United States v. Anthony D. Daniele

886 F.2d 1046, 1989 U.S. App. LEXIS 15047, 1989 WL 115419
CourtCourt of Appeals for the Eighth Circuit
DecidedOctober 4, 1989
Docket88-2384
StatusPublished
Cited by20 cases

This text of 886 F.2d 1046 (United States v. Anthony D. Daniele) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth 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. Anthony D. Daniele, 886 F.2d 1046, 1989 U.S. App. LEXIS 15047, 1989 WL 115419 (8th Cir. 1989).

Opinion

LARSON, Senior District Judge.

A jury found defendant Anthony D. Dan-iele guilty of ten counts of mail fraud in violation of 18 U.S.C. §§ 1341 and 1342 (Counts 7-16), one count of conspiracy in violation of 18 U.S.C. § 371 (Count 17), and four counts of extortion or attempted extortion in violation of 18 U.S.C. §§ 1951 and 1952 (Counts 18-21) in connection with a scheme to direct the brokerage of the Police and Firefighters Pension Funds in St. Louis, Missouri. 1 Daniele was a police officer who had chaired the Police Pension Fund Board from April, 1985, to October, 1987. 2 He was indicted with six other co-defendants: Don Anton, a prominent lawyer, Aurora Anton, Don Anton’s wife, Louis Monti, Executive Secretary of the Fire Pension Fund, Walter Klein, former Chair of the Police Pension Fund, Angelo Parato, Vice President of the Guaranty Trust Company, one of the Funds’ money managers, and Charles Swanger, a city employee and former Trustee of the Fire Pension Fund.

The scheme was orchestrated by Don Anton, who received kickbacks through his corporations when brokerage was directed to the brokerage firm of I.M. Simon. All other defendants, except Daniele, pled guilty to various charges. Daniele maintained his innocence and has appealed his convictions, alleging the district court 3 erred in several evidentiary rulings, erred in refusing to grant a mistrial on two separate grounds, erred in refusing to grant his motion for acquittal, and erred in sentenc *1049 ing him to an aggregate eight years imprisonment. We affirm.

I.

The government presented evidence that the kickback scheme began in 1982, when the Police and Fire Pension Fund monies were about to be split between three money managers, Joseph Glynn, Midwest Investment Advisory Services, and Guaranty Trust Company. Anton, Police Pension Fund President Walter Klein, and Fire Pension Fund Secretary Louis Monti directed the new managers, James Finch of Guaranty and James Bridges of Midwest, to use William Kennedy at I.M. Simon as a broker.

Kennedy paid Anton a portion of the commissions Kennedy received as a result of the Police and Fire Pension Fund trades. Joan Shaw, Kennedy’s former girlfriend, testified that one portion of the commissions went to Kennedy while the rest went to Anton’s corporation, Diversified Investments, Inc., for use by Anton and as a political slush fund. After Kennedy was fired, Thomas Pixley, President of I.M. Simon, paid the commissions directly to Diversified Investments, Inc. 4

Finch and Bridges both used I.M. Simon as a broker when they began managing the Funds in 1983, but Bridges’ use of Simon declined as time went on. Bridges requested a letter authorizing him to direct 100% of the brokerage to I.M. Simon, but none was forthcoming from the Police Fund. 5 Klein and Anton continued to pressure the managers to use I.M. Simon or risk being replaced as managers. Anton was particularly unhappy with Midwest’s declining use of I.M. Simon.

In the summer of 1984, defendant Dan-iele sought to be elected to the Police Pension Board. He ran on an anti-Walter Klein, anti-Midwest, and anti-Guaranty Trust platform, complaining of high brokerage fees and low returns. Anton told Bridges of Midwest that he was supporting Daniele and that after the election Midwest would be replaced by Investment Counselors, Inc. (ICI), a firm more willing to divert brokerage to I.M. simón. Shaw also testified that Kennedy mentioned Daniele as Klein’s replacement in 1984, because Klein was getting too “greedy” and wanted more money in exchange for directing the brokerage. 6 Daniele was elected to the Board in September, 1984.

In April, 1985, Daniele replaced Klein as the Chair of the Police Pension Board, with the support of all Board members except Klein and Klein’s ally, Jenkens. The government presented evidence that Anton solicited the Mayor’s help in Daniele’s ouster of Klein (two Board trustees were mayoral appointees), and suggested to the May- or’s assistant, William Kuebling, that ICI be hired to replace Midwest. Anton and Daniele also both expressed a desire to Kuebling that Daniele be promoted to Sergeant. Kuebling testified that the Mayor had his own reasons for being dissatisfied with Klein and for those reasons agreed to support Daniele. Commissioner Frank, an attorney who was appointed to the Board shortly after Daniele, confirmed that all Board members, with the exception of Klein and Jenkens, wanted to remove Klein.

*1050 After Daniele became Chair of the Police Pension Fund, Bridges of Midwest met with him in May and June to discuss a series of large stock purchases Midwest was considering. 7 When Bridges later asked Daniele about whether he had a preference for where the brokerage went, Dan-iele replied “you know what the program is.” Bridges interpreted this comment as a direction to use I.M. Simon.

At the June 27, 1985, Board meeting, Daniele moved to replace Midwest with ICI, the firm touted by Anton. Board member Paul Berra, the Comptroller of the City of St. Louis, also supported ICI. The Board approved Daniele’s motion, and Louis Bleile, Secretary of the Fund, delivered a letter to Bridges the next morning informing Midwest of the Board’s decision. Midwest executed trades generating $90,-000 in commissions on this date prior to acknowledging receipt of the letter from Bleile at 9:30 a.m. This was the largest transaction Midwest had ever undertaken on behalf of the Fund. 8

At the next Board meeting in July, Commissioner Frank convinced the Board to rescind its approval of ICI and to use competitive bidding. 9 Frank also moved to hire outside counsel to look into whether the Board had a cause of action against Midwest to recover the commissions generated on the last day trades. Daniele supported Frank’s motion, which was passed by the Board, and cooperated with the attorneys conducting the investigation from the Sto-lar law firm. Daniele also contacted the SEC in August of 1985, requesting that Midwest be investigated because of its activities.

During the summer of .1985, Anton offered campaign assistance to police officers Daniele was supporting for President of the Police Officers’ Association and for Police Pension Fund Trustee to replace Officer Jenkens. Daniele’s friend and fellow officer, Barry Hinchey, told Daniele he thought Anton was a “con artist.” Hin-chey also got the impression Anton would ask for a quid pro quo favor in return for the campaign assistance.

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The Police Retirement System of St. Louis, a Missouri Statutory Pension Trust v. Midwest Investment Advisory Service, Inc. James F. Bridges the Guaranty Trust Co. Of Missouri Angelo J. Parato James A. Finch, III I.M. Simon & Co., Inc. Thomas D. Pixley E.F. Hutton & Co., Inc. Paine, Webber, Jackson & Curtis Diversified Consultants, Inc. Donald C. Anton, Dotto Enterprises, Inc. Aurora L. Anton Walter P. Klein Anthony D. Daniele Vining-Sparks Securities, Inc. U.S.A. Continental Investors Group, Inc. The Police Retirement System of St. Louis, a Missouri Statutory Pension Trust v. Midwest Investment Advisory Service, Inc. James F. Bridges the Guaranty Trust Co. Of Missouri Angelo J. Parato James A. Finch, III I.M. Simon & Co., Inc. Thomas D. Pixley E.F. Hutton & Co., Inc. Paine, Webber, Jackson & Curtis Diversified Consultants, Inc. Donald C. Anton Dotto Enterprises, Inc. Aurora L. Anton Walter P. Klein, Anthony D. Daniele Vining-Sparks Securities, Inc. U.S.A. Continental Investors Group, Inc. The Police Retirement System of St. Louis, a Missouri Statutory Pension Trust v. Midwest Investment Advisory Service, Inc. James F. Bridges the Guaranty Trust Co. Of Missouri Angelo J. Parato James A. Finch, III I.M. Simon & Co., Inc. Thomas D. Pixley E.F. Hutton & Co., Inc. Paine, Webber, Jackson & Curtis Diversified Consultants, Inc. Donald C. Anton Dotto Enterprises, Inc. Aurora L. Anton Walter P. Klein Anthony D. Daniele Vining-Sparks Securities, Inc. U.S.A. Continental Investors Group, Inc
940 F.2d 351 (Eighth Circuit, 1991)
United States v. Anthony D. Daniele
931 F.2d 486 (Eighth Circuit, 1991)
United States v. Cobb
905 F.2d 784 (Fourth Circuit, 1990)

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Bluebook (online)
886 F.2d 1046, 1989 U.S. App. LEXIS 15047, 1989 WL 115419, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-anthony-d-daniele-ca8-1989.