State v. Saybolt

461 N.W.2d 729, 1990 Minn. App. LEXIS 1050, 1990 WL 163085
CourtCourt of Appeals of Minnesota
DecidedOctober 30, 1990
DocketC5-89-2242
StatusPublished
Cited by12 cases

This text of 461 N.W.2d 729 (State v. Saybolt) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Saybolt, 461 N.W.2d 729, 1990 Minn. App. LEXIS 1050, 1990 WL 163085 (Mich. Ct. App. 1990).

Opinion

OPINION

RANDALL, Judge.

Following a jury trial, appellant Daniel W. Saybolt was found guilty of attempted theft by swindle of over $35,000 in violation of Minn.Stat. §§ 609.52, subd. 2(4) (Supp. 1987), 609.52, subd. 3(1) (Supp.1987) and *731 609.17 (1986). He appeals from the judgment of conviction. We affirm.

FACTS

At the time of the alleged offense, appellant was an assistant vice president of Car-gill Metals with responsibility for the buying and selling of zinc concentrate on a world-wide basis. He had worked for Car-gill since 1974. Sometime during late September or early October 1987, Cargill decided to end its zinc concentrate trading because it had consistently lost money in such trading over the previous six years. Appellant was aware of the imminent closing of his section and had already begun to look for other employment.

Early in October, appellant’s supervisor instructed him to expeditiously liquidate Cargill’s remaining zinc concentrate positions. He was to do this while keeping as low a profile as possible. Knowledge that Cargill was trying to get out of the market would have a negative influence on the terms of any sales contracts it might obtain.

In the middle of October, appellant attended a zinc concentrate conference in Vienna where leading traders discussed their projections of the market for zinc concentrate for approximately the next six months.

On October 24, after returning from the Vienna conference, appellant was instructed by his supervisor to liquidate, by October 26, 1987, the final significant position held by Cargill (20,000 tons of concentrate produced by the Torguui zinc mine in Chile).

At that time, appellant began negotiations to buy a shell corporation from Select Corporation Services, a London company specializing in putting together offshore companies. On October 28, appellant purchased Balmer Trading Limited (Balmer) for $2000. Balmer was incorporated on the Isle of Man. It was a limited company which, under the laws of the Isle, shielded the individual shareholders of the company from personal liability for the debts of the company. The laws of the Isle also provided that the names of the shareholders could be held in confidence.

Appellant did not use his own name as a shareholder in the corporation. Rather, he used the name Daniel W. McCullough. He told Select Corporation Services that he, Daniel Saybolt, was merely acting as an intermediary in setting up the company. He asked for the strictest confidentiality regarding his involvement in the company.

On October 27, one day prior to the purchase of Balmer, appellant drafted a contract for the sale of the Torquui zinc concentrate by Cargill to Balmer. He did not circulate it among the other Cargill zinc traders for comment. The credit manager, unfamiliar with Balmer, felt that she could not approve the contract without the concurrence of her supervisor. The supervisor, also unfamiliar with Balmer, consulted with appellant as to the identity of the buyer. Appellant assured the supervisor that Balmer was affiliated with Marc Rich of Zurich, Switzerland, a large, well-known trading business. He indicated that he was dealing with a David Cohen. No David Cohen existed. Since the supervisor had no personal knowledge of Balmer, he left it up to appellant to approve the credit. Appellant then gave credit approval and returned the contract to the supervisor, who gave it to a secretary to send to Balmer.

The significant terms of the Balmer contract were; Cargill would sell 20,000 tons of zinc concentrate from the Torquui mine to Balmer for a base price of $820 per ton, C.I.F. under tackle to a European smelter port or parity; there was a treatment charge of $165.50 per ton with an iron penalty clause of approximately $9 — $10 per ton, based on the assayed iron content of 11.18; payment was to be within 30 days of the vessel’s arrival at its port and against presentation of the seller’s documents; finally, the treatment charge and the iron penalty clause are deductions from the base price. The higher the treatment charge and iron penalty clause, the less favorable the contract is to the seller, in this case, Cargill.

At the same time appellant was preparing the Balmer contract, he, as Balmer, *732 sent out seven or eight solicitations to sell the Torquui concentrate to smelters throughout Europe. These solicitations were the basis of $820 per ton but with a treatment charge of $162.50 per ton, and with no iron penalty clause. If appellant had been able to resell the zinc concentrate on these terms, he would have made a profit of approximately $260,000 on the sale. He received no response to his solicitations.

On October 28, the day following the preparation of the Balmer contract, appellant’s employment with Cargill was terminated. Because Balmer Trading Limited was not familiar to anyone at Cargill, inquiries were made which fueled suspicions about Balmer as a bona fide trader. Car-gill cancelled the Balmer contract on November 20, 1987 when it determined that Balmer was not a Marc Rich affiliate. On November 5, while its officers were still trying to determine who Balmer was, Car-gill began an investigation to identify the principals of Balmer. In conjunction with that investigation, a Cargill security officer interviewed appellant three times.

In the first interview on November 13, 1987, appellant detailed his dealings with Balmer through “David Cohen” and repeated his belief that Balmer was affiliated with Marc Rich. Appellant was interviewed again on December 2. During this interview appellant admitted that it was he, under the name of Daniel McCullough, who had purchased Balmer. He reiterated, however, that all the terms in the Balmer contract were at the instructions of “David Cohen” of Marc Rich. At the third meeting with the security officer on December 8, appellant again indicated that he was the principal behind Balmer. This time, however, while not specifically acknowledging that “David Cohen” did not exist, he also took responsibility for the terms of the contract.

On May 11, 1988, Cargill contacted the Minnetonka Police Department with the information it had gathered concerning the Balmer contract. Cargill alleged that appellant had attempted to swindle them in order to guarantee himself a profit of approximately $562,000 on the resale of the zinc concentrate. On June 27, a complaint was issued alleging attempted theft by swindle of over $35,000. Appellant was arrested on June 29. An amended complaint was filed on August 31, 1989, and it alleged the same offense but differed in some details of the swindle.

A jury trial was held September 13-27, 1989. Inadvertently, the jury was not sworn in at the start of the trial, but it was sworn just prior to closing arguments. Neither appellant nor respondent made a motion for a mistrial or offered any objection on the record to the late swearing in. Appellant was found guilty as charged by the jury.

On October 4, appellant filed a motion for a judgment of acquittal or a new trial on the grounds that the evidence produced at the trial was insufficient to sustain the verdict. Specifically, appellant argued that the evidence was insufficient to establish beyond a reasonable doubt that he had attempted to steal property with a value in excess of $35,000.

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Cite This Page — Counsel Stack

Bluebook (online)
461 N.W.2d 729, 1990 Minn. App. LEXIS 1050, 1990 WL 163085, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-saybolt-minnctapp-1990.