such letter was never introduced and the nature of such warning was never explained. It also refers to an alleged admission by the defendant as to having once committed a violation, without explaining whether the purported admission related to cash exchanges. The memo also describes “concern” over “continued violations,” again without explanations of whether such violations ever were proven or whether they related to cash exchanges. It also emphasizes what are characterized as “excessive” rates of redemption.
In my view, it is obvious these records were introduced to show bad character on the part of the defendant, which is impermissible under Rule 404 unless, as the majority notes, the probative value of the evidence outweighs its prejudicial effect and the evidence of specific misconduct is “clear and convincing.” See, supra, at 1215. Here, the evidence meets neither criteria.
*1218The probative value of the memoranda is purportedly to confirm the official’s testimony in order to meet any challenge to his memory or recollection, although no such attack was made. If such a line of questioning had been pursued on cross-examination, the documents could have been tendered on redirect. Even assuming the documents were relevant for corroboration purposes, they could have been purged of the extraneous accusations and innuendos so as to avoid unfair prejudice. Instead, the documents were introduced in their entirety, without even a cautionary instruction, thus putting before the jury a series of unproven hearsay assertions as to the defendant’s alleged prior misconduct, suspiciously high rates of redemption and generally disfavored business practices. On the question of defendant’s knowledge, the probative value of such unpurged evidence is far outweighed by the unfair prejudice it causes.
The majority nonetheless approves the admission of such evidence as “clear and convincing” proof of prior, relevant misconduct. In fact, the 1978 memo does not even specify what “violation” it was the defendant supposedly admitted, nor does it specify what “continued violations” were the object of the official’s concern. Moreover, no proof of any violation is referred to in the memo, nor was any otherwise established at trial. The 1976 memo does not even allege misconduct but only speculates that violations, again unspecified, might be the cause of the high redemption rate. If such unexplained hearsay assertions meet the “clear and convincing” standard, then I must doubt the continued vitality of this requirement for admission of prior misconduct evidence.
Finally, the prejudice to the defendant from admitting these memoranda was compounded by the government’s failure to timely disclose a 1979 determination by the USD A that the defendant had been wrongly disqualified from the food stamp program. Essentially, the 1979 letter showed that the defendant’s supplemental evidence as to the level of his food sales sufficiently explained the allegedly high redemption rate which had led to his administrative disqualification from the program. I recognize that this determination does not directly bear on whether the defendant knowingly made cash exchanges for food stamps. The government, however, introduced the 1976 and 1978 memoranda which underscored the suspiciously high redemption rates at the grocery, obviously hoping that jurors might draw the same adverse inferences which are expressed in the memoranda. The 1979 determination is exculpatory because it shows that such inferences might well be improper and that USDA officials may well rush to judgment unfairly. If the government is going to introduce the memoranda giving rise to the adverse inferences, it must timely disclose the information in its possession which would negate such inferences. Here, it disclosed the 1979 determination by letter to defendant’s counsel which arrived at counsel’s office on the day of trial. Because it was a one-day trial, the defendant clearly was denied exculpatory use of the USDA’s belated determination.
I would reverse defendant’s conviction because it is so heavily tainted by impermissible hearsay evidence and by the government’s improper withholding of evidence which might have remedied at least some of the unfair prejudice that resulted. The defendant could, of course, be tried again with the prejudicial evidence excluded.