United States v. Floyd R. Bell

648 F.2d 212, 1981 U.S. App. LEXIS 12736
CourtCourt of Appeals for the Fifth Circuit
DecidedJune 1, 1981
Docket79-5111
StatusPublished

This text of 648 F.2d 212 (United States v. Floyd R. Bell) 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. Floyd R. Bell, 648 F.2d 212, 1981 U.S. App. LEXIS 12736 (5th Cir. 1981).

Opinion

PER CURIAM:

Convicted by a jury on 11 counts of mail fraud and conspiracy to commit mail fraud, in violation of 18 U.S.C. §§ 1341 and 371, Floyd R. Bell appeals his conviction and the 25 year sentence imposed on him. Finding that the trial was fair and that the district judge did not err in any of the matters complained of, we affirm.

Construed most favorably to the prosecutor’s interpretation, as it must now be in light of the jury verdict of guilty, see Glasser v. United States, 315 U.S. 60, 62 S.Ct. 457, 86 L.Ed. 680 (1942), the evidence supports the following factual account. In December 1976, Bell organized a Texas corporation, Advance Business Concepts (ABC), for the purpose of selling distributorships for the sale of self-watering flower pots to persons who wanted to go into business for themselves. He and several other officers and employees of ABC operated the company until March 1978, when the Texas Attorney General obtained a state court injunction against its continuance.

Bell and his codefendants, one of whom was a principal witness against him, trained salesmen, most of whom were ingenuous, to parrot a high pressure sales talk to potential purchasers of distributorships. The sales talk included many statements known by Bell to be false. These included representations that the flower pots were the subject of a pending patent application; that ABC was a well established company whose management had been connected with a nationally known firm; that certain persons, identified by name, had been successful as distributors; that the self-watering pots would be delivered within 60 days; and that the product would be widely advertised. The persons named as successful distributors were shills, paid, if a prospect communicated with them, to represent untruthfully that they were distributors and had been financially successful. In truth there were no successful distributors.

While Bell received only about $600,000 of the funds collected from December 1977 to March 1978, 171 persons from 31 states paid a total of over $1,000,000 for distributorships. Some of the investors never received any flower pots. Others received partial shipments of defective pots that lacked the purportedly unique self-watering liner.

Bell challenges neither the sufficiency of the evidence nor the jury charge. Attacking the conviction, he contends only that, first, the court improperly admitted the declarations of co-conspirators before the prosecution had established sufficiently, outside the jury’s presence, the existence of a conspiracy, Bell’s membership in it and that the statements attributed to him were made in furtherance of it; and, second, the court improperly failed to give a conspiracy instruction to the jury before admitting the hearsay. Attacking the sentence, he contends that the court relied on undisclosed portions of a pre-sentence report.

In United States v. Apollo, 476 F.2d 156, 162-64 (5th Cir. 1973), we held that, before admitting the hearsay declarations of co-conspirators in a conspiracy trial, a trial court was required to give a limiting instruction to the jury. 1 Five years later, a panel reconsidered Apollo in light of the promulgation of Rules 104(c) and 801(d)(2)(E), Fed.R.Evid., and held that a trial judge should, instead, before admitting such evidence, make a threshold determination of whether the government has proved by a preponderance of the evidence the predicates for the admissibility of such testimony. United States v. James, 576 F.2d 1121, 1130 (5th Cir. 1978). The court voted to rehear James en banc on August 7, 1978, see United States v. James, 576 F.2d 1121, 1132 (5th Cir. 1978) (en banc). At the time the rehearing was granted, the panel decision was not vacated, although we later adopted a rule that the Court’s decision to *214 rehear a case en banc automatically vacates the panel decision. Local Rule 17, adopted December 15, 1978. See also United States v. Patton, 594 F.2d 444 (5th Cir. 1979).

Bell was tried after James was voted en banc, but before it was decided. Subsequently, the panel decision in James was affirmed by the en banc Court, but different requirements for the conduct of a conspiracy trial were announced. United States v. James, 590 F.2d 575 (5th Cir.) (en banc), cert. denied, 442 U.S. 917, 99 S.Ct. 2836, 61 L.Ed.2d 283 (1979). 2 We limited the effect of that decision to future cases. Id. at 575. Therefore, the rules applicable to the present trial were those set forth in Apollo. United States v. Hemming, 592 F.2d 866, 869 (5th Cir. 1979).

Assuming that the instruction given the jury on admitting the evidence was Apollo -deficient, the final jury charge is not impugned. The question now raised is the sequence of the testimony: that an adequate foundation was not raised before testimony was admitted. By the time the case went to the jury, however, an unquestionably adequate foundation for the evidence had been laid.

The further objection now made is that the procedure was not fundamentally fair. See United States v. Ashley, 569 F.2d 975, 985-86 (5th Cir. 1978). We fail, however, to perceive any unfairness in the trial. A mere alteration in the proper sequence of trial and the failure to give a preliminary charge do not taint what was otherwise a fair trial followed by an unexceptionable jury charge. The error in failing to give a preliminary instruction was, therefore, harmless. United States v. Hemming, 592 F.2d 866, 870 (5th Cir. 1979).

Moreover, little of the challenged testimony was the kind of co-conspiratorial declaration considered in Apollo and James. Much of it was the direct testimony of a co-conspirator concerning what he and Bell had done. This was not the recount of extra-judicial recitals by a co-conspirator. Compare United States v. Apollo, 476 F.2d 156, 163 (5th Cir. 1979).

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Bluebook (online)
648 F.2d 212, 1981 U.S. App. LEXIS 12736, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-floyd-r-bell-ca5-1981.