United States v. Daniel E. Danford

435 F.3d 682, 2005 WL 3676679
CourtCourt of Appeals for the Seventh Circuit
DecidedJanuary 18, 2006
Docket04-4232, 05-1539
StatusPublished
Cited by54 cases

This text of 435 F.3d 682 (United States v. Daniel E. Danford) 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. Daniel E. Danford, 435 F.3d 682, 2005 WL 3676679 (7th Cir. 2006).

Opinion

BAUER, Circuit Judge.

Defendant-Appellant Daniel E. Danford appeals his convictions on three counts of *685 mail fraud under 18 U.S.C. § 1341 and two counts of interstate transportation of a security taken by fraud under 18 U.S.C. § 2314. Danford argues that the district court abused its discretion in four ways: (1) by denying his motion for mistrial; (2) in admitting evidence under the FRE 803 exception to the hearsay rule; (3) by responding to jurors’ questions during their deliberations; and (4) in calculating restitution. Further, Danford contends that his sentence was unreasonable. We affirm the decision of the district court and find that Danford’s sentence was reasonable.

Background

Danford was the owner of Danford Jewelers, a jewelry store in Madison, Wisconsin. On June 18, 1998, police responded to an alarm at the store, where Danford reported that he had been robbed at gunpoint. Danford told the police that the robber had taken almost all of the store’s inventory.

Danford said that early the morning of June 18, 1998, he went to his office alone. Danford’s office was located in the same building as Danford Jewelers, but the office was on the second-floor and was not connected to the store. He said that a robber came into his second-floor office and forced him at gunpoint to go downstairs and unlock the store. Danford said that the robber forced him to disarm the alarm system, open the safe, and empty the jewelry from the safe into a bag.

Normally, Danford did not open the store nor deactivate the alarm. A few weeks prior to the reported robbery, Dan-ford had asked the store manager to refresh him on- how to disarm the alarm because he had lost his password.

After reporting the robbery, Danford filed an insurance claim. The store employees compiled a list of all the stolen items. The final list of stolen items was signed under oath by Danford in front of his attorney, notarized, and then mailed to the insurance company to support his claim.

For reasons not pertinent to this appeal, the insurance company did not pay Dan-ford’s claim immediately. After some litigation, in March of 1999 the insurance company finally paid Danford for the entire claim amount, totaling $1,235,464.

Starting about eight months after the claim was paid, during the busy holiday shopping season in November of 1999, Danford began slipping into the store’s inventory items that had been reported stolen. When Danford re-introduced these items he did not follow the store’s typical inventory procedures. Instead, Danford brought the jewelry back to the store in batches and directed his bookkeeper to put them in inventory. Unlike the standard procedures for new inventory at the store, these batches of jewelry had no accompanying invoices. Moreover, the re-introduced items did not have their original inventory tags. Thus, nothing on the jewelry pieces indicated that they had ever been in the store before.

From time to time, as a shareholder of Danford Jewelers, Danford had borrowed money from the company. With the reintroduced batches, Danford gave his bookkeeper a handwritten list (rather than the typical invoice), with dollar amounts listed that Danford had assigned to the pieces himself. Explaining that the items came either from him personally or from a partnership that Danford and his father-in-law had established to buy jewelry at estate sales, he directed the bookkeeper to “trade” the value of the jewelry against the shareholder debt that he owed to the company.

Each time Danford re-introduced a batch of jewelry with the handwritten sheet, the bookkeeper would put the item back into inventory, give it a new number, *686 and then offset the value of each item against the debt that Danford owed to the business. In total, Danford introduced more than $170,000 of the stolen jewelry-back into the store and directed his bookkeeper to credit the outstanding debt on his account with the “new” pieces.

During the holiday season of 1999 employees began recognizing that some items previously reported stolen were re-appearing in the store. Some employees started to talk about these suspicions. Finally, Danford heard about the rumors and called an employee into his office to confront her about the accusations. She explained to an angry Danford that she was not accusing him of robbing the store but rather she was confused as to where the jewelry that had been reported stolen was coming from. Danford lied to his employee and explained that he had bought the jewelry items from the store himself so that the books would look good for the bank.

Danford strung together several other lies to cover-up his scheme. He even went so far as to threaten a goldsmith who was leaving the company, warning him not to say anything about what went on in the store. Eventually, in the spring of 2000, Danford went an extra step and began melting down some jewelry in the store’s goldsmith shop after work hours.

In June of 2000, agents executed federal search warrants at both Danford Jewelers and Danford’s house. They found several items of jewelry in both locations and found the inventory records at the store. Not remarkably, the items recovered at Danford’s home and his store matched the items described on Danford’s list of stolen items. Further, at trial, several vendors testified that some of the recovered jewelry carried unique serial numbers or were one-of-a-kind items, making identification of these items as pre-robbery pieces easy.

Danford first argues that the district court abused its discretion by denying his motion for a mistrial. He contends that prejudicial evidence was published to the jury and that the district court failed to determine fully what jurors were exposed to that evidence. Further, Danford asserts the district court failed to give a proper curative instruction to the jury regarding the prejudicial information.

We review a district court’s denial of a motion for mistrial under an abuse of discretion standard. United States v. Smith, 308 F.3d 726, 739 (7th Cir.2002). Our review is highly deferential because the trial judge “is in the best position to determine the seriousness of the incident in question, particularly as it relates to what has transpired in the course of the trial.” United States v. Clarke, 227 F.3d 874, 881 (7th Cir.2000). We will reverse a district court’s denial of a mistrial only if “we have a strong conviction that the district court erred.” Id. The ultimate inquiry “is whether the defendant was deprived of a fair trial.” Id.

After the prosecutor inadvertently published to the jury a letter containing the prejudicial (but irrelevant) information, defense counsel moved for a mistrial, contending that the mistake prejudiced the entire jury.

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Bluebook (online)
435 F.3d 682, 2005 WL 3676679, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-daniel-e-danford-ca7-2006.