United States v. Jacobs

751 F. Supp. 733, 1990 U.S. Dist. LEXIS 11625, 1990 WL 188735
CourtDistrict Court, N.D. Illinois
DecidedAugust 29, 1990
DocketNo. 84 CR 491
StatusPublished
Cited by1 cases

This text of 751 F. Supp. 733 (United States v. Jacobs) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Jacobs, 751 F. Supp. 733, 1990 U.S. Dist. LEXIS 11625, 1990 WL 188735 (N.D. Ill. 1990).

Opinion

MEMORANDUM OPINION AND ORDER

ALESIA, District Judge.

Each of the two defendants in this case, Norman Jacobs (“Jacobs”) and Rex Rasmussen (“Rasmussen”), has filed a motion to dismiss the indictment against him on grounds of outrageous government misconduct and pre-indictment delay. For the reasons set forth below, at this time, the Court denies the motions of both defendants without an evidentiary hearing.

I. Facts

In an eight-count indictment, the Government has charged Jacobs and Rasmussen with violations of certain federal narcotics laws. These charges arose from a lengthy undercover operation conducted by the Federal Bureau of Investigation (FBI) with the cooperation of an informant named Todd Darling (“Darling”).

Prior to his cooperation with the Government, Darling worked for an illegal bookmaker, accepting wagers over the tele[735]*735phone on horses and sports. Because he was an employee of the operation, Darling himself could not place wagers with the bookmaker and, therefore, enlisted a friend to do so. Together, they lost in excess of $14,000.00 on these wagers.

Because Darling could not afford to pay this gambling debt, on or about March of 1983, he contacted Jacobs for assistance in arranging a $10,000.00 “juice” loan. Jacobs and Darling became acquainted during the course of Jacobs’ heavy gambling days during the 1970s and early 1980s. During this same period, Jacobs, through his gambling activities, also became acquainted with Rasmussen and other gamblers who traded information about sporting events and the various odds being offered by illegal bookmakers.

After being contacted by Darling, Jacobs introduced Darling to a loan shark named “Ben.” 1 Ben indicated that he would provide a $10,000.00 “juice” loan to Darling at an interest rate of five percent per week,2 but only if Jacobs agreed to guarantee the loan. Jacobs agreed to do so, and on April 1, 1983, Jacobs gave Darling a $5,000.00 installment at Jacobs’ dental office. On the following day, Darling received the balance of the loan from Jacobs. Although Darling made the first couple of weekly interest payments to Jacobs, he thereafter defaulted.

In May of 1983, Darling approached the Government and offered to cooperate with federal agents concerning the “juice” loan arranged by Jacobs and unrelated bookmaking activities. Pursuant to this investigation, on or about May 9, 1983, Darling, under the supervision of federal agents, began to covertly record numerous conversations with Jacobs and Ben related to the loan transaction. For approximately the following year, the focus of the Government’s investigation and the topic of the recorded conversations were the usurious “juice” loan.

Meanwhile, because Darling had ceased making the weekly interest payments on the “juice” loan to Jacobs, Ben looked to Jacobs for repayment. Fearing the consequences that might result from his failure to make good on his guaranty to Ben and his underworld sources, Jacobs continued to make the weekly interest payments on the “juice” loan to Ben.

In May of 1984, the focus of the Government’s investigation shifted from the usurious “juice” loan arranged by Jacobs and bookmaking to narcotics. The parties disagree as to who introduced the subject of narcotics.

A. The Government’s Version

According to the Government, in May of 1984, Jacobs telephoned Darling regarding the loan. When Jacobs placed this call, Darling had ceased his undercover contact with Jacobs, so Darling advised the FBI of the call. At the direction of the FBI, Darling subsequently attempted to arrange a meeting with “Buck,” another of Jacobs’ underworld loan sources, on the pretext of making payments on the loan to Buck directly. To that end, on May 16, 1984, Darling placed a telephone call to Jacobs at his office. This call was placed by Darling from the FBI’s office and, therefore, was recorded. During this conversation, Jacobs put Buck on the telephone and Buck told Darling that he now owed $31,000.00 in principal and interest on the “juice” loan. In addition, Buck instructed Darling to set up a meeting with Jacobs when Darling had the money to repay the loan.

When Darling returned home later that day, he received an unexpected telephone [736]*736call from Jacobs. This call was not recorded because the FBI had not yet supplied Darling with the necessary recording equipment at home. During this unrecorded conversation, Jacobs introduced the subject of narcotics. According to the Government, Jacobs informed Darling that he wanted the entire $31,000.00. Jacobs also suggested to Darling that if he could obtain narcotics, Jacobs knew individuals who could dispose of narcotics and Jacobs could “put together a deal.” The proceeds of the sale of narcotics could then be used to satisfy the outstanding “juice” loan. Jacobs also indicated that he did not wish to discuss the matter further over the telephone and instructed Darling to meet him at a later date.

After receiving this telephone call at home from Jacobs, Darling immediately advised the FBI. According to the Government, this unexpected development in the investigation caused it to shift its focus from the usurious “juice” loan and bookmaking activities to narcotics. Consequently, the Government instructed Darling to advise Jacobs that Darling could obtain narcotics in order to determine whether Jacobs could or would produce a buyer for them, as suggested during the previous, unrecorded telephone conversation.

On May 23, 1984, Darling met with Jacobs for breakfast and recorded their meeting. During this meeting, Darling told Jacobs that Darling had 20 ounces of cocaine. Jacobs indicated that he had a possible purchaser for the cocaine and that he would call him that day. Jacobs did, in fact, attempt to reach this as yet unnamed possible purchaser during the meeting. Over the next several days, Jacobs and Darling had several telephone conversations pertaining to this potential purchase.

On May 30, 1984, Darling received a telephone call from Rasmussen. During this conversation, which was the first recorded conversation between Darling and Rasmussen, Rasmussen introduced himself to Darling as a friend of Jacobs. Rasmussen then mentioned that Jacobs said Darling “had something.” Darling and Rasmussen also discussed price and purity. On the following day, Jacobs telephoned Darling and confirmed that he had asked Rasmussen to contact Darling and that Jacobs had discussed the issue of price with Rasmussen prior to Rasmussen’s call to Darling.

Over the course of the next several weeks, Darling recorded numerous conversations involving himself, Jacobs, and Rasmussen. During these conversations, Darling, Jacobs, and Rasmussen negotiated the sales price of the cocaine, the quantity available for sale, the availability of a sample for testing, and the manner in which Darling and his cocaine source, undercover agent Raymond Spoon from the FBI, would deliver the cocaine. Jacobs also volunteered the use of his dental office to consummate the deal.

Finally, on June 20, 1984, Darling and Spoon met with Jacobs at a restaurant near Jacobs’ office. Rasmussen was nearby to receive the cocaine from Jacobs once Darling and Spoon delivered it to Jacobs.

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Bluebook (online)
751 F. Supp. 733, 1990 U.S. Dist. LEXIS 11625, 1990 WL 188735, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-jacobs-ilnd-1990.