United States v. Elimelech Naiman

211 F.3d 40, 54 Fed. R. Serv. 711, 2000 U.S. App. LEXIS 8183
CourtCourt of Appeals for the Second Circuit
DecidedApril 27, 2000
Docket1999
StatusPublished
Cited by83 cases

This text of 211 F.3d 40 (United States v. Elimelech Naiman) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second 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. Elimelech Naiman, 211 F.3d 40, 54 Fed. R. Serv. 711, 2000 U.S. App. LEXIS 8183 (2d Cir. 2000).

Opinion

POOLER, Circuit Judge:

Elimelech Naiman appeals from the judgment of the United States District Court for the Eastern District of New York (Charles P. Sifton, then-Chief Judge) convicting him after a seven-week jury trial of one count of misapplication of funds in violation of 18 U.S.C. § 666(a)(1)(A), one count of bribery in violation of 18 U.S.C. § 666(a)(2) and five counts of mail fraud in violation of 18 U.S.C. § 1341. 1 Naiman asks that we re *43 verse his convictions on Counts 2, 3,12,13, 14, 15 and 18 because the evidence was insufficient to sustain the convictions. Appellant also argues that he suffered prejudicial spillover from evidence that the government presented to support dismissed counts and counts on which he was acquitted. Finally, Naiman contends that the district court improperly instructed the jury regarding misapplication of funds under 18 U.S.C. § 666(a)(1) and wrongly admitted evidence of prosecution witnesses’ immunity agreements during redirect examination.

This appeal presents a number of cautionary tales, one of which is the extent to which an individual may take the law and public dollars into his own hands as he ■protests his good and charitable intentions. The more difficult cautionary tale features the prosecutor as its protagonist and teaches again the rigorous standard to which we hold the government when an individual’s liberty is at stake. In the heat of a complicated trial involving two defendants, the government let pass a limiting instruction that the district court gave at a defendant’s request. In that moment, the government failed to prove an element of the crime, which was no less crucial to the defendant’s subsequent conviction because it concerned jurisdiction and not a substantive feature of the crime. For the reasons that follow, we reverse Naiman’s conviction for corrupt payment of funds in violation of 18 U.S.C. § 666(a)(2) on grounds of insufficient proof of the statute’s jurisdictional element, but we affirm the remaining convictions.

BACKGROUND

This appeal arises from the seven-week trial of a rabbi and an assemblyman on charges of bribery, misapplication of money and fraud in connection with programs that receive federal funds. Defendant-appellant Elimelech Naiman is a rabbi who for some time managed the Council of Jewish Organizations of Borough Park, Inc. (“COJO”), a nonprofit community organization established in 1972 to promote economic development and provide comprehensive social services to the indigent, elderly, and immigrant members of the Jewish community in Borough Park, Brooklyn. Naiman served as COJO’s Director of Employment and Training from 1987 through 1996. In 1989 co-defendant Paul Chernick, who pleaded guilty before trial, became COJO’s Director of Operations. Naiman and Chernick controlled the nonprofit organizations known as Private Sector Resource Center, Inc. (PSRC) and Community Service Resource Development, Inc. (CSRD) that COJO incorporated during the 1980s. There was considerable overlap in the management of COJO, PSRC, and CSRD. Naiman and Chernick were responsible for the day-today management of the COJO entities and had authority to disburse PSRC and CSRD funds.

Co-defendant Dov Hikind, whom the jury acquitted on all charges in this case, *44 was elected to the New York State Assembly from Borough Park in 1982 and was an ardent supporter of COJO, which served large numbers of his constituents. Hikind and other members of the New York State legislature assisted the COJO entities in securing public funds for projects in the Borough Park community. In 1993, Hi-kind allocated $99,000 in discretionary New York State Assembly grants known as member-item initiative funds to CSRD to develop a computer database of local businesses through COJO’s Business Outreach Center. To receive the money awarded through the Assembly, CSRD entered into a contract with the New York Department of State (the “Assembly contract”) requiring it to submit written certification as to how it spent the money. In 1994, with the help of Senator Ralph Mari-no, who was then majority leader, CSRD received $200,000 in Senate member-item funds to be used for a business outreach program. To secure the Senate funds, CSRD again entered into a contract with the New York Department of State (the “Senate contract”).

Viewed in the light most favorable to the government, the evidence at trial established that Naiman engaged in a scheme to defraud New York State in connection with member-item contracts and that the scheme involved mailings between Albany and Brooklyn. Under the terms of the Assembly contract between CSRD and the Department of State, Naiman was required to specify how he spent the funding under the $99,000 Assembly award, and certify the truth of the information he provided by signing the documents. In budget papers he submitted to the Department of State, Naiman certified that approximately $50,000 was designated for salaries of the “Business Coordinator” and “Business Specialist” plus $9,000 for each employee’s fringe benefits. However, because Naiman did not list the identity of the Business Coordinator and Business Specialist, the state asked for additional information. In a memorandum to the Department of State dated January 3, 1996, Naiman identified Saul Wassertheil as the Business Coordinator and Chaim Brecher as the Business Specialist and requested reimbursement for their salaries in the amount of $51,632.55. In addition, Naiman submitted detailed documents that listed project expenses and certified that he used the funds solely for approved purposes.

In response to Naiman’s submissions, New York State remitted $51,632.55 by mail to reimburse CSRD for the salaries of Brecher and Wassertheil. Although neither man performed work under the Assembly contract, Naiman issued approximately $50,000 in CSRD checks to Brecher and Wassertheil. Wassertheil accepted the checks even though he never did work under the contract. Brecher never received the CSRD paychecks that Naiman wrote to him, yet many of these checks were cashed at Reliable Check-Cashing Inc. (“Reliable”) in Brooklyn and had Nai-man’s initials on the back. The owner of Reliable, Samuel Rottenstein, testified that he routinely cashed third-party checks drawn on CSRD’s account, including many that were payable to Chaim Brecher. Reliable cashed checks that Naiman or COJO messenger Jehuda Glucksman brought in. If Naiman was not planning to cash the checks personally, he would call Reliable to let Rottenstein or his employees know that Glucksman was on his way to cash COJO checks on Naiman’s behalf. Nai-man’s calls to Reliable provided assurances that he was responsible for the check. To signify that they received permission to cash a COJO check, Reliable employees typically wrote Elimelech Naiman’s Hebrew initials on the reverse side of a check. Glucksman, in turn, remitted the cash to Naiman.

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Bluebook (online)
211 F.3d 40, 54 Fed. R. Serv. 711, 2000 U.S. App. LEXIS 8183, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-elimelech-naiman-ca2-2000.