United States v. Donald P. Brown

870 F.2d 1354, 1989 U.S. App. LEXIS 4396, 1989 WL 30086
CourtCourt of Appeals for the Seventh Circuit
DecidedMarch 30, 1989
Docket88-2694
StatusPublished
Cited by53 cases

This text of 870 F.2d 1354 (United States v. Donald P. Brown) 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. Donald P. Brown, 870 F.2d 1354, 1989 U.S. App. LEXIS 4396, 1989 WL 30086 (7th Cir. 1989).

Opinion

CUMMINGS, Circuit Judge.

Donald Brown appeals his conviction and the sentence imposed upon him in the Eastern District of Wisconsin 1 following his guilty plea to one count in an indictment charging him with violating 18 U.S.C. § 1343, the federal wire fraud statute. Brown argues that he is entitled to a trial, or alternatively resentencing, because: (1) the magistrate conditioned continuing bail on Brown’s acceptance of an attorney not of his choice in violation of Federal Rule of Criminal Procedure 44(a); (2) the district court erred when it denied his motion to sever his scheduled trial from that of his codefendant; (3) he was not afforded a sufficient opportunity to review and object to the presentencing report, and the district judge failed to make a finding of inaccuracies or explicitly refused to disregard portions that Brown argues were erroneous; (4) there was insufficient evidence to warrant restitution of $230,000 as imposed. Finding no merit in Brown’s arguments, we affirm the judgment of conviction.

I. FACTUAL BACKGROUND AND PROCEEDINGS BELOW

Donald Brown and codefendant Robert Lynch were indicted on September 22, 1987. The indictment consisted of eleven counts, of which two charged Brown, and was premised upon a scheme to defraud the Community Bank of De Pere, Wisconsin. As described in the indictment, Brown was working for the Heli-Skimmer Corporation, a Colorado company located in San Diego, California, which developed watercraft technology. Brown was trying to raise capital to support Heli-Skimmer’s planned expansion to Brown County, Wisconsin. At the same time, his acquaintance and codefendant Lynch represented a group of wealthy Minnesota investors, known collectively as El Cortez, interested in investing in a Las Vegas, Nevada, hotel.

According to the indictment, from July 1982 through June 1983 Brown and Lynch devised a scheme to defraud the Community Bank. Ostensibly on behalf of El Cortez, Lynch applied for various loans from the Community Bank and in support of the application presented forged documents to the bank. The documents fraudulently represented that El Cortez would guarantee the loans, the proceeds of which purportedly were to be used by El Cortez to invest in Heli-Skimmer’s future Brown County plant. Lynch also assured the president of Community Bank that A1 Ross, reportedly an investment adviser to the Teamsters Union, was working on a loan from the Teamsters to Heli-Skimmer. In reality, A1 Ross was an alias for Brown, who had no connection whatsoever with the Teamsters but yet in later meetings falsely assured the bank president that the Teamsters would be working with Heli-Skimmer and were prepared to lend it $1.4 million. 2

Based on the fraudulent representations, the Community Bank approved the loan application and gave Lynch a letter of credit for the benefit of El Cortez. Lynch subsequently used the letter of credit as collateral for a loan from Heli-Skimmer’s bank in La Jolla, California, and later caused the Community Bank to wire monies to the California bank, all under the pretense that the funds were being used by El Cortez to invest in Heli-Skimmer’s proposed Brown County plant. The scheme was furthered by Brown’s assurances — under the alias A1 Ross, investment advisor to the Teamsters Union — to the Community Bank president that the Teamsters were investing in the project as well. All to *1357 taled, the Community Bank lost nearly $1.2 million as a result of the scheme.

Brown, along with Lynch, was arraigned on October 16, 1987. Count two of the indictment alleged that around December 10, 1982, Lynch and Brown caused the Community Bank to wire $75,000 to the California bank; count three alleged that around May 2, 1983, the pair caused the Community Bank to wire $230,000 to the California bank. Brown was allowed to remain free on bond, his travel restricted to Wisconsin, where he was to be tried, and Florida, where he was then residing. The magistrate set forth a briefing schedule, requiring pretrial motions to be filed by October 26, 1987, and scheduled the trial for December 7, 1987. A second hearing was held and, due to the volume of discovery and the complexity of the charges, the motion deadline was extended to November 2, 1987, and the trial continued until March 7, 1988. Throughout this time no appearance of counsel had been filed on Brown’s behalf, although he had informed the magistrate that he would be retaining counsel.

On December 10, 1987, the magistrate held a status conference, the primary purpose of which was to determine what progress Brown had made in retaining counsel. The magistrate reminded Brown of his previous statements that he would retain counsel and emphasized the importance of counsel in a case as complex as this, as well as the significance of the Speedy Trial Act. Brown acknowledged financial difficulty in retaining the counsel of his choice, but expressed some optimism that the financial hurdle would soon be cleared. Rather than wait further for Brown to act, the magistrate instead decided to confine him to the Eastern District of Wisconsin until he retained counsel. Not coincidentally, the magistrate also recommended an attorney known by the court to be competent and available that afternoon, and told Brown that the magistrate would be willing to appoint the recommended attorney that same day. Brown met with that attorney and the magistrate did in fact appoint him as counsel that day; consequently, Brown was free to return to Florida later that same day.

Prior to trial, Brown’s appointed counsel moved the district court for, among other things, a continuance and severance of Brown’s trial from that of codefendant Lynch. The court granted the continuance but denied the motion for severance without prejudice and with leave to refile at a later time. Brown’s counsel did not refile the motion for severance.

Brown ultimately entered into a plea agreement with the government. Brown pleaded guilty to count three of the indictment, which alleged that he and Lynch defrauded the Community Bank of $230,-000. During the entry of plea, the government made its offer of proof to which Brown objected as to two minor points. 3 The plea was accepted by the district court, which found a sufficient factual basis for it. Sentencing was scheduled for August 18, 1988; in the meantime a presentence report was to be prepared in consideration of sentencing.

During sentencing, in response to questioning from Judge Gordon, both Brown and his attorney said that they had seen the presentence report and that there was no reason to forestall sentencing. Neither Brown nor his counsel objected to any factual statements contained in the presen-tence report; the one objection raised by Brown’s attorney concerned an excerpt from a Minnesota newspaper which was read aloud by the government during the sentencing hearing. 4 The court then sen *1358 tenced Brown to four years’ imprisonment and restitution in the amount of $230,000.

II.

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Cite This Page — Counsel Stack

Bluebook (online)
870 F.2d 1354, 1989 U.S. App. LEXIS 4396, 1989 WL 30086, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-donald-p-brown-ca7-1989.