UNITED STATES of America, Appellee, v. John L. MARTIN, Appellant

798 F.2d 308, 21 Fed. R. Serv. 722, 1986 U.S. App. LEXIS 28023
CourtCourt of Appeals for the Eighth Circuit
DecidedAugust 12, 1986
Docket85-5402
StatusPublished

This text of 798 F.2d 308 (UNITED STATES of America, Appellee, v. John L. MARTIN, Appellant) 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
UNITED STATES of America, Appellee, v. John L. MARTIN, Appellant, 798 F.2d 308, 21 Fed. R. Serv. 722, 1986 U.S. App. LEXIS 28023 (8th Cir. 1986).

Opinion

HENLEY, Senior Circuit Judge.

A jury found John L. Martin guilty of an indictment’s single count that “on or about the 11th day of June, 1984 John L. Martin did transport in interstate commerce to the State of Minnesota and the District of Columbia from Chamberlain in the District of South Dakota security, that is, a check of the value of $27,500.00, knowing the same to have been taken by fraud in violation of 18 U.S.C. § 2314.” On appeal, Martin argues that he is entitled to a new trial because the district court 1 erred in eliciting inadmissible hearsay testimony, in prohibiting the introduction of relevant exhibits, and in refusing to give certain jury instructions. We affirm.

Martin worked for his cousin, Gerald Martin, who owned Modem Grain Systems, Inc. The company was in the business of selling grain bins and dryers. The main office was located in Amboy, Minnesota. Martin worked on a commission basis as a salesman in South Dakota where the company was known as Modern Grain Systems. In June, 1983 he sold several grain bins and a grain dryer to Crow Creek Farm Corporation, which was owned by the Sioux Tribe, for $181,350.00. Martin testified he was to receive 50% of the $55,000.00-$60,-000.00 profit as his commission, but his cousin testified that he was to receive only 35% of the profit.

Crow Creek Farm Corporation dealt with Modern Grain Systems primarily through Martin. Over a period of time it gave him several checks for a total amount of approximately $126,350.00. He endorsed the checks and deposited them in the Norwest Bank in Chamberlain, South Dakota, where the corporate account for Modem Grain Systems, Inc. was maintained. Martin was not authorized to sign checks on the corporate account. It was arranged that the balance of the amount owed, $55,000.00, would be paid in two installments with a 15% interest rate. One-half was to be paid on November 15, 1983 and the other half on November 15, 1984. The November,

1983 payment was made without problem. Crow Creek Development Corporation wrote out a check for $35,750.00 to “Modern Grain Co.” This represented $27,-500.00 in principal, and $8,250.00 in interest. Martin received the check, endorsed it, and deposited it in Modem Grain Systems’ bank account. His cousin appears to have paid him and his wife $2,200.00 from the proceeds of this check.

Gerald Martin testified that in January, 1984 he informed Martin by telephone that his job with Modern Grain Systems was terminated. Modern Grain Systems had financial problems and apparently closed down sometime during the first six months of 1984. All of the company’s accounts receivable had been pledged to the Security National Bank of Amboy, Minnesota. Martin was aware that his cousin was having financial problems, but he denied that his cousin ever told him that his job was termi *310 nated. He testified that he believed he was an agent for the company until August, 1984. In February, 1984 Martin opened a bank account under the name Modern Grain in the Tri-County State Bank in Chamberlain, South Dakota and listed himself as the authorized signer. He testified that he opened the account so that he could go into business for himself.

Around May, 1984 Martin approached Dale Broscha, the Sioux Tribal Finance Officer, and offered to waive the interest due on the last payment, which Broscha said was approximately $3,000.00, 2 if the Tribe would make the payment early, rather than waiting until November. On June 11, 1984 Martin sent a letter to Crow Creek Farm Corporation making the offer in writing. The envelope carried Modern Grain Systems’ return address and the enclosure carried Martin’s name and his title of sales representative for Modern Grain Systems.

Broscha, believing that Martin had the authority to make this offer, agreed to make the early payment to Modern Grain Systems in return for the waiver of interest.

At trial, Martin admitted that he took early payment of the check and waived interest without consulting his cousin, and that he took the check intending to keep it for himself. He deposited it in the account he had opened at the Tri-County Bank and then used the money for his personal purposes. 3 Martin’s defense in essence is that he had authority to take the check and that the proceeds of the check belonged to him as his share of the profit on the Crow Creek job. He contends that he committed no fraud because he believed that he was entitled to the check; in other words, he believed he was taking his own money. Whether the company owed Martin money is not a basic issue in this case. The existence of the debt does, of course, relate to his motive. The issue is whether Modern Grain Systems authorized Martin to take the check and its proceeds , or whether he obtained and converted it by fraud. See United States v. Miller, 725 F.2d 462, 468 (8th Cir.1984) (fraud cannot be used .to obtain payment of a debt). The jury by its verdict found that he knowingly obtained and converted the check through fraud.

As his first point of error Martin alleges that the trial judge elicited inadmissible hearsay. During the trial, the government called as a witness George Meyers, who was a bank officer for Security National Bank of Amboy, Minnesota. Meyers testified that all of Modern Grain Systems’ employees had been terminated by May, 1984. On cross-examination he testified that he did not have any personal knowledge whether anyone contacted Martin and told him he was terminated. At this point the trial judge intervened and asked Meyers about the source of his knowledge. Meyers stated that he had been out to the company a number of times, that no one was there and the business was closed. He then went on, over Martin’s objection, and stated that Gerald Martin (the cousin) and Gloria Mack, the company bookkeeper, had told him that all the employees had been terminated. The trial judge instructed the jury to disregard the statements that Meyers attributed to Mack, but allowed the jury to consider the statements attributed to Gerald Martin.

The trial court cured any error concerning Mack’s statements by telling the jury to disregard them. The statements attributed to Gerald Martin were admissible under Fed.R.Evid. 801(d)(1)(B) as rebuttal to an implied charge of recent fabrication. See United States v. Lanier, 578 F.2d 1246, 1256 (8th Cir.) (testimony of third party may be used to introduce the prior consistent statement of a witness when the cross-examination of the witness raised the implication that he had fabricated his story), ce rt. denied, 439 U.S. 856, 99 S.Ct. 169, *311 58 L.Ed.2d 163 (1978). When cross-examining Gerald Martin the defense elicited the information that no written notice had been sent to Martin and no notation was made in the company books concerning his termination.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. Lee A. Lanier
578 F.2d 1246 (Eighth Circuit, 1978)
Smith v. Communications Satellite Corp.
439 U.S. 856 (Supreme Court, 1978)

Cite This Page — Counsel Stack

Bluebook (online)
798 F.2d 308, 21 Fed. R. Serv. 722, 1986 U.S. App. LEXIS 28023, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-of-america-appellee-v-john-l-martin-appellant-ca8-1986.