United States v. Jackie K. Steele

91 F.3d 1046, 1996 WL 442601
CourtCourt of Appeals for the Seventh Circuit
DecidedJanuary 13, 1997
Docket94-3709
StatusPublished
Cited by5 cases

This text of 91 F.3d 1046 (United States v. Jackie K. Steele) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh 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. Jackie K. Steele, 91 F.3d 1046, 1996 WL 442601 (7th Cir. 1997).

Opinion

*1048 SKINNER, District Judge.

The defendant Jackie K. Steele was convicted after a jury trial of the offenses of malicious damage to property by means of an explosive (gasoline), 18 U.S.C. § 844(i); mail fraud, 18 U.S.C. § 1341; and witness tampering, 18 U.S.C. § 1512(b)(1). He appeals from his convictions and sentences, and from the denial of his motion for a new trial. As grounds for his appeal he asserts that the evidence was insufficient to warrant the guilty verdicts; that the statement of Jeff Bunting was hearsay and erroneously admitted in evidence; that the misconduct of the prosecution in failing to disclose evidence potentially useful to the defendant prevented the defendant from getting a fair trial; and that the defendant did not receive downward departures in sentencing to which he was entitled.

SUMMARY OF THE EVIDENCE

The defendant was a wholesaler of used cars. He would buy used cars at auto auctions and place them on consignment with various used car dealers for resale, splitting the proceeds with the dealer. He had a friend of long standing named Gerald Altier. In November of 1989, Altier and one John Zaragoza opened an auto dealership in Gary, Indiana, called Zaragoza Oldsmobile. Altier furnished the bulk of the cash to set up the dealership, and became its manager. The dealership was seriously underfunded, having only $100 in available cash on opening day. Consequently, it was in constant financial difficulty.

The defendant placed many used cars on consignment to Zaragoza Oldsmobile, which were sold in due course. The cars remained the property of the defendant until they were sold, at which time the defendant would furnish the appropriate title documents.

At various times during the following year, the defendant lent money to Zaragoza Oldsmobile to enable the dealership to meet its payroll and other operating expenses. These loans were secured by a pledge of General Electric stock worth $67,000. Prior to November, 1990, these loans had been paid and the stock returned. In November, 1990, the defendant made a loan of $24,000 to the dealership, and in December he again received the same General Electric stock as security therefor. By December, 1990, the dealership was many hundreds of thousands ■ of dollars in debt. It had not paid its employees or its suppliers, or General Motors Acceptance Corporation (GMAC), which had financed its inventory. It did, however, renew its insurance policy, and John Zaragoza in fact increased the coverage by adding $400,000 of business interruption insurance. The down payment on the premium was paid by the defendant. The first installment of the premium was paid in cash by Altier on December 21,1990.

At the end of December, 1990, the defendant had approximately 25 used cars at the dealership, but as usual had furnished no invoices or title documents. These cars were of generally low value; some were so-called “clip” cars, made up of the back end of one car welded to the front end of another; some were inoperable.

Gerald Altier testified that he, John Zara-goza and the defendant agreed that the defendant would set fire to the dealership in order to collect the insurance, and that the insurance would cover the defendant’s ears. On December 22, the defendant came to the dealership and delivered invoices for all of his cars to the bookkeeper, who entered them in the dealership purchase journal. The prices assigned to the cars in these invoices were seriously inflated over their true value, and these inflated values were entered on the books of Zaragoza Oldsmobile. Altier testified that this was for the purpose of creating the illusion that Zaragoza Oldsmobile owned the cars. According to Altier, the defendant assigned the value for each car. The defendant testified, however, that this procedure was carried out at the direction of Altier in order to comply with the insurance company’s end-of-the-year reporting requirements, and that Altier assigned the values. It is not clear that this bookkeeping would have been effective to bring the cars under the coverage of the dealership’s insurance, in the absence of title documents. This question was never resolved, because the cars were seized some *1049 time later by GMAC in satisfaction of its bens. At that time the defendant claimed to GMAC that the cars were his.

Also, on or about December 22, 1990, Altier purchased seven junk cars at an auction, using the defendant’s dealer’s license. These vehicles were added to Zaragoza Oldsmobile’s inventory at prices inflated up to four times their cost.

It was the defendant’s habit while in the Chicago area to stay at either the D-Lux Budget Motel or the Budgeteer Motel. On December 26, 1990, however, he asked his friend Ron Delisi to get him a motel room. Delisi secured a room in his own name at the Terrace Motel in Oak Forest, Illinois, a short distance from Gary, Indiana. While there was no evidence that the defendant directed Delisi to choose that motel or to use his own name, he did not correct the name when he registered at the motel later that day.

On December 27, the security guards who had previously protected Zaragoza Oldsmobile were fired. Later that afternoon, Altier ordered that all of the cars on the lot should be placed inside the building in order to facilitate snow removal from the lot. This move was contrary to prior practice. He ordered that the defendant’s cars were to go in first. This turned out to be very hard work, because it was cold and snowing, .and many of the ears would not start and had to be towed or pushed. An employee named Bunting complained to Altier about doing this work, and asked Altier what was going on. According to Bunting, Altier eventually replied that the dealership premises were about to be blown up, and that the defendant would take care of it.

At 5:31 a.m. on December 28, 1990, an alarm rang at the Gary Fire Department station directly across from Zaragoza Oldsmobile. A glow was visible in the window of the dealership, caused by a flare which had been burning for an indeterminate time. The firemen immediately extinguished the flare. The premises and the automobiles were awash with gasoline, presumably from five new six gallon gasoline cans and one five gallon can found inside. Windows had been opened to provide oxygen for the fire, but the ventilation was insufficient to ignite the gasoline vapor, i.e., the mixture was “too rich.” If the quantity of gasoline present on the premises had ignited, there would have been a tremendous explosion, but, as it was, the damage was relatively slight.

The government introduced records of telephone calls to and from the room occupied by the defendant at the Terrace Motel:

12/27/90 — 7:06 a.m. to Altier. Defendant dunned Altier for repayment of the $24,000 owed to him by Zaragoza Oldsmobile. 0.4 minute.
12/27/90 — 1:66 p.m. from Nancy Vallone, one of the defendant’s girlfriends. 1 minute. (As a result of this call, Ms. Vallone arrived later in the afternoon with Christmas cookies, and they “made love,” according to the defendant.)

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Cite This Page — Counsel Stack

Bluebook (online)
91 F.3d 1046, 1996 WL 442601, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-jackie-k-steele-ca7-1997.