In Re Application of Larry A. Wood to Appear Before the Grand Jury (Misc. 85-L-02). Appeal of United States of America

833 F.2d 113, 1987 U.S. App. LEXIS 14974
CourtCourt of Appeals for the Eighth Circuit
DecidedNovember 12, 1987
Docket86-1719
StatusPublished
Cited by8 cases

This text of 833 F.2d 113 (In Re Application of Larry A. Wood to Appear Before the Grand Jury (Misc. 85-L-02). Appeal of United States of America) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Application of Larry A. Wood to Appear Before the Grand Jury (Misc. 85-L-02). Appeal of United States of America, 833 F.2d 113, 1987 U.S. App. LEXIS 14974 (8th Cir. 1987).

Opinions

HEANEY, Circuit Judge.

The United States appeals from an order of the United States District Court for the District of Nebraska, ordering the United States Attorney of that district to present to the grand jury allegations of wrongdoing on the part of an FBI agent and an Assistant United States Attorney lodged by Larry A. Wood, a private citizen and previously acquitted defendant. Alternatively, the court ordered that Wood be permitted to personally appear before the grand jury to present his allegations. We affirm the district court.

I. FACTS.

In November, 1984, a grand jury returned an indictment charging Larry A. Wood and others with conspiracy to commit bank fraud through submission of false loan applications. Wood was acquitted following a jury trial. After the jury returned its verdict, Wood’s counsel wrote to the Assistant United States Attorney stating that it was his

firm, professional and personal belief that Larry did not commit a crime; that the only reason he was presented before the Grand Jury is because of [FBI Agent] John Campbell’s belief that Larry was involved in the crime; that John Campbell had to return indictments to justify the time and money expended in the investigation of the matter; that this was done with [Assistant United States Attorney Bernard] Glaser’s tacit knowledge and approval.

Letter from Steven Lefler to Thomas Thalken, July 3, 1985.

Wood’s counsel appended portions of Campbell’s grand jury testimony that were allegedly perjurious and asked that “this matter * * * be presented to the Grand Jury to return an indictment of penury against Campbell [and] conspiracy charges against Mr. Glaser and Mr. Campbell.” He further requested that, in the event the United States Attorney refused to present the perjury allegations to the grand jury, he be given leave to present the allegations himself or to seek appointment of a special prosecutor. Thereafter, the United States Attorney presented the perjury allegations to the grand jury. The grand jury declined to take action.

Wood then filed a petition with the district court, alleging that the matter had not been fairly presented to the grand jury. He requested an order allowing his attorney to present the matter before a grand jury or, in the alternative, appointing a special prosecutor to undertake that task.

[115]*115On December 27, 1985, the district court, after hearing the matter at length, issued an order in which it held that the matter should be re-presented to the grand jury, but that neither Wood nor his attorney need be present at the grand jury session if two conditions obtained: (1) if the accusation was presented fairly, and (2) the decision as to what investigation, if any, was done, including what witnesses, if any, would be called to testify, was made by the grand jury and not by the government attorneys. The court stated:

I have read carefully the sealed transcript of the grand jury session in which Acting United States Attorney Thalken presented to a grand jury the accusations contained in Lefler’s letter to Thalken of July 3,1985. The presentation was accurate and fair in general, but I am troubled that the grand jury may have been misled by statements by Thalken to the grand jury. Questions were asked by grand jurors and answers were made by Thalken. Although subject to more than one interpretation, it is evident that the grand jury may reasonably have thought from what Thalken said that it could open an investigation and call Lefler or anyone else as a witness only if it first determined that Campbell had knowingly testified falsely. So interpreted, the statement would be inaccurate and unfair, because, if it were followed, it would for all practical purposes foreclose an investigation and render any investigation merely confirmatory of a conclusion already reached. The grand jury also could reasonably have thought that from what Thalken said the only information that Lefler claimed to have was the fact of acquittal of Larry Wood in his criminal trial. So interpreted, the statement would be slanted and unfair.

December 23, 1985, Memorandum of district court at 5.

The court directed that a transcript be made at the rehearing and delivered to the court for review.

The court declined to appoint a special prosecutor, holding that such authority is vested in the Attorney General and not the court. See 28 U.S.C. § 543; United States v. Nixon, 418 U.S. 683, 694, 94 S.Ct. 3090, 3100, 41 L.Ed.2d 1039 (1974); Matter of Application for Appointment of Independent Counsel, 766 F.2d 70 (2nd Cir.), cert. denied, 474 U.S. 1020, 106 S.Ct. 569, 88 L.Ed.2d 554 (1985).

Thereafter, the United States asked the district court to reconsider its December 23, 1985, order. On May 5, 1986, the district court denied the motion to reconsider. It stated:

“[I]f the United States Attorney for the District of Nebraska or his authorized representative, as shown by a transcript of the proceedings, presents fully and accurately to a grand jury within 30 days after the date of this order the accusation of Larry A. Wood as recited in that letter from Steven Lefler to Thomas Thalken dated July 3,1985, and the application filed in this case, and that a decision to call or not to call any witness is thereafter made by the grand jury, then the application of Larry A. Wood to appear before the grand jury will stand denied; and
* * * [I]f the accusations are not presented in the manner described in * * * this order, then the application of Larry A. Wood to appear before the grand jury shall be granted, the time and conditions to be set out by a future order of this court.”

May 5, 1986, Order of the district court.

The United States appeals from the May 5, 1986, order. It argues that the district court’s supervisory power over the grand jury does not permit it to second-guess the manner in which allegations are presented to the grand jury and that the court had no power to authorize Wood to present his allegations to the grand jury.

II. ANALYSIS.

The United States argues that a court “may not exercise its ‘supervisory power’ in a way which encroaches on the prerogatives of the [executive or the grand jury itself] unless there is a clear basis in fact and law for doing so.” United States v. Chanen, 549 F.2d 1306, 1313 (9th Cir.), [116]*116cert. denied, 434 U.S. 825, 98 S.Ct. 72, 54 L.Ed.2d 83 (1977); United States v. (Under Seal), 714 F.2d 347 (4th Cir.), cert. dismissed, 464 U.S. 978, 104 S.Ct. 1019, 78 L.Ed.2d 354 (1983). We believe this to be a correct statement of the law. The question thus becomes whether there was a clear basis in fact and law for the district court’s decision in this case.

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833 F.2d 113, 1987 U.S. App. LEXIS 14974, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-application-of-larry-a-wood-to-appear-before-the-grand-jury-misc-ca8-1987.