United States v. Alfred G. Biberfeld

957 F.2d 98, 1992 U.S. App. LEXIS 2631, 1992 WL 32734
CourtCourt of Appeals for the Third Circuit
DecidedFebruary 26, 1992
Docket91-5308
StatusPublished
Cited by66 cases

This text of 957 F.2d 98 (United States v. Alfred G. Biberfeld) 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 v. Alfred G. Biberfeld, 957 F.2d 98, 1992 U.S. App. LEXIS 2631, 1992 WL 32734 (3d Cir. 1992).

Opinions

OPINION OF THE COURT

NYGAARD, Circuit Judge.

Federal prisoner Alfred Biberfeld moved pursuant to 28 U.S.C. § 2255 to vacate his sentence or, in the alternative, for a new trial. The district court denied Biberfeld’s motion without a hearing, holding that the record conclusively showed he was not entitled to relief. We review the district court’s order in three steps. First, we decide whether Biberfeld has alleged facts which, if proved, would entitle him to some relief. Smith v. Freeman, 892 F.2d 331, 338 (3d Cir.1989). If so, we then decide whether he has waived his right to relief by failing to act upon it at trial. Brown v. United States, 556 F.2d 224 (3d Cir.1977). If not, we then decide whether an eviden-tiary hearing is necessary to test the truth of Biberfeld’s allegations. Smith, 892 F.2d at 338. In our review we consider Biber-feld’s factual assertions in the light most favorable to him. Smith, 892 F.2d at 338. We exercise plenary review over the district court’s application of legal precepts. Sullivan v. Cuyler, 723 F.2d 1077, 1082 (3d Cir.1983). We find that Biberfeld has alleged facts entitling him to relief; that he has not waived his right to have them heard; and that an evidentiary hearing is necessary to test their truth. Hence, we will reverse the order of the district court in part, affirm in part, and remand the cause for an evidentiary hearing.

I.

A federal jury convicted Biberfeld on each count of a 12 count indictment arising out of government procurement contracts between his company, Surgical Instruments Company of America (“SICOA”)1 and the United States Defense Logistics Agency (“DLA”), and between SICOA and the United States Veterans Administration (“VA”).2 Count 1 charged Biberfeld and SICOA with conspiracy to defraud the DLA and VA by, inter alia, failing to reveal on their bids for procurement contracts that the surgical instruments they were to supply would be made in part in Pakistan. Counts 2 through 5 charged Biberfeld with wire fraud, alleging that Biberfeld made several overseas telexes to further his alleged procurement fraud. Counts 6 through 10 charged Biberfeld with knowingly and wilfully making false statements in five separate contracts submitted to the DLA, concealing the fact that the place of performance for the production of surgical instruments was Pakistan. Counts 11 and 12 charged defendants with wilfully making and presenting false claims for payments under two separate DLA contracts.

The DLA contracts with SICOA were subject to the Buy American Act, 41 U.S.C. §§ 10a-10c, which authorizes the DLA to give preference to manufacturers and suppliers located in the United States and NATO member countries. Thus, DLA contracts incorporate a clause, referred to as “K-39,” requiring bidding companies to certify the country where their goods originate, that is, all places where the goods and their component parts are manufactured [100]*100and assembled. The K-39 clause also requires bidders to list all suppliers and their locations.

SICOA successfully bid on several contracts to supply surgical instruments to the DLA. Biberfeld, however, failed to disclose the true origin of the surgical instruments. He led the government to believe they were manufactured by Perfect Chi-rurgical (“Perfect”) in Germany, a NATO member country. In fact, SICOA’s instruments were manufactured by G.T. Surgical Limited (“G.T. Surgical”) in Pakistan, a non-NATO country. G.T. Surgical manufactured the instruments and shipped them to SICOA through Perfect. Some of these instruments were stamped “Made in Germany” and others were intentionally left unstamped.

Biberfeld did not disclose the Pakistani origin of the instruments he supplied or that he had a second-tier supplier. Indeed, he affirmatively concealed the true origin of the instruments by sending false telexes designed to make it appear that Perfect was the only manufacturer, and by marking the surgical instruments with a false point of origin.

At trial, Biberfeld contended that although the language of K-39 required a contractor to list all manufacturers and second-tier suppliers, he believed that the DLA did not enforce the clause. Appellant’s Appendix at 195-96. In addition, Biberfeld testified that he believed DLA practice allowed him to protect his sources of supply from his competitors by omitting sensitive supplier information from his bids and contracts. This belief was based on advice allegedly given Biberfeld by administrators in the Defense Personnel Support Center (“DPSC”), a branch of the DLA. Appellant’s Appendix at 129-31. Thus, he claimed to be complying with what he thought was standard DLA practice.

The government’s only witness testifying about DLA practice regarding the K-39 clause was William DiLauro, the DLA procurement officer who was responsible for reviewing bids and awarding contracts during the time period in the indictment, and who approved Biberfeld’s DLA contracts. The government offered DiLauro’s testimony for the purpose of showing DLA practice and procedure in awarding contracts. Appellant’s Appendix at 106. DiLauro had many years experience awarding contracts for the DLA, and testified about bidder disclosures required before the DLA awarded a contract.

DiLauro testified at trial that K-39 requires a bidder, without limitation, to list all plants where any work would be performed on a particular item, regardless whether he is bidding as a dealer or manufacturer. Appellant’s Appendix at 116. When asked what procedures would be followed when a bidder such as SICOA omitted information about second-tier suppliers or left the K-39 portion blank, DiLauro testified:

[T]he buyer [DLA] would normally go back and ask SICOA for that information, because we were required, I have to show that place of performance in the contract award and also provide it to the Food and Drug Administration before I can make an award to any firm.
... When I go to present my proposed award to our board, our legal people, when they go through our bids, check to make sure that all the representations, all the clauses are filled out, and if it is not filled out, then we go back and ask for this information.

Appellant’s Appendix at 112-113 (emphasis added). Significantly, DiLauro testified that DLA contracts would not be awarded if the information was not provided by the bidder. Supplemental Appendix at 153-56. Biberfeld’s testimony flatly controverted DiLauro’s description of what information the DLA required in the K-39 clause.3

[101]*101Before and during trial Biberfeld made Brady requests for other DLA contracts in the government files, but was given only the SICOA contracts. Appellant’s Appendix at 41. The prosecutor claimed he could not release other contracts because they were protected from disclosure by the Privacy Act. Defense counsel vigorously cross-examined DiLauro, but did not allege his testimony to be perjured.

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Cite This Page — Counsel Stack

Bluebook (online)
957 F.2d 98, 1992 U.S. App. LEXIS 2631, 1992 WL 32734, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-alfred-g-biberfeld-ca3-1992.