United States v. George Grace, Sr.

568 F. App'x 344
CourtCourt of Appeals for the Fifth Circuit
DecidedMay 21, 2014
Docket12-30926
StatusUnpublished
Cited by3 cases

This text of 568 F. App'x 344 (United States v. George Grace, Sr.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth 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. George Grace, Sr., 568 F. App'x 344 (5th Cir. 2014).

Opinion

PER CURIAM: *

Defendant-Appellant George Grace, Sr. (“Grace”), the former mayor of a small town in Louisiana, appeals his conviction for corruption-related offenses, as well as his sentence. We affirm his conviction, vacate the sentence imposed by the district court, and remand for further proceedings consistent with this opinion.

I.

Grace is the former mayor of the City of St. Gabriel, LA. The Federal Bureau of Investigation (“FBI”) began investigating reports of corruption involving Grace in 2006 after it received a tip from local law enforcement in St. Gabriel. From late 2006 through the summer of 2010, the FBI conducted a series of four undercover investigations into Grace’s conduct. Those investigations included: 1) relief efforts in St. Gabriel after Hurricane Katrina (“the Hurricane Katrina Scheme”); 2) a vendor doing business with the City of St. Gabriel (“the City Vendor Scheme”); 3) the sale and development of real estate in St. Gabriel (“the Real Estate Scheme”); and 4) a fictional product for cleaning garbage cans known as the Cifer 5000 (the “Cifer Scheme”).

Following the FBI investigation, a grand jury returned a 13-Count indictment against Grace. After trial, a jury convicted Grace on seven of the thirteen Counts. Grace now appeals his conviction on the following five Counts: a) Count 1, charging a violation of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. § 1961 et seq.; b) Count 8, charging federal program bribery in violation of 18 U.S.C. § 666; c) Count 9, charging honest services and property mail fraud in violation of 18 U.S.C. §§ 1341 and 1346; d) Count 11, charging honest services and property wire fraud in violation of 18 U.S.C. §§ 1343 and 1346; and e) Count 13, charging use of an interstate facility (telephone) in aid of racketeering in violation of 18 U.S.C. § 1952. Finally, Grace also appeals the 22-year sentence imposed by the district court.

The Counts which Grace appeals involve two of the four schemes mentioned above: the Real Estate Scheme and the Cifer Scheme, which we will discuss below, including the facts relevant to those schemes.

II.

We address Grace’s convictions in four groups: a) Count 9 for honest services fraud and property mail fraud in violation of 18 U.S.C. §§ 1341 and 1346, and Count 11 for mail and wire fraud in violation of 18 U.S.C. §§ 1343 and 1346; b) Count 13 for use of a telephone to violate the Louisiana *347 state public bribery statute in violation of 18 U.S.C. § 1952; c) Count 8 for federal program bribery in violation of 18 U.S.C. § 666; and d) Count 1, the RICO violation.

a. Grace’s convictions in Counts 9 and 11

The charges in Counts 9 and 11 concern two official letters of support Grace provided to undercover FBI Special Agent Darin McAllister (“McAllister”) and cooperating FBI witness William Myles (“Myles”) during a sting operation. Agent McAllister and Myles posed as representatives of Ci-fer 5000 (“Cifer”), a fictitious company which provided garbage-can-cleaning services. Agent McAllister operated under the alias of “DJ,” and held himself out as the financial partner in the Cifer business. In exchange for several thousand dollars, Grace provided letters supporting Cifer to Agent McAllister and Myles. In these letters, Grace, in his official position as Mayor of St. Gabriel, strongly endorsed Cifer and falsely represented that he was in the process of bringing the Cifer service to his City. The letter Grace gave to Agent McAllister was intended to persuade potential private investors to invest money in Cifer (the “Private Investor Letter”). The letter Grace gave to Myles was intended to help Cifer secure a grant from the Environmental Protection Agency (the “EPA Letter”).

Grace argues that the convictions in Counts 9 and 11 should be vacated for three reasons. First, his conviction in Count 9 should be vacated because he was not permitted to examine Agent McAllister at trial, which violated his right to due process. Second, the convictions on both Counts 9 and 11 should be set aside because there was insufficient evidence to show that Grace had the specific intent to defraud potential investors and the EPA of money. And third, the convictions should be vacated because the district court improperly instructed the jury that it is not a defense that the public official involved would have performed the official action regardless of the bribe.

i. Due Process

Grace was convicted in Count 9 for honest services and mail fraud, in violation of 18 U.S.C. §§ 1841 and 1346, for causing the mailing of the Private Investor Letter to Agent McAllister, who was posing as “DJ.” In the Letter, Grace vouched for the Cifer service as Mayor of St. Gabriel and falsely claimed he had presented the idea of using the service to the city council and they were making progress toward a contract with Cifer. In exchange for -writing the Letter, Agent McAllister wired Grace $8,000 to pay for Grace and his associate to travel to Libya and Uganda. Agent McAllister’s recorded statements to Grace during the sting operation were introduced at trial, but he did not testify. Instead, when called as a witness by Grace, Agent McAllister properly asserted his Fifth Amendment privilege against self-incrimination which arose out of an unrelated investigation for fraud-related offenses. Grace contends his inability to examine Agent McAllister violated his right to due process under the Fifth Amendment, and therefore his conviction in Count 9 should be vacated.

The parties dispute the standard of review because they disagree whether Grace sufficiently objected at trial so as to preserve the error. We conclude, however, that this argument is without merit regardless of which standard of review is applied. At trial, Grace made the only arguable objection available to him under the Sixth Amendment’s Confrontation Clause. That objection is meritless. Agent McAllister’s statements were not admitted for their truth.

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Related

United States v. Jordan
364 F. Supp. 3d 670 (E.D. Texas, 2019)
United States v. Grace
640 F. App'x 298 (Fifth Circuit, 2016)

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Bluebook (online)
568 F. App'x 344, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-george-grace-sr-ca5-2014.