State v. Canning

541 A.2d 457, 1988 R.I. LEXIS 62, 1988 WL 47319
CourtSupreme Court of Rhode Island
DecidedMay 17, 1988
Docket85-407 C.A.
StatusPublished
Cited by8 cases

This text of 541 A.2d 457 (State v. Canning) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Canning, 541 A.2d 457, 1988 R.I. LEXIS 62, 1988 WL 47319 (R.I. 1988).

Opinion

OPINION

FAY, Chief Justice.

The former executive director of the Rhode Island Turnpike and Bridge Authority (the authority), James F. Canning, appeals to this court from a Superior Court jury conviction for thirty-one counts of filing false documents with the authority, in violation of G.L. 1956 (1981 Reenactment) § 11-18-1. 1 The jury also found the defendant guilty on one count of obtaining money by false pretenses, in an amount exceeding $500, pursuant to G.L. 1956 (1981 Reenactment) § 11-41-4. 2 The offenses related to vouchers totaling approximately $2,500 that defendant submitted to the authority for reimbursement from its travel and expense account.

On April 17, 1985, defendant filed an appeal premised on several issues. In his arguments, defendant questioned the constitutional impact of the trial justice’s having granted an inadequate continuance, the scope of cross-examination permitted at trial, and the denial of his motions for acquittal and to pass the case. 3 He also pressed his objection to the trial justice’s having allowed the jurors to take notes without giving a cautionary instruction and to his having ordered the jurors’ notebooks destroyed after their deliberations. The defendant presented his arguments to this court on May 6, 1987. At that time we determined that the limitation of defense counsel’s ability to cross-examine prosecution witnesses formed the crux of defendant’s appeal. He argued that through cross-examination he could show that the *459 authority knew of Canning’s legitimate reimbursement procedure for permissible expenses. In order to determine whether the limited cross-examination detrimentally affected defendant’s suit, we remanded the case to the trial court for an evidentiary hearing to elicit the substance of the curtailed testimony. The order further directed the trial justice to make findings concerning whether the cross-examination would have affected the outcome of the case.

General Laws 1956 (1979 Reenactment) chapter 12 of title 24 describes the authority’s management structure. The authority is a statutory agency created to construct or acquire the turnpike and bridges, as defined in § 24-12-1, and to control their maintenance and operation. Section 24-12-5. Five members, who receive $40 for each day spent conducting authority business, compose the authority. Section 24-12-4 states that in addition "authority members * * * shall be paid their necessary expenses while engaged in the performance of their duties * * The authority has the power to appoint an executive director. Although the executive director receives a salary, a reimbursement mechanism similar to the statutory provision entitles him or her to repayment for business expenses.

Evidence adduced at the initial trial defines the authority’s finances. As executive director of the organization for seventeen years, Canning was essentially responsible for its daily operation. It was his duty to formulate a budget in conjunction with the authority’s chief of accounting, Marion J. Pierce. They would submit the budget proposal to the authority members for review and then to the bondholders and bondholders’ trustees (the banks) for final approval. In the authority’s fiscal year July 1, 1981, through June 30, 1982, its total operating expenses were $1,430,000. The budget contains a travel and advertising expense line, account No. 516, which approximated 12 percent of the budget. All management personnel could obtain reimbursement for legitimate business expenses from account No. 516. Canning’s and Pierce’s signatures of approval on any submitted voucher as a valid operating expense were required before an authority check would issue, although any major item also required approval of the authority members. Canning thus had the power to approve the vouchers for his expenses and to sign a check to himself with Pierce’s countersignature.

The defendant usually submitted a travel expense report each week. His secretary, Christine Jacquette, would prepare the form by filling in Canning’s name and the dates. She would then give the form with her employer's appointment book to him, and he would fill in his meetings, mileage, meal expenses, and miscellaneous expenditures. He would return the form to Jac-quette, who would compute the mileage at fifteen cents a mile, total the figures for the week, and write a check for the appropriate amount. Canning would proceed to sign and endorse the check and approve payment on the travel form itself. Jac-quette would subsequently cash the check at the toll booth and bring the money to Canning.

Evidence at the initial trial revealed problems in the apparent integrity of this reimbursement process. Pierce testified that she had a conversation with Canning in which he expressed some concern about the lack of substantiating receipts for his expense reports and the impending annual audit. Subsequent to that conversation, Pierce purchased some blank guest checks at an office supply store and left them on Jacquette’s desk. Jacquette stated that when she ultimately filed a travel expense report the check and restaurant receipts were attached to it. Jacquette added that she had attached to the expense sheets “a few” of the guest checks, identified as receipts from Christie’s, from the pad Pierce had left on her desk. The testimony thus indicated that the receipts did not originate at the restaurant.

Additional evidence undermined the veracity of the documentation. Canning asked Pierce for the file of vouchers early in 1982. He returned the folder about two days later, on April 15, 1982. Although Pierce did not notice anything different about the folder at that time, Jacquette *460 testified that when she walked into Canning’s office that afternoon she saw Edward Dugan, former vice chairman of the authority, examining the travel-expense reports. She observed that the slips she normally appended had changed from the uniform buff-colored slips from Christie’s to papers of varying shapes and sizes. From this evidence, the jury could properly infer that someone had tampered with the documentation.

To disprove the expenses Canning claimed to have incurred, the prosecution presented the travel-expense vouchers in conjunction with the diary entries. Entries detailing meetings attended, miles traveled, meals consumed, and miscellaneous expenditures were read into evidence. Canning sought reimbursement for meals that cost an average of $7 to $8, 90 to 100 miles driven to Providence for meetings, and $3 to $4 for miscellaneous items. The prosecution then presented more than a dozen witnesses who testified that they had not attended the meetings listed in the vouchers. For example, state exhibit No. 16, the expense report dated October 8, 1981, through October 14, 1981, contained an entry for a meeting with the trustees of Rhode Island Hospital Trust and Industrial National Bank (currently Fleet National Bank). 4 A similar entry appeared on state’s exhibit No. 36, the expense report for February 25, 1982, through March 3, 1982.

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Cite This Page — Counsel Stack

Bluebook (online)
541 A.2d 457, 1988 R.I. LEXIS 62, 1988 WL 47319, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-canning-ri-1988.