United States v. Gary Gillion

704 F.3d 284, 2012 WL 6720921, 2012 U.S. App. LEXIS 26568
CourtCourt of Appeals for the Fourth Circuit
DecidedDecember 28, 2012
Docket11-4942
StatusPublished
Cited by22 cases

This text of 704 F.3d 284 (United States v. Gary Gillion) 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. Gary Gillion, 704 F.3d 284, 2012 WL 6720921, 2012 U.S. App. LEXIS 26568 (4th Cir. 2012).

Opinion

Affirmed by published opinion. Judge DUNCAN wrote the opinion, in which Judge GREGORY and Judge WILSON joined.

OPINION

DUNCAN, Circuit Judge:

This appeal arises from Gary Lee Gillion’s convictions on four counts of mail fraud, in violation of 18 U.S.C. § 1341, and one count of conspiring to commit mail fraud, in violation of 18 U.S.C. § 371. Gillion challenges the sufficiency of the evidence underlying his convictions, as well as the district court’s admission of statements he made pursuant to a pre-indictment proffer agreement with the Government. For the following reasons, we affirm.

I.

A.

Gillion became southeastern regional manager of CitiCapital Trailer Rental (“Ci- *289 tiCapital”), a trailer leasing company owned by CitiGroup, in 2000. Gillion was based in CitiCapital’s Columbia, South Carolina office. His duties as regional manager included overseeing the profit of the region’s branches, monitoring sales contracts, and ensuring that branches complied with company policies.

Prior to becoming a regional manager at CitiCapital, Gillion worked with a number of trailer leasing companies. Throughout his career, he maintained a business relationship and friendship with John DalCan-ton, a trailer leasing executive. DalCanton was serving as CitiCapital’s vice president in its Dallas, Texas headquarters when the events leading to Gillion’s convictions transpired.

In early December 2003, DalCanton visited Gillion in Columbia and told him that CitiGroup was considering selling CitiCa-pital. Concerned that the sale would mean Gillion and DalCanton would lose their jobs, Gillion told DalCanton he had created a side company — Capital City Trailer (“Capital City”) — to “make some money” in case CitiCapital laid them off. J.A. 267. Records reveal that Gillion opened a business checking account in Capital City’s name on November 15, 2003.

DalCanton, who later pleaded guilty to conspiring to commit mail fraud and testified against Gillion at trial, described three ways he and Gillion used Capital City to defraud CitiCapital and purloin profits beginning in late 2003. First, Gillion would arrange sales of Columbia-based trailers, checking the book value of the trailers with DalCanton before finalizing each sale. Gillion would then sell the trailers for more than book value, write a cashier’s check to CitiCapital for the book value of the sale, and keep the profits above book value to split with DalCanton. Second, Gillion and DalCanton would arrange secret leases of the Columbia-based trailers and keep the lease payments as profits. Third, Gillion and DalCanton would arrange lease-to-own contracts on behalf of Capital City with potential CitiCapital customers, who would lease trailers from Capital City for a number of months, then purchase the trailers outright for a nominal sum at the end of the period. DalCan-ton would either not report the nominal purchase to CitiGroup or “create a nominal purchase to cover up these rentals” so he and Gillion could keep the lease payments. J.A. 271. On at least one occasion, described in detail below, Gillion and Dal-Canton arranged for CitiCapital to sell Capital City the trailers it needed to execute a lease-to-own contract during the lease period, so Capital City could reap the lease-to-own contract profits outright.

The third strategy forms the basis for Gillion’s mail fraud convictions. The scheme involved Baker Transportation (“Baker”), a South Carolina trucking company which had been a Columbia-based CitiCapital customer for several years. The government and Gillion presented conflicting information as to whether Baker would have remained a CitiCapital customer as of late 2003. William Baker, the company’s owner, testified that there was no reason to believe his relationship with CitiCapital would end in 2003 or 2004 and that he had no plans to take his business elsewhere. J.A. 486. The CitiCapital salesman in charge of Baker’s account, Kevin Sparks, testified that Baker often made late payments and that he could not approve Baker’s credit for further trailer rentals in 2003. J.A. 675. Sparks also testified, however, that Gillion could override credit determinations and give customers additional credit. J.A. 679.

On October 28, 2003, Gillion, acting as president of Capital City, signed a lease-to-own agreement with Baker. The agreement named eight forty-eight-foot trailers *290 by serial number. Baker testified that these were “the 48-foot trailers that [he] liked to purchase” and that the agreement was “basically the same purchase plan” as his previous CitiCapital contract. J.A. 487. Baker agreed to make lease payments to Capital City over three years, from November 1, 2003, to November 1, 2006. J.A. 929. Each lease payment would be for $150 per trailer, per month, plus tax, with Baker receiving the option to purchase the trailers for one dollar at the end of the lease period. The contract listed a mailing address at which Baker would be invoiced and an address for Capital City.

As of October 28, 2003, however, neither Gillion nor Capital City owned the eight trailers named in the Baker lease. Rather, on December 11, 2003, Gillion had Dal-Canton approve a $16,000 sale of the eight named trailers from CitiCapital to Capital City, at $2000 per trailer. This sale represented a $1241 loss for CitiCapital. The “used bill of sale” document listed, by serial number, the same eight forty-eight-foot trailers Gillion had already leased to Baker. Gillion did not sign his name to the sale document. Instead, to conceal his identity, he forged his brother-in-law’s name — James B. Pitts — as the Capital City purchaser. On February 11, 2004, DalCanton transferred the eight trailer titles from CitiCapital to Capital City. Between November 1, 2003, and November 1, 2006, Baker mailed lease payments totaling more than $43,200 to Gillion as president of Capital City. In particular, Baker mailed checks on April 27, 2006, May 25, 2006, June 29, 2006, and July 21, 2006. Over the course of the three-year lease, Capital City, Gillion, and DalCanton received over $27,000 in profits from the Baker deal.

Although CitiGroup did not sell CitiCa-pital in 2003, as DalCanton predicted, it did eventually sell the company. CitiCapi-tal came to rest in the hands of XTra Lease (“XTra”), a national trailer leasing company, in February of 2005. After purchasing CitiCapital, XTra’s due diligence revealed accounting discrepancies that brought Capital City, DalCanton, and Gillion’s names to the fore. XTra’s inquiry led to a civil suit against Gillion for conversion and breach of fiduciary duty, in which Gillion was held liable to XTra for over one million dollars.

B.

On March 23, 2010 — before his eventual indictment — Gillion signed a proffer agreement with the government (the “Agreement”), pursuant to which he agreed to provide information about his actions while employed as a CitiCapital regional manager.

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

Related

United States v. Jose Ordonez-Zometa
141 F.4th 531 (Fourth Circuit, 2025)
United States v. Ronald Wright
Fourth Circuit, 2020
In re: Grand Jury
Fourth Circuit, 2018
United States v. Mark Landersman
886 F.3d 393 (Fourth Circuit, 2018)
United States v. Junaidu Savage
885 F.3d 212 (Fourth Circuit, 2018)
Butler & Duncan v. State
153 A.3d 824 (Court of Special Appeals of Maryland, 2017)
United States v. Anthony Palomino-Coronado
805 F.3d 127 (Fourth Circuit, 2015)
United States v. Gregory Anderson
628 F. App'x 872 (Fourth Circuit, 2015)
United States v. Steven Williams
616 F. App'x 617 (Fourth Circuit, 2015)
United States v. Robert Cathey
619 F. App'x 207 (Fourth Circuit, 2015)
United States v. Jose Morales
585 F. App'x 176 (Fourth Circuit, 2014)
United States v. Minus
576 F. App'x 174 (Fourth Circuit, 2014)
United States v. Antonio Livingston
571 F. App'x 263 (Fourth Circuit, 2014)
United States v. Virgil Johnson
561 F. App'x 288 (Fourth Circuit, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
704 F.3d 284, 2012 WL 6720921, 2012 U.S. App. LEXIS 26568, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-gary-gillion-ca4-2012.