United States v. Fred A. Shelton

736 F.2d 1397, 1984 U.S. App. LEXIS 21676
CourtCourt of Appeals for the Tenth Circuit
DecidedJune 11, 1984
Docket83-1805
StatusPublished
Cited by29 cases

This text of 736 F.2d 1397 (United States v. Fred A. Shelton) 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. Fred A. Shelton, 736 F.2d 1397, 1984 U.S. App. LEXIS 21676 (10th Cir. 1984).

Opinion

BARRETT, Circuit Judge.

Fred A. Shelton (Shelton) appeals his jury conviction on thirty-seven (37) counts of mail fraud under 18 U.S.C. §§ 1341 and 2 and three (3) counts of extortion under 18 U.S.C. § 1951. The charges were brought against Shelton while he served as a county commissioner of Muskogee County, Oklahoma. He was charged under §§ 1341 and 2 with a scheme to defraud the citizens of the county by mail. The § 1951 charges accused Shelton of interference with interstate commerce by extortion. All of the acts charged were alleged to have occurred between 1978 and 1981. The Government was limited by the five-year limitation period contained in 18 U.S.C. § 3282.

This is one of approximately two hundred prosecutions of Oklahoma county commissioners which resulted from extensive investigations pursued over a three-year period by the Federal Bureau of Investigation, the Internal Revenue Service, and the United States Attorneys for Oklahoma.

Shelton was charged with defrauding the citizens of Muskogee County, Oklahoma, in two ways. The 18 U.S.C. §§ 1341 and 2 charges accused Shelton, in his capacity as county commissioner, of purchasing various materials and supplies for Muskogee County in exchange for “kickbacks” of ten percent from the vendors. The 18 U.S.C. § 1951 charges accused Shelton of causing vendor invoices to be paid for materials and supplies which were never in fact delivered to Muskogee County, whereby Shelton “split” the payment proceeds fifty-fifty with the vendors. These charges “fit the mold” of similar cases previously appealed to this Court. 1

Shelton, age sixty-one at time of trial, had served twenty years as a Muskogee county commissioner. He was a good family man and had a good reputation in his community of Fort Gibson, Oklahoma, and in Muskogee County. He was a four-year combat veteran of World War II, having served in Europe with the 45th Division. He was a likable person. He served as one of three commissioners for Muskogee County whose main responsibility was to oversee the maintenance of county roads and bridges. These roads consist of both gravel and asphalt surfaces, totaling approximately 430 miles, maintained by motor patrols, graders, grader blades, loaders, trucks, distributors to shoot and spread oil, pneumatic rollers, sheep foot rollers, and a variety of materials, including culvert pipe, bridge timbers and road signs. (R., Vol. II at 722-24.) Shelton’s duties included negotiating for the county’s purchase of various materials and supplies in the maintenance of the county’s roads and bridges. In the five-year period prior to trial, Shelton was alleged to have been part of a fraudulent scheme whereby county funds were expended for purported purchases of materials, supplies, and equipment effected by (1) actual purchases in exchange for “kickbacks” of ten percent from the vendors/sellers, or (2) placement of orders for items not to be delivered, whereby the payment by the county was split “fifty-fifty” between Shelton and the vendors.

The principal witnesses for the government were three vendors involved with Shelton in the alleged scheme. Joe Swank (Swank) was the operator of Port City Road Supplies from 1977 to 1979. Prior to *1400 Shelton’s trial, Swank had been similarly charged and had entered into a plea-bargain agreement with the United States Attorney. He was the first vendor to appear before the federal grand jury investigating the statewide “kickback” scandal. About a week before the Shelton trial, Swank had entered a plea of guilty to one count of conspiracy to commit mail fraud with Shelton. He testified that he had engaged in forty-one “kickback” transactions with Shelton involving Muskogee County funds whereby, after he received payment by county warrant, he in turn secretly remitted ten percent as a cash “kickback” to Shelton. Swank also testified that on one or two occasions he engaged in “split deals” with Shelton whereby Swank submitted vouchers, approved by Shelton, to Muskogee' County for merchandise not delivered. When Swank cashed the warrant, he secretly delivered half of the money in cash to Shelton.

Swank, too, had a good reputation. He was a college graduate and former basketball coach at the University of Tulsa and at Sentinary College. A resident of Muskogee, Swank had served in the United States Air Force from 1943 to 1946. After coaching, he engaged in the grocery business at Fort Gibson and then entered the road supply business in north Muskogee under the partnership name of Port City Road Supplies. Swank did “kickback” business with county commissioners in six counties. (R., Vol. I at 172.) Swaiik had known Shelton for approximately thirty or thirty-five years. He testified that Shelton’s reputation for truth and veracity was honorable and stated that they were friends. On redirect examination, Swank stated that if he had not paid Shelton the “kickback” monies, he would not have obtained any business from the county. (Id. at 213.) On recross-examination, Swank testified that he had dealt similarly with at least twelve commissioners in six counties, to whom he paid “kickbacks” of ten percent. (Id. at 214.)

James Joseph Skipper (Skipper) of Ada, Oklahoma, testified that as owner of a company located at Tupelo, Oklahoma, known as S & S Supply, he sold all types of bridge materials to Oklahoma county commissioners from 1975 until 1981, including culvert pipe, lumber, nails, grader blades and signs. (Id. at 230-31.) He stated that during this period, he paid “kickbacks” of ten percent on sales to about twenty county commissioners and participated in some fifty-fifty “splits” involving Muskogee, Cherokee and Pittsburg Counties. (Id. at 231-33.) Skipper specifically recalled doing business with Shelton in Muskogee County (District I). During the period in which Skipper was doing business as S & S Supply, he made a number of “kickback” payments to Shelton and also engaged with Shelton in the fifty-fifty splits. The “kickbacks” consisted of some thirty-six (36) transactions with Shelton, alleged in Counts 42 through 78 of the indictment, upon which Shelton was found guilty by the jury. Significantly, the record shows that in each instance Skipper was paid by county warrant received through the United States mail. (Id. at 252.) On the other hand, there was evidence that in many, if not most, instances of payment to vendors Joe Swank and Henry Peak (Peak), they or their representatives took possession of the county warrants in the office of the County Clerk and the mails were not used.

It is also significant, from an evidentiary standpoint, that Skipper’s testimony was enhanced by the testimony of Dorothy June Griffin of Farris, Oklahoma, who, from 1963 until February, 1980, operated the Griffin Lumber Company.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. Rainford
Tenth Circuit, 2025
United States v. Oldman
979 F.3d 1234 (Tenth Circuit, 2020)
United States v. Anaya
727 F.3d 1043 (Tenth Circuit, 2013)
Ten Broeck Dupont, Inc. v. Brooks
283 S.W.3d 705 (Kentucky Supreme Court, 2009)
Lightner v. Lohn
274 B.R. 545 (M.D. Florida, 2002)
Rodriguez v. Zavaras
42 F. Supp. 2d 1059 (D. Colorado, 1999)
State v. Hudson
950 S.W.2d 543 (Missouri Court of Appeals, 1997)
United States v. Rayful Edmond, III
52 F.3d 1080 (D.C. Circuit, 1995)
United States v. Rodger Loyd Emberson
21 F.3d 1122 (Tenth Circuit, 1994)
United States v. Joseph Blaine Bailey
952 F.2d 363 (Tenth Circuit, 1991)
United States v. Eugene Mervin Sides
944 F.2d 1554 (Tenth Circuit, 1991)
United States v. Mark Joel Anthony
944 F.2d 780 (Tenth Circuit, 1991)
United States v. Clarence Lee Turner
936 F.2d 584 (Tenth Circuit, 1991)
United States v. Aaron Cuch
842 F.2d 1173 (Tenth Circuit, 1988)
United States v. Delbert Taylor
832 F.2d 1187 (Tenth Circuit, 1987)
Commonwealth v. Rivers
8 Va. Cir. 251 (Henrico County Circuit Court, 1986)
United States v. Kurt Vreeken and Fred R. Vreeken
803 F.2d 1085 (Tenth Circuit, 1986)

Cite This Page — Counsel Stack

Bluebook (online)
736 F.2d 1397, 1984 U.S. App. LEXIS 21676, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-fred-a-shelton-ca10-1984.