United States v. Feaster

341 F. Supp. 524, 30 A.F.T.R.2d (RIA) 5382, 1972 U.S. Dist. LEXIS 15357
District Court, S.D. Alabama·Decided January 27, 1972·No. Crim. No. 15682·Published·Cited by 3 cases

Opinion

OPINION AND ORDER

CLARY, Senior District Judge.*

Houston H. Feaster was brought to trial on an eight count indictment charging the wilful evasion of income tax for the years 1965, 1966, 1967 and 1968. After two days of deliberation the jury returned a verdict of guilty as to Count Three only, said Count charging a violation of Title 26 U.S.C. § 7201 in the year 1966. Defendant, through counsel, has moved the Court to enter a judgment of acquittal as to Count Three, and further, in the alternative, to order a new trial of Count Three of the indictment. In this combined motion 31 specific assignments of error have been alleged and a sweeping 32nd reason reserved by the defendant in order to assign other errors as and when the transcript is prepared. The verdict was rendered on the 27th of Jan. 1972 and the defendant’s motions filed February 7, 1972, yet a check with the official court reporter reveals that no transcript had been ordered as late as April 12, 1972. For reasons hereinafter stated, both motions will be denied.

The investigation as to income tax evasion on the part of the defendant was intertwined with a concurrent investigation of the tax liability of one Marvin Massengale, a general contractor doing business with the Alabama State Docks of which the defendant, Houston H. Feaster, was the Director. Appointed to this position by Governor George Wallace in 1963, he was successively retained in office by Governor Lurleen Wallace and Governor Brewer until his removal from office by Governor Brewer in the year 1970. The investigating Revenue Agent (not Special Agent) requested a conference with Mr. Feaster but his attorney (since deceased) informed the Agent he had advised his client not to hold such a meeting, and consequently Mr. Feaster was never interviewed. At about the same time Marvin Massengale was interviewed by a Revenue Agent, in the course of which he indicated that he had, in the years in question, 1965-1968, taken substantial cash sums from the family corporation which were unaccounted for in his personal income tax returns. The corporation’s tax liability on these funds, however, had been paid in full. At the outset of that meeting the Agent inquired as to whether Massengale was paying to get contracts with the State Docks, to which Massengale replied with a vehement denial. There was no evidence indicating that anything transpired in the course of that interview which in any way implicated Houston H. Feaster. During this period of time both Massengale and Feaster were represented by the same attorney, Vincent J. Kilborne, Jr., and on his passing away, by his son Vincent J. Kilborne, III.

On or about the 27th of August 1971 in Atlanta, Georgia, Vincent J. Kilborne, III represented the tax liability interests of both Massengale and Feaster at separate, though successive, Regional Conferences with the I.R.S. Attorney Kilborne offered oral argument on the behalf of both clients and a supplemental “long, well prepared legal brief for Massengale,” and further, requested that Massengale be given a Justice Department conference. The investigation of both cases was continued with preparation being made to put the information [526] before the Grand Jury to be convened in September in Mobile, Alabama. On or about the 15th of September 1971, Attorney Kilborne received a phone call from one of the Department of Justice attorneys then in Mobile in connection with the Massengale matter. Kilborne was informed that the situation had so developed that it was ready to go to the Grand Jury and if a Justice Department conference was still desired it would have to be on that day as the following day the case against Massengale would be presented to the Grand Jury. A conference was arranged for that evening and at the very outset of this meeting Mr. Kilborne informed the I.R.S. and Justice Department personnel present that he no longer represented Mr. Houston H. Feaster and would so inform Mr. Feaster the following morning. That fact is crucial, for in the course of the conference and in an affidavit prepared the following day, Massengale admitted that he had, over the four year period in question, been continuously paying Houston H. Feaster sums of money totalling upwards of $100,000 in order to obtain public contracts from the Alabama State Docks. Further, he provided specific check numbers and amounts which provided the money for those cash payments.

The situation changed drastically with Mr. Massengale’s disclosures and while his case was not submitted to the Grand Jury, that of Houston H. Feaster was presented to the Grand Jury. The Grand Jury returned an Eight Count indictment against Mr. Feaster, charging income tax evasion for the years 1965-1968. The case was a “cause celebre” and received a great deal of publicity when the indictment was returned. The case was originally assigned to the Chief Judge of the Southern District of Alabama and a motion was filed to suppress any evidence elicited from or developed through the testimony of Marvin Massengale. The motion was carried forward to the trial of the case.

It was at this point in the proceedings that the case came to be assigned to the trial judge. As a Senior Visiting Judge the undersigned was originally scheduled during the month of January 1972, to hear a protracted antitrust case, with two satellite cases, arising out of a most involved series of transactions. In the early stages of that trial, however, the cases settled out and this case came to the undersigned for disposition. The trial of the case was begun on the 10th day of January 1972 and concluded on Thursday of the week of January 24, 1972. One day, Thursday the 13th, was spent out of the hearing of the jury in an in camera session on the Motion to Suppress and the Motion of the Government to Grant Immunity to Marvin Massengale.

In proceeding to consider the alleged trial errors asserted by the defendant this Court will not deal with them one by one, ad seriatum. Rather, the Court will treat various key portions of the trial, considering the objections attenuated thereto. The reason for proceeding in such a fashion is threefold: first, several of the assignments of error are repetitive and overlapping; second, many of them are blank indictments of the Court’s conduct without any statement delineating what, if anything, made that conduct grounds for relief — thus, precise point-by-point refutation of the alleged errors is impossible, and third, the defendant’s briefs in support of his accusations deal with broad periods of time or actions as opposed to specific instances and the Court must meet them with a presentation in kind.

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United States v. Feaster, 341 F. Supp. 524, 30 A.F.T.R.2d (RIA) 5382, 1972 U.S. Dist. LEXIS 15357 (S.D. Ala. 1972).

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330 A.2d 204 (Court of Special Appeals of Maryland, 1974)
United States v. Houston H. Feaster
494 F.2d 871 (Fifth Circuit, 1974)