United States v. Graves

5 F.3d 1546, 1993 WL 416446
CourtCourt of Appeals for the Fifth Circuit
DecidedOctober 20, 1993
Docket92-9508
StatusPublished
Cited by93 cases

This text of 5 F.3d 1546 (United States v. Graves) 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. Graves, 5 F.3d 1546, 1993 WL 416446 (5th Cir. 1993).

Opinion

BARKSDALE, Circuit Judge:

The critical issue before us turns on a party being required to object, or make an offer of proof, when the subject covered by a motion in limine arises at trial, in order to preserve the issue for appeal. This and several other evidentiary questions being the principal matters raised on appeal, Robert Graves challenges his conviction and sentence for conspiracy to defraud the United States and Internal Revenue Service, in violation of 18 U.S.C. § 371. We AFFIRM.

I.

Graves was the Secretary of the Louisiana Department of Transportation and Development (DOTD) from 1984 to 1988. In late 1986, he contacted Joseph Palermo, a member of the State Mineral Board and businessman in Louisiana. The two had known each other since 1984; Palermo considered Graves a “very good friend”.

Graves called on Palermo for help, telling him that he (Graves) had received income from a source he did not wish to reveal to the Internal Revenue Service. Graves stated that he owned property in Mississippi, and suggested that it might be used to help account for the income.

Joseph Palermo did not wish to become directly involved because of his position on the Mineral Board; thus, he asked his brother, Myron Palermo, to help Graves. Myron Palermo told Joseph Palermo, and later told Graves, that he would be willing to provide Graves an apparent source for the income.

The specific scheme to which the Palermos and Graves agreed was executed as follows: Backdated documents were created to show a sale of Graves’ Mississippi property to Myron Palermo’s company. Graves created backdated receipts for some $40,000 in payments towards the alleged purchase price. The receipts showed Myron Palermo’s company as the party making the payments.

Two years later, when Myron Palermo was arrested for attempted distribution of marijuana, authorities recovered the false documents during a search of his business premises. Within a few days of the arrest, Joseph Palermo informed Graves about it and the document seizure. As agreed, they met to discuss how to “get[ ] the property back” in Graves’ name. Graves then met with Myron Palermo, and instructed him to write a letter stating that he could not make the payments on the property and would be willing to return it to Graves. Graves also instructed him to execute a quitclaim deed returning the property to Graves. Myron Palermo did both, testifying that these documents were created so “it would look like it was a real transaction, which it wasn’t.”

Graves was indicted for both conspiracy to defraud the United States and IRS, in violation of 18 U.S.C. § 371, and making a false statement to the IRS (concerning different funds), in violation of 26 U.S.C. § 7206(1). He was convicted by a jury of the former and acquitted on the latter. His sentence included 21 months incarceration.

II.

A.

Graves bases error on the denial of his motion to strike language from the indictment, which suggested that he was selling his influence as a governmental official. He asserts that, instead of being tried as charged, he was tried for official corruption. Specifi- *1550 eally, he contends that the conspiracy count should not have identified him as the Secretary of DOTD, and that the false statement count should not have made reference to him selling his influence. 2 Similarly, he maintains that the district court should not have admitted evidence that he was engaged in official misconduct.

1.

The denial of a motion to strike is reviewed only for abuse of discretion. United States v. Bullock, 451 F.2d 884, 888 (5th Cir.1971). For language to be struck from an indictment, it must be irrelevant, inflammatory, and prejudicial. Id.

Graves’ contention that the reference to his official position in the conspiracy count should have been struck is without’ merit. First, the language is relevant to the identity of the defendant charged in the indictment. See United States v. Reeves, 892 F.2d 1223, 1228 (5th Cir.1990) (recognizing that the “identity of the participants” in a conspiracy is relevant). Second, his occupation was relevant to prove the motive of the conspirators. Specifically, the Palermos knew of Graves’ position, and Graves advised Myron Palermo that he should call him (Graves) if “[Graves] could ever help me in any way”. Evidence suggesting a motive for a crime is relevant. See, e.g., United States v. Mennuti, 679 F.2d 1032, 1037 (2nd Cir.1982). (Nor is the language inflammatory or prejudicial.)

Likewise, we find no abuse of discretion concerning the contested language in the false statement count. The government was required to prove that Graves knew that his income exceeded that which he reported. See 26 U.S.C. § 7206(1). The specific allegation made in support of the false statement charge was that Graves peddled influence for cash. Of course, such an allegation may be somewhat sensational; but, that does not make it irrelevant.

2.

For the foregoing reasons, we also find no error in the admission of evidence on whether Graves was receiving unreported income through official misconduct.

B.

Graves next asserts that' the district court improperly excluded evidence he sought to introduce to rebut the false statement charge. To prove this charge, the government alleged that a payment of $10,000 by Joseph Palermo to Graves was unreported income. Joseph Palermo testified that the money was given to Graves for his help in the DOTD’s purchase of land from Joseph Palermo. 3 And, a DOTD employee testified that Graves’ actions in that transaction were not routine.

Graves presented evidence that he had done nothing to influence the acquisition; in fact, a defense witness testified that Graves’ actions regarding the transaction were not unusual. Apparently, the jury credited Graves’ explanation; he was acquitted on the false statement charge. Now, however, Graves contends that the trial court erred in excluding evidence he sought to introduce regarding the price paid by the State for other parcels of property. Through such evidence, Graves hoped to show that the price paid by the State to Joseph Palermo was not unusually high.

Insofar as Graves was acquitted on the false statement charge, even assuming error, it must be deemed harmless. See Fed. R.Crim.P. 52(a).

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