United States v. Anthony Volpendesto

746 F.3d 273, 93 Fed. R. Serv. 1305, 2014 WL 1148326, 2014 U.S. App. LEXIS 5428
CourtCourt of Appeals for the Seventh Circuit
DecidedMarch 24, 2014
Docket11-3022, 12-1180, 12-1656
StatusPublished
Cited by75 cases

This text of 746 F.3d 273 (United States v. Anthony Volpendesto) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh 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 Volpendesto, 746 F.3d 273, 93 Fed. R. Serv. 1305, 2014 WL 1148326, 2014 U.S. App. LEXIS 5428 (7th Cir. 2014).

Opinion

FLAUM, Circuit Judge.

A jury convicted Anthony Volpendesto, Mark Polchan, and Michael Sarno of numerous offenses — principally racketeering conspiracy, but also conducting an illegal gambling business, conspiracy to damage property by means of an explosive device, and conspiracy to obstruct justice, among others. They now challenge their convictions and sentences.

I. Background

This case involves a criminal enterprise operating in and around Cicero, Illinois. Through a business called Amusements Inc., the enterprise distributed “video gambling devices” to local bars and restaurants. These machines, which allow customers to deposit money in return for virtual credits, are legal so long as they are used for amusement only. But the enterprise and the establishment owners permitted trusted customers to redeem their credits for cash. The devices were modified to track money coming in and being paid out, so that the establishment owners and the enterprise could each take a cut of the profits. Video gambling was a lucrative business, and the enterprise did not take kindly to prospective competitors. When a rival company, C & S Amusements, encroached on Amusements Inc.’s turf, the enterprise placed a pipe bomb outside the rival’s headquarters in order to send a message.

In addition to its gambling activities, the enterprise committed over a dozen home and jewelry-store robberies in Illinois and nearby states. The enterprise fenced many of the stolen items through Goldberg Jewelers, a store owned by appellant Mark Polchan. Members of the enterprise also dealt in other stolen goods, such as cigarettes and electronics.

Appellant Michael Sarno occupied the top spot in the enterprise’s hierarchy. He made high-level decisions about the gambling operations and had some control over the jewelry thefts as well. Beneath Sarno was Polchan, who exercised a lesser leadership role. Finally, appellant Anthony Volpendesto was one of the main perpetrators of the robberies.

The government indicted Sarno, Pol-chan, and Volpendesto for conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act in violation of 18 U.S.C. § 1962(d). The government also indicted Sarno and Polchan for conducting an illegal gambling business in violation of 18 U.S.C. § 1955. Finally, Polchan was indicted on several more counts; pertinent here are use of an explosive device (the pipe bomb) and conspiracy to do the same, in violation of 18 U.S.C. § 844(i) and (n), and conspiracy to obstruct justice in violation of 18 U.S.C. § 1512(k).

The government indicted several other individuals for their involvement in the criminal enterprise, too. Two of them, Casey Szaflarski and Sam Volpendesto, went to trial alongside the appellants. Szaflarski owned Amusements Inc. and handled day-to-day operations on the gambling front. Sam Volpendesto, Anthony’s father, served as a jack-of-all-trades, participating in many robberies and the bombing of C & S. (Where ambiguous, we will refer to father and son by their first and last names.) Another co-defendant, a Cicero police officer named Dino Vítalo, *279 pled guilty before trial. Two other enterprise members not only pled guilty but also agreed to cooperate as government witnesses: Mark Hay, a central figure in the robberies, and James Formato, a Ber-wyn police officer. A final enterprise member, Kyle Knight, pled guilty in a separate federal charge and also agreed to cooperate. Knight collaborated with Hay on many robberies, and he also supplied the enterprise with the materials for the pipe bomb.

The main building blocks of the government’s case against the appellants are discussed below.

A. Illegal gambling activity and use of an explosive device

Several business owners testified that Amusements Inc. supplied them with video gambling machines and that Casey Szaf-larski would visit every week or two to divide the profits. (Government agents photographed Szaflarski making rounds to the establishments.) Agents also observed Polchan organizing the gambling activity, including taking delivery of machines at Goldberg Jewelers. However, Sarno exercised ultimate control, as revealed by witness testimony and wiretaps of Sarno’s multiple phones. In one revealing recording, Polchan told Sarno about an opportunity to place the devices in the clubhouses of the Outlaws Motorcycle Club in Chicago’s south and west suburbs. Sarno counseled Polchan, “We put ’em, put ’em in every place, whatever comes out you know, the good will absorb the bad.” The next day, the government observed gambling devices being unloaded at Goldberg Jewelers and then delivered to an Outlaws Motorcycle Clubhouse in Kankakee.

Testimony from Hay and others confirmed that Sarno exercised a significant degree of control over the gambling activity. For example, Hay testified that when he inquired about obtaining machines for his brother-in-law, Polchan said that he would need to call “my guy” — who Hay understood to be Sarno — to get approval. Another witness, Henry Rendon, likewise testified that when he tried to obtain video gambling devices from an enterprise member, he was told that “the big guy” (another nickname for Sarno) first had to agree.

To protect the enterprise’s revenue, Sar-no ordered the bombing of a rival video gambling business, C & S Amusements. The owner of C & S, Vincent Dublino, testified that he began to supply video devices to the 47th Street Grill in Lyons— a business previously serviced by Amusements Inc. — in the summer of 2002. A few weeks after C & S began supplying the machines, Sarno approached Dublino at Dublino’s restaurant and angrily told him to “stay the fuck away from the 47th Street Grill stop.” Later, Dublino began to receive threatening phone calls. In February 2003, a pipe bomb exploded outside C & S in the middle of the night. Reluctant to draw attention to his own illegitimate business, Dublino initially told the police that he thought the explosion was directed at his neighbor. But at trial he avowed that Sarno was behind it.

Kyle Knight confirmed this account. In 2002, Knight and Sam Volpendesto had a conversation about explosive devices. After their talk, Hay called Knight and told him that Sam Volpendesto wanted Knight to build a bomb. Knight gave the raw materials (potassium perchlorate and aluminum powder) and instructions on how to combine them to Hay for Hay to give to Volpendesto. After the bomb went off outside C & S, Volpendesto approached Knight and offered him $300, telling Knight, “your shit worked really good.” Later, Volpendesto explained to Knight that “the big guy” was “having problems with poker machines, that somebody was *280 putting machines where they shouldn’t be and that he was looking for a way to send a message.”

The day after the bombing, Berwyn police officer and enterprise member James Formato told Hay to let Polchan know that the police were looking for a brown van in connection with the crime.

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Bluebook (online)
746 F.3d 273, 93 Fed. R. Serv. 1305, 2014 WL 1148326, 2014 U.S. App. LEXIS 5428, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-anthony-volpendesto-ca7-2014.