United States v. Abrams

29 F.R.D. 178, 1961 U.S. Dist. LEXIS 5829
CourtDistrict Court, S.D. New York
DecidedDecember 15, 1961
StatusPublished
Cited by18 cases

This text of 29 F.R.D. 178 (United States v. Abrams) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Abrams, 29 F.R.D. 178, 1961 U.S. Dist. LEXIS 5829 (S.D.N.Y. 1961).

Opinion

CASHIN, District Judge.

The indictment in this ease was filed on April 3, 1961. It contains 104 counts, all of which relate to the sale of common stock of the Automatic Washer Company. Counts 1 to 103 charge the use of the facilities of interstate commerce to sell unregistered Automatic Washer stock in violation of 15 U.S.C.A. §§ 77e(a) (1) and 77x and the use of the mails to carry certificates of unregistered Automatic Washer stock for the purpose of sale and for delivery after sale in violation of 15 U.S.C.A. §§ 77e(a) (2) and 77x.

The defendants have made various motions to dismiss the indictment, for severance, for bills of particulars and for discovery and inspection. The Government has moved to quash several subpoenas duces tecum which defendants, David Shindler and Sydney L. Albert, have served pursuant to Rule 17(c) of the Federal Rules of Criminal Procedure, 18 U.S.C. Since the filing of the indictment in this case defendant, David Shindler, has died and, accordingly, is no longer a party to these proceedings.

MOTIONS TO DISMISS

Defendants move to dismiss the indictment on a variety of grounds. They allege that the indictment must be dismissed because it fails to state facts sufficient to constitute an offense against the United States, because it does not negative a certain exemption, because it fails to allege that defendants’ acts were willful violations, as distinct from wilfully committing the physical acts involved, because of illegal joinder of offenses and defendants, and because it violates the First, Fifth and Sixth Amendments to the Constitution of the United States. I have examined all of these grounds and find that defendants’ motions to dismiss must be denied.

The courts have consistently held that an indictment is sufficient where it is pleaded in the language of the statute and informs the defendant of the nature of the charges. United States v. Ansani, 240 F.2d 216, 223 (7 Cir.1957), cert. denied Milner v. U. S., 353 U.S. 936, 77 S.Ct. 813, 1 L.Ed.2d 759 (1957); United States v. Smith, 232 F.2d 570 (3 Cir.1956). The present indictment contains all the elements of the offenses charged and sufficiently apprises the defendant of what he must be prepared to meet at the trial. Nor can the indictment be dismissed because, as defendants assert, it violates their right to a speedy trial. The right to a speedy trial [181]*181-does not arise until the defendants have been formally charged. In this case, defendants allege that because they gave testimony in 1957 before the Securities ■and Exchange Commission in connection with the affairs of the Automatic Washer Company, “the facts were in the Government’s possession for almost five .years before the filing of the indictment” in 1961. However, since the indictment was not filed until 1961, I find no violation of defendants’ rights to a speedy trial.

Defendant, Sydney L. Albert, argues at length in his brief that the indictment must be dismissed because it fails to allege that he had the status of an “issuer, underwriter or dealer” with respect to the transactions charged. Defendant further contends that, even-assuming that his status is not an essential element of the offense, the indictment is defective under the general rule as to when a statutory exception must be. negated. It has long been held that the indictment, founded on a general provision defining the elements of an offense, need not allege that the defendant does not come within the exempted clause. McKelvey v. United States, 260 U.S. 353, 357, 43 S.Ct. 132, 67 L.Ed. 301 (1922); Edwards v. United States, 312 U.S. 473, 483, 61 S.Ct. 669, 85 L.Ed. 957 (1941). In Edwards v. United States, supra, this general rule was applied to the Securities Act of 1933. In that case, an indictment-under Section 5(a), 15 U.S.C.A. § 77e(a), was upheld against the contention that it was defective for failure to negative the exemptions provided in Section 3-of the Securities Act of 1933, 15 U.S.C.A. § 77e. The specific exemption at issue is no different, and it is not necessary that the indictment plead that defendants acted as issuers, underwriters or dealers. United States v. Van Allen, 28 F.R.D. 329 (S.D.N.Y.1961); United States v. Cafarelli, 183 F.Supp. 738 (D.Utah 1959). It is defendant’s contention that it is the practice in all cases under Section 5 of the Securities Act of 1933 to allege that the defendants acted as issuers or underwriters or dealers or to state facts in the indictment which made it clear that the defendants had the status of issuers, underwriters or dealers. Although defendant argues this point at length, I find no support for it in the cases. The general rule laid down in the McKelvey and Edwards cases, supra, is that the indictment need not allege that the defendant does not come within the exempted clause. There is nothing in these or other cases to support defendant’s position that this rule only applies where the facts alleged make it obvious that the defendant is not within the exempted clause.

I also find that the indictment contains no illegal joinder of offenses or defendants and does not violate any amendment to the Constitution of the United States. Similarly, I find no merit in the contention that the indictment is defective because it fails to allege that defendants’ acts were willful violations, as distinct from wilfully committing the physical acts involved.

Defendants’ motions to dismiss are denied in their entirety.

MOTIONS FOR SEVERANCE

Defendants Abrams, Gordon and Knohl ask for various degrees of severance. Knohl asks to be tried with Albert but separately from the other defendants. Abrams and Gordon want to be tried separately from Albert.

The granting of separate trials is within the discretion of the trial judge and the burden is on the defendants to show they will not be able to obtain a fair trial if tried with the other defendants. Hall v. United States, 83 U.S.App.D.C. 166, 168 F.2d 161, 4 A.L.R.2d 1193 (D.C.Cir.1948), cert. denied 334 U.S. 853, 68 S.Ct. 1509, 92 L.Ed. 1775 (1948). The basis for defendants’ motions is that “conflict and antagonism” exists between Abrams and Gordon on one hand with Albert on the other. This is the sole ground advanced, except that defendants [182]*182also argue that there was illegal joinder and that this is a ground for severance. This argument was disposed of above. Conflict between defendants in conspiracy trials is common and severance will not be granted where this is the sole ground alleged. United States v. Cohen, 124 F.2d 164 (2 Cir.1941), cert. denied sub nom. Bernstein v. United States, 315 U.S. 811, 62 S.Ct. 796, 86 L.Ed. 1210, rehearing den. 316 U.S. 707, 62 S.Ct. 941, 86 L.Ed. 1774 (1942).

Motions for severance denied.

DISCOVERY AND INSPECTION

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Bluebook (online)
29 F.R.D. 178, 1961 U.S. Dist. LEXIS 5829, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-abrams-nysd-1961.