United States v. Jared Baraloto

535 F. App'x 263
CourtCourt of Appeals for the Fourth Circuit
DecidedJuly 25, 2013
Docket12-4515
StatusUnpublished
Cited by5 cases

This text of 535 F. App'x 263 (United States v. Jared Baraloto) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth 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. Jared Baraloto, 535 F. App'x 263 (4th Cir. 2013).

Opinions

Affirmed by unpublished PER CURIAM opinion. Judge GREGORY wrote a dissenting opinion.

Unpublished opinions are not binding precedent in this circuit.

PER CURIAM:

Jared Baraloto was convicted by a jury in the District of Maryland on the .charges alleged in a superseding indictment stemming from his involvement in a widespread conspiracy to purchase and resell stolen goods. The indictment charged Baraloto with four offenses: (1) conspiring to transport stolen goods in interstate commerce, in violation of 18 U.S.C. § 371; (2) transporting stolen goods in interstate commerce, in contravention of 18 U.S.C. [264]*264§ 2314; (3) conspiring to commit money laundering, in violation of 18 U.S.C. § 1956(h); and (4) conspiring to commit wire fraud, in contravention of 18 U.S.C. § 1349. Baraloto appeals his convictions, maintaining that the court erred in allowing prosecution witnesses to speculate on whether goods were stolen, and asserting that the trial evidence was otherwise insufficient to support the verdict. As explained below, we affirm.

I.

The charges against Baraloto and his co-conspirators arose from a lengthy investigation into a large-scale organized retail theft scheme, in which shoplifters sold brand-new stolen items — mainly over-the-counter medications (“OTCs”) and health- and-beauty aids (“HBAs”) — to so-called “buy/sell” shops, including one called Fast Money, owned and operated by brothers Jerald Bradford and Scott Bradford.1 In the conspiracy and theft scheme, Baraloto was a stolen property wholesaler, commonly known as a “fence,” who purchased stolen goods primarily from the Bradfords and sold them to Jerome Stal. In turn, Stal resold the stolen goods at flea markets, pawn shops, and retail websites, as well as to other wholesalers.

On March 25, 2010, investigators executed search warrants and arrested nearly all of the seventeen alleged conspirators, including Baraloto. Agents recovered over $1,000,000 in stolen merchandise, approximately $1,000,000 from bank accounts, and more than $140,000 in cash from the targeted buy/sell shops and pawn shops.

A.

On November 21, 2011, Baraloto alone proceeded to trial, during which the government presented the testimony of law enforcement officers and cooperating witnesses.2 The cooperating witnesses — most of them already convicted — confirmed the nature of the conspirators’ business model, which consisted of purchasing new items in cash at steep discounts from shoplifters. One witness, Amber Boothe, testified that she, along with other shoplifters, had serious drug problems and used cash from the sale of stolen items to service their addictions. Boothe identified Baraloto as someone she saw at Fast Money when she was selling stolen goods.

The trial evidence further revealed that, in the final weeks before agents executed search warrants and ended the theft scheme on March 25, 2010, Baraloto and Stal partnered in a venture to purchase and operate a pawn shop called Blue Diamond. The pair intended that a major part of Blue Diamond’s business would come from OTCs and HBAs, and they attempted to recruit shoplifters away from other buy/sell shops involved in the broader theft scheme. In early and mid-March 2010, investigators monitored Stal’s personal cell phone, pursuant to a court-authorized wiretap. Those recorded calls revealed the details of the retail theft scheme, capturing numerous incriminating conversations among the various co-conspirators, including between Stal and Bar-aloto.

1.

At trial, the defense insisted that Baral-oto was unaware that the trafficked goods [265]*265might have been stolen, such knowledge being an essential element of the charged offenses. Baraloto’s counsel explained during his opening statement that the “heavily regulated” buy/sell industry had various safeguards in place to ensure its legitimacy. These safeguards included the requirement that shop owners “sheet,” or document, each transaction and provide the record to the local police department’s pawn unit. Each shop was also constrained to honor a “holding period” for every item it received, designed to “protect the victim of a crime [by] giving that person about 10 days to report the theft.” J.A. 766-68.3 According to his lawyer, Bar-aloto “believed that the pawn shops from which he purchased health and beauty aids were complying with the sheeting [requirements],” and, accordingly, he lacked the necessary knowledge to be convicted. Id. at 769-70. The defense emphasized that Baraloto operated transparently, was paid by check, and maintained detailed records of his transactions, all of which suggested he was a “legitimate businessman.” Id. at 777.

Baraloto’s lawyer explained that there was a thriving secondary market for damaged or expired OTCs and HBAs, comprised of “people who want to bargain or simply cannot afford to pay retail prices.” J.A. 778. He suggested that the items Baraloto purchased from Fast Money were provided not by shoplifters, but instead by “dumpster div[ers].” Id. at 780. Those enterprising opportunists would retrieve new, in-the-box items from the dumpsters behind retail outlets and then sell the nearly expired or expired items for a profit to buy/sell shops. The shops would then resell such items to liquidators, flea markets, and individual buyers.

2.

Jerald Bradford, having pleaded guilty to criminal tax offenses, agreed to cooperate with the government. Bradford testified that, as part of his plea deal, he admitted that the items he purchased at Fast Money were stolen. Baraloto objected to this evidence, asserting that it was irrelevant, speculative, and made without firsthand knowledge. The district court overruled Baraloto’s objection, however, reasoning that Bradford was merely offering his lay opinion based upon “common sense” and his “familiarity with the industry.” J.A. 878.

Jerald Bradford explained that Fast Money was located in a depressed area of south Baltimore known as Brooklyn, which he characterized as “[v]ery rough, a lot of drugs, homicides.” J.A. 878. Bradford testified that about 90% of his clientele was comprised of drug addicts, referring to the “IV, needle marks on their arms, skin pops, stuff like that, and from them telling me.” Id. at 879. Bradford described the body odor attendant to many of his customers, who told him that they “wouldn’t take a bath to keep their pores elose[d] so they would stay high.” Id. The customers “all talked about how to score heroin. This is not something they keep hushed.” Id. at 937. These were the people, Bradford said, who brought in “all new items, from health and beauty aid[s], you know, razors, Prilosec, general stuff, Tylenol, Advil, Aleve,” that accounted for roughly 60% of Fast Money’s $3.3 million in sales between 2005 and 2009. Id. at 879-80.

Jerald Bradford indicated that his “[c]ommon sense” told him the items were [266]

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535 F. App'x 263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-jared-baraloto-ca4-2013.