Reza Toulabi v. United States

875 F.2d 122, 1989 U.S. App. LEXIS 7417, 1989 WL 54796
CourtCourt of Appeals for the Seventh Circuit
DecidedMay 15, 1989
Docket88-2573
StatusPublished
Cited by44 cases

This text of 875 F.2d 122 (Reza Toulabi v. United States) 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
Reza Toulabi v. United States, 875 F.2d 122, 1989 U.S. App. LEXIS 7417, 1989 WL 54796 (7th Cir. 1989).

Opinions

EASTERBROOK, Circuit Judge.

To be a taxi driver in London, a person must master The Knowledge (468 difficult [123]*123routes through London’s labyrinth), a process that usually takes two years, and so demonstrate ability to go smoothly from one place in the city to any other. Financial Times of London, March 22, 1989, page 16. To be a taxi driver in Moscow, a person must acquire the CIA’s map of the city, for until recently the USSR’s own street maps were intentionally inaccurate, omitting such landmarks as the headquarters of the KGB. New York Times, Sept. 3, 1988 (reporting the Soviet Union’s release of accurate maps for the first time since the late 1930s). To be a taxi driver in Chicago, a person must pay a fee of $50 and answer correctly 20 out of 25 questions on a test of local geography. An aspirant alternatively could pay between $350 and $600 to Reza Toulabi, whose henchmen in the Division of Public Vehicle Operations would furnish the would-be cabbie with the answers to the quiz. Perhaps more important to Tou-labi’s customers, his confederates would arrange for the license to issue without the City’s inquiring of the Immigration and Naturalization Service whether an alien applicant was authorized to work in the United States.

In 1985 a jury convicted Toulabi of mail fraud. The mail was used to send the licenses to the clients, cf. Schmuck v. United States, — U.S. -, 109 S.Ct. 1443, 103 L.Ed.2d 734 (1989); the fraud was the deceit practiced on the City of Chicago, which was led to issue licenses to persons not entitled to receive them. At the time of the indictment and conviction, this circuit adhered to the “intangible rights doctrine”, under which a scheme to deprive a governmental body of the honest services of its employees satisfied the fraud element of the statute. The indictment laid out an “intangible rights” scheme, charging that Toulabi and retainers defrauded “the citizens of the City of Chicago of their right to the loyal, faithful and honest services of [the two employees] in the performance of acts related to their public employment”, and of “their right to have the business of the [agency] conducted honestly, fairly, impartially, free from corruption, collusion, partiality, dishonesty, bribery and fraud, and in accordance with the laws of the City of Chicago”. Why the United States should be so interested in enforcing “the laws of the City of Chicago” is something of a mystery. The mailings here were not the mechanism of deceit. State and local governments commonly prosecute violations of their own laws, and Toulabi was not so well-connected that he lived without anything to fear from local authorities. Congress has never considered the proper role of federal law in prosecuting garden-variety governmental corruption, apart from the extortion covered by the Hobbs Act — hence the need to create theories such as the intangible right to honest services, when any statute designed for local corruption could be written less elliptically. So long as the intangible rights approach prevailed, however, the decision to pursue cases of this sort lay within the discretion of the federal prosecutor.

McNally v. United States, 483 U.S. 350, 107 S.Ct. 2875, 97 L.Ed.2d 292 (1987), rejected the intangible rights doctrine, holding that a scheme violates 18 U.S.C. § 1341 only if it deprives the victim of “property”. Ever since, federal prosecutors have been waging a rear-guard action to preserve convictions secured under prior law. When the jury must have found a deprivation of property, we affirm on direct appeal even though the indictment was cast in terms of intangible rights. E.g., United States v. Wellman, 830 F.2d 1453 (7th Cir.1987). The court examines the evidence and instructions to piece together the conclusions that the jury necessarily reached. If the jury could have founded its verdict on the intangible rights doctrine, we set the judgment aside even though the indictment might have supported a verdict on a proper charge.

When the case arrives on collateral attack, as this one does (Toulabi was on probation by the time he filed his petition under 28 U.S.C. § 2255), things are not so simple. Collateral relief is available only when the custody violates the Constitution or laws of the United States. A change of law showing that the indictment does not state an offense may supply the foundation for relief, Davis v. United States, 417 U.S. [124]*124333, 94 S.Ct. 2298, 41 L.Ed.2d 109 (1974). And Magnuson v. United States, 861 F.2d 166, 167 (7th Cir.1988), holds that McNally is the sort of fundamental change that must be applied under § 2255. How should McNally properly be taken into account?

Surely not by giving the defendant what amounts to a second appeal of his conviction. Davis tells us that a change of law showing that the defendant has been punished “for an act that the law does not make criminal”, 417 U.S. at 346, 94 S.Ct. at 2305, entitled the prisoner to relief. So a court must inquire whether the indictment states an offense. Should it do more? Section 2255 authorizes all inquiries usually made on collateral attack, and a prisoner may ask the court to determine whether there was sufficient evidence to allow a reasonable trier of fact to conclude, beyond a reasonable doubt, that the defendant committed a crime. Jackson v. Virginia, 443 U.S. 307, 99 S.Ct. 2781, 61 L.Ed.2d 560 (1979). Section 2255 also allows courts to redress a defect that “so infected the entire trial that the resulting conviction violates due process”, Cupp v. Naughten, 414 U.S. 141, 147, 94 S.Ct. 396, 400, 38 L.Ed.2d 368 (1973). This language has been used since Davis to support collateral review if the instructions omit an essential element of the offense and therefore undermine the fairness of the trial. Henderson v. Kibbe, 431 U.S. 145, 155-57, 97 S.Ct. 1730, 1737-38, 52 L.Ed.2d 203 (1977) (holding that the omission from the instructions of an element of the offense did not require a new trial, although it would have called for reversal on direct appeal). The extent of this review remains a contentious issue. Compare Cole v. Young, 817 F.2d 412, 423-27 (7th Cir.1987), with id. at 435-40 (dissenting opinion); cf. Pope v. Illinois, 481 U.S. 497, 502-03, 107 S.Ct. 1918, 1921-22, 95 L.Ed.2d 439 (1987).

Which of these inquiries a court conducts on collateral attack is the defendant’s choice. The prisoner could contend that the indictment fails to state an offense while conceding (by silence) that the evidence would have been sufficient under Jackson had the charge been adequate. The prisoner might focus on the jury instructions, contending that they omitted an element essential (in retrospect), and that the shortfall was so serious that it violated the Due Process Clause as Cupp and Henderson

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Bluebook (online)
875 F.2d 122, 1989 U.S. App. LEXIS 7417, 1989 WL 54796, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reza-toulabi-v-united-states-ca7-1989.