United States v. Brown

597 F.3d 399, 389 U.S. App. D.C. 300, 2010 U.S. App. LEXIS 4701, 2010 WL 743745
CourtCourt of Appeals for the D.C. Circuit
DecidedMarch 5, 2010
Docket08-3018
StatusPublished
Cited by17 cases

This text of 597 F.3d 399 (United States v. Brown) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. 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. Brown, 597 F.3d 399, 389 U.S. App. D.C. 300, 2010 U.S. App. LEXIS 4701, 2010 WL 743745 (D.C. Cir. 2010).

Opinion

Opinion for the Court by Circuit Judge ROGERS.

ROGERS, Circuit Judge:

Edward Brown was convicted by a jury of bank fraud, in violation of 18 U.S.C. § 1344, and passing fictitious financial instruments, in violation of 18 U.S.C. § 514, for trying to deposit two fictitious “bills of exchange” in his account at a federal credit *400 union. He appeals on the ground the district court abused its discretion by permitting introduction of other crimes evidence that was unnecessary to the government’s proof of the charged offenses and unfairly caused the jury to focus on his character and propensity to commit crime, thereby denying him a fair trial. Relying on the limits established by Federal Rules of Evidence 404(b) 1 and 403, 2 Brown maintains that “much of the substantive testimony introduced by the government focused, not on [his] attempt to negotiate the instruments that were the subject of the indictment, but his attempted purchase of three cars and a $1.8 million Maryland home,” Appellant’s Br. 22, and “likely exceeded the time devoted to the indicted charges,” id. at 23.

The Rule 404(b) evidence, with one exception, concerned Brown’s use of fictitious financial documents before the first charged offense and shortly before the second charged offense. Although this evidence consumed a large part of the government’s case-in-chief, the district court could reasonably conclude there was no unfair prejudice to Brown under Rule 403. Brown’s intent was the contested issue at trial: The government had to prove he acted with specific intent to defraud the credit union, and Brown claimed to have acted in good faith. The extrinsic evidence of Brown’s other uses of fictitious financial documents was substantively and temporally tied to the charged offenses, and those other uses were distinct enough not to be the “needless presentation of cumulative evidence,” Fed. R. Evid. 403. The extrinsic evidence that Brown had failed to pay for a house inspection, on the other hand, was not probative of his intent to defraud the credit union and therefore inadmissible under Rule 404(b); but this evidence was quite limited in length, not inflammatory, and was not mentioned during the government’s closing arguments. The district court’s limiting instructions guarded against the jury’s reliance on impermissible inferences that might have been drawn from the Rule 404(b) evidence. Accordingly, we affirm.

I.

Following a mistrial when the jury could not reach a verdict, Brown was found guilty by a jury at his second trial. The government presented evidence through four witnesses regarding Brown’s attempts on two occasions to deposit a fictitious “bill of exchange” in his account at the Treasury Department Federal Credit Union on July 20, 2005 and February 21, 2006. This testimony also revealed that Brown thought House Joint Resolution 192, enacted in 1933 by the 73rd Congress, had created a private direct account with the Treasury Department for all citizens of the United States once they filed a “Uni *401 formed Code financing statement.” Having obtained what he thought were genuine financial documents in the form of “bills of exchange,” Brown attempted to use them to access his Treasury account. The government also introduced the two “bills of exchange” into evidence.

We summarize the testimony presented in the government’s case-in-chief, separating the testimony of the Rule 404(b) witnesses in view of Brown’s contentions on appeal. At trial, however, the jury heard first about Brown’s attempt to deposit a “bill of exchange” at the credit union on July 20, 2005 and the subsequent warning to him by a Special Agent from the Treasury Department. The jury then heard from two Rule 404(b) witnesses about Brown’s attempt to purchase a house in February 2006. Testimony about the second charged offense on February 21, 2006 followed. A Rule 404(b) witness from PNC Bank then testified about events in June 2005. He was followed by a document expert from the Treasury Department. Two Rule 404(b) witnesses then testified about Brown’s attempt to purchase three cars and a subsequent warning to him by a detective assigned to the Secret Service.

A.

Timothy Anderson, the Chief Operating Officer and Vice President of the credit union, testified that on July 20, 2005, Brown presented for deposit in his credit union account a “bill of exchange” in the amount of $2.9 million, which was labeled “Certified U.S. Department of Treasury,” with a three-digit number, printed with the name “SunTrust Bank International Bill of Exchange,” and stated it was payable through SunTrust Bank. Anderson explained that although the “bill of exchange” had some similarities to valid bills, such as check and routing numbers, the words “paid to the order of,” and the name of a bank it was payable through, it also contained a number of irregularities, such as being printed on paper rather than “check stock” and in multiple colors, as well as containing the words “UNCITRAL Conventions,” which “have no meaning as far as negotiating the check.” In response to his inquiries, Treasury Department agents instructed Anderson to contact Brown, who subsequently provided Anderson with additional documents purporting to validate the $2.9 million “bill of exchange.” One such document was labeled “Original Silver Surety Bond,” which, according to Anderson, Brown “incoherently]” explained “would support” the “bill of exchange.” A videotape of Anderson’s meeting with Brown on August 5, 2005 was played for the jury. Anderson testified he never intended to deposit the “bill of exchange” in Brown’s account. Eventually, he stopped responding to Brown’s telephone messages.

Patrick Blake, a Special Agent at the Treasury Department, testified that he met with Brown on August 30, 2005. He told Brown that his “bill of exchange” was worthless and that it was illegal to try to negotiate it.

Shawn Kahler, a compliance officer at the credit union, testified that he met with Brown on February 23, 2006 regarding Brown’s second attempt, on February 21, 2006, to deposit a fictitious “bill of exchange,” this time for $5.5 million. The bill showed a certification by the Treasury Department and was made payable to Brown. Brown gave Kahler a second deposit slip for the $5.5 million “bill of exchange” and a wire transfer request for $1.8 million to be sent to the Bank of America. Brown did not mention his first attempt to deposit a “bill of exchange” at the credit union, although Kahler was aware of it and had responded to one of *402 Brown’s telephone messages for Anderson. A videotape of their meeting and a tape of their prior telephone conversation were played for the jury.

Alexis Rohan, a Treasury Department forensic document examiner, testified as an expert witness. He opined that each “bill of exchange” Brown had presented to the credit union was not a valid financial document.

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Bluebook (online)
597 F.3d 399, 389 U.S. App. D.C. 300, 2010 U.S. App. LEXIS 4701, 2010 WL 743745, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-brown-cadc-2010.