United States v. Jeffrey Ferdinand Block

148 F. App'x 904
CourtCourt of Appeals for the Eleventh Circuit
DecidedSeptember 22, 2005
Docket04-11774; D.C. Docket 03-60057-CR-DTKH
StatusUnpublished

This text of 148 F. App'x 904 (United States v. Jeffrey Ferdinand Block) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh 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. Jeffrey Ferdinand Block, 148 F. App'x 904 (11th Cir. 2005).

Opinion

PER CURIAM:

Jeffrey Ferdinand Block appeals his convictions and sentences for conspiracy to commit wire and mail fraud, mail fraud, wire fraud, conspiracy to commit money laundering, and money laundering. After reviewing the record and the arguments of the parties, we AFFIRM.

I. BACKGROUND

Block was indicted for conspiracy to commit wire and mail fraud (Count 1); mail fraud (Counts 63 and 65); wire fraud (Counts 80, 85, 88, 90, 91, 95, 96, and 99); conspiracy to commit money laundering (Count 105); and money laundering (Counts 106-114). At Block’s trial, testimony revealed that Block worked with his codefendant, Nicholas Rubbo, at International Foreign Trading Group (“IFTG”) and several successor companies (known collectively as “the Rubbo Companies”). Through the Rubbos Companies, Block and Rubbo operated a foreign currency fraud scheme.

In the scheme, the company’s salespeople would convince investors to invest in foreign currency options, the option would expire after 35 days, and the company would retain the investor’s money. According to Rubbo, the investors were told that the money was sent to a trading house in an offshore account. After the *906 option expired, a certain portion was paid to the salesperson “to make it look legitimate.” R15 at 2381. The company provided sales tickets or other documentation to show that the money was invested. Trade or transaction tickets showed the “strike price,” or the price at which the currency would make money for the investors.

According to Rubbo’s testimony, Block attended a training session about managing salespeople and the workings of the foreign exchange market. As the sales manager, Block hired, trained, and supervised salespeople for IFTG. He handled customer complaints and explained, when they inquired about their investments, that the strike price had not been reached. Additionally, Block was responsible for setting the strike prices. He also produced false trading tickets that were sent to investors.

According to Rubbo, when the police began investigating IFTG, Rubbo decided to relocate the company to avoid law enforcement. The group also created a new company, International Exchange (“IE”). Rubbo testified that he conducted the same fraudulent operation at IE as at IFTG. After law enforcement officials searched IE, the company moved to another location and changed its name to New World Exchange (“NWE”). When Rubbo learned the Federal Bureau of Investigation (“FBI”) was involved in an investigation, he decided to move again and change the company’s name, but to incorporate it under someone else’s name. Block agreed to put the new business under his name for a larger commission. The new company was called Lamat Investments (“LI”). The LI bank account was in Block’s name.

A. Admission of Documents at Trial

FBI agent Kathleen Antona testified that she was the team leader for the execution of a search warrant on the premises of NWE. Antona testified about the procedure generally followed in the execution of a warrant. According to Antona, agents secure the location, identify the individuals present, and then photograph the entire location before the search is performed. As team leader, Antona monitors the seizures made by the agents, takes possession of items seized, and notes them on an inventory property receipt. The evidence is then transported to an FBI evidence locker. Antona stated that this procedure was followed in the execution of the warrant at NWE. She further testified that Block was on the premises of NWE at the time of the search. According to Antona, the bates stamping on the seized documents indicates their location at the time of the seizure.

Antona identified copies of a property receipt that was filled out and signed at the scene. From examining the property receipt, she testified that Box 10 was seized from the desk designated H-5, which contained business cards for Jeffrey Block, listing his title as vice-president of trading for NWE. She further testified that she could tell the location of a document from the NWE seizure by examining the bates stamp and property receipt. Antona stated that the exhibits were in substantially the same condition as when they were seized.

FBI Special Agent Steffan Nass testified that he participated in the execution of the search warrant at NWE. According to Nass, Block was behind desk H-5 when the agents first entered the room. Nass searched desk H-5 and he found on the desk a display of business cards, which had the name Jeffrey Block and the title vice-president of trading on them. Nass admitted that he did not recollect specifically the documents found, and that he relied on the *907 bate numbers to show the location from which the documents were seized.

John Van Etten, owner of International Legal Imprints (“ILI”), testified that his company provided copying services to the U.S. Attorney’s Office in this case. According to Van Etten, ILI is located in locked, secured facility. A code is required to enter its production facility and the storage room is under a separate lock and key. ILI obtained authorization to provide photocopying services to the U.S. Attorney’s Office after an inspection of the company’s facilities and a criminal background check on its employees. ILI’s employees are trained using dummy boxes, which are checked by an experienced staff member.

Van Etten testified that ILI followed its usual procedure in providing copying services to the U.S. Attorney’s Office in this case. Either Van Etten or one of the account managers picked up the documents to be copied and brought them to ILI’s facility. Next, the boxes were labeled and taken to the production facility. The pages inside the box were numbered consecutively with any prefixes or other information provided by the U.S. Attorney’s Office. After the documents were labeled, ILI’s production team made copies of the documents.

According to Van Etten, ILI also followed its standard procedure for labeling documents contained in envelopes. A label was placed on the envelope and each of the documents inside, the documents were returned to the envelope, and the envelope was returned to the box. The production supervisor checked the boxes as the copying was done. Other than adding the bates labels, the documents were not altered. In this case, ILI made two copies of the documents. ILI returned the originals and one set of copies to the U.S. Attorney’s Office, and it kept the other set of copies. On cross-examination, Etten admitted that he had no independent proof that ILI’s procedures were followed in this case.

The government offered the documents into evidence. Block objected for lack of foundation and no proof of the chain of custody. The district court overruled Block’s objections. The district court then instructed the jury:

[0]ne of the issues in this case is where did certain documents come from. Okay? That is a matter that has to be proved to the jury. So the fact that it has been received into evidence doesn’t mean that [t]he Court has passed on that. This is now for you to determine based on what you have heard....
[0]ne of those factual issues that is before the jury ... is ...

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Bluebook (online)
148 F. App'x 904, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-jeffrey-ferdinand-block-ca11-2005.