United States v. Bowers

828 F.2d 1169
CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 17, 1987
DocketNos. 84-1105, 84-1193, 84-1250, 84-1736 and 84-1737
StatusPublished
Cited by10 cases

This text of 828 F.2d 1169 (United States v. Bowers) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth 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. Bowers, 828 F.2d 1169 (6th Cir. 1987).

Opinion

PER CURIAM.

These cases come before us on appeals by Charles Beckham and Darralyn Bowers from criminal convictions for activities connected with the operation of the Detroit sewage treatment system. Mr. Beckham was convicted on one substantive R.I.C.O. count, 18 U.S.C. § 1962(c); seven Hobbs Act extortion counts, 18 U.S.C. § 1951; and four mail fraud counts, 18 U.S.C. § 1341. He was sentenced to twelve three-year terms of imprisonment, to be served concurrently, and was ordered to forfeit $16,-675.00 in illegal payoffs. Ms. Bowers was convicted of one substantive R.I.C.O. count, 18 U.S.C. § 1962(c); one R.I.C.O. conspiracy count, 18 U.S.C. § 1962(d); and four mail fraud counts, 18 U.S.C. § 1341. She was sentenced to four years’ imprisonment on each of the R.I.C.O. counts and two years on each of the mail fraud counts, all sentences to run concurrently.

Some of the evidence incriminating defendants Beckham and Bowers came from electronic surveillance authorized by United States District Judge John Feikens. The defendants challenge their convictions on the ground that Judge Feikens was not, as they allege, a “neutral and detached” judicial officer. The defendants’ allegations are based in part on Judge Feikens’ judicial supervision of the Detroit Water and Sewerage Department under a federal court order, and in part on certain statements made by the judge in the course of an interview granted to a Detroit newspaper reporter. We are not persuaded that Judge Feikens was anything other than the “neutral and detached” judicial officer required by law, and we shall affirm the convictions of both defendants.

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During the 1970s the United States Environmental Protection Agency filed a civil action challenging the efficacy of the Detroit Water and Sewerage Department’s treatment of sewage. The case was assigned to Judge Feikens. A consent judgment was entered into in September of 1977, but compliance with the judgment was unsatisfactory. By March of 1979 the department had been placed under federal court supervision, and Judge Feikens made Mayor Coleman Young the “administrator” of the department. The order of appointment gave Mayor Young extraordinary powers, including the power to bypass the Detroit City Council in awarding contracts and the power to award contracts without competitive bidding. Mayor Young informed the city council that notwithstanding these powers he would not bypass the council on contractual matters unless an emergency arose.

In July of 1979, approximately four months after the commencement of the administratorship, the department entered into a contract with Michigan Disposal, Inc., a company owned by one Michael Ferrantino, to dispose of sludge from the department’s wastewater treatment plant. The award of this contract was authorized by the city council.

In January of 1980 Mayor Young appointed defendant Beckham to the position of director of the wastewater treatment plant. Sometime in the first few months of the same year defendant Bowers, a Detroit realtor and close friend of Mayor Young, invited a Mr. Jerry Owens, a clothing retailer from Mississippi, to come to Detroit and enter the sludge disposal business with herself and two white men, Sam Cusenza and Joseph Yalentini. The latter two were associated with Mr. Ferrantino in the ownership of a company called Wolverine Disposal Company. By using Mr. Owens, who is black, as a front man, the other participants contemplated that they would be able to obtain city business on a preferential basis as “minority contractors.” (Although [1171]*1171defendant Bowers is also black, her relationship with Mayor Young was apparently such as to make it imprudent for Ms. Bowers herself to fill the role envisioned for Owens.)

Pursuant to this plan, a corporate entity called “Vista Disposal” was ostensibly organized with Owens as President and nominal owner of 100% of the stock. Fifty percent of the profits of the enterprise were initially supposed to go to Cusenza and Valentini, according to the government’s proofs, and 50% to Bowers and Owens. Cusenza and Valentini were to provide any necessary start-up money.

In the spring and summer of 1980 Vista submitted to the city a number of proposals for a contract under which Vista would become the city’s second sludge hauler. According to the government, these proposals were “riddled with false information”; they did not reveal the true owners of Vista, they falsely claimed that Vista was incorporated and had offices in downtown Detroit, and they gave false information concerning the qualifications of Mr. Owens. One thing that Vista actually did have to recommend it, however, was access to a landfill (controlled by Wolverine) where the sludge could be dumped around the clock, seven days per week.

On August 8,1980, Mr. Beckham notified Vista that it had been selected to present a formal proposal to the city. Four days later Owens, Cusenza and Valentini met with Mr. Beckham and city employee David Fisher. Mr. Owens testified that Fisher asked for the resumes of all principals of Vista, and that Owens submitted only his own resume, neglecting to inform Fisher of the interests of Ms. Bowers and the other silent partners. Mr. Fisher apparently was given to understand that Cusenza and Valentini were attending the meeting in their capacity as owners of Wolverine; Owens testified that he expressed a desire at the meeting to include Wolverine in the contract as part of a joint venture. (Mr. Fisher responded that this was impermissible; since the bid had been submitted in Vista’s name, he explained, the contract would have to be made with Vista alone. Mr. Fisher did say that Vista might be able to use Wolverine as a subcontractor, however.)

In September of 1980 a city attorney named Denise Page Hood began to negotiate the terms of a contract with Vista. Ms. Hood testified that Owens told her that he was the sole owner of Vista. Ms. Hood was also misled, it appears, on the subject of Vista’s ability to procure a performance bond. Even though Vista attorney Charles Carson had been told that Vista could not obtain the required $250,000 bond, Mr. Carson first told Ms. Hood that Vista was in the process of obtaining a bond, and later told her that an insurance agency was qualifying Vista for a bond and would issue it within two weeks. Mr. Carson went so far as to procure and present to Hood a letter from an insurance agency that falsely stated such was the case.

Wolverine and Vista subsequently entered into a joint venture relationship, in violation of the city’s requirements, and Cusenza, Valentini and Wolverine borrowed $250,000 to be used as an escrow deposit in lieu of the bond. In addition, Wolverine advanced Vista $350,000 for initial operating capital.

There was a delay in awarding the contract, and Ms. Bowers became concerned about the award. Mr. Owens testified that Ms. Bowers told him that she would contact Mr. Beckham and an aide to Mayor Young and do “everything in her power” to speed things up.

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United States v. Bowers
828 F.2d 1169 (Sixth Circuit, 1987)

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Bluebook (online)
828 F.2d 1169, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-bowers-ca6-1987.