United States of America, in No. 81-1020 v. Jannotti, Harry P. United States of America, in No. 81-1021 v. Schwartz, George X

673 F.2d 578, 1982 WL 602723
CourtCourt of Appeals for the Third Circuit
DecidedFebruary 11, 1982
Docket81-1020, 81-1021
StatusPublished
Cited by317 cases

This text of 673 F.2d 578 (United States of America, in No. 81-1020 v. Jannotti, Harry P. United States of America, in No. 81-1021 v. Schwartz, George X) 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, in No. 81-1020 v. Jannotti, Harry P. United States of America, in No. 81-1021 v. Schwartz, George X, 673 F.2d 578, 1982 WL 602723 (3d Cir. 1982).

Opinion

OPINION OF THE COURT

SLOVITER, Circuit Judge.

On September 16, 1980, after a six-day trial, a jury found defendants Harry P. Jannotti and George X. Schwartz guilty of conspiring to obstruct interstate commerce, in violation of the Hobbs Act, 18 U.S.C. § 1951(a), and found Schwartz guilty of conspiracy in violation of the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. § 1962(d). At the time of the events charged in the indictment, Schwartz was president of the Philadelphia City Council and Jannotti was the Council’s majority leader. Following the entry of the guilty verdicts, defendants renewed their requests for judgments of acquittal and dismissal of the indictment, on which the trial court had previously reserved decision. On November 26, 1980, the district court entered an order setting aside the verdict of the jury in its entirety, dismissing Count III of the indictment (the Hobbs Act count) for lack of jurisdiction, and granting the motions of defendants for judgment of acquittal. The Government appeals. 1

*581 In his opinion accompanying the order, the trial judge gave four reasons for entry of the judgment of acquittal and dismissal ■of Count III of the indictment. United States v. Jannotti, 501 F.Supp. 1182 (E.D.Pa.1980). He concluded:

1. The evidence at trial did not establish the actual or potential impact upon interstate commerce necessary to sustain federal jurisdiction under the Hobbs Act;

2. The evidence at trial established entrapment as a matter of law;

3. Governmental overreaching amounted to a violation of due process of law;

4. The circumstances relied upon to establish federal jurisdiction were artificially created. Id. at 1205.

Our review of the record and applicable law convinces us that in reaching these conclusions the district court erred in its legal analysis and usurped the function of the jury to decide contested issues of fact. We reverse the district court’s order and direct reinstatement of the jury’s verdict.

I.

SUMMARY OF EVIDENCE

An understanding and appreciation of the evidence presented to the jury is essential to consideration of the issues facing us on this appeal. We have therefore undertaken an exposition of some of the highlights of that evidence. The government operation, which has come to be known as ABSCAM, began some time in 1978. The basic nature of the plan was that F.B.I. agents posed as employees of Abdul Enterprises, a fictional multinational corporation whose principal, a fictional Arab Sheik, Yassir Habib of the Arab nation of Abu Dhabi, was represented as interested in investing large amounts of money in this country and in emigrating here. According to the government, the plan was “conceived to create opportunities for illicit conduct by public officials predisposed to political corruption.” Brief for Appellant at 6. From the very beginning the government utilized the services of Melvin Weinberg, accurately characterized by the district court as a “career swindler,” 501 F.Supp. at 1193, 2 who, with F.B.I. agents, “spread the word” that the Sheik was interested in meeting public officials who could facilitate his planned investments.

This basic plan evolved into various sub-parts, each with its own cast of participants, which were ultimately the subject of a series of indictments returned by grand juries sitting in various federal districts of the country. Thereafter, a number of local and federal public officials were tried on offenses arising out of their participation. We focus on the facts material to the prosecution of Jannotti and Schwartz in the Eastern District of Pennsylvania. 3

The Philadelphia phase began on January 11,1980 when Weinberg called Howard Criden, a Philadelphia attorney, and told him that the Sheik was “looking to build á hotel” in Philadelphia. Criden, who had previously received money from the F.B.I. agents for arranging introductions to congressmen in connection with another phase of the ABSCAM operation, 4 was told that *582 two representatives of the Sheik would be coming to Philadelphia to begin discussions. Weinberg suggested that they be introduced to Congressman Myers or Lederer, and asked Criden which one would be better.

CRIDEN: Well, I got to hear what you want to do first, and . . . you know.
WEINBERG: I think they’re looking to build a hotel there. I’m not sure. That’s only what I heard.
CRIDEN: Okay. Why don’t you tell him to find out more particulars because I don’t know that either one would help you in that department. We may be able to give you more help to them.
WEINBERG: Who do you know there?
CRIDEN: Everybody!
WEINBERG: Everybody?
CRIDEN: Everybody!
WEINBERG: All right. I’ll ... I’ll.
CRIDEN: Remember. I got a partner who’s a city councilman.

A211-12.

A week later, on January 18,1980, Criden met with F.B.I. agents Michael Wald and Ernest Haridopolos at the Barclay Hotel in Philadelphia. Wald and Haridopolos used the names Michael Cohen and Ernie Polos in their dealings with defendants throughout these events. That meeting was among the group of meetings at the Barclay recorded on videotape by the F.B.I. Wald told Criden that the Sheik was interested in building a hotel in South Philadelphia, that Wald’s role was to address himself to possible problems such as zoning, condemnations, and variances. A351. Criden stated, “You don’t have any problem. You got you two of the strongest guys” [referring to Myers and Lederer]. Wald responded, “He [Sheik] wants to be assured that municipal government and he can coexist.” Criden asked, “How do you want me to satisfy you,” to which Wald responded, “I’m sure the easiest way for me to deal with someone in municipal government and I can go back .. . Titles impress the man, as you know, from past experience .... If he receives those assurances from someone with a title sounds appropriate, eh, I buy it, he buys it.” A351-53.

Wald asked Criden about the municipal setup, including city council. Criden explained that Philadelphia City Council is composed of 12 district councilmen and five at-large councilmen, that his “partner [Johanson is] a district councilman!’, and that the president of city council, Schwartz, “is a powerful guy” who had been “president of city council for maybe now ten, twelve years, already now. Has got power.” Wald responded, “He’s the man.” A354-55. Wald later asked:

WALD: Can we deal with Mr. Schwartz.
CRIDEN: Oh, sure.

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Bluebook (online)
673 F.2d 578, 1982 WL 602723, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-of-america-in-no-81-1020-v-jannotti-harry-p-united-ca3-1982.