United States v. George Moss and American Identification Products

562 F.2d 155, 14 Collier Bankr. Cas. 2d 279, 1977 U.S. App. LEXIS 11674
CourtCourt of Appeals for the Second Circuit
DecidedSeptember 6, 1977
Docket1319, Docket 77-1134
StatusPublished
Cited by31 cases

This text of 562 F.2d 155 (United States v. George Moss and American Identification Products) 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. George Moss and American Identification Products, 562 F.2d 155, 14 Collier Bankr. Cas. 2d 279, 1977 U.S. App. LEXIS 11674 (2d Cir. 1977).

Opinion

GURFEIN, Circuit Judge:

This is an appeal from judgments of conviction entered upon a jury verdict in the United States District Court for the Eastern District of New York (Platt, J.). Appellant George Moss was convicted on eleven substantive counts of bankruptcy fraud under 18 U.S.C. § 152, and on one count of conspiracy to violate that section. Moss was sentenced on each count to two years imprisonment, with eighteen months suspended (all twelve counts to run concur *159 rently), and to a fine of $1,000 on each count, amounting to a total fine of $12,000. Appellant American Identification Products was convicted on one count of fraudulently receiving property from a bankrupt under 18 U.S.C. § 152 and was sentenced to a fine of $5,000. The bankruptcy petition on behalf of Stafford Manufacturing Co. was filed and Stafford was declared a debtor-in-possession on August 10, 1970. Stafford was adjudicated a bankrupt and a Trustee was appointed on August 10, 1972.

In Counts One and Three of the Indictment, Moss was charged with fraudulently concealing various items of property of Stafford, of which he was president, in contemplation of bankruptcy. Counts Two and Four charged that he fraudulently concealed these same items of property from the Trustee in bankruptcy and the creditors after Stafford was adjudicated a bankrupt. Counts Five and Six also charged concealment of the same item of property before bankruptcy and from the Trustee, respectively. Count Five was subsequently dismissed on the Government’s motion. Counts Seven, Eight, Nine and Ten alleged that Moss also fraudulently concealed additional items of property from the Trustee and creditors. In Counts Eleven and Twelve, Moss was charged with fraudulently withholding from the Trustee documents relating to the property which was the subject of Counts One, Two, Three and Four. Moss was convicted on all of these counts. 1

In Count Fourteen, Moss was charged with conspiring with co-defendant Arnold Rubin and others unknown, to commit offenses in violation of 18 U.S.C. § 152. Although Rubin was acquitted on this count, Moss was convicted. Defendant American Identification Products was convicted on Count Thirteen, charging that it had fraudulently received property from a bankrupt.

Appellant George Moss urges three grounds for reversal. First, that there was insufficient evidence to support the jury verdicts on Counts One, Three, Six, Seven, Eight, Ten, Eleven, Twelve and Fourteen. Second, that the convictions on the substantive counts were multiplicitous. Third, that the use in cross-examination at trial of Moss’ prior immunized testimony before the bankruptcy court, was improper and requires reversal.

I

We deal first with Moss’ contention that the convictions are multiplicitous. 2 Moss’ position on this issue has three facets. First, he urges that Counts One and Three, which charge concealment of certain property in contemplation of bankruptcy, merge respectively into Counts Two and Four, which charge the actual concealment of the same property from the Trustee and the creditors. The Government concedes that the offense of concealment in contemplation of bankruptcy merges with the offense of concealing assets after the bankruptcy petition has been filed, much as an attempt to commit a substantive crime merges upon conviction of the substantive offense. The Government specifically concedes that the conviction on Count One merges with the conviction on Count Two, and that the conviction on Count Three merges with the conviction on Count Four, so far as imposition of sentence is concerned.

Appellant also contends that Counts Eleven and Twelve, which charge Moss with concealing the registration papers relating to two motor vehicles, also merge with Counts Two and Four, which allege the fraudulent concealment of those vehicles themselves. The Government specifically concedes this point as well, noting that concealment of the documents was simply *160 part of the means by which the offense of fraudulent concealment was accomplished. Cf. United States v. White, 417 F.2d 89, 93 (2d Cir. 1969).

The Government does not similarly accept Moss’ broader merger argument, however, that as a matter of statutory construction, the various charges alleged in the indictment constitute only a single bankruptcy fraud under 18 U.S.C. § 152, and hence that conviction was proper only on one count. Relying on Edwards v. United States, 265 F.2d 302 (9th Cir. 1959), Moss maintains that concealment of a number of different pieces of property constitutes only one offense. We have no difficulty with the Edwards decision nor, in the context of that case, with the legal principle which Moss draws from it. We disagree, however, with Moss’ contention that Edwards is applicable to this case.

In Edwards, the defendant was charged in eight separate counts with the fraudulent concealment of eight items of property before the filing of the bankruptcy petition. The Ninth Circuit therefore reasoned that:

“The gist of the offense charged in each of the eight counts ... is the failure ... to reveal or disclose on or after [the filing of the petition], property belonging to the bankrupt. Surely, if an accused should conceal a dining room set, a china set, or one thousand silver dollars belonging to the estate of the bankrupt, his offense of failure to reveal or disclose would not be multiplied by the number of separate items concealed. The fact that several different items of property belonging to the estate of a bankrupt were concealed does not multiply the number of offenses, even though the concealment of any one of the items standing alone would constitute the offense denounced by the statute. The offense . . . does not arise until there is a duty to reveal or disclose tt

265 F.2d at 306.

It is true that when the concealment of several items of property precedes the filing of the bankruptcy petition, the duty to disclose the transfers to the receiver or trustee is a single duty to reveal all. When the concealment of assets belonging to the bankrupt occurs after a receiver or Trustee has been appointed, however, each separate act of concealment is a separate violation of the statute. United States v. Kaldenberg, 429 F.2d 161 (9th Cir. 1970), cert. denied, 400 U.S. 929, 91 S.Ct. 195, 27 L.Ed.2d 189 (1970). In each such instance there is a separate act, taken at a discrete time, accompanied by the requisite intent. Any other rule would permit a defendant who has committed a first concealment to steal more on the theory that he would never become a sheep but always remain a lamb. It is not in the interest of deterrence to permit a multiplication of criminal acts to be treated as a bonus for the criminal actor free from additional penalty.

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Bluebook (online)
562 F.2d 155, 14 Collier Bankr. Cas. 2d 279, 1977 U.S. App. LEXIS 11674, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-george-moss-and-american-identification-products-ca2-1977.