United States v. Alex G. Merklinger

16 F.3d 670, 39 Cont. Cas. Fed. 76,622, 1994 U.S. App. LEXIS 1611, 1994 WL 27021
CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 3, 1994
Docket93-5362
StatusPublished
Cited by58 cases

This text of 16 F.3d 670 (United States v. Alex G. Merklinger) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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United States v. Alex G. Merklinger, 16 F.3d 670, 39 Cont. Cas. Fed. 76,622, 1994 U.S. App. LEXIS 1611, 1994 WL 27021 (6th Cir. 1994).

Opinion

NATHANIEL R. JONES, Circuit Judge.

Defendant-Appellant Alex G. Merklinger appeals his conviction on seven counts of various acts of fraud and false statements. We find that the trial court erred in construing the statute that was at issue in one count, and that the evidence was insufficient to support a conviction on several other counts. However, we affirm the jury verdict on the remaining counts. This disposition does not affect Merklinger’s sentence, and so we remand only in order for the lower court to revise its Entry of Judgment in accordance with this decision.

I. Facts

At the outset, a brief description of bonding requirements for bidding on government projects is in order. A contractor submitting a bid on a government project is usually required to post a performance bond, which guarantees that the work will be completed at the bid price. Similarly, once a contract has been awarded, the contractor is usually required to post a payment bond, which *672 guarantees that all bills for labor, materials, and equipment will be paid. These bonds are issued by a surety in return for a percentage fee. Because the surety fee is included as part of the contractor’s bid, the surety fee is actually paid by the government.

In this ease, according to two written statements signed by Defendant: (1) between September 1987 and April 1988, Defendant signed approximately one hundred “Affidavit of Individual Surety” forms that contained fraudulent asset figures that vastly inflated Defendant’s net worth, for the purpose of inducing various government agencies to accept him as surety on government contracts; and (2) on January 4, 1989, knowing that he lacked any ability to pay $2 million, Defendant signed a letter of credit for $2 million, addressed to the officer in charge of construction at the Naval Facilities Engineering Command in Pearl Harbor, Hawaii, for the purpose of qualifying as a surety on a government funded project.

Defendant was indicted in February 1992, on eight counts. Counts 1, 3, 5, and 6 charged Defendant with mail fraud and aiding and abetting mail fraud in violation of 18 U.S.C. §§ 1341, 2. Counts 2 and 4 charged him with wire fraud and aiding and abetting wire fraud in violation of 18 U.S.C. §§ 1343, 2. Count 7 charged him with making false statements, and aiding and abetting the making of false statements, to an agency of the United States in violation of 18 U.S.C. §§ 1001, 2. Count 8 charged him with falsely making guarantee, and aiding and abetting the false making of guarantee, pertaining to bond to an officer of the United States in violation of 18 U.S.C. §§ 494, 2.

Trial was held in December 1992. The evidence indicated that Defendant attempted to become surety for several projects, and succeeded at becoming surety for at least one project. 1 Defendant testified that, although he signed the two incriminating written statements, they were not true. The jury found Defendant guilty on all counts. The trial court found that the offense charged in Count 7 was a lesser included offense of that charged in Count 8, so it acquitted Defendant of Count 7. The court sentenced Defendant to 37 months on each of the remaining counts, to run concurrently, and to be followed by three years of supervised release, and fined him $6,000. This appeal followed.

II. Discussion

A.

Defendant asked the trial court to instruct the jury that forgery was an element of § 494, and the court declined to do so. Defendant contends on appeal that this was an error, and that 18 U.S.C. § 494, the statute that gave rise to Count 8, requires an element of forgery. 2 The question presented *673 is one of statutoiy interpretation, which we review de novo. United States v. Brown, 915 F.2d 219, 223 (6th Cir.1990) (“A district court engages in statutory construction as a matter of law, and we review its conclusions de novo.”). We agree with Defendant that § 494 requires an element of forgery, and that the trial court erred as a matter of law.

Section 494 criminalizes the acts of false making, altering, forging, or counterfeiting for the purpose of defrauding the United States. In the present case, no one accuses Defendant of altering, forging, or counterfeiting. Rather, in oral argument, the prosecutor suggested that Defendant’s false statements to the government fall within the scope of the term, “falsely makes,” as used in § 494. However, the government’s implication — that the term, “falsely makes,” applies to false statements in a genuinely executed document — betrays a misunderstanding of the historic use of this term. At English common law, the term, “false making,” was used as an elucidation of the concept of forgery, and the two terms have been substantially synonymous for centuries. See, e.g., 2 East, Pleas of the Crown, 852 (1803) (“Forgery at common law denotes a false making”); 1 Hawkins, Pleas of the Crown, c. 70, § 2, at 182-83 (1762); 4 Blackstone, Commentaries 247-48 (Christian ed. 1809). See generally Gilbert v. United States, 370 U.S. 650, 655-57, 82 S.Ct. 1399, 1402-03, 8 L.Ed.2d 750 (1962) (explaining English common law understanding of “forgery”); Moskal v. United States, 498 U.S. 103, 121-26, 111 S.Ct. 461, 472-74, 112 L.Ed.2d 449 (1990) (Scalia, J., dissenting) (reviewing the use of the term, “falsely made,” in law dictionaries, statutes, caselaw, and scholarly commentaries, all of which establish that the term is an essential element of forgery, and does not embrace false contents of a genuinely executed document). The Gilbert Court noted that federal courts have tended to follow the English common law understanding of forgery when construing the word “forge” under federal statutes. 370 U.S. at 658, 82 S.Ct. at 1403-04. As stated in United States v. Wentworth, 11 F. 52, 55 (D.N.H.1882):

To falsely make an affidavit is one thing; to make a false affidavit is another. A person may falsely make an affidavit, every sentence of which may be true in fact. Or he may make an affidavit, every sentence of which shall be false. It is the “false making” which the statute makes an offence, and this is forgery as described in all the elementary books.

See also Greathouse v. United States, 170 F.2d 512

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16 F.3d 670, 39 Cont. Cas. Fed. 76,622, 1994 U.S. App. LEXIS 1611, 1994 WL 27021, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-alex-g-merklinger-ca6-1994.