United States v. Beech-Nut Nutrition Corp.

659 F. Supp. 1487, 1987 U.S. Dist. LEXIS 3912
CourtDistrict Court, E.D. New York
DecidedMay 11, 1987
DocketNo. 86 CR 715
StatusPublished
Cited by11 cases

This text of 659 F. Supp. 1487 (United States v. Beech-Nut Nutrition Corp.) is published on Counsel Stack Legal Research, covering District Court, E.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. Beech-Nut Nutrition Corp., 659 F. Supp. 1487, 1987 U.S. Dist. LEXIS 3912 (E.D.N.Y. 1987).

Opinion

MEMORANDUM AND ORDER

PLATT, District Judge.

In this straightforward criminal case charging defendants with misbranding and adulterating apple juice products, defense counsel, in a brilliant display of imaginative creativity, have attempted in a series of pre-trial motions to convert rather simple allegations contained in the indictment herein into a complex maze of confusing theories based in large part upon their own conceptions of viable defenses. In order to replace everything into proper perspective we must summarize the indictment and analyze their multiple motions separately.

The Indictment

On November 5, 1986, the Government filed a 470 count indictment against the following eight defendants: the Beech-Nut Corporation, Niels L. Hoyvald, John F. Lavery, Zeev Kaplansky, Raymond H. Wells, Nina B. Williamson, South Orange Express, Inc. (“SOX”) and Danny A. Shaeffer. During the time relevant to the indictment, Hoyvald was the president of the BeechNut Corporation and Lavery its vice-president. Indictment, 1ÍTT 3, 4. Kaplansky, Shaeffer and Wells conducted business under the name Nameco Trading Co. Wells also owned Food Complex Co., Inc. (“Food Complex”), which he operated with Williamson, an officer of the company. The Beech-Nut Corporation, Nameco Trading Co. and Food Complex manufactured, processed, labeled, held, shipped and sold foods in interstate commerce. SOX was a New Jersey corporation engaged in the business of labeling, holding and shipping foods in interstate commerce. Id., ¶ 8.

Count One alleges that all eight defendants, with intent to defraud, conspired to introduce or deliver for introduction or cause the delivery or introduction of adulterated and misbranded apple juice product into interstate commerce, in violation of the Federal Food, Drug and Cosmetic Act (“FFDCA”), Title 21, United States Code, Sections 331(a), 331(k) and 333(b). The apple juice products were allegedly adulterated within the meaning of 21 U.S.C. §§ 342(b)(1) and 342(b)(2) and misbranded within the meaning of 21 U.S.C. [1491]*1491§§ 343(a)(1), 343(b), 343(i)(2) and 343(k). As part of the conspiracy defendants Kaplansky, Wells, Williamson, SOX and Shaeffer (“Suppliers”) allegedly sold adulterated and misbranded apple juice concentrate to defendants Beech-Nut Corporation, Hoyvald and Lavery (“Beech-Nut defendants”). In furtherance of the conspiracy the BeechNut defendants, with intent to defraud, introduced into interstate commerce or delivered for introduction adulterated and misbranded apple juice and juices containing in part apple juice. The products labeled apple juice and apple juice concentrate contained primarily beet sugar, malic acid, apple flavor, caramel color, corn syrup and very little, if any, apple juice or apple juice concentrate. Indictment, ¶¶ 14, 15.

Counts Two through Twenty-one charge all the defendants with engaging in a scheme to defraud in violation of the mail fraud statute, Title 18, United States Code, Section 1341. Indictment, 1111 18, 26. As part of the scheme Beech-Nut defendants purchased apple juice concentrate from Kaplansky and Food Complex. Id., If 19. When the Beech-Nut Corporation wanted to buy foods labeled as apple juice concentrate, an employee of the Corporation would notify Kaplansky’s broker. Id., 1124. Shaeffer and Kaplansky would arrange to have a mixture of beet sugar, malic acid and apple flavor prepared and delivered to SOX. Id., 1120. SOX would then stencil the words “apple concentrate” on the drums of flavored syrup. Id., ¶ 21. When the Corporation wanted to purchase foods labeled as pure apple juice concentrate, it would notify Food Complex. Food Complex’s owner and officer, defendant Wells, and defendant Wiliamson, a Food Complex officer, would then purchase beet sugar, malic acid, caramel color and apple flavor and mix the ingredients at the Food Complex plant and thereafter misrepresent the product. Id., 1122. In furtherance of the scheme to defraud defendants allegedly used the United States mails on 20 separate occasions.

Counts Twenty-two through Four Hundred Fifty allege that Beech-Nut defendants, Wells and Kaplansky, with intent to defraud, introduced or delivered for introduction or caused the delivery or introduction of, within the Eastern District of New York and elsewhere, adulterated and misbranded apple juice and apple juice products into interstate commerce.

Finally, Counts Four Hundred Fifty-one through Four Hundred Seventy charge Supplier defendants with selling adulterated and misbranded foods labeled as apple juice concentrate to customers other than the Beech-Nut defendants.

. Defendants have filed the following motions: (1) motions to dismiss Count One for alleging multiple conspiracies; (2) motions to dismiss Counts Two through Twenty-one on the grounds that they allege separate schemes to defraud; (3) motions to dismiss Counts Twenty-two through Four Hundred Fifty for lack of venue; (4) motions to compel the Government to elect between multiplicitous counts; (5) motions to sever on the grounds of improper or prejudicial joinder; (6) motions to dismiss Counts Twenty-two through Four Hundred Fifty and Counts Four, Five, Seven, Eight, Nine and Fifteen as constitutionally vague and failing to state an offense; (7) a motion to dismiss the indictment on the basis of grand jury abuse; (8) discovery motions; and (9) motions for a bill of particulars.

I. Conspiracy

Defendants move to dismiss Count One on the grounds that it improperly alleges multiple conspiracies and fails to specify the object of the conspiracy.

First, defendants claim that Count One alleges two separate conspiracies: one conspiracy among Supplier defendants to introduce adulterated and misbranded apple juice concentrate into interstate commerce with intent to defraud and a second, subsequent, conspiracy among Beech-Nut defendants to ignore the adulterated nature of the concentrate purchased from Suppliers and with intent to defraud introduce into interstate commerce adulterated and misbranded apple juice. The BeechNut defendants see themselves as the unknowing victims of the fraud perpetuated by Suppliers. They argue that as a matter of logic victims and perpetrators cannot con[1492]*1492spire. Therefore, since they could not conspire with Suppliers, Count One cannot allege a single conspiracy. Since Count One cannot allege a single conspiracy, they conclude that Count One must allege multiple conspiracies.

Defendants’ second argument asserts that Count One should be dismissed for failure to specify the object of the conspiracy. According to Beech-Nut defendants, in a conspiracy to violate the FFDCA, defendants must agree to adulterate or misbrand a specific product. Therefore, Count One should specify whether defendants agreed to adulterate and misbrand either apple juice or apple juice concentrate.

An indictment must allege the essential elements of the offense charged. See Wong Tai v. United States, 273 U.S. 77, 80-81, 47 S.Ct. 300, 301-302, 71 L.Ed. 545 (1927). Thus, an indictment charging defendants with conspiracy must allege an agreement, United States v. Alessi,

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Cite This Page — Counsel Stack

Bluebook (online)
659 F. Supp. 1487, 1987 U.S. Dist. LEXIS 3912, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-beech-nut-nutrition-corp-nyed-1987.