United States v. John Garrett and L.G. Moore

716 F.2d 257
CourtCourt of Appeals for the Fifth Circuit
DecidedNovember 22, 1983
Docket82-2147
StatusPublished
Cited by43 cases

This text of 716 F.2d 257 (United States v. John Garrett and L.G. Moore) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth 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. John Garrett and L.G. Moore, 716 F.2d 257 (5th Cir. 1983).

Opinions

TATE, Circuit Judge:

The defendants John Garrett and L.G. Moore appeal their conviction by a jury under 18 U.S.C. §§ 2, 1952(a)(3) (“The Travel Act”)1, for aiding and abetting one [260]*260another in using and causing to be used a facility in interstate commerce with the intent to carry on a bribery scheme. The jury found that Garrett and Moore offered and agreed to offer a bribe to a Houston, Texas city councilman for his recommendation and vote in awarding a contract of group insurance for the city’s public employees. In facilitation of this unlawful scheme, the jury found, they caused to be used a facility in interstate commerce when Moore placed a long distance telephone call from Houston, Texas to a federal undercover agent in Beverly Hills, California, on December 27, 1979.

On appeal, the defendants challenge the sufficiency of Travel Act jurisdiction premised on an out-of-state phone call made to a federal agent. They claim that jurisdiction was artificially created because the requisite interstate element was supplied by the location of the federal agent, and that the call did not “facilitate” the underlying state offense. Garrett and Moore also contend that they were entrapped by the federal agents into performing unlawful acts, and that the government’s conduct was so outrageous as to constitute a violation of due process. Garrett argues that the evidence adduced at trial displayed his absolute lack of predisposition to commit bribery, such that he established entrapment as a matter of law. Moore contends that he was unable to make out the defense because the trial court refused to admit certain evidence of the government’s inducements and testimony of witnesses that would tend to show lack of predisposition. Moore additionally argues that the trial court’s determination to admit hearsay evidence of a taped conversation concerning his reputation as someone who would “deal” denied him federal constitutional confrontation and fair trial rights.

We find that on the evidence shown, the trial judge did not reversibly err in making these jurisdictional and evidentiary rulings. We therefore affirm the convictions. Factual and Procedural Background

These Travel Act convictions are a result of a federal undercover operation that centered upon the suspected illegal activities of labor unions in promoting and contracting for insurance and pension benefits. In 1979, Joseph Hauser pleaded guilty to federal charges of paying bribes and receiving kickbacks in union insurance business; in return for a reduced sentence and financial support of himself and his family, he agreed to cooperate with the government in investigating this type of crime. Hauser and two-F.B.I. agents, Mike Wacks and Larry Montague, established a fictitious insurance agency known as Fidelity Financial Consultants, with an office in Beverly Hills, California and a cover by which they would purport to represent the Prudential Insurance Company, a large national concern. Their initial plan was for Hauser to expose corruption among labor leaders by bribing [261]*261them to acquire union insurance through Fidelity.

The agents decided to expand operations outside California (at least in part because of publicity that Hauser was a government informer), and, because of Hauser’s contacts, began to arrange insurance deals in Texas and Louisiana.2

The jury trial took place over 27 days of testimony. The defendants were charged on a conspiracy count and two Travel Act counts; after four days of deliberations, the jury convicted on one Travel Act count, but was unable to agree on a verdict on the conspiracy or other Travel Act count. The government’s case was presented during 19 days of testimony, most importantly the testimony of Hauser and the two F.B.I. agents, corroborated by tapes of conversations with the alleged conspirators and tapes of telephone conversations with them. The defendants’ case was presented in eight days of testimony.

Aside from establishing that the insurance contract to Prudential at issue had been awarded on its merits in accord with the recommendation of the Texas Municipal League, and numerous character and reputation witnesses for both defendants, the defendants’ case relied principally upon their own extensive testimony on the stand by which they presented a lawful explanation for their actions. The substance of the explanation is that they were merely exploiting their political friendships in order to earn a share of a commission for the insurance contract (not in itself unlawful under Texas law), and that the money subsequently given to the city official was a campaign contribution, not a bribe. Garrett also relies upon his initial protestations, in the conversations that unknown to him were being taped, that he did not wish to participate in any illegal activity.

The government’s essentially uncontradicted evidence shows the following:

In August, 1979, Hauser contacted a Texas acquaintance, who put him in contact with Harold Grubbs, a labor official in Houston, on the recommendation that Grubbs would split commissions on insurance deals “fifty-fifty.” In a tape-recorded meeting,3 Grubbs told Hauser about a union official, the defendant L.G. Moore, whom Grubbs described as “someone who would deal” and was “on the take.” (On appeal, Moore objects to the use of this tape, GX 7, as highly prejudicial.)

Grubbs introduced Hauser to Moore to discuss the possibility of Moore’s obtaining insurance business for Fidelity. Moore discussed his union connections in many states and indicated that insurance coverage for Texas school and hospital districts may be available. Moore, Hauser, and F.B.I. agent Mike Wacks met on September 10, where Moore accepted $2000 from Hauser and the three discussed potential business and potential commissions (a sum of $600,000 was mentioned) that Moore could make. Moore named the defendant Garrett, the President of Richmond Road Engineering and a commissioner of the Port of Houston, as a “deal-maker” who could help them make additional connections for insurance contracts.

Moore introduced Garrett to Hauser and agents Wacks and Montague in October, asking for some “inside wires on the insurance business with Prudential.” Garrett called Houston City Councilman Jim Westmoreland at that time to ask him about obtaining for Fidelity and Prudential the city employees’ insurance coverage that was going to become open for bidding. This [262]*262insurance contract becomes the focus of subsequent meetings and dealings, although other future and simultaneous deals were discussed and, for the most part, kept from the jury.

Garrett arranged to meet with Councilman Westmoreland after the November City Council election. At a November 28, 1979 meeting of Garrett, Moore, Wacks, and Montague, Garrett turned down an offer of cash but stated that he wanted a fifty percent split of the agents’ commissions, which he would then split with Moore. He again called Westmoreland to discuss the Houston employees’ insurance contract, telling the others that he “did not mind spending a few dollars if it looks like ... we have to motivate the works for us.”

At the time of these discussions, the Houston City Council was negotiating and soliciting bids in preparation for the January, 1980 expiration of insurance coverage of 25,000 city employees.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. Lazar
Fifth Circuit, 2026
United States v. Rosales
74 M.J. 702 (Air Force Court of Criminal Appeals, 2015)
Ten Broeck Dupont, Inc. v. Brooks
283 S.W.3d 705 (Kentucky Supreme Court, 2009)
United States v. Fischl
Fifth Circuit, 2001
United States v. Dora Garcia Cisneros
203 F.3d 333 (Fifth Circuit, 2000)
United States v. Reuben F. Clark
62 F.3d 110 (Fifth Circuit, 1995)
United States v. Clark
844 F. Supp. 1143 (N.D. Texas, 1994)
State v. Thompson
420 S.E.2d 395 (Supreme Court of North Carolina, 1992)
United States v. Ronald Irving Peters
952 F.2d 960 (Seventh Circuit, 1992)
United States v. Richard Paul Coates, Jr.
949 F.2d 104 (Fourth Circuit, 1991)
State v. Gomez
587 A.2d 272 (New Jersey Superior Court App Division, 1991)
United States v. Johnny R. Graham
915 F.2d 1573 (Sixth Circuit, 1990)
United States v. Keith Newman
849 F.2d 156 (Fifth Circuit, 1988)
United States v. Blake
684 F. Supp. 441 (S.D. Mississippi, 1988)
Howard v. State
507 So. 2d 58 (Mississippi Supreme Court, 1987)
United States v. Dario Arteaga
807 F.2d 424 (Fifth Circuit, 1986)
United States v. Richard F. Lefevour
798 F.2d 977 (Seventh Circuit, 1986)
United States v. Donald Podolsky
798 F.2d 177 (Seventh Circuit, 1986)

Cite This Page — Counsel Stack

Bluebook (online)
716 F.2d 257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-john-garrett-and-lg-moore-ca5-1983.