United States v. Boender

649 F.3d 650, 2011 U.S. App. LEXIS 17230, 2011 WL 3634163
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 19, 2011
Docket10-2652
StatusPublished
Cited by28 cases

This text of 649 F.3d 650 (United States v. Boender) 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. Boender, 649 F.3d 650, 2011 U.S. App. LEXIS 17230, 2011 WL 3634163 (7th Cir. 2011).

Opinion

MANION, Circuit Judge.

Over the course of 2004, Calvin Boender spent approximately $38,000 on home repairs for Isaac Carothers, a Chicago Alderman and crucial player in Boender’s attempt to have certain industrial property rezoned for commercial and residential development. Boender also convinced a couple of business associates to donate, at his expense, to Carothers’s aunt’s congressional campaign. And when the government investigated the earlier events, Boender fabricated an invoice for the home repairs, purportedly sent from his general contractor to Carothers. As a result, Boender was indicted, tried, and convicted of bribing a local official, exceeding federal campaign contribution limits through straw-man donations, and endeavoring to obstruct justice. He appeals aspects of all his convictions. We affirm.

I. Background

A. The Galewood Yards Rezoning

In 2000, Boender purchased a 50-acre parcel in northwest Chicago’s Armitage Industrial Corridor. The property, known as Galewood Yards, was zoned for manufacturing use and largely undeveloped. For four years, Union Pacific Railroad leased all, and then part, of the property. Things changed in early 2004 when Union Pacific left. Boender began searching for other uses for the land, and eventually decided to build a full-service retail and residential community. But the City of Chicago’s Department of Planning and Development had other plans for the property and, at about the same time, was attempting to designate the entire industrial corridor a Planned Manufacturing District (PMD). This “zoning overlay” would lock in the manufacturing designation for the property, making it very difficult to change the zoning once the PMD was in place.

Local politics being what they are, neither change was likely to succeed without the support of the local alderman. Mindful of this reality, Boender attempted throughout 2004 to cultivate the support of Carothers, the alderman whose ward covered the largest part of Galewood Yards. In March, Boender and his wife each contributed the maximum $2,000 to the congressional campaign of Carothers’s aunt, Anita-Rivkin Carothers. Around the same time, he also asked two other associates to contribute to the campaign, promising to reimburse them for the donations. Both contributed $2,000; Boender wrote one of them a check for $4,000 to reimburse him and have him write a check to the other.

In June, Boender hired Stanley Walczak, a general contractor with whom he had previously worked, to paint various parts of Alderman Carothers’s house. Boender arranged to pay for the work. When Boender learned of the Department’s plan to establish a PMD that in- *652 eluded Galewood Yards, he was “irate” and told a Department representative that he did not need to deal with her because “he had made a deal with the alderman.” And when the same representative spoke to Carothers about the plan, the alderman responded that “he was going to do what he wanted to do with the land in his ward and [she] was not to discuss it with anybody.” Nevertheless, the mayor approved the Department’s plan. Early in July, Boender and Carothers met with the Department to discuss the future of Galewood Yards and advocate rezoning the property for residential and retail use, but the Department remained opposed.

While painting Carothers’s house in July, Walczak’s crew discovered that the windows were rotting. Carothers selected expensive windows, and Boender authorized Walczak to install 31 windows, telling him that Carothers had “helped him a great deal with changing the zoning of Galewood Yards.” Boender paid for the windows with a check for $11,252 written from one of his companies. In August, Boender also received an offer from Kerasotes Theatres to purchase 10 acres of Galewood Yards for approximately $4.8 million, contingent on a zoning change to allow for commercial use. That same month, Alderman Carothers gave an interview to the Chicago Sun-Times, at Boender’s request, speaking in favor of rezoning Galewood Yards. At about the same time, Carothers asked Walczak to replace several doors and perform some other interior repair work in his house. Boender told Walczak to “Go ahead and do it. The guy is worth it.”

In September, Boender filed an application for a zoning change with the City Council. Two weeks later, he paid $12,800 for two air conditioning units for Carothers’s home. Shortly after that, Boender authorized Walczak to do additional work necessary to install the units, explaining that the alderman “had helped him a lot with the change of zoning” and “went so far as to stand up to Mayor Daley.” In October, Boender paid $13,350 for this work. All told, Boender paid approximately $38,000 for repairs and improvements to Carothers’s home.

Although the home repairs were complete in October, the matter of the Gale-wood Yards zoning was still open. Unable to proceed with the PMD designation of Galewood Yards without the support of Carothers, the City agreed to a compromise. In 2005, it helped secure an industrial use for half of the property and in exchange agreed to support the rezoning of the other half of the property for commercial and residential use. Carothers sent the Department an official letter of support for the compromise in February 2006 and in March twice advocated rezoning Galewood Yards at City Council hearings. In accordance with the compromise, Carothers supported the ordinance rezoning Galewood Yards, and it passed the City Council on March 29.

B. The Fabricated, Invoice

A year later, in August 2007, Boender and Walczak received grand jury subpoenas. They met several times to get their stories straight. After discussing different options, they settled on a story that Walczak had initially billed Carothers but when Carothers failed to pay, Boender felt obliged to pay the bill because he had given Walczak the job. In January 2008, the government issued more grand jury subpoenas to Boender’s companies, including those from which the checks for Car-others’s home repairs were written. Boender then asked a business partner how much had been spent on the home repairs; when he learned the total amount, Boender stated that he “wish[ed] we had *653 sent an invoice out to the alderman for the work.” He then fabricated an invoice for $38,000, dated September 8, 2004, and supposedly from Historic Homes, Ltd., a defunct company he had previously owned.

In late February, Boender gave the fake invoice to his real estate attorney, Michael O’Connor, informing him that the invoice was covered by the subpoena and that he wanted to produce it to the government. O’Connor’s only role was to forward Boender’s documents to criminal defense attorney Dan Reidy, with whom Boender and O’Connor initially met on February 25. After the initial conversation, Reidy scheduled a meeting with the government to discuss the case and put Boender’s best argument forward.

During their initial conversation, Boender had told Reidy that he had sent an invoice to Carothers for work done in 2004. But when Reidy reviewed the invoice in preparation for his meeting with the government, he called Boender and expressed concern that “perhaps the invoice hadn’t actually been sent to Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
649 F.3d 650, 2011 U.S. App. LEXIS 17230, 2011 WL 3634163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-boender-ca7-2011.