United States v. Fred E. Snowden, United States of America v. Calvin D. Boatwright, United States of America v. John C. Boatwright

770 F.2d 393, 1985 U.S. App. LEXIS 22278
CourtCourt of Appeals for the Fourth Circuit
DecidedAugust 12, 1985
Docket84-5061 to 84-5063
StatusPublished
Cited by38 cases

This text of 770 F.2d 393 (United States v. Fred E. Snowden, United States of America v. Calvin D. Boatwright, United States of America v. John C. Boatwright) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth 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 E. Snowden, United States of America v. Calvin D. Boatwright, United States of America v. John C. Boatwright, 770 F.2d 393, 1985 U.S. App. LEXIS 22278 (4th Cir. 1985).

Opinions

TERRENCE WILLIAM BOYLE, District Judge:

On November 21, 1983, a jury found the three defendants guilty of various counts of mail fraud and found the defendant Snowden guilty of three counts of tax evasion. The charges arose from a kickback scheme in which construction managers of a church’s building project paid about $80,-000 to a minister of the church who was serving as business manager. The defendants appeal, arguing that their gifts were love offerings to a minister and their conduct was protected by the religion clauses of the First Amendment. They argue that there was an insufficient nexus between the mailings and the fraud. They also allege several evidentiary errors and raise the statute of limitations as a defense. Finding no error, we affirm their convictions.

I.

In 1977 the Riverdale Baptist Church of Largo, Maryland, retained Church Enterprises, Inc., a company then owned and operated by John C. Boatwright and Calvin D. Boatwright, to supervise the construction of a church building. The Boatwrights received a ten percent commission on the construction. From 1977 through 1979, while the church was under construction, the Boatwrights paid the Reverend Fred Snowden, who served as business manager of the church, about $80,000 in kickbacks. They drew checks from their personal accounts and from accounts in the names of various companies they owned. They made the checks payable to Snowden and he deposited them into his personal checking account.

In calendar year 1977, the Boatwrights received $284,792.94 in Church funds, and paid $47,525 to Snowden. Snowden’s salary that year from the church was $12,-710.25. In 1978 the Boatwrights and their companies received $110,085.50 from the Church construction, and paid $18,905 to Snowden. Snowden’s salary in 1978 from the church was $13,000. In 1979 the Boat-wrights and their companies received $32,-468.50 from the Church construction, and paid $15,459.50 to Snowden. Snowden’s salary in 1979 from the church was $13,-000. Snowden asked for at least five percent of the Boatwrights’ fee to insure his good will. He also asked for and received payments from the Boatwrights’ profits on equipment they rented to the church.

Neither Snowden nor the Boatwrights disclosed their financial relationship until a Church investigating committee confronted them well after the completion of the construction. There was evidence that this undisclosed relationship between the defendants operated to the financial detriment of the church and that had they known of the relationship, church officials would not have approved it.

The appellants argue that the District Court erroneously failed to dismiss the mail fraud counts on First Amendment grounds. First, they argue that charging Snowden with mail fraud for failing to disclose to the church the payments from the Boatwrights poses an impermissible risk of entangling the government in internal church affairs. Second, they argue that application of the mail fraud statute to the defendants’ conduct will chill other ministers’ legitimate conduct protected by the First Amendment. Third, they argue that absent specific congressional intent, the statute should not be applied to internal church matters.

On appeal, the defendants do not contest the jury’s finding that this kickback scheme was not a series of legitimate love offerings to a minister of the Gospel. Indeed, the notations on the checks belie any such conclusion. The defendants seem to argue that because the victim of this scheme was a church, the First Amend[396]*396ment exempts them from criminal prosecution. This court will not accept such argument.

The Free Exercise clause of the First Amendment is to be used as a shield to protect persons in the free exercise of their religion. Here the defendants seek to use the clause as a sword against the victim, the church. Under the defendants’ theory the church would be stripped of the law’s protection.

The defendants rely on NLRB v. Bishop of Chicago, 440 U.S. 490, 99 S.Ct. 1313, 59 L.Ed.2d 533 (1979), but the facts of Bishop of Chicago, are quite distinguishable from the facts of this case. The chief distinction is that the Catholic Bishop argued that application of the NLRA to his school interfered with his control and direction of the schools’ religious teaching, whereas the appellants here make no claim that their criminal prosecutions interfered with the religious activities of Snowden or the Riverdale Baptist Church. While it is true that “an Act of Congress ought not be construed to violate the Constitution if any other possible construction remains available,” id. at 500, 99 S.Ct. at 1318, application of the mail fraud statute to the conduct of these defendants simply does not violate the Constitution.

A second difference is that the church in Bishop of Chicago objected to the governmental interference. In this case the church welcomed the protection of the government’s investigation.

In fact the defendants do not argue that application of the statute to these defendants infringed their free exercise rights or entangled the government in the internal affairs of this church. Instead, they argue that application of the statute here poses a substantial risk of excessive entanglement and a potential for chilling legitimate, protected church administrative decisions.

The First Amendment rights of these defendants are not involved in this case, and this court will not address the effect of this statute on the rights of potential litigants. Nor can these defendants assert the rights of Riverdale Baptist Church. Constitutional rights are not fungible commodities to be bartered among interested bystanders, United States v. Raines, 362 U.S. 17, 80 S.Ct. 519, 4 L.Ed.2d 524 (1960).

II.

The defendant Snowden asked that if his mail fraud convictions were overturned on First Amendment grounds, his tax evasion convictions be overturned on that basis, too. Since this court has determined that the First Amendment is not involved in this case, this argument needs no attention.

III.

An officer of the bank providing construction financing for the church testified that about one million dollars was missing from the construction funds. The testimony was unexpected and following it the judge excused the jury from the courtroom.

When the jury returned, the judge ordered the testimony stricken and instructed the jury to disregard it because the witness did not have “sufficient [information] to enable him to make those statements and those opinions.” Defense counsel did not object to this instruction or request any additional instruction.

The defendants argue that the testimony, in effect, charged them with embezzling one million dollars, an act not charged in the indictment.

Assuming arguendo that the testimony was not proper, when it is considered in light of all the surrounding circumstances, including the fact that it was stricken and the jury was instructed to disregard it, it did not result in any impermissible prejudice to the defendants and its treatment by the trial court was not reversible error. This series of events did not warrant a mistrial.

IV.

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Cite This Page — Counsel Stack

Bluebook (online)
770 F.2d 393, 1985 U.S. App. LEXIS 22278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-fred-e-snowden-united-states-of-america-v-calvin-d-ca4-1985.