Bankr. L. Rep. P 70,011 United States of America v. Robert D. Alexander, Sr.

743 F.2d 472, 1984 U.S. App. LEXIS 19199
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 24, 1984
Docket83-1405
StatusPublished
Cited by66 cases

This text of 743 F.2d 472 (Bankr. L. Rep. P 70,011 United States of America v. Robert D. Alexander, Sr.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bankr. L. Rep. P 70,011 United States of America v. Robert D. Alexander, Sr., 743 F.2d 472, 1984 U.S. App. LEXIS 19199 (7th Cir. 1984).

Opinion

PELL, Circuit Judge.

Defendant-appellant, Robert D. Alexander, Sr., appeals from his conviction for violation of the federal mail and wire fraud statutes, 18 U.S.C. §§ 1341, 1343, and the sentence imposed pursuant to the convictions. Defendant raises three main grounds for reversal. First, he claims that an initial administrative decision in his favor on a Postal Service complaint to stop his mail collaterally estops the Government to prosecute the criminal charges against him. Second, he contends that the instructions tendered by the Government and given by the trial court with respect to the defense of good faith were erroneous. Third, he alleges that the special conditions of probation imposed by the trial court were unduly restrictive and contravened the provisions of the Bankruptcy Code.

I. THE PACTS

The nine-count indictment against defendant, an Illinois resident, arose from his business of reconditioning, repairing, selling, and installing heavy duty truck scales used by his customers to weigh farm and other commodities. The indictment, handed down on November 16, 1982, charged defendant with a scheme to defraud and to obtain money by means of false and fraudulent promises. For twenty-five years, defendant owned and operated Peoria Scale Service. He sold and installed approximately 1100 scales from the inception of his business until creditors forced him into involuntary bankruptcy on March 3, 1982. The State of Illinois had revoked his license to repair scales in March 1981, but much of his business had always come from outside Illinois, and he continued to do business until the creditors filed their bankruptcy petition.

On August 12, 1982, after defendant’s creditors filed their petition for bankruptcy but before either the discharge in bankruptcy or the indictment, the United States Postal Service filed an administrative complaint against Peoria Scale Service. The complaint, filed pursuant to 39 U.S.C. § 3005, sought to enjoin defendant’s company from receiving any mail connected to an alleged scheme to obtain money through the mails by means of false pretenses. On December 17, 1982, after a hearing, the administrative law judge denied the requested injunction, finding that the Postal Service had failed to prove that the company had been involved in a scheme to defraud. Between the time the Postal Service filed its complaint and the decision of the administrative law judge, the Government indicted defendant on criminal charges based upon most of the same transactions through which the Postal Service had sought to establish its right to an injunction.

Defendant contended before the trial court that the Postal Service’s unsuccessful complaint acted as a bar to the fraud charges and that the decision of the administrative law judge amounted to collateral estoppel against the Government from re-litigating the claims of fraud. The district court denied defendant’s motion to dismiss the indictment. The court held that the purposes of the two proceedings were sufficiently different that the Postal Service’s *474 action did not preclude institution of criminal charges, despite the similarity of the issues involved. In his appellate briefs, defendant again contends that, under the doctrine of collateral estoppel, the mail fraud counts should have been dismissed.

A four-day jury trial took place in January 1983. The Government produced a substantial number of witnesses who had a business relationship with defendant. Although the evidence produced by the examination of these witnesses varied, the testimony of David Ungeheuer typified the evidence that the Government produced. Un-geheuer read defendant’s advertisement for used scales in a farm journal and called defendant, who said that he would charge $16,000 for the desired scale. Similar new scales cost between $25,000 and $35,000. Several weeks later, defendant called Ungeheuer and offered to sell the same scale for $14,000, including delivery and installation at Ungeheuer’s convenience, if he agreed to buy the scale immediately. In October 1981, he sent to defendant $5,200 of a $10,500 down payment, with the balance of the down payment due upon delivery. Again, the parties indicated that the work was “to be started at buyer’s convenience.” Ungeheuer requested that defendant perform the work in the late fall of 1981. Nobody from defendant’s company ever came to Ungeheuer’s property to begin the installation process, nor did he ever receive any refund. Through this and other testimony, a pattern developed of defendant charging very low prices, demanding large down payments, and then never performing any substantial work on the projects.

After closing arguments, the trial judge instructed the jury. The charge included two instructions to which defendant made timely objections at trial and which defendant now presses as a ground for reversal. Government’s Instruction 20 stated: “An honest belief by the Defendant that he will ultimately be able to perform what he has promised is not in itself a defense to the crimes charged.” Defendant contends that this instruction is not legally accurate and unduly prejudiced the good faith defense that formed the basis of defendant’s theory of the case. The next instruction given, Government’s Instruction 21, stated: “It is no defense to the crimes charged that not all of the persons with whom the Defendant dealt in his business were defrauded.” Defendant claims that Instruction 21 was unnecessary, misleading, and prejudicial because it amounted to an unwarranted instruction to disregard the testimony from satisfied customers. Defendant contends that the instruction should have stated that such testimony, while relevant, was not dispositive. The next instruction, as to which defendant does not claim error, stated: “If the jury should find that, at the time made, the representations and promises which the Government alleges to be fraudulent, were made in good faith, the fact that any such representations or promises were later unfulfilled does not warrant a verdict of guilty.” Defendant contends that this sequence of instructions deprived him of his right to a fair trial.

The jury returned a verdict of guilty on five of the nine counts. After the judge denied defendant’s post-trial motions, he imposed a suspended sentence and placed defendant on five-years’ probation on each count, with the counts to run concurrently. Among the five special conditions of probation, defendant objects to two. First, the judge ordered defendant to make restitution of $47,000 total, during the course of the probation, to the victims named in the counts of which the jury found defendant guilty. Defendant objects to the condition on the ground that it avoids the effect of the relief ordered by the bankruptcy judge, who had discharged the claims of all of the victims. Second, the judge prohibited defendant from “maintaining a proprietary interest in any business that sells, replaces, or installs either permanent or portable weigh scales.” Defendant contends that the second condition deprives him of any reasonable opportunity to fulfill the first condition, assuming the validity of that condition, because the scale business had been his sole occupation for over thirty years and his age, sixty-two, makes it unlikely *475

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743 F.2d 472, 1984 U.S. App. LEXIS 19199, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bankr-l-rep-p-70011-united-states-of-america-v-robert-d-alexander-ca7-1984.