Gerard Marchelleta, Jr. v. Patricia Bergstrom

CourtCourt of Appeals for the Eleventh Circuit
DecidedSeptember 25, 2018
Docket17-11708
StatusUnpublished

This text of Gerard Marchelleta, Jr. v. Patricia Bergstrom (Gerard Marchelleta, Jr. v. Patricia Bergstrom) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gerard Marchelleta, Jr. v. Patricia Bergstrom, (11th Cir. 2018).

Opinion

Case: 17-11708 Date Filed: 09/25/2018 Page: 1 of 20

[DO NOT PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT ________________________

No. 17-11708 ________________________

D.C. Docket No. 1:14-cv-02923-ELR

GERARD MARCHELLETTA, JR.,

Plaintiff-Appellant,

versus

PATRICIA BERGSTROM, C. ANDREW MARTIN, PAUL MONNIN, JUSTIN ANAND, RANDY CHARTAS, et al.,

Defendants-Appellees.

________________________

Appeal from the United States District Court for the Northern District of Georgia ________________________

(September 25, 2018)

Before ED CARNES, Chief Judge, BRANCH, and FAY, Circuit Judges.

PER CURIAM: Case: 17-11708 Date Filed: 09/25/2018 Page: 2 of 20

Gerard Marchelletta, Jr. appeals the dismissal of his first amended complaint

and the denial of his Federal Rule of Civil Procedure 59(e) motion to alter

judgment and for leave to amend his first amended complaint. The district court

dismissed Marchelletta’s first amended complaint because it was a shotgun

pleading and alternatively for failure to state a claim, failure to exhaust

administrative remedies, and on qualified and absolute immunity grounds. The

court then denied his Rule 59(e) motion on grounds of undue delay and bad faith.

I. BACKGROUND

The civil action that led to this appeal was filed by Marchelletta after he was

convicted of federal tax crimes and later exonerated. He sued several defendants

who played a part in his investigation and prosecution. Because the district court

set out the facts of this case in its order dismissing the first amended complaint,

Marchelletta v. Bergstrom, No. 1:14-CV-02923-ELR, 2016 WL 10537558, at *3–

13 (N.D. Ga. Feb. 25, 2016), we will recount only the ones necessary to resolve the

issues in this appeal.

2 Case: 17-11708 Date Filed: 09/25/2018 Page: 3 of 20

A. FACTS 1

In 2014 Marchelletta filed suit against eight defendants who had investigated

and prosecuted him for felony tax crimes. His first amended complaint alleges

eleven Bivens and state law tort claims against: two IRS agents, Patricia

Bergstrom and Andrew Martin; three prosecutors with the United States Attorney’s

Office, Paul Monnin, Justin Anand, and Randy Chartash; one ICE agent, Kimberly

Sellers; one FBI agent, Mark Sewell; and one confidential informant, Shawn

McBride. For ease of reference, we will refer to the three prosecutors as the

Prosecutor Defendants and the IRS, ICE, and FBI agents as the Law Enforcement

Defendants.

1. The Underlying Criminal Action

In April 2007 a federal grand jury indicted Marchelletta, his father, and the

bookkeeper of their family business for felony tax fraud and conspiracy. A jury

convicted Marchelletta on three counts. He appealed. We reversed and remanded

with instructions to enter judgment of acquittal on the first count, and for a new

trial on the second count, but we affirmed on the third count. See United States v.

Kottwitz, 614 F.3d 1241, opinion withdrawn in part, 627 F.3d 1383 (11th Cir.

1 These “facts” come from the allegations in Marchelletta’s first amended complaint, which the district court dismissed. Because this case is on appeal from a motion to dismiss, we accept all well-pleaded allegations and draw reasonable inferences in the light most favorable to Marchelletta. See Dalrymple v. Reno, 334 F.3d 991, 994 (11th Cir. 2003). That does not mean, of course, that what we take as facts for present purposes actually are facts.

3 Case: 17-11708 Date Filed: 09/25/2018 Page: 4 of 20

2010). Marchelletta petitioned for panel rehearing, seeking to have his conviction

on the third count set aside as well. While that petition was pending, he filed in the

district court a motion for a new trial because he had discovered what he believed

was evidence of government misconduct, including Brady violations, trial perjury,

subornation of perjury, and witness intimidation. We granted the rehearing

petition and reversed and remanded the conviction on the third count for a new

trial on other grounds. See Kottwitz, 627 F.3d at 1384–85. That mooted

Marchelletta’s motion for a new trial based on the alleged government misconduct.

The United States Attorney’s Office announced that it would retry the

second and third counts, and at about that same time, Marchelletta filed a FOIA

action against the IRS and United States Customs Service that yielded 90,000

pages of documents relating to the criminal investigation of him. According to

Marchelletta, the prosecution had disclosed only 25,000 pages of documents

during pretrial discovery, so he filed a “Motion to Dismiss the Indictment for

Outrageous Government Misconduct,” which the district court denied. The district

court ultimately dismissed the remaining counts against Marchelletta based on a

negotiated agreement between him and the government.

2. Allegations of Government Misconduct

The first amended complaint claims there was government misconduct

before and after Marchelletta’s convictions. First, it claims misconduct regarding

4 Case: 17-11708 Date Filed: 09/25/2018 Page: 5 of 20

the assessment of his income tax returns, alleging that Bergstrom “either

individually or in concert” with the other defendants intentionally obstructed a

correct assessment of his tax returns. Second, it claims that Bergstrom, Sellers,

and Monnin recruited “rogue Union operatives” from a carpenters union to conduct

illegal activities against Marchelletta’s company and family.

Third, it claims that Bergstrom tried to cover up misconduct by telling other

IRS agents to obstruct Marchelletta’s access to the files he sought in his FOIA

action. When the IRS did release the files, Marchelletta received previously

undisclosed evidence showing: that Bergstrom had obtained unauthorized access

to grand jury materials from Sellers; that Bergstrom and Sellers had committed

perjury to obtain a conviction against him; and that Bergstrom had concealed

memoranda of witness interviews containing exculpatory information.

Finally, much of the first amended complaint centers on claims that the

Defendants fabricated evidence by cobbling together parts of undisclosed customs

reports into a “composite forgery” designed to conceal exculpatory evidence.

During discovery in the federal tax case, Marchelletta received six customs reports.

Later, in response to his FOIA request, he received eighteen customs reports. He

alleges that the sixth customs report from discovery was in fact a combination of

two customs reports that were undisclosed prior to his FOIA request, and that the

5 Case: 17-11708 Date Filed: 09/25/2018 Page: 6 of 20

pages from those two reports were arranged to appear to be from a single report,

yielding a “composite forgery.”

B. PROCEDURAL HISTORY

Marchelletta filed his initial complaint in September 2014, and after the

Defendants moved to dismiss, he sought an extension of time to file an amended

complaint.

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