United States v. Francisco Larranaga

787 F.2d 489, 20 Fed. R. Serv. 1057, 1986 U.S. App. LEXIS 23213
CourtCourt of Appeals for the Tenth Circuit
DecidedMarch 19, 1986
Docket84-1096
StatusPublished
Cited by35 cases

This text of 787 F.2d 489 (United States v. Francisco Larranaga) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth 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. Francisco Larranaga, 787 F.2d 489, 20 Fed. R. Serv. 1057, 1986 U.S. App. LEXIS 23213 (10th Cir. 1986).

Opinion

HOLLOWAY, Chief Judge.

Defendant Francisco Larranaga timely appeals his conviction for perjury under 18 U.S.C. § 1623, pressing several grounds for reversal. We find that no reversible error was committed, and affirm.

I

The factual background

This case arose out of a federal grand jury investigation of Sangre de Cristo Mental Health Center, Inc. (Sangre), Northern Community Preservation, Inc. (NCP), and David Knight. Sangre, a non-profit organization, received federal funds from the *493 Department of Health and Human Services. IV R. 117. Its executive director, David Knight, was heavily involved in the affairs of NCP, see IV R. 118, 120, attending many of its board meetings and assisting in its accounting. V R. 367. From this connection, a close financial relationship developed between NCP and Sangre. Sangre leased three buildings and two telephone systems from NCP, the latter deriving all of its income from these rental payments. V R. 221, 264, 372.

The personnel of the two corporations overlapped. In addition to Knight’s dual role, for example, Caren Stanley-Smith, a board-member of NCP, served as an employee of Sangre. Similarly, Ms. Celina Rael de Garcia, who was Director of Operations for NCP during the investigation, was also a director for Sangre and she functioned as a secretary for NCP. V R. 263-65.

The grand jury’s investigation centered on a possible misuse of federal funds by Sangre. It was concerned, at least in part, with Sangre’s leases from NCP. IV R. 116. Investigators believed that some of the rental payments were excessive. Gradually, the grand jury became increasingly concerned with Knight’s simultaneous participation in the affairs of the two corporations. IV R. 123, 130-31, 166.

On or about February 6,1983, Larranaga received a subpoena instructing him to bring the company’s records to the grand jury on March 8, 1983. Among the requested documents was a set of the minutes for NCP’s board meetings from August 31, 1981, to February 23, 1983. The only minutes then in existence, however, were a number of rough notes that had been taken at the meetings. These notes were handwritten on placemats, napkins and legal pads. Larranaga and Stanley-Smith instructed Ms. Garcia to type a set of minutes from the notes. Garcia did so; however, she apparently discarded many of the notes, returning to Larranaga only the pages she had typed. Government Exhibit 7, at 255.

Larranaga appeared before the grand jury on March 8, 1983, bringing copies of the pages Garcia had typed. Larranaga produced this set of minutes which included a minute for an October 28, 1981 NCP board meeting, listing certain persons as present but not stating that Knight was present and that he made a commitment that Sangre would continue to occupy a Las Vegas building if NCP bought it. IV R. 115; Government Exhibit 2. At a June 1, 1983 grand jury appearance Larranaga produced a second October 28, 1981 NCP minute which stated that Knight had been at the meeting and made the commitment. IV R. 124, 184-185; Government Exhibit 1. This second minute was taken to the United Southwest National Bank to assist in obtaining a loan for NCP. V R. 204.

During the questioning on March 8 before the grand jury, Larranaga requested an opportunity to have counsel, present. Mr. Lutz, the United States Attorney, told Larranaga that questioning would stop after he identified certain records. Defendant’s Exhibit D, at 29. Shortly thereafter Larranaga testified that he had presented all of NCP’s minutes to the grand jury. IV R. 128, 189; Defendant’s Exhibit D, at 38; Government Exhibit 4.

At trial, the Government contended that the minutes presented on March 8 were false and incomplete. The dispute concerned the apparent omission of facts concerning an October 28, 1981, NCP board meeting where David Knight made a commitment that Sangre would continue to occupy buildings NCP sought to acquire, according to minutes for that meeting furnished to United Southwest National Bank to get a loan for purchase of the buildings. See IV R. 118-120, 185; Order of District Court of January 4, 1984 at 3-4. David Knight’s role in the affairs of NCP was also in dispute. The minutes brought by Larranaga indicated that Knight was present at only one NCP board meeting. V R. 230-31, 373; Defendant’s Exhibit C-24 (Aug. 6, 1982). The testimony showed, however, that Knight was present at numerous such meetings. V R. 229, 267, 339, 343, 373.

*494 Larranaga was indicted in two counts. The first count charged him with willfully and knowingly making a materially false statement and with submitting documents containing materially false declarations to the grand jury in violation of 18 U.S.C. § 1623. The second count charged him with obstruction of justice in violation of 18 U.S.C. § 1503 and 18 U.S.C. § 2. Larranaga was convicted on the first charge and acquitted on the second. I R. 265.

On appeal Larranaga contends: (1) the trial court erred in holding that materiality is a question of law, in instructing the jury that defendant’s alleged misstatements were material to the grand jury’s investigation, and in not submitting the question to the jury; (2) the evidence is not sufficient to support his conviction under § 1623; (3) the trial court unduly restricted the defendant’s cross-examination of Ms. Garcia; (4) the court erred in denying admission of the grand jury transcript into evidence; (5) the court improperly denied defense counsel an opportunity to inspect the grand jury transcript on statements by Ernestine Encinias; and (6) the Government’s closing argument was improper and prejudicial.

We find no reversible error.

II

Materiality under § 1623: a question of law or fact

The defendant argues that because materiality is an essential element of an offense under § 1623, it must be decided by the trier of fact. We have recently said, however, that materiality in perjury cases under § 1623 is a question for the court to decide. See United States v. Girdner, 773 F.2d 257, 259 (10th Cir.1985). Despite our contrary holdings under the false statement statute, 18 U.S.C. § 1001, 1 we feel that the issue in perjury cases as to whether the defendant knowingly made a false material statement before the grand jury, see § 1623(a), involving the question whether it had a tendency to influence, mislead or hamper the grand jury in a matter which it had the authority to investigate, is logically one for the court as a matter of law. See United States v. Koonce, 485 F.2d 374, 380 (8th Cir.1973); see also United States v. Girdner, 773 F.2d at 259. This question is proper for the court to determine.

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Bluebook (online)
787 F.2d 489, 20 Fed. R. Serv. 1057, 1986 U.S. App. LEXIS 23213, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-francisco-larranaga-ca10-1986.