United States v. Edward G. Ackal, Henry L. Smith and C.E. "Ed" Thompson

706 F.2d 523
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 18, 1983
Docket82-3243
StatusPublished
Cited by15 cases

This text of 706 F.2d 523 (United States v. Edward G. Ackal, Henry L. Smith and C.E. "Ed" Thompson) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth 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. Edward G. Ackal, Henry L. Smith and C.E. "Ed" Thompson, 706 F.2d 523 (5th Cir. 1983).

Opinion

GARZA, Circuit Judge:

On July 30,1981, the defendants, Edward Ackal, Ed Thompson and Henry Smith, were charged in a ten-count indictment with violations of 18 U.S.C. §§ 371, 372, 1341,1342,1343,1951 and 1952. Count 9 of the indictment, charging violations of 1951 and 1952, was severed prior to trial. The remaining counts were tried before a jury, and the jury returned guilty verdicts against all defendants on all counts.

Two of the defendants claim the evidence was not sufficient to support the jury’s verdict. A thorough examination of the facts is, therefore, warranted.

An understanding of the identity of the various agencies, companies and individuals is essential .to a comprehension of the scheme perpetuated by the defendants.

The United States Department of Health, Education and Welfare (hereinafter HEW) was responsible for administering provisions of the Education of the Handicapped Act, under which HEW would provide funds to various State Departments of Education to further the purpose of the Act. When the Department of Education sue- *525 ceeded HEW, the Department of Education took over the administration of the Act.

The Louisiana State Department of Education (hereinafter LSDE) was a department of the State of Louisiana, charged with the administration and disbursement of funds received pursuant to the Education of the Handicapped Act.

The State Board of Elementary and Secondary Education (hereinafter BESE Board) was empowered to supervise and control the public elementary and secondary schools of the State and had final budgetary responsibility for all funds appropriated or allocated.

J. Kelly Nix was the Superintendent of Education in Louisiana. Defendant, Ed Thompson, was employed by LSDE as the Deputy Superintendent of Education and was responsible only to the Superintendent of Education.

Defendant, Henry L. Smith, was the Assistant Superintendent of Education for Special Education Services. He was responsible for properly administering state and federal special education programs and for properly expending state and federal funds within the budgetary controls.

Educational Products Corporation (hereinafter EPC) was a Louisiana corporation engaged in the business of selling educational products and services and representing various vendors of educational supplies and services in the state. The defendant, Edward G. Ackal, was the owner and incor-porator of EPC.

International Management Systems, Inc. (hereinafter IMS) was a Missouri Corporation licensed to do business in Louisiana. IMS was attempting to market a screening test to the State of Louisiana.

Harold J. Kunzelman was president and part owner of IMS.

Doctor Carl Koenig was the part owner and an employee of IMS.

Wayne Spence had a continuing arrangement with IMS, whereby he would receive ten percent of the profits earned by IMS as a finder’s fee commission for leads and contacts that resulted in a contract for IMS.

The first relevant contact between the parties in this case was in May 1978, at a national convention when Kunzelman demonstrated IMS’s screening test to Smith. During the summer of 1978 Kunzelman traveled to Baton Rouge to demonstrate the test to Smith’s staff. On October 16, 1978, at a reception at a convention in New Orleans, Smith told Kunzelman that he was trying to arrange a meeting between Kun-zelman and Thompson and that he would be in touch. On October 17, 1978, while the convention guests were loading a bus for a tour, Smith took Kunzelman aside and told him the meeting with Thompson was set for the next morning at ten o’clock. Furthermore, Smith said, “He wants to talk to you about the screening and don’t forget to mention the kitty.”

On October 18, 1978, Kunzelman, Koenig and Spence went to Baton Rouge to meet with Thompson. The content, administration and results of the screening test were discussed. Towards the end of the meeting, Kunzelman stated that they had been around state offices before and knew that there had to be cooperation, but they needed direction. Thompson responded, “That is important to know; it makes a difference.” Thompson then requested a list of screening firms that could contribute to making a bid process and informed them he would be in touch.

On November 21, 1978, Koenig, Kunzel-man and Spence, at the invitation of Thompson, attended a meeting where screening was discussed at LSDE chaired by Thompson. After the meeting, Koenig, Kunzelman and Spence had lunch with Smith, and the amount of money the legislature was going to make available for screening was discussed.

On August 19, 1979, Kunzelman received a telephone call from Smith. Smith stated there would be a $700,000 contract for the screening of 45,000 children. Smith then asked, “What is in the kitty?” Kunzelman replied, “Ten percent.” About ten minutes later, Smith called Kunzelman back. Smith inquired, “Could that be fifteen percent.” *526 Kunzelman responded, “Fifteen percent of the profits,” and Smith said, “No, of the total.” Kunzelman stated that he was not sure and that he would have to get back with Smith.

A few days later Ackal called Kunzelman and said he understood IMS was thinking about trying to do screening in Louisiana and that they should get together “about how that was going to happen.” Ackal and Kunzelman agreed to meet at the Hyatt Hotel in Washington, D.C. the next week.

Since Kunzelman had never heard of Ackal, he contacted Smith and asked Smith if he should meet with Ackal. At Kunzel-man’s request Smith described Ackal’s physical appearance, and then Smith said, “You won’t miss him.”

As previously arranged, Kunzelman went to the bar at the Hyatt Hotel in Washington at 3 p.m. To his surprise Kunzelman saw Thompson with another man. Kunzel-man walked over to Thompson, said hello, shook hands and Thompson said, “This is Eddie Ackal, Mr. Direction.” Thompson told Kunzelman that he was in Washington to make sure he (Kunzelman) met Mr. Ackal and to visit someone at the capítol. Kun-zelman told Thompson he was confused because he thought Ackal was from the Louisiana Educational Association. Ackal treated this as a joke and said that was just the term used. After a drink Ackal suggested that he and Kunzelman meet in Ackal’s room.

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Bluebook (online)
706 F.2d 523, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-edward-g-ackal-henry-l-smith-and-ce-ed-thompson-ca5-1983.