United States v. Fred J. Lighte

782 F.2d 367, 1986 U.S. App. LEXIS 21984
CourtCourt of Appeals for the Second Circuit
DecidedJanuary 31, 1986
Docket84, Docket 85-1027
StatusPublished
Cited by115 cases

This text of 782 F.2d 367 (United States v. Fred J. Lighte) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second 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 J. Lighte, 782 F.2d 367, 1986 U.S. App. LEXIS 21984 (2d Cir. 1986).

Opinion

CARDAMONE, Circuit Judge:

This is an appeal from a conviction under a one-count indictment that charged appellant, Fred J. Lighte, with violating 18 U.S.C. § 1623 (1982) by knowingly making a false material declaration while testifying under oath before a federal grand jury. Appellant was found guilty after a jury trial in the United States District Court for the Western District of New York (Curtin, Ch. J.) and sentenced to two years probation and a $5,000 fine.

From ancient times bearing false witness has been deemed morally reprehensible. That truth is valued above the self-interest of falsehood is a tenet which the law enforces by holding that a violation of one’s vow is a serious crime. But a perjury conviction which might have been based on questions that were ambiguous or on responses that were literally truthful may not be sustained. That was the case here. Hence, we reverse appellant’s conviction and remand this case for a new trial.

I BACKGROUND

A. Evidence at Trial

Taken in the light most favorable to the government, the evidence at trial showed that in December 1981 the Buffalo Plasma Center Corporation (Buffalo Plasma or Center) located in Buffalo, New York was subject to a federal grand jury investigation. At issue was whether Buffalo Plasma had complied with Federal Food and Drug Administration regulations governing the collection of source human plasma and whether the Center had made false statements either directly to the FDA or indirectly through its corporate documents. The grand jury investigated the veracity of the corporation’s records and those responsible for any misstatements they contained. Relevant to the inquiry was the identity of those who received a financial benefit from Buffalo Plasma’s operations. Thus, the grand jury solicited information pertaining to the Center’s ownership and control and inquired into the flow and distribution of the corporation’s income.

The true owners of Buffalo Plasma cannot be conclusively determined. Appellant Lighte told the grand jury that Pedro Diaz and Robert LeVeque owned the business. But an application from Buffalo Plasma to *370 the New York State Department of Health listed Lighte as a stockholder as of June 1, 1978 and a subsequent form filed with the same Department dated November 22,1978 again listed Lighte as an owner and designated him the company’s Vice-President and Treasurer. In his grand jury testimony appellant denied being either a stockholder or an officer.

In any event, in 1978 Diaz and LeVeque owned two plasma centers in Florida, in addition to their Buffalo corporation. Lighte first met Diaz through the Florida plasma centers where he had served as a consultant for four or five years. Buffalo Plasma had run into difficulties in the early 1970s because blood from some of its donors contained alcohol, which caused a local Buffalo hospital to rescind its contract with Buffalo Plasma, thereby forcing it to close. Diaz then asked Lighte to help reopen Buffalo Plasma. Since Diaz and Lighte lived in the Miami area, a Dr. Lesassier ran the day-to-day operations in Buffalo.

During the succeeding months, Lighte travelled to Buffalo several times. As part of his plan to reorganize Buffalo Plasma, Lighte negotiated a contract with Jose Boullon, an employee of Highland Corporation (Highland). Under the arrangement worked out between Boullon and Lighte, Highland agreed to pay Buffalo Plasma $5 more per liter than the market price for the blood plasma it purchased. From this five dollar, increase, Lighte agreed to give Boullon one dollar per liter as a “commission” and 50 cents per liter was to be used personally by Diaz. Diaz testified at trial that when he asked Lighte how Boullon would be paid, Lighte replied that “he would take care of it.”

The flow and distribution of Buffalo Plasma’s corporate income can be traced as follows: Buffalo Plasma maintained a checking account in the Merchants Bank of Miami, into which it deposited the money received from Highland. Diaz and Lighte monitored the number of liters that Highland purchased. Checks were then drawn from the Merchants Bank to the order of the Fred J. Lighte Trust Account # 1 (Trust Account), which Lighte opened in 1978 at the Washington Savings and Loan Association in Florida. The checks drawn from the Merchants Bank checking account and deposited into the Trust Account consisted of the one dollar and fifty cents per liter to be paid to Boullon and Diaz. From the Trust Account, checks were periodically drawn by Lighte to Continental Biological, a corporation controlled by Boullon. These payments represented Boullon’s one dollar “commission” on purchases Highland had made from Buffalo Plasma. Deposits were made into the account by Diaz; all withdrawals were made by Lighte. During the period from October 1978 to June 1982 there were 27 deposits made into the account and 26 withdrawals. The disbursements and deposits each totalled approximately $57,000. The bank required that all disbursements from such a savings trust account be made payable to the title of the account in the form of a check.

At trial, evidence showed that five checks were endorsed to Continental Biological (Boullon’s corporation) for $5,869. Three checks were drawn to Fred J. Lighte and Associates or Fred J. Lighte and Peter R., appellant’s son, totalling $3,635. Diaz received two checks totalling $5,929.75 that he used in part to buy a boat lift for his house. The rest of the withdrawals could not be identified. The only information on seven checks for $26,208 was that they were cashed at the Republic National Bank. Checks for the balance of approximately $15,000 were either missing or their endorsements were unclear.

Additional evidence demonstrated that Lighte was the Trust Account’s sole signatory and that the address listed on the account card was to a post office box he had rented in Miami Beach. Before a withdrawal could be made Lighte had to sign a withdrawal slip, and after any transaction the passbook was mailed back to him. Each time a deposit was made, the passbook was similarly returned to appellant’s post office box. Four original withdrawal slips and disbursement checks were admitted into evidence at trial. Lighte’s signa *371 ture was positively identified by the government’s handwriting expert on three of the original withdrawal slips and the same expert believed it probable that it was Lighte’s signature on the fourth. Appellant was the first endorser on three.disbursement checks that were made payable to accounts he controlled. The bank had no record of any beneficiary for this Trust Account, nor was one identified at trial.

B. Grand Jury Testimony

With this evidence in mind, we consider the grand jury testimony. A search of the Center’s financial records uncovered the four checks payable from the Fred J. Lighte Trust Account # 1 to accounts controlled by Lighte. The government then sought additional information concerning the purpose of these checks. Lighte, who was not one of the four individual targets of the grand jury’s investigation, was subpoenaed to give this information. In September 1982 appellant appeared before the grand jury in the Western District of New York at Buffalo.

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Bluebook (online)
782 F.2d 367, 1986 U.S. App. LEXIS 21984, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-fred-j-lighte-ca2-1986.