United States v. Coving

652 F. Supp. 660
CourtDistrict Court, S.D. New York
DecidedFebruary 3, 1987
DocketNo. 86 Cr. 531-CLB
StatusPublished
Cited by1 cases

This text of 652 F. Supp. 660 (United States v. Coving) is published on Counsel Stack Legal Research, covering District Court, S.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. Coving, 652 F. Supp. 660 (S.D.N.Y. 1987).

Opinion

MEMORANDUM AND ORDER

[Post-trial Motions]

BRIEANT, Chief Judge.

Following a jury verdict which convicted him on 16 counts of a 20 count Indictment, finding him not guilty on four of the counts, Alfred Covino moves for a judgment of acquittal pursuant to Rule 29(c), F.R.Crim.P., or alternatively for a new trial pursuant to Rule 33, F.R.Crim.P. The motion for a new trial need not detain us, since the Court finds no infirmity in the procedures followed at the first trial.

The counts of which the defendant was convicted charged; violation of the Hobbs Act, 18 U.S.C. § 1951 (Counts 1 through 5, and 8); violation of the Travel Act, 18 U.S.C. § 1952 (Counts 9 through 13, and 16); and wire fraud, in violation of 18 U.S.C. § 1343 (Counts 17 through 20).

Facts Established at the Trial

These convictions all arise out of the same factual context. The facts upon which the Government relied were essentially undisputed. Viewed most favorably to the Government, as it must be, the trial record established the facts set forth below.

Defendant was an executive of Nynex Mobile Communications, Inc., (hereinafter “Nynex” or “the telephone company”), having the job title of “Director of Network Services.” He had a long history of prior favorable employment with a division of the American Telephone and Telegraph Company and was receiving an annual salary of $57,600 at the time of the commission of these crimes. His responsibilities extended to operation and construction.

Nynex was engaged in providing mobile stations for relaying telephone calls to and from automobiles and trucks. The electronic principles upon which this service is based involved the construction of “cell sites,” which are small structures containing switching gear which can receive and transmit messages within a given radius from their location, for as a user travels on the highways from one area to another his transmissions and reception must be within the geographic limits or radius of a cell site. Nynex at the time had a competitor in the Northeastern area, referred to at the trial as “Cellular One.” It was a competitive advantage for Nynex to have more cell sites operating and in place sooner, thereby giving a greater usefulness to the subscriber. Once the subscriber passes into an area not within the radius of transmission and reception of a cell site, no service is available. Accordingly, it was in the interests of Nynex to construct as many cell sites as possible, as quickly as possible. Defendant Covino had a substantial responsibility in connection with this effort.

The Government’s principal witness was Robert Brennan who had been immunized. Together with Joseph Boyd, also an immunized witness, Brennan was the half-owner of a small construction business with a grandiloquent name, known as Great Northeastern Building and Management Corporation (“Great Northeastern”), which Brennan operated from his home in New Jersey, with his wife doing the bookkeeping and drawing the checks.

Beginning as a carpenter and local official, Brennan had developed an expertise in the rapid, economic erection of fast-food restaurants. These structures, like cell sites, involve so-called “cookie cutter construction,” and a contractor’s ability to erect such structures economically and quickly improves, as additional, almost identical structures are erected.

Brennan’s corporation began its efforts for Nynex as a “consultant,” apparently providing clerk of the works service at sites being built by other contractors for Nynex. Continuing this activity until the end of 1984, Great Northeastern also undertook to build certain cell sites as the prime contractor. Cells erected by Great Northeastern included those located near Boston and Buffalo, as well as one in the Town of Greenburgh in Westchester County, New York, adjacent to White Plains.

[662]*662At all relevant times, Nynex had its office at the Blue Hill Plaza in Pearl River, New York, in this District. Nynex provided a free telephone for Brennan’s automobile and the wire fraud was committed by means of telephone calls made thereon between Brennan in New Jersey, and Covino in Pearl River, New York.

The business relationship between Great Northeastern and Nynex was within the direct, although not exclusive, supervision and control of Covino. As a practical matter, Covino had the power to cause Nynex to allow or disallow claims for extra work, the lifeblood of the construction industry. He and his subordinate, Jeff Gordon, who was also paid money by Brennan, had the power to approve or disapprove invoices, acting together with other Nynex executives, and had a voice in the decision making process by which Great Northeastern would be awarded other sites upon which to construct additional cells.

It is probably fair to say that Covino, acting alone, could do nothing for Brennan or his company. He could undoubtedly delay payment of invoices, bring to light real or fancied disputes concerning the invoices, and recommend for or against retention of Great Northeastern for additional construction.

Throughout its dealings with Nynex, Great Northeastern was overextended and short on capital. A small, two person corporation, it had no substantial equipment, and its entire staff consisted of Brennan, Boyd, a couple of job superintendents, and Brennan’s wife, acting as bookkeeper.

The initial misconduct between the parties was initiated by Covino, who told Brennan in a conversation in Covino’s office that one Becker, a former employee of Great Northeastern had run up a telephone bill of $3,200, using a Nynex credit card furnished to him in connection with his work to make calls in connection with the business of Nynex, and that the charges had been run up illegally. According to Brennan, Covino represented that these charges had been made to the credit card illegally after the employee Becker had ceased working on Nynex projects, and that “if Joe Farina [Covino’s superior] found out [Brennan] wouldn’t look good.” Brennan offered to pay the improper telephone charges, but defendant said that he “would take care of it.” Facile decensus Averno! This transaction of covering up the phone bill began the illicit relationship between Covino and Brennan.

A couple of months later Covino solicited from Brennan “ideas on construction of a sun deck” for Covino’s home. Brennan obliged by presenting some sketches of four to six different renderings, which Co-vino could discuss with his wife. Covino rejected the sketches and determined to have Ralph Mignone, another Nynex vendor, who was an architect, do the design work. A week later Brennan was instructed by Covino to erect a sun deck, which later turned out to be a full “Florida” room; to keep the cost of it within single digits {i.e., less than $10,000); and to keep in mind the telephone bills. The Government proved at trial that a very significant addition to Covino’s home, referred to as a Florida room, was constructed by Great Northeastern between July and August, 1984. Referred to by Covino as “his favorite cell site,” the erection of this sun room represented an economic transfer from Great Northeastern to Covino amounting to at least $20,000, exclusive of the cost of supervision.

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Related

United States v. Covino
652 F. Supp. 660 (S.D. New York, 1987)

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652 F. Supp. 660, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-coving-nysd-1987.