United States v. Gary Senn, Joseph L. Marino, Nathan Thomas Cannon, Alfred Destefano, and John Weaver

129 F.3d 886, 1997 U.S. App. LEXIS 30454
CourtCourt of Appeals for the Seventh Circuit
DecidedNovember 6, 1997
Docket96-3373, 96-3374, 96-3375, 96-3438 and 96-3484
StatusPublished
Cited by65 cases

This text of 129 F.3d 886 (United States v. Gary Senn, Joseph L. Marino, Nathan Thomas Cannon, Alfred Destefano, and John Weaver) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh 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 Senn, Joseph L. Marino, Nathan Thomas Cannon, Alfred Destefano, and John Weaver, 129 F.3d 886, 1997 U.S. App. LEXIS 30454 (7th Cir. 1997).

Opinion

TERENCE T. EVANS, Circuit Judge.

Congratulations Mrs. Gertrude Gullible— this is your lucky day! Have a seat, take a deep breath, relax, and hold onto your hat because I’ve got incredible news for you. It’s my great honor, Mrs. Gullible, to tell you that you’ve just won (drum roll, please) $100,000 in the Publisher’s Clearing House Sweepstakes! I’m sorry Ed McMahon 1 is not telling you this amazing news himself. But don’t worry — he’ll be at your front door on Friday to personally deliver this fabulous cash prize to you.

Publisher’s Clearing House asked me to call you, as a courtesy, before they officially announce this prize because they want you, not Uncle Sam, to enjoy this money. As I’m sure you know, this prize will cause you to face a huge tax bill. Luckily, however, the tax laws have some loopholes, and we want you to take advantage of them. I represent an accounting firm, Leland Industries, that specializes in solving tax problems for Publisher’s Clearing House winners. We can take advantage of the tax laws and allow you to save a big portion of your tax liability by going through an account we have established at Publisher’s Clearing House. You must act immediately, however, because you will lose the tax savings we can offer as soon as Publisher’s Clearing House officially announces that you have won the prize.

Here’s what you need to do. You must send a cashier’s check for $5,900 to our office in Michigan by using the Post Office’s one-day express mail. If we get your check tomorrow, we will finish the paperwork, and the $5,900 will satisfy your entire tax bill. If you don’t act in time, your tax bill will be $39,000 next April 15. That will leave you with a prize of $61,000 instead of $91,100.

One other thing, I’m sorry we had to call in advance and ruin the surprise that is coming to you on Friday, but last year an elderly gentleman suffered a heart attack when Ed McMahon and the TV crew arrived at his front door. For that reason, and the tax savings we can offer, Publisher’s Clearing House now calls all winners ahead of time. One last thing, for everyone’s safety, you need to keep this news confidential. We want you to enjoy your big day without an unruly crowd gathering outside your house on Friday.

The FBI does not actually have this scam on tape, but this was the gist of the pitch employed by John Weaver as part of a “fraudulent telemarketing operation”, the first of three conspiracies charged in this case. The telemarketing conspiracy started in September of 1993 with Alfred DeStefano and Barry Duncan. They planned to use the phone operation to raise money to finance the second conspiracy — the importation of marijuana from Jamaica to Florida. The third conspiracy entailed plans to distribute the marijuana. In total, the telephone fraud scheme defrauded 73 victims and separated them from $380,000. Weaver alone obtained $282,000 from 38 victims. However, as shall become clear as this story unfolds, the success of the telemarketing operations con- *889 traste dramatically with the ineptitude of the drug smuggling endeavors.

Before getting to the -meat of the case we pause to note that the telephone scheme preyed upon senior citizens, especially elderly folks who recently lost a spouse or incurred significant medical expenses. While this all too common form of fraud is classified as an economic crime, let no one doubt the emotional pain inflicted on the victims. As one of the bilked elderly reported:

It’s difficult to explain how this case has affected me personally. I know that prior to that day in mid November, 1993, when I received a phone call advising me that I had won $100,000 in a Publisher’s Clearinghouse Sweepstakes, I was optimistic, cheerful and believed that most people told the truth. Now I know I was simply stupid, gullible and naive. I’m less optimistic, I question my own common sense and I’m suspicious of everyone. Frankly, I liked myself much better before that fateful phone call.

Now let’s get to the facts. After it got underway, the telemarketing conspiracy, and eventually the marijuana conspiracies that followed, grew to include a large east. Some conspirators were only involved in telemarketing, while others were in the marijuana venture as well. In late September Weaver joined the telemarketing conspiracy and introduced the Publisher’s Clearing House pitch. He continued making phone calls from his home in Michigan through January of 1994. Weaver and the other telemarketers told their victims to send cashier’s checks to various mail drops, mostly in the Chicago area. Duncan then had the checks collected and deposited into an account opened by DeStefano in Chattanooga. The funds ended up with Duncan in Dallas. He agreed to pay the telemarketers a substantial percentage of the take as commissions. Weaver claims, however, that he did not receive commissions that he earned.

By November of 1993 the telemarketing seam raised enough money to begin the marijuana stage of the plan. By this time, Weaver claims that Duncan owed him about $20,-000. Duncan offered to turn the “$20,000 into $100,000” if Weaver would let him hold the money a little longer. Weaver agreed, even though he did not know how Duncan would perform this straw-into-gold feat.

In the meantime DeStefano left the telemarketing racket to begin organizing the drug smuggling scheme. He began by recruiting a mechanic to find and repair a used boat able to make it to Jamaica and return back to the USA with 5,000 pounds of marijuana. Next, he obtained the assistance of Gary Senn to ready the boat and, later, crew it with DeStefano on the trip. Eventually DeStefano located a vessel — a 45-foot fishing boat, the Pelican Il-in Key Largo, and he arranged for Duncan to purchase it. Duncan arrived in Florida and bought the boat for the remarkable price of $2,500, although he did supply $8,000 for repairs. DeStefano— clearly a fan of Bud Light advertising-renamed the boat the “Yes I Am.”

Next, DeStefano recruited Nathan (Tommy) Cannon to help with the marijuana operation. Cannon and DeStefano were old friends — they even worked together in the past smuggling marijuana from Jamaica along with Joseph L. Marino. DeStefano explained to Cannon that, in this operation, Marino would arrange the purchase in Jamaica and set up buyers in Florida. DeSte-fano further explained that he would “captain the trip” to Jamaica, and he asked Cannon to come with him. Cannon, who at the time worked as a carpenter and apartment manager in Hollywood, Florida, agreed to join the enterprise, but he refused to sail to Jamaica, apparently because he didn’t want to leave his pregnant girl friend, Joyce Williams, who is now his wife, behind. DeS-tefano explained that the telemarketing operation would fund the marijuana venture and that Duncan would act as the financier.

Cannon emerged as the “communications point-man” for the marijuana conspiracy. Marino did not want to communicate directly with Duncan because of the telemarkéting paper trail, so Cannon acted as the liaison. In fact, Cannon would not even give Marino’s Chicago phone number to Duncan. Cannon coordinated daily calls between DeStefano and Duncan, and later, during the smuggling operation, he orchestrated a number of wire transfers.

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Cite This Page — Counsel Stack

Bluebook (online)
129 F.3d 886, 1997 U.S. App. LEXIS 30454, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-gary-senn-joseph-l-marino-nathan-thomas-cannon-alfred-ca7-1997.