United States v. Giordano

15 C.M.A. 163, 15 USCMA 163, 35 C.M.R. 135, 1964 CMA LEXIS 169
CourtUnited States Court of Military Appeals
DecidedDecember 4, 1964
DocketNo. 17,582; No. 17,584
StatusPublished
Cited by44 cases

This text of 15 C.M.A. 163 (United States v. Giordano) is published on Counsel Stack Legal Research, covering United States Court of Military Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Giordano, 15 C.M.A. 163, 15 USCMA 163, 35 C.M.R. 135, 1964 CMA LEXIS 169 (cma 1964).

Opinion

Opinion of the Court

Kilday, Judge:

Tried jointly by a general court-martial convened at Fort Hood, Texas, the two accused officers entered pleas of not guilty. Both were, however, convicted as charged of conspiracy to violate a lawful order, five specifications of violating the same order, and two counts of conduct unbecoming officers and gentlemen, contrary to Articles 81, 92, and 133, Uniform Code of Military Justice, 10 USC §§ 881, 892, and 933, respectively. The court-martial sentenced accused Sims to dismissal and total forfeitures. It fixed accused Giordano’s punishment at dismissal. The convening authority approved, and a board of review in the office of The Judge Advocate General of the Army affirmed the findings and sentence as to each accused.

Thereafter, both officers sought review by this Court under the provisions of Article 67(b) (3), Uniform Code of Military Justice, 10 USC § 867. We granted their petitions for review in [166]*166order to consider arguments on the following issues:

1. Whether the order involved was legal.
2. Whether the law officer erred in instructing that the accused could be convicted of an offense under specification 2 of Charge III even if they did not know about the order.
3. Whether specification 1 of Charge III is sufficient to allege the offense of conspiracy as conduct unbecoming under Article 133, in the absence of an allegation of an overt act.
4. Whether the law officer was correct in instructing the maximum punishment was dismissal and total forfeitures.
5. Whether the law officer erred in not instructing on multiplicity.

The case at bar has its roots in what may fairly be described as loan shark activity. Generally, the' evidence presented by the prosecution showed that three lieutenants — including both the accused officers — of the company commanded by accused Sims, joined in backing a loan operation. It was agreed that one Private First Class Harver, an enlisted member of the same unit, would act as a “front man” for the operation in lending money to other various enlisted personnel. Five men from the same company testified Harver lent them money during April 1963. The loans were for a period of one month, and interest was charged at the rate of fifty percent. Private Harver admitted making loans for a “syndicate.” The borrowers did not know where the money came from, but Harver testified it was from a pool, and that his dealings with the commissioned participants in the enterprise were through accused Giordano. A regulation issued by the Commanding General, Fort Hood, Texas, governed loans among military personnel. It specifically prohibited, as usurious and unconscionable, interest rates in excess of three percent per month on loans for a one month period and of the amounts with which we are concerned in the instant case.

Such additional facts as are pertinent to determination of the respective issues will be set forth in the discussion of each.

I

The first issue draws into question the lawfulness of the Fort Hood circular regulating interest rates on loans among military personnel. Appellate defense counsel contend the same is illegal because it invades the accused’s private rights without showing of its necessity to protect discipline or its connection with maintenance of good order in the service. Moreover, they assert the order is so broad and uncertain as to be objectionable for that reason. It is claimed “that this is a less than ingenious attempt to sidestep the restrictions placed by this Court in United States v Day, 11 USCMA 549, 29 CMR 365.”

Day was an Army case in which this Court dismissed specifications alleging usury under the General Article, 10 USC § 934, on the ground there was no such offense in military law in the absence of any statute or regulation fixing a maximum legal rate of interest. We noted in Day, however, that the Navy had such a regulation, and suggested that one might be provided by the Army. In the present instance that void is filled by the Fort Hood order.

It is true that military personnel have legal and personal rights not subject to military orders, and that orders which are arbitrary and unreasonable, or too broad and uncertain, cannot be approved. See United States v Milldebrandt, 8 USCMA 635, 25 CMR 139; United States v Wysong, 9 USCMA 249, 26 CMR 29; United States v Nation, 9 USCMA 724, 26 CMR 504; United States v Wilson, 12 USCMA 165, 30 CMR 165; United States v Wheeler, 12 USCMA 387, 30 CMR 387; United States v Aycock, 15 USCMA 158, 35 CMR 130. However, it is also to be remembered, as a unanimous Court pointed out as early as United States v Martin, 1 USCMA 674, 676, 5 CMR 102:

. . All activities which are reasonably necessary to safeguard [167]*167and protect the morale, discipline and usefulness of the members of a command and are directly connected with the maintenance of good order in the services are subject to the control of the officers upon whom the responsibility of the command rests. That the order related to accused’s disposition of personal property owned by him does not render it illegal.”

Interest rates are commonly regulated in the various civilian jurisdictions, and no extended argument is necessary to demonstrate the obvious impact on morale, discipline, and good order, of loans among military personnel at unconscionable rates of interest in excess of those fixed as proper. Here, we agree with the board of review, which pointed out that:

“. . . the order does not prohibit the loaning or borrowing of money but regulates the rate of interest so that, in the interest of morale and discipline, a borrower may maintain his self-respect as a soldier and not become the tool of a harassing money-lender.”

The regulation is neither arbitrary nor unreasonable, and we conclude it falls within the scope of the class of orders that may properly be promulgated. By its terms, the regulation clearly applies to the individuals and transactions with which we are concerned and we reject the assertion that it is in anywise vague or uncertain.

We agree with the board of review that the regulation in question is a lawful order, and therefore must rule adversely to the accused on the first issue.

II

Under the second specification of Charge III, the accused were convicted of conduct unbecoming officers and gentlemen by loaning money to enlisted personnel at fifty percent interest per month in violation of the Fort Hood order. The second issue upon which we granted review questions the law officer’s instruction that the court-martial might convict the accused of this offense regardless of whether they had knowledge of the order.

In support of their position on this issue, appellate defense counsel again advert to this Court’s opinion in United States v Day, supra. Briefly, they argue that “the illegality of usury derives merely from statutory prohibition”; that usury is malum prohibitum as opposed to malum in se. Because usury’s wrongfulness springs from specific prohibition rather than the nature of the act being wrong in itself, the defense argues that the misconduct stems from knowing violation of the order regulating loans.

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Cite This Page — Counsel Stack

Bluebook (online)
15 C.M.A. 163, 15 USCMA 163, 35 C.M.R. 135, 1964 CMA LEXIS 169, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-giordano-cma-1964.