United States v. James W. Decastris

798 F.2d 261, 21 Fed. R. Serv. 504, 1986 U.S. App. LEXIS 28861
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 18, 1986
Docket85-3135
StatusPublished
Cited by20 cases

This text of 798 F.2d 261 (United States v. James W. Decastris) 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. James W. Decastris, 798 F.2d 261, 21 Fed. R. Serv. 504, 1986 U.S. App. LEXIS 28861 (7th Cir. 1986).

Opinions

EASTERBROOK, Circuit Judge.

A former Chicago police officer collected disability benefits while working full time. For more than two years he mailed monthly affidavits representing that he had not “resume[d] employment for compensation while in receipt of disability benefit”. One who “resumes” employment (in the language of the affidavit) or “assumes” employment (in the language of the state statute, Ill.Rev.Stat. ch. 108½, § 5-157) has his disability benefits reduced one dollar for every dollar of earnings, once the combination of disability benefits and earnings exceeds the officer’s former salary.

DeCastris had not exactly “assumed” or “resumed” employment, however. For five years before he left the police force, he had held a full-time job managing the nationwide trucking operation for Zenith Electronics Corp. The job with Zenith paid more than the job with the police. Holding two full-time jobs is forbidden by Zenith. Zenith learned of the police job in 1978 and demanded that DeCastris quit one or the other. DeCastris left the police job with disability benefits, which led to this case. The police did not learn of the Zenith job until DeCastris had collected benefits for 27 months, the maximum to which an officer with DeCastris’s nine years of service is entitled. Had he disclosed that he was making more than $2,500 a month from Zenith (which he was in 1979), disability officials testified, he would not have received disability benefits.1 The crime is mail fraud, in violation of 18 U.S.C. § 1341 [263]*263(the affidavits went by mail); the sentence is two years’ imprisonment, five years’ probation, and a fine of $5,000.

DeCastris concedes that he was working full time at Zenith and that he did not reveal this employment to the officials administering the disability program.2 He insists that this is not mail fraud because both the state statute and the monthly affidavit are ambiguous. He says that an ordinary person would think that “assume” employment means “take a new job” and that “resume” employment means “go back to your old job” — neither of which he did, because he worked at Zenith without interruption. This is not a claim that De-Castris complied with state law. The head of the disability board testified that he did not, and in the district court DeCastris argued insufficiency of the evidence rather than legal error. The prosecutor’s argument is that DeCastris intentionally put the disability board off the scent, forestalling any resolution of ambiguities in the state’s law. DeCastris’s position is that state law and the affidavit were so opaque that De-Castris should not be held criminally liable for failing to alert the board to his employment.

The crime of mail fraud is a fraudulent “scheme” facilitated by use of the mails. United States v. Lindsey, 736 F.2d 433, 436 (7th Cir.1984); United States v. Feldman, 711 F.2d 758, 765 (7th Cir.), cert. denied, 464 U.S. 939,104 S.Ct. 352, 78 L.Ed.2d 317 (1983). The mailings may be innocent or even legally necessary. United States v. Green, 786 F.2d 247 (7th Cir. 1986). Here the mailings facilitated the scheme, if there was a scheme. The question whether DeCastris practiced a scheme to extract benefits to which he was not entitled is one of fact, depending on the state of his knowledge. Concealing information known to be pertinent to a proper decision may be a fraudulent scheme. Feldman; United States v. Bush, 522 F.2d 641, 646 (7th Cir.1975); United States v. Keane, 522 F.2d 534, 544 (7th Cir.1975), cert. denied, 424 U.S. 976, 96 S.Ct. 1481, 47 L.Ed.2d 746 (1976). It is a crime to lie about your income to tax officials even if you might be able to show that you owe no tax; the parallel here is that it may be mail fraud to lie about your income to disability officials and forestall any inquiry into the effect of a second job. If DeCastris knew that he had to disclose his employment, that his earnings may have mattered no matter when he started working at Zenith, then there was a scheme to defraud, and if not, not.

The instructions presented this question squarely for the jury’s decision. They told the jurors that in order to convict DeCastris they had to be convinced that he acted “knowingly and with the intent to defraud.” Another instruction elaborated, stating that knowledge means that “the [264]*264acts charged were done knowingly and with the intent to mislead the Policeman’s Annuity and Pension Board as to the defendant’s employment at Zenith Electronics Corporation, in order to cause a financial gain to defendant. Good faith is a complete defense to the charge of mail fraud.” DeCastris did not object to this instruction. The evidence, now taken in the light most favorable to the prosecution, supports an affirmative answer. DeCastris had received a letter from the disability officials stating: “in the event disability benefit payments and regular employment compensation exceed Civil Service salary, a reduction in payment of disability benefits shall be made the following month.” This letter, coupled with the evident purport of an affidavit seeking information about employment, could lead a reasonable juror to conclude that DeCastris — a police officer, the supervisor of 90 employees at Zenith, and therefore aware of the nature of bureaucratic forms in general — knew that he had to reveal information about all earnings from employment. Cf. Screws v. United States, 325 U.S. 91, 101-07, 65 S.Ct. 1031, 1035-38, 89 L.Ed. 1495 (1945).

The prosecutor bolstered the inference by showing that DeCastris lied in response to clear questions as well as cloudy ones. The judge allowed the prosecutor to introduce ten documents containing lies. One was DeCastris’s application for employment at Zenith, which claimed more education than DeCastris possessed and omitted information about his job as a police officer. DeCastris claimed to be self-employed. Most of the rest were annual questionnaires filed with the police claiming nonexistent educational credentials. The judge excluded from evidence another form in which DeCastris told the police department that he lived in Chicago (which is legally required of a Chicago police officer); DeCastris did not live in Chicago, and the judge thought this particular lie would be unduly prejudicial. See Fed.R.Evid. 403.

DeCastris’s counsel put his intent in issue by emphasizing the ambiguity of “assume” and “resume”. (DeCastris did not testify, so we do not have his own account of his mental state.) Fed.R.Evid. 404(b) allows the introduction of “other wrong” evidence to show intent, although not to show the defendant’s character. “Intent” and “character” may merge in a case such as this, however, making the application of the rule difficult.

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United States v. James W. Decastris
798 F.2d 261 (Seventh Circuit, 1986)

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Bluebook (online)
798 F.2d 261, 21 Fed. R. Serv. 504, 1986 U.S. App. LEXIS 28861, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-james-w-decastris-ca7-1986.