United States v. Higdon

2 M.J. 445, 1975 CMR LEXIS 673
CourtU.S. Army Court of Military Review
DecidedDecember 5, 1975
DocketCM 428681
StatusPublished
Cited by15 cases

This text of 2 M.J. 445 (United States v. Higdon) is published on Counsel Stack Legal Research, covering U.S. Army Court of Military Review primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Higdon, 2 M.J. 445, 1975 CMR LEXIS 673 (usarmymilrev 1975).

Opinion

OPINION OF THE COURT

CLAUSE, Judge:

Appellant was tried by general court-martial for two offenses of larceny and three offenses of receiving graft, in violation of Articles 121 and 134, Uniform Code of Military Justice, 10 U.S.C. §§ 921, 934. He was convicted of the two larceny offenses and of one of the three graft offenses. The sentence was to be dishonorably discharged, to forfeit all pay and allowances, and to pay a fine of $25,000.00. The sentence was approved as adjudged.

Appellant’s initial assignment of error concerns the legal and factual sufficiency of the evidence to establish his guilt of the larceny charges. The prosecution evidence can be briefly summarized as follows. During the period in question appellant was serving as the Secretary-Custodian of the United States Army Republic of Vietnam, Non-Commissioned Officers and Enlisted Men’s Open Mess System (hereinafter referred to as the USARV NCO/EM Open Mess System). The James Henry Organization was the sales representative for Liggett and Myers Tobacco Company in Viet[448]*448nam and other overseas areas. In order to promote the sales and use of certain brands of its cigarettes, Liggett and Myers set up promotional activities aimed at the soldiers in Vietnam. One such program offered the buyer a cash promotional allowance of $12.00 per case of cigarettes on the initial purchase of certain brands. Although it was expected that these funds would be used by the Club to promote the particular brand of cigarettes for which the allowance was given, there was no limitation placed on the use of these funds. This promotion was managed by the James Henry Organization under its contract with Liggett and Myers. These promotional funds were the property of the Club which placed the order and were given to the custodian in his representative capacity. They were not a bribe to the custodian for placing the order or paid to him for his services in promoting the cigarettes.

Appellant, as Secretary-Custodian of the USARV NCO/EM Open Mess System, placed an order for 600 cases of cigarettes for which the $12.00 per case promotional funds were being paid. The cigarettes were to be shipped in three equal monthly increments. Two $1,200.00 checks were identified as the promotional payment for the first shipment of 200 cases of cigarettes. At appellant’s request the checks were made payable to “Georg Schell.” A third check in the amount of $4,800.00 was identified as representing the final payment for the remaining 400 cases. This check was also made payable to “Georg Schell.” Two of the checks were signed by Glenn Faulks, a general manager of James Henry Organization, and the other by his accountant at Faulks’ direction. The appellant was known by the names “Georg Schell” and “Seal” at a Hong Kong foreign exchange firm where he had cashed checks and also had money transferred to a Swiss bank account. After disbursement of promotional funds, the James Henry Organization was reimbursed by Liggett and Myers upon proof of payment to the customer. The purchase orders and testimony show that the sale in question was made to the USARV NCO/EM Open Mess System and the promotional funds were paid for their use and benefit. Two of these checks, representing promotional funds, were traced to the bank account of a business firm of which appellant was a partner. The third check was deposited to a Swiss bank account which was also traced to appellant. We are satisfied that the appellant received the $7,200.00 in promotional funds as Secretary-Custodian of the Open Mess System, that these funds were the property of the Club System, and that appellant wrongfully withheld this sum for his personal gain with the intent of permanently depriving the Club System thereof, thus constituting the offense of larceny.

The main thrust of the attack on the sufficiency of the evidence is the lack of credibility of the Government’s witnesses, and the failure to establish ownership of the funds in the USARV NCO/EM Open Mess System.

After careful analysis and consideration of all the evidence, we are satisfied that it was more than ample, both legally and factually, to establish appellant’s guilt beyond a reasonable doubt.

The second assigned error concerns the legal and factual sufficiency of the evidence to establish appellant’s guilt of the offense of receiving graft in the amount of $723.00. In summary, the Government’s evidence is to the effect that appellant, in his capacity as Secretary-Custodian of the USARV NCO/EM Open Mess System, procured the approval of and entered into a refrigeration maintenance contract with Universal Consultants, Inc., which contract was conditioned upon appellant’s receipt of kickbacks based upon work performed under the contract. A check in the amount of $723.00, payable to “Georg Schell,” was traced to the appellant and constituted a payment of graft. Appellant’s principle attack upon the Government’s case was focused upon the credibility of the Government witness and the alleged uncertainty of the witness Kowatch about the exact purpose of the $723.00 check. We are satisfied, as were the court members that the $723.00 check was not a donation to a Vietnamese charity [449]*449but was given to appellant as a kickback under the contract with Kowatch. Although there are minor inconsistencies in the testimony of the Government witnesses, these inconsistencies do not detract from the central issue of the graft payment and we find the evidence sufficient to support the court’s findings beyond a reasonable doubt.

United States Army, Republic of Vietnam Regulation 230-60 required that a “Secretary-Custodian” be “appointed on orders.” Appellant contends that as it was never shown that he was so appointed, the military judge erred to his substantial prejudice by denying the defense motion to strike all testimony by Government witnesses to the effect that he was the Secretary-Custodian of the USARV NCO/EM Open Mess System on the dates specified in the specification. We disagree. Appellant’s motion was based upon an application of the best evidence rule. That rule applies where the issue to be resolved is the contents of a particular writing and provides that the “original” of the writing is the best evidence of its own contents and must, therefore, be introduced except in certain specified circumstances. Paragraph 143a (1), Manual for Courts-Martial, United States, 1969 (Revised edition). The rule does not apply as in this case where the fact of his status as Custodian exists independent of the writing in which his appointment was announced. The evidence in the instant case was overwhelming that appellant was the Secretary-Custodian of the USARV NCO/EM Open Mess System during the period in question. Failure to introduce a written order to that effect is of no consequence.

At the close of the Government’s case the defense moved for a finding of not guilty as to the larceny offenses. Appellant assigns as error the denial of this motion. The Manual provides that, “[I]f there is any evidence which, together with all inferences which can properly be drawn therefrom and all applicable presumptions, could reasonably tend to establish every essential element of an offense charged or included in any specification to which the motion is directed, the motion will not be granted.” Paragraph 71a, Manual for Courts-Martial, United States, 1969 (Revised edition). See also United States v. Tobin, 17 U.S.C.M.A. 625, 38 C.M.R. 423 (1968). The evidence was more than sufficient to meet the foregoing test and supports the ruling of the judge.

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Cite This Page — Counsel Stack

Bluebook (online)
2 M.J. 445, 1975 CMR LEXIS 673, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-higdon-usarmymilrev-1975.