United States of America, at Nos. 89-5372/5383, at No. 89-5510 v. Gaetano Vastola, at No. 89-5372, at No. 89-5510 v. Elias Saka, at No. 89-5383

899 F.2d 211, 29 Fed. R. Serv. 1366, 1990 U.S. App. LEXIS 3962
CourtCourt of Appeals for the Third Circuit
DecidedMarch 20, 1990
Docket89-5372, 89-5383 and 89-5510
StatusPublished
Cited by84 cases

This text of 899 F.2d 211 (United States of America, at Nos. 89-5372/5383, at No. 89-5510 v. Gaetano Vastola, at No. 89-5372, at No. 89-5510 v. Elias Saka, at No. 89-5383) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third 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, at Nos. 89-5372/5383, at No. 89-5510 v. Gaetano Vastola, at No. 89-5372, at No. 89-5510 v. Elias Saka, at No. 89-5383, 899 F.2d 211, 29 Fed. R. Serv. 1366, 1990 U.S. App. LEXIS 3962 (3d Cir. 1990).

Opinion

OPINION OF THE COURT

GREENBERG, Circuit Judge.

Table of Contents

I.Introduction t — (

II.The Facts t — H

1. The Dwek Loan rH

2. The MCA Deal r — t

III. Discussion

A. Government’s Appeal
1. Jurisdiction u_i
2. Inconsistency of the Verdict on Count 1 K'l
B. Sufficiency of the Evidence on Count 2 tv»\
C. The RICO Conspiracy tv»»
D. Sufficiency of the Evidence of MCA Extortion tv»\
E. Naming of the RICO Enterprise <»,*>
F. Admissibility of Testimony Regarding Loansharking Terms
G. Reference to Federal Witness Protection Program
H. of New Counsel i*.»i
I. The Electronic Surveillance
1. Background to CjlS

2. Admissibility of Evidence from Electronic Surveillance to Ca3

IV. Conclusion to ,r«v
I. INTRODUCTION

Gaetano Vastóla and Elias Saka appeal to this court from final judgments of conviction and sentence entered by the United States District Court for the District of New Jersey on May 3, 1989, following a *215 jury trial in which they were found guilty of two substantive RICO offenses under 18 U.S.C. § 1962(c), a RICO conspiracy offense under 18 U.S.C. § 1962(d), and a conspiracy to use extortionate means to collect an extension of credit, in violation of 18 U.S.C. § 894. In addition, Saka was found guilty of various other extortion offenses and of mail and wire bankruptcy and insurance fraud. The United States, pursuant to 18 U.S.C. § 3731, appeals from an order of the district court, entered on April 28, 1989, granting Vastola’s post-conviction motion for a judgment of acquittal on one of the two substantive RICO counts.

Appellants originally were indicted along with nineteen other defendants in a 114 count indictment charging a variety of crimes. By opinion and order dated September 1, 1987, the district court severed the case for separate trials. United States v. Vastola, 670 F.Supp. 1244, 1261 (D.N.J. 1987). Vastola and Saka ultimately were tried on a twenty-six count redacted superseding indictment, filed on February 23, 1989, which named Saka in twenty-five counts and Vastóla in fourteen. Both appellants were sentenced to total prison terms of twenty years and, in addition, Vastóla was ordered to pay fines totalling $70,000 and Saka was ordered to pay fines totalling $185,000.

On appeal, Vastóla contests the sufficiency of the evidence to support his convictions for the extortionate collection conspiracy charged in Counts 4 and 9 of the superseding indictment, and the substantive RICO offense charged in Count 2. He also asserts various grounds for reversal of his RICO conspiracy conviction under Count 3, including an alleged defect in the jury instructions and insufficiency of the evidence of his involvement in the predicate acts underlying the conspiracy. Finally, he raises various challenges to the conduct of the trial itself, arguing, in part, that he suffered irreparable prejudice because of the government’s denomination of the criminal enterprise as the Vastóla Organization, and because of the district court’s admission of expert testimony regarding the meaning of loansharking terms used by appellants.

Saka argues that the district court erred as a matter of law when it denied his pretrial motion to suppress tape recordings from the government’s electronic surveillance of appellants’ communications, on the ground that the government violated the Wiretap Act, 18 U.S.C. § 2510 et seq., when it relinquished custody of the tapes to a private party for enhancement. He also maintains that the district court abused its discretion when it denied his pretrial motion for appointment of new counsel and when it refused to suppress certain evidence seized pursuant to over-broad search warrants.

Finally, the government, in its appeal of the district court’s grant of judgment of acquittal for Vastóla on Count 1 of the superseding indictment, has advanced the legal question of whether the RICO conviction may stand, notwithstanding Vastola’s acquittal of separately charged offenses making up three of the four predicate racketeering acts charged in the indictment.

We have considered the arguments raised by Vastóla and Saka to the extent that they relate to both appeals, as Vastóla and Saka have adopted each others’ arguments pursuant to Fed.R.App.P. 28(i). Based on our review of the record, we agree with Vastóla that there was insufficient evidence to support his RICO conviction under Count 2, and will reverse the district court’s order entering judgment of conviction and sentence on that count. We also have determined that the district court erred as a matter of law in granting Vasto-la’s motion for judgment of acquittal on Count 1, and therefore will reverse the order challenged in the government’s appeal and remand Vastola’s case for entry of judgment of conviction on Count 1 and for resentencing. In all other respects, under the applicable standards of review, we see no basis to disturb the district court’s order with respect to Vastóla, and will affirm his convictions on Counts 3, 4, and 9 of the superseding indictment. We will affirm Saka’s convictions on all counts.

II. THE FACTS

The prosecution’s theory, as reflected in its opening statement, was that Vastóla *216 headed a “secret criminal enterprise,” the “Vastóla Organization,” which “encouraged, aided and profited from” the illegal activities of its members. Ranking members of the enterprise were alleged to include Saka, “who came up with most of the fraudulent schemes the organization profited from,” and Vastola’s cousin, Palmer (“Sonny”) Broceo, who carried out Vasto-la’s orders. The enterprise was headquartered at the Video Warehouse in Monmouth County, New Jersey.

The indictment attributed various crimes to the enterprise, including a conspiracy to use and use of extortionate means to collect an extension of credit to John LaMonte in connection with a record purchase from MCA Records, Inc., numerous usurious loans, “bust-out” schemes to defraud suppliers to businesses controlled by the enterprise, and insurance and bankruptcy frauds. We will set forth the circumstances of only the two of these crimes necessary to our discussion.

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Bluebook (online)
899 F.2d 211, 29 Fed. R. Serv. 1366, 1990 U.S. App. LEXIS 3962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-of-america-at-nos-89-53725383-at-no-89-5510-v-gaetano-ca3-1990.