United States v. Charles Taylor Thompson, William Edward Tanner and James Benjamin Campbell

366 F.2d 167, 1966 U.S. App. LEXIS 4962
CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 15, 1966
Docket16832_1
StatusPublished
Cited by31 cases

This text of 366 F.2d 167 (United States v. Charles Taylor Thompson, William Edward Tanner and James Benjamin Campbell) 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. Charles Taylor Thompson, William Edward Tanner and James Benjamin Campbell, 366 F.2d 167, 1966 U.S. App. LEXIS 4962 (6th Cir. 1966).

Opinion

PHILLIPS, Circuit Judge.

Appellants, who were members of the County Council of McMinn County, Tennessee, were found guilty by a jury of violating the general conspiracy statute, 18 U.S.C. § 371. The prosecution grew out of the solicitation and receipt by appellants of a $6,000 kickback from the architects on a county hospital project under the Hill-Burton Act, 42 U.S.C. § 291 et seq. Each of the three appellants was sentenced by the district judge, the Honorable Frank W. Wilson, to a prison term of one year. A fourth defendant was found not guilty and a fifth alleged co-conspirator was not indicted.

The one-count indictment in part charged that defendants, in violation of the conspiracy statute, did:

“ * * * unlawfully, wilfully and knowingly conspire, confederate and agree among themselves and with each other and with other persons to the Grand Jury unknown, to defraud the United States of America, in particular the Department of Health, Education and Welfare, a Department of the United States, of its right to have its program for the construction of the *169 McMinn County Hospital, McMinn County, Tennessee, pursuant to the provisions of the Hill-Burton Act, 42 U.S.C. 291, et seq., as amended, administered honestly, fairly and free from corruption, deceit, trickery, dishonesty and kickbacks.
“7. It was a part of said conspiracy that defendants would cause the Hospital Committee, McMinn County Council, McMinn County, Tennessee, which they dominated and controlled, to employ the firm of Galloway and Guthrey to perform the architectural services required in the construction of the McMinn County Hospital, at a fee representing 6% of the cost of construction.
“8. It was a further part of the said conspiracy that defendants would and did request and solicit a 1% kickback payment from the firm of Galloway and Guthrey.
“9. It was a further part of the said conspiracy that defendants, subsequent to the commitment of funds to the McMinn County Hospital by the Department of Health, Education and Welfare, would and did, on June 4, 1964, induce George H. Galloway and Charles E. Guthrey, doing business as Galloway and Guthrey to kick back and pay to defendants $6000 from the fees paid to Galloway and Guthrey pursuant to the aforesaid employment contract. * * * ”

Appellants had been members of the nine-member County Council, the governing body for the local county government, for several years prior to their arrest on June 4, 1964. A preliminary application was filed with the Director, Division of Hospital Services, Tennessee Department of Public Health, on April 24, 1962, seeking federal assistance under the Hill-Burton program, in the construction of a county hospital. Appellants served as members of the Hospital Committee and constituted the majority of this five-member committee. Appellant Thompson was chairman of the committee.

Under the federally sponsored Hill-Burton program, the United States contributes 52 per cent of the construction cost of certain hospitals and other medical facilities, while the local sponsor, in this case McMinn County, contributes 48 per cent.

Local officials were notified by letter under date of October 5, 1962, that federal funds in the amount of $468,000.00 had been set aside under the Hill-Burton Act for construction of the proposed hospital.

The architectural firm 'of Galloway and Guthrey had performed services for McMinn County on previous occasions. The partners in this firm, George Galloway and Charles E. Guthrey, were the chief Government witnesses. They testified that beginning on December 18, 1962, the appellants and others sought a kickback on the hospital project in return for Galloway and Guthrey being given the architectural contract for the proposed hospital; that they informed FBI agents of these facts on December 20, 1962; that appellants met with them on numerous occasions in 1963, both before and after the contract for the hospital was awarded on February 12, 1963; and that further meetings were held between them and the appellants in 1964 which culminated with the meeting on June 4, 1964, at the Knoxville airport at which time George Galloway delivered the sum of $6,000.00 to appellant Campbell.

I.

The first contention of appellants is that the district court erred in overruling their motion to dismiss the indictment, the motion for judgment of acquittal made at the conclusion of the Government’s proof and appellants’ motion for judgment of acquittal made at the conclusion of all proof. The principal argument is that, under the facts in this case, appellants have not violated the general conspiracy statute and have not committed a crime against the United States. *170 18 U.S.C. Section 371 provides:

“If two or more persons conspire either to commit any offense against the United States, or to defraud the United States, or any agency thereof in any manner or for any purpose, and one or more of such persons do any act to effect the object of the conspiracy, each shall be fined * * * or imprisoned * * * ”

In Dennis v. United States, 384 U.S. 855, 859, 86 S.Ct. 1840, 1844, 16 L.Ed. 2d 973, the Supreme Court, in interpreting this statute, said:

“It has long been established that this statutory language is not confined to fraud as that term has been defined in the common law. It reaches ‘any conspiracy for the purpose of impairing, obstructing or defeating the lawful function of any department of government,’ Haas v. Henkel, 216 U.S. 462, 479 [30 S.Ct. 249, 54 L.Ed. 569], quoted in United States v. Johnson, 383 U.S. 169, 172 [86 S.Ct. 749, 751, 15 L.Ed.2d 681].”

In Hammerschmidt v. United States, 265 U.S. 182, 44 S.Ct. 511, 68 L.Ed. 968, in reversing a conviction for conspiracy to defraud the United States, the court, speaking through Chief Justice Taft, stated:

“To conspire to defraud the United States means primarily to cheat the government out of -property or money, but it also means to interfere with or obstruct one of its lawful governmental functions by deceit, craft or trickery, or at least by means that are dishonest. It is not necessary that the government shall be subjected to property or pecuniary loss by the fraud, but only that its legitimate official action and purpose shall be defeated by misrepresentation, chicane or the overreaching of those charged with carrying out the governmental intention.” 265 U.S. at 188, 44 S.Ct. at 512.

In Haas v. Henkel, 216 U.S. 462, 30 S.Ct. 249, 54 L.Ed.

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Bluebook (online)
366 F.2d 167, 1966 U.S. App. LEXIS 4962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-charles-taylor-thompson-william-edward-tanner-and-james-ca6-1966.