United States v. Elliott Kahaner, Antonio Corallo and James Vincent Keogh

317 F.2d 459
CourtCourt of Appeals for the Second Circuit
DecidedMay 27, 1963
Docket253, Docket 27784
StatusPublished
Cited by245 cases

This text of 317 F.2d 459 (United States v. Elliott Kahaner, Antonio Corallo and James Vincent Keogh) 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. Elliott Kahaner, Antonio Corallo and James Vincent Keogh, 317 F.2d 459 (2d Cir. 1963).

Opinions

FRIENDLY, Circuit Judge.

Elliott Kahaner, Antonio Corallo and James Vincent Keogh appeal from a judgment of conviction in the District Court for the Southern District of New York upon a verdict after a jury trial, presided over by Judge W'einfeld. The indictment charged that they, Robert M. Erdman and Sanford J. Moore conspired with each other and with six co-conspirators corruptly to influence, obstruct or impede the due administration of justice or to endeavor to do so, in violation of 18 U.S.C. § 1503. The case to which the alleged conspiracy was directed was a charge that Moore and other officers or employees of Gibraltor Amusements, Ltd., had been guilty of criminal concealment of assets in that firm’s bankruptcy proceeding in the Eastern District of New York; various overt acts were placed in the Southern District. Trial of Erdman and Moore, the Government’s principal witnesses against the three appellants, was severed.

The indictment and trial in this case attracted particular attention because of the identity of two of the appellants'— Keogh, a widely known and respected Justice of the Supreme Court of New York for Kings County, and Kahaner, who had served as Chief Assistant United States Attorney and later Acting United States Attorney for the Eastern District. No suggestion has ever been made that the due administration of justice was in fact obstructed; the evidence does not reflect in the slightest degree on former Assistant United States Attorney Averill M. Williams, who was in direct charge of the prosecution in the Eastern District, or on Judge Leo F. Rayfiel, before whom Moore and the other defendants in that prosecution came for sentencing.

On January 5,1961,1 Sanford J. Moore, Sherwood Schwach, Allen Kerner, Alvin Needleman, Jacob Walter Cohen, and Abraham Manacher were arrested in the Eastern District on charges of concealing assets from the trustee in bankruptcy of Gibraltor Amusements, Ltd., a juke box enterprise on Long Island of which Moore had been vice president and principal officer, and the others had been officers or employees. Cohen, who had been a relatively minor employee, had a cousin, Seymour Deutsch, who did accounting work for Dr. Robert Erdman, a Manhattan physician. At the instance of Deutsch and later of Cohen, Erdman communicated some time in January with Kahaner, then Chief Assistant United States Attorney for the Eastern District, who was both a patient and a friend. At this point the evidence diverges. The following statement is drawn from the Government’s case, which was based mainly on the testimony of Erdman and Moore— concededly interested witnesses — who received in return for their cooperation not only postponements of trial on their own indictments here but, in Moore’s case, a reduction from three years to one in his sentence on the bankruptcy charge.

The Government’s claim was that, following the first conversation between Erdman and Kahaner, a plan was devised whereby Kahaner would endeavor to arrange that only two or at most three of the persons arrested would be indicted (these not to include Cohen), and that later, after Kahaner found that the Assistant United States Attorney proposed [464]*464to seek the indictment of three — Moore, Kerner and Schwach — the plan was broadened, so that, in Erdman’s words, Kahaner “would see to it that they [i. e., the men to be indicted] were treated softly by having the case brought before a specific judge in April, for which he [Kahaner] wanted $35,000”. After some hesitation Moore accepted the proposal, in part at the urging of Corallo, with the understanding that $15,000 was to be paid before sentencing, and that Corallo would hold the remaining $20,000 until thereafter. Moore and Kahaner first met in Erdman’s office on February 212 and Kahaner was paid $5,000 a day or two later. Shortly thereafter Kahaner told Erdman “pressures” were being applied against Moore because of the latter’s unsavory background, and suggested that Erdman see Justice Keogh of the New York Supreme Court for Kings County, and enlist his aid. Around the end of the month Erdman went to the chambers of the Justice, who, according to Erdman’s testimony, undertook to be of assistance for a monetary consideration, indicating his financial needs on a card he handed to Erdman, later supplemented by a second one, and also talking of a new car. Erdman testified that Kahaner advised him early in March that owing to a change in the assignments of the judges in the Eastern District, the schedule would have to be accelerated so that sentencing would occur in March, and that around March 7 another $5,000 supplied by Moore was paid to Kahaner and the same amount to Justice Keogh. It is established that, on March 9, Moore, Kerner and Schwach appeared before Judge Rayfiel and pleaded guilty, their attorney, Becker, stating that this was against his advice;3 the sentencing was set for March 30, on which day Judge Rayfiel would still be presiding.

The Government’s case, still resting basically on Erdman’s and Moore’s testimony, continued with a meeting of Kahaner, Moore and Corallo on March 15, at which Corallo emphasized the importance to him of Moore’s not being sent to prison; a demand by Kahaner for the balance of the money; a meeting of Erdman, Moore and Kahaner at a Brooklyn coffee shop in the morning of March 29 at which Kahaner was paid an additional $2,500, followed by Erdman’s going alone to Justice Keogh’s chambers, paying him $17,500 and reminding him that the sentencing was scheduled for the following day; and a telephone call in Erdman’s presence from the Justice to Judge Rayfiel arranging to lunch that day and asking that Judge Rayfiel bring with him the probation report on Moore.

Kahaner and Keogh categorically denied everything relating to them which is recited in the two foregoing paragraphs, with the exceptions indicated in notes '2 and 3 as to Kahaner and the following exceptions as to Keogh: The Justice conceded handing Erdman two cards, the first card being an estimate of the costs of renovating his summer home and the second, on his testimony, a request for a loan, but placed the date well after the sentencing and explained these as innocent indications of his financial situation given to a close personal friend. He further agreed that Erdman had come to his chambers on the morning [465]*465of March 29, but said Erdman was accompanied by Moore and another man. The Justice’s testimony was that Erdman introduced Moore as a lifelong friend who was in trouble, and wondered whether the Justice would ask Judge Rayfiel to look at Moore’s “background to see whether consideration can be given to him.” He thereupon made the telephone call arranging to lunch with Judge Rayfiel, although he denied asking Judge Rayfiel to bring along the probation report on Moore — a point on which his account was corroborated, and Erdman’s contradicted, by Judge Rayfiel. At lunch, Keogh brought up the Moore case whereupon Judge Rayfiel said, in Keogh’s words, “that Moore was the most culpable, he was the worst offender in a bankruptcy fraud, the like of which he had not run into before, and that he could — • whether background or anything else was considered — he could not consider him anything but a very unsavory character,” and also that two other federal judges had alerted him of rumors “that everything has been taken care of” in regard to the Moore sentence. Erdman was told of this conversation by Keogh during the afternoon of March 29.

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Bluebook (online)
317 F.2d 459, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-elliott-kahaner-antonio-corallo-and-james-vincent-keogh-ca2-1963.