United States v. Daniel L. Balzano

916 F.2d 1273, 1990 U.S. App. LEXIS 19406, 1990 WL 164066
CourtCourt of Appeals for the Seventh Circuit
DecidedOctober 30, 1990
Docket87-2607
StatusPublished
Cited by146 cases

This text of 916 F.2d 1273 (United States v. Daniel L. Balzano) 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 L. Balzano, 916 F.2d 1273, 1990 U.S. App. LEXIS 19406, 1990 WL 164066 (7th Cir. 1990).

Opinion

COFFEY, Circuit Judge.

Daniel Balzano was charged in a grand jury’s six-count superseding indictment with four counts of extortion in violation of 18 U.S.C. § 1951, one count of conspiracy to violate the Racketeering Influenced and Corrupt Organizations Act (RICO) in contravention of 18 U.S.C. § 1962(d) and one count of threatening and intimidating a grand jury witness in violation of 18 U.S.C. § 1512. Following a jury trial commencing on June 2, 1987, Balzano was found guilty on three of the four counts of extortion, the RICO conspiracy count and the count of threatening and intimidating a grand jury witness. Balzano was sentenced to six months’ imprisonment with work release privileges on the RICO conspiracy count and one of the extortion counts with the sentences to be served concurrently. *1277 On the remaining two extortion counts and the count of threatening and intimidating a grand jury witness, Balzano received sentences of five years’ probation to run concurrently with one another and consecutively with the work release term imposed on the other counts. As a condition of his probation, Balzano was required to perform 300 hours of community service. Bal-zano appeals his convictions. We affirm.

I.

FACTS

The City of Chicago’s Fire Prevention Bureau is a unit of the Chicago Fire Department, responsible for the enforcement of the Chicago Fire Code including on-site investigation of property and the issuing of citations for violations of the Code. 1

Daniel Balzano, a Chicago Fire Inspector in 1983-84, was charged with receiving payoffs from business enterprises that had applied for liquor, food and amusement licenses. Balzano, while assigned to the North Side Task Force, split payoffs with Richard Dorband, the Fire Prevention Bureau Inspector and supervisor of the North Side Task Force. On three other occasions Balzano got more greedy and rather than splitting the payoffs, shook down business license applicants himself without splitting the payoffs. Balzano would advise the business proprietors of the necessity to make the repairs indicated in order that they might comply with the Code and would then demand a “payoff” from the owners in lieu of or in addition to the repairs.

After a plea agreement Richard Dorband testified for the government with respect to the payoffs he split with Balzano. Dor-band stated that during the year he worked with Balzano, he and Balzano received and split a number of small payoffs of approximately $20 on each occasion. He estimated that Balzano received a total of between $100 and $150 from these payoffs. Dor-band was able to remember one large payoff from Woo Kim, the proprietor of the China Moon Restaurant. Dorband testified that on June 28, 1983, he received $500 from Kim, kept $100, gave $100 to Balzano, gave another $100 to a health inspector and returned the remaining $200. 2

As noted above, there were also incidents where Balzano, on his own, demanded and/or received “payoffs” to facilitate the approval of the licenses. The first of these occasions involved the liquor license application of the Club Victoria nightclub. Upon completion of the initial inspection the premises were deemed “not ready,” 3 and Balzano arranged for a meeting with the Club’s proprietors, Roy LaBolle and Jennifer Hammersmith. During the meeting, Balzano took Hammersmith on an inspection tour of the premises pointing out examples of non-compliance with the fire code. Hammersmith, while viewing one of the alleged defects, inquired of Balzano why she was now required to comply with the Code and the former owners were allowed to operate without conforming. Bal-zano told Hammersmith that “he could make me wallboard any part of the building that he wanted me to.” Further, Bal-zano told Hammersmith that she would be required to have the work on her business *1278 performed by a craftsman Balzano recommended. When Hammersmith challenged Balzano on this point, Hammersmith testified that Balzano again told her that “he could make [her] do anything that he wanted to,” and that if she failed to comply with his directions, her license application would not be approved. Further, Balzano advised her that she would be required to make a $2,500 cash payment to him in order to guarantee that Club Victoria would pass the next task force inspection. Complying with Balzano’s demands, Hammersmith stated that she hired Guy Nowak to perform the work, on Balzano’s recommendation, and made the $2,500 cash payoff to Balzano prior to the Club’s reinspection. On January 20, 1983, Club Victoria passed the reinspection with Daniel Balzano appearing on the premises with the inspection team.

The next payoff incident was an application for a liquor license with a 2 a.m. closing time limit of the United Skates of America roller skating rink filed late in 1982. Tom Grisamore, general manager of the roller skating group, and Jim Dvorak, vice president of United Skates and Grisa-more’s superior, suggested that James Al-lenson, co-owner of their arcade machine supplier, be given $2,200 to pay off public officials to obtain the license. Allenson spoke with Terry Mofreh, an inspector from the City’s Consumer Services Department, and explained that United Skates wanted a liquor license to help promote entertainment in their roller rink and asked Mofreh for his help in obtaining the liquor license. Mofreh told Allenson that he would get back to him and eventually told him that he could provide assistance at this time. Mofreh advised him that $1,500 would be required, and Allenson paid Mo-freh the $1,500 in cash.

The North Side Task Force performed a liquor license inspection of the United Skates premises on February 17, 1983, with Terry Mofreh who, although not assigned to the inspection team, also appeared. During the inspection, Mofreh approached Richard Dorband and told him that he was interested in seeing that United Skates passed the inspection. Dorband talked to Balzano and after their conference it was suggested to Mofreh that a contribution of $300 to the fireman’s fund would help to gain approval. Allenson gave Mofreh an additional $300, and he turned the money over to Dorband. 4 After the inspection was completed, Mofreh told Allenson that everything was fine.

About a week after the task force’s inspection of the United Skates premises, a fire inspector visited Tom Grisamore and identified himself as a member of the inspection team. Grisamore testified that he recognized the inspector as having visited the premises on an earlier occasion while a member of the inspection group. Grisa-more described the inspector at trial as a “white male, dark hair, in his mid-twenties to thirties, youngish, five-nine to six feet [who] possibly had a mustache,” a description matching Balzano. Grisamore also testified that the inspector was wearing a uniform. The inspector stated that the building premises license application had a problem since the establishment was without a sprinkling system.

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Bluebook (online)
916 F.2d 1273, 1990 U.S. App. LEXIS 19406, 1990 WL 164066, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-daniel-l-balzano-ca7-1990.