United States v. Halpin

145 F.R.D. 447, 1992 U.S. Dist. LEXIS 20474, 1992 WL 408965
CourtDistrict Court, N.D. Ohio
DecidedJune 2, 1992
DocketNo. 90-CR-321
StatusPublished

This text of 145 F.R.D. 447 (United States v. Halpin) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Halpin, 145 F.R.D. 447, 1992 U.S. Dist. LEXIS 20474, 1992 WL 408965 (N.D. Ohio 1992).

Opinion

ORDER

SAM H. BELL, District Judge.

Presently before the court are a number of matters concerning requests for orders of discovery filed by defendant Kuehne & Nagel, Inc. (K & N).

I

Without indicating the intended use of such information, defendant moves the court for an in camera inspection of grand jury transcripts to determine whether exculpatory evidence—in particular, evidence from taped conversations of Barbara Hal-pin that were the subject of an earlier disclosure order by the court—was presented before that body by the government. Presumably, if an in camera inspection showed that this exculpatory evidence had not been presented to the grand jury, this would be the basis of a motion to dismiss the indictment.

In a recent opinion of the Supreme Court, United States v. Williams, — U.S. -, 112 S.Ct. 294, 116 L.Ed.2d 239 (1992), it was held that a federal prosecutor is under no duty to present exculpatory evidence to the grand jury, and that a district court may not dismiss an otherwise valid indictment for a prosecutor’s failure to do so. On this basis, defendant’s motion is denied. See also United States v. Adamo, 742 F.2d 927, 936-38 (6th Cir.1984), cert. denied 469 U.S. 1193, 105 S.Ct. 971, 83 L.Ed.2d 975 (1985); United States v. Ruyle, 524 F.2d 1133, 1135-36 (6th Cir. [449]*4491975), cert. denied 425 U.S. 934, 96 S.Ct. 1664, 48 L.Ed.2d 175 (1976).

II

Defendant also requests an in camera review of government documents that allegedly authorized a government informant, Joseph Cione, Jr., to participate in ongoing crimes, in order to determine whether departmental policy guidelines governing use of informants and their activities were followed. Apart from asserting its belief that the question of whether the government authorized Cione to participate in ongoing crimes “must be answered”, the defendant fails to articulate the relevance or need for such evidence, and fails to establish any legal grounds for its disclosure. As best can be discerned by the court, this information would go toward impeaching the credibility of Cione, should he be called as a witness for the government. To the extent that such evidence is useful for impeachment purposes, it is subject to disclosure at the time the witness testifies at trial, but is not subject to pretrial disclosure. See United States v. Presser, 844 F.2d 1275, 1285 (6th Cir.1988); United States v. Deaton, 448 F.Supp. 532, 537-38 (N.D.Ohio 1978). Therefore, this request is denied as premature.

III

Defendant further requests an in camera review of documentary evidence in the possession of the government “which reflects that Barbara Halpin authorized and issued K & N checks to the Cione companies and which demonstrates that those checks were either cashed, or deposited in accounts controlled by Halpin, the Ciones, or their associates ... [including] any and all accounts, or documents, which the government believes are ‘laundering’ accounts relevant to this litigation”. The parties are at odds over whether or not this evidence is exculpatory and thus subject to discovery under Brady v. Maryland, 373 U.S. 83, 83 S.Ct. 1194, 10 L.Ed.2d 215 (1963). Brady requires that the government turn over evidence in its possession that is both favorable to the accused and material to guilt or punishment; “material” evidence in the context of Brady has been narrowly defined to encompass only such evidence as has a reasonable probability of determining the outcome of trial. Pennsylvania v. Ritchie, 480 U.S. 39, 107 S.Ct. 989, 94 L.Ed.2d 40 (1987).

The conflict over whether or not the requested materials are exculpatory appears to stem, in part at least, from the conflicting views of the parties regarding corporate criminal liability. It is well established that, in order to find a corporation criminally liable for the illegal acts of one of its officers or agents, it is essential that the illegal conduct be related to and done within the course of employment and have some connection with the furtherance of the business of the corporation. United States v. Carter, 311 F.2d 934, 942 (6th Cir.1963), cert. denied Felice v. United States, 373 U.S. 915, 83 S.Ct. 1301, 10 L.Ed.2d 415 (1963). Put in other words, it is essential that the officer or agent intended, at least in part, to benefit the corporation through her illegal conduct. United-States v. Gold, 743 F.2d 800, 823 (11th Cir.1984), cert. denied 469 U.S. 1217, 105 S.Ct. 1196, 84 L.Ed.2d 341 (1985); United States v. Demauro, 581 F.2d 50, 54 (2d Cir.1978). In such circumstances, proof of actual benefit received or retained by the corporation is not essential to establishing its criminal liability. Carter, supra.

However, this does not mean, as the government essentially contends, that evidence of actual benefit or the absence thereof is of no consequence in the determination of a corporation’s guilt or innocence. Rather, proof of actual benefit or the absence thereof is of significant evidential value in determining whether or not the corporate officer or agent actually intended to benefit the corporation through her illegal conduct. Standard Oil Co. of Texas v. United States, 307 F.2d 120, 128 (5th Cir. 1962).

This is particularly true in the present case. The indictment alleges that Barbara Halpin, a K & N officer, brought between one-and-one-half to two million dollars into the corporation through her fraudulent [450]*450schemes. The indictment further alleges that Halpin then diverted only an unspecified portion of this money to her personal possession, or to that of her accomplices. Pursuant to a plea bargaining agreement, co-defendant Halpin has pleaded guilty to a reduced number of charges. As part of this agreement, Halpin has agreed to a number of “facts”: 1) that between one- and-one-half to two million dollars were taken in through the course of her mail fraud scheme; 2) that only part of this money was diverted to her personal possession, or to that of her accomplices; 3) that she was acting in part with the intent to benefit K & N through her scheme.

In view of the above, it is apparent that the government intends to introduce evidence of actual benefit received and retained by K & N in support of its allegation that Halpin intended to benefit the corporation through her illegal activities; it can also be anticipated that Halpin will be called upon to testify as to her intent in this regard.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Brady v. Maryland
373 U.S. 83 (Supreme Court, 1963)
Pennsylvania v. Ritchie
480 U.S. 39 (Supreme Court, 1987)
Clifton Gregory v. United States
369 F.2d 185 (D.C. Circuit, 1966)
United States v. Paschal Demauro
581 F.2d 50 (Second Circuit, 1978)
United States v. William Gaddis and Barnetta Gaddis
877 F.2d 605 (Seventh Circuit, 1989)
United States v. Secord
726 F. Supp. 845 (District of Columbia, 1989)
United States v. Felt
491 F. Supp. 179 (District of Columbia, 1979)
United States v. Deaton
448 F. Supp. 532 (N.D. Ohio, 1978)
United States v. Carter
311 F.2d 934 (Sixth Circuit, 1963)
United States v. Gold
743 F.2d 800 (Eleventh Circuit, 1984)
Felice v. United States
373 U.S. 915 (Supreme Court, 1963)
Ruyle v. United States
425 U.S. 934 (Supreme Court, 1976)
Nationwide Mutual Insurance v. Darden
502 U.S. 905 (Supreme Court, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
145 F.R.D. 447, 1992 U.S. Dist. LEXIS 20474, 1992 WL 408965, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-halpin-ohnd-1992.