United States v. Inzunza

638 F.3d 1006, 2011 WL 1365590
Court of Appeals for the Ninth Circuit·Decided April 12, 2011·No. 05-50902, 05-50960·Published·Cited by 42 cases

Opinion

ORDER

The opinion of this court filed in this case on September 1, 2009, and reported at 580 F.3d 894, is amended as follows:

At 580 F.3d at 909, left column, end of second full paragraph: the words “beyond a reasonable doubt” are added to the end of the final sentence of the paragraph, so that the sentence now states: “The court reserved the question whether that statement was an impermissible comment because it held that the comment was harmless beyond a reasonable doubt.”

At 580 F.3d at 909, right column, end of paragraph that carries over from the left column: The final sentence of this paragraph is deleted, and the following sentence and citation are substituted therefor: “Under these circumstances, we are satisfied that the error was harmless beyond a reasonable doubt. See Chapman v. California, 386 U.S. 18, 24, 87 S.Ct. 824, 17 L.Ed.2d 705 (1967).”

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With these amendments, the panel has unanimously voted to deny the petition for panel rehearing. Judges Bybee and M. Smith have voted to deny the petition for en banc rehearing, and Judge Canby has so recommended.

The above amendment, the petition for en banc rehearing, and the government’s response have been circulated to the full court, and no judge has requested a vote on whether to rehear the matter en banc. See Fed. R.App. P. 35(b).

The petition for panel rehearing and the petition for rehearing en banc are denied. No other petitions for panel rehearing or en banc rehearing are pending. No further petitions for panel rehearing or en banc rehearing may be filed.

OPINION

CANBY, Circuit Judge:

Ralph Inzunza and Michael Zucchet, former members of the San Diego City Council, were indicted on numerous counts of honest services fraud, conspiracy to com *1010 mit honest services fraud, and extortion. Both cases went to trial, and both defendants were convicted on various counts. The district court rejected Inzunza’s motion for acquittal and a new trial. It granted Zucchet’s motion for acquittal on several counts and his motion for a new trial on the remaining two. Inzunza has appealed his convictions, and the government has appealed the district court’s rulings on Zucchet’s motions. We affirm the holdings of the district court with respect to both Inzunza and Zucchet. We stay our mandate, however, to await the decision of the Supreme Court in United States v. Weyhrauch, 548 F.3d 1237 (9th Cir.2008), cert. granted, — U.S. -, 129 S.Ct. 2863, 174 L.Ed.2d 575 (2009).

FACTUAL BACKGROUND

In 2000, the San Diego City Council enacted an ordinance banning touching between exotic dancers and patrons: the so-called No-Touch ordinance. This ordinance replaced another provision banning only “lewd and lascivious” conduct at clubs. The bright line aspect of the No-Touch ordinance made for easier law enforcement and eliminated the need to spend public funds on lap dances for undercover police officers. It also put a damper on strip club profits.

Michael Galardi owned several strip clubs in Las Vegas and the all-nude “Cheetahs” club in San Diego. Unhappy with his business prospects under the No-Touch ordinance, he sought ways to get rid of it. He obtained the help of his Mend Lance Malone, a former Las Vegas county commissioner, to work toward the ordinance’s repeal.

In May 2001, Malone began his mission. He and another Galardi employee, John D’lntino, went to a fundraising event and met with Inzunza, giving him campaign contribution checks from Cheetahs associates totaling $1,750. Inzunza was a city councilman at the time, and he listened to their ideas. He indicated that the chances of getting the law repealed were not great, but that there was a way to change those odds. If a police officer were to come to the City Council and state that the ordinance was counterproductive, that “[tjhis law was a bad idea” that “[i]t’s not working ... too much paperwork,” then Inzunza would have an excuse to bring it before the Public Safety and Neighborhood Services Committee, which oversees the city’s adult entertainment industry.

A month later, Malone and Inzunza had lunch. Malone delivered to Inzunza $8,650 in checks traceable to Galardi. Inzunza was evidently impressed with the amount of money he received. Malone later told D’lntino that Inzunza had said, in reference to the No-Touch ordinance, “I’ll make sure that we get that on [the] docket.” Inzunza also told Malone that they would be able to repeal the law only with the help of other Council members and, in particular, Zucchet, who was running for a seat on the Council. According to Malone, Inzunza said, “We get him in, you support him, we’ll get it off.”

In July 2001, Inzunza called Malone and told him that they would have a private meeting with Zucchet at an upcoming fundraiser. Malone met privately with Zucchet for half an hour at the event and gave him $6,750 in checks, more than half the total raised for Zucchet at the fundraiser. Once Zucchet realized that the checks were traceable to adult entertainment, however, he decided that they were too much of a political liability and returned the money. He and Malone left open the possibility of future contributions.

The possibility became a reality early in 2002, when Inzunza called Malone and asked him to bring a few thousand dollars for Zucchet to an upcoming luncheon. Inzunza insisted that this time, the money *1011 not be traceable to the adult entertainment industry. Malone contacted Tony Montagna, a Galardi employee who ran a gym in San Diego (and who happened to be an FBI informant) to have his clients write $2,000 in checks. DTntino delivered the checks to Inzunza for Zucchet at a fundraiser on February 28, 2002. During the election run-off that year, Malone delivered another $3,000 in checks to Zucchet. Zucchet won the November 2002 run-off.

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United States v. Inzunza, 638 F.3d 1006, 2011 WL 1365590 (9th Cir. 2011).

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