Commonwealth v. Melanson

760 N.E.2d 794, 53 Mass. App. Ct. 576, 2002 Mass. App. LEXIS 55
CourtMassachusetts Appeals Court
DecidedJanuary 15, 2002
DocketNo. 00-P-752
StatusPublished
Cited by4 cases

This text of 760 N.E.2d 794 (Commonwealth v. Melanson) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commonwealth v. Melanson, 760 N.E.2d 794, 53 Mass. App. Ct. 576, 2002 Mass. App. LEXIS 55 (Mass. Ct. App. 2002).

Opinion

Kaplan, J.

The defendant William Melanson appeals from his [577]*577convictions, after jury trial, of larceny over $250 (G. L. c. 266, § 30) and of conspiracy (G. L. c. 274, § 7) to commit the larceny,1 and to make false entries in corporate books (G. L. c. 266, § 67).2 On this appeal the defendant challenges the sufficiency of the evidence to support the conspiracy convictions. The defendant also claims error in the judge’s admitting in evidence an extrajudicial statement by an alleged conspirator and in the prosecutor’s making certain remarks in his closing speech; each of these errors, he contends, tainted all three convictions and warrants a new trial.

1. Outline of the scheme as proved. Star Market Company (Star Market) operates many retail grocery stores in Massachusetts. John Curtis was a longtime employee working as “facilities manager” in the maintenance division of the company and so was responsible for the purchase and installation of refrigeration equipment for the frozen food displays and cases in the stores. One supplier was M & S Heating and Air Conditioning (M & S), a small sole proprietorship owned and operated by the defendant, William Melanson,3 which had been chosen occasionally by Curtis after 1991 to do duct work on heating and air conditioning systems at the stores. Another supplier was N. W. Day Company (doing business as Day Supply), operated by its president Harry See, which served as a “middleman” in obtaining refrigeration equipment from manufacturers and furnishing it to end users such as Star Market.

As a prototype of the working out of the conspiracy charged in the indictments as having occurred from April to September, 1995,4 we take the instance at the Hyde Park store. On April 24, 1995, with Curtis’s approval, a service contract issued to M & S [578]*578to supply certain Bohn refrigeration equipment to that location for the contract price of $87,093.30. On May 6, 1995, M & S submitted an invoice for the stated amount indicating fulfillment of the contract. In fact M & S had not furnished any equipment. Curtis approved payment of the invoice and a check #106318 dated May 24, 1995, by Star Market issued to M & S. The defendant on May 25, 1995, endorsed the check for deposit to the M & S checking account at Andover Bank. Then the defendant on May 30, 1995, wrote a check against that account to the order of John Curtis in the amount of $84,593.30, with just $2,500 retained by M & S. The same day Curtis endorsed the check for deposit to his personal account at Baybank.

Meanwhile, Harry See’s Day Supply actually furnished to the Hyde Park store the refrigeration equipment called for by the M & S contract. See, however, did not submit any Day Supply invoice for that equipment; rather he invoiced Star Market on May 5, 1995, for freon (a coolant in refrigeration systems), purportedly delivered to the Hyde Park store. The amount claimed was $81,950 and Curtis approved the payment to Day Supply. Star Market paid Day Supply by check. In fact Day Supply had not delivered any freon.* ***5

The net result of the foregoing maneuvers was that Star Market paid roughly twice for the refrigeration equipment, with illicit gains of $84,593.30 by Curtis and $2,500 by the defendant through M & S.

To round out the story, Curtis submitted an invoice to M & S for refrigeration equipment Curtis himself supposedly furnished to M & S — this corresponding in description and amount with the M & S service contract with Star Market and M & S’s invoice submitted thereunder. Of course, no goods were [579]*579furnished, nor was Curtis authorized to contract in his own behalf to supply equipment intended ultimately for a Star Market store. The paper transaction occurred perhaps to help the defendant and M & S gloss their false deal with Star Market in case of hostile inquiries.

In the margin we mention episodes involving the Norwood, Allston, and Gloucester stores similar to the prototype. These occurred in the April-September, 1995, interval.6 In total, for the four stores, Star Market paid the defendant’s M & S $367,257.05, and the defendant remitted $358,757.05 to Curtis.7

The record chronicles the unraveling of the scheme. As early as mid-1991, Dennis Carsno, a Star Market employee, questioned Curtis, then his superior, about Day Supply invoices for materials that Carsno knew had not been received by Star Market: Curtis had passed these invoices to Carsno to be processed for payment. Curtis answered, “Not to worry. I’ve taken care of it. It’s all set.” Carsno backed off for a while.

From late 1994 through August, 1995, Carsno noticed Day Supply invoices for large amounts of freon — about $40,000 per month — in fact not received, as he well knew because he was then responsible for processing vendor-supplied equipment within Star Market’s maintenance division. The purchase orders for the freon, presumably approved by Curtis, were missing from the Star Market file for Day Supply — eventually these were found locked in Curtis’s office. Carsno in late 1994 or early 1995 informed Star Market’s president and other executives of his forebodings; after an internal investigation, the company referred the matter to the Attorney General, and grand jury action followed against the defendant and others. Curtis did not testify at the defendant’s trial, but See did on the part of the Commonwealth under a plea agreement.

[580]*5802. Evidence that defendant conspired.8 After moving vainly for a required finding when the Commonwealth rested, the defendant also rested, so the question is on the sufficiency of the evidence presented by the Commonwealth. The evidence was largely documentary, introduced through James McFadden, an investigator in the Attorney General’s office. The bank records of M & S and Curtis together with the service contracts and suppliers’ invoices exhibited how the scheme worked. Star Market employees testified to the process for payment of suppliers’ invoices, Curtis’s authority on behalf of Star Market to enter into contracts with suppliers and to approve payment of suppliers’ invoices, his responsibility for seeing that equipment that was billed was in fact delivered, and his disability to act on his own behalf as a supplier of equipment for the Star Market stores. There was further employee testimony about Curtis’s having initiated the hiring of M & S and the predecessor company as suppliers and his signing the several service contracts with them. As noted, Harry See testified. He spoke of Curtis’s asking him to bill for the refrigerant, which he first took to be just “red tape.” See also note 5, supra.

“The heart of a conspiracy is the formulation of the unlawful agreement or combination.” Commonwealth v. Cantres, 405 Mass. 238, 244 (1989), quoting from Commonwealth v. Pero, 402 Mass. 476, 478 (1988). But a conspiracy rarely wears its heart on its sleeve. Thus we have no explicit proof of the defendant’s “agreeing” in so many words with Curtis to join in the scheme, although we have much about transactions with M & S, the defendant’s company. Agreement, however, may be instinct in the situation as a whole, and proved by circumstantial means. See Commonwealth v. Nelson, 370 Mass. 192, 200-201 (1976);

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Bluebook (online)
760 N.E.2d 794, 53 Mass. App. Ct. 576, 2002 Mass. App. LEXIS 55, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commonwealth-v-melanson-massappct-2002.