United States v. Joseph Laspesa, Victor E. Murgo, Steven A. Sarault, Aime J. Sarault

956 F.2d 1027, 1992 U.S. App. LEXIS 5387, 1992 WL 44986
CourtCourt of Appeals for the Eleventh Circuit
DecidedMarch 27, 1992
Docket85-3131
StatusPublished
Cited by35 cases

This text of 956 F.2d 1027 (United States v. Joseph Laspesa, Victor E. Murgo, Steven A. Sarault, Aime J. Sarault) 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. Joseph Laspesa, Victor E. Murgo, Steven A. Sarault, Aime J. Sarault, 956 F.2d 1027, 1992 U.S. App. LEXIS 5387, 1992 WL 44986 (11th Cir. 1992).

Opinion

HATCHETT, Circuit Judge:

In this criminal case involving a scheme to defraud business loan seekers, we affirm the convictions and sentences.

FACTS

Appellants, Victor E. Murgo, Joseph LaSpesa, Aime J. Sarault, and Stephen A. Sarault, duped financially pressed entrepreneurs into paying large advance fees in exchange for worthless promises to secure business loans. Although each victim paid thousands of dollars to appellants, none received a penny in business financing. The following recitation of the facts is a general description of the scheme.

Victor Murgo, the head of Murgo and Sanborn Associates, gained clients through newspaper advertisements which offered credit to financially strapped entrepreneurs. Each client paid Murgo $5,500 to $9,650 for “preliminary approval” and a “feasibility study” of the project the client sought to have financed. Murgo’s Canadian associate, Sydney Solomons, would then take $3,000 from the client in “application fees.”

Murgo used a fancy brochure and other materials which misrepresented his educational and professional background to reassure clients that he was qualified to deal in the world of high finance. The literature identified Murgo and Sanborn as a subsidiary of “the Travelers Corporation,” and Murgo did little to discourage the belief that “Travelers” was the same as the well known insurance company. The feasibility studies for which Murgo charged $4,500 to $8,200 were little more than glossy repackaging of information secured from clients.

After completion of the feasibility study and payment of the associated fees, Murgo referred clients to purported loan brokers, either Univest Financial Fund, Ltd. (Uni-vest) in Denver, or “Silver Funding” in Hastings-on-Hudson, New York. Lloyd Rubin, who headed Univest, or Christopher Uzzi and Joseph Attonito, who headed Silver Funding, took another $5,000 from each client for “credit guarantees.” American Casualty and Indemnity Company (American Casualty), Merchants Bank of Commerce (Anguilla), Ltd. (Merchants Bank), or both, then provided the guarantees. Stephen Sarault acted as attorney for American Casualty and as general counsel of Merchants Bank. Aime Sarault, Stephen’s father, was chairman of Merchants Bank and the owner of its common stock. Joseph LaSpesa was the principal preferred shareholder of Merchants Bank and a purported tycoon who claimed to own gold reserves around the world.

American Casualty and Merchants Bank showed clients bogus financial statements indicating that they had hundreds of millions of dollars worth of assets. Most of this amount consisted of “precious metal delivery certificates,” purportedly backed by LaSpesa’s gold mines. These mines, in fact, were geologically worthless, and LaSpesa defaulted on the purchase payments for them.

After the brokers referred a client to Merchants Bank, Steven Sarault would demand $5,000 for another feasibility study on the client’s proposed project. Merchants Bank would then accept the project *1030 and issue a “letter of commitment,” promising to issue a letter of credit in exchange for a one percent fee. For the few clients who paid the one percent fee, Merchants Bank then issued a letter of credit. No bank ever honored the letters of commitment or letters of credit. Following such refusals, appellants continued the scheme with promises of personally guaranteed letters of credit from the purported tycoon, LaSpesa, or with offers of participation in a “borrower’s syndication.”

Appellants received amounts ranging from $6,000, that a New York college professor gave them to finance a highway rest area called “Traveltown,” to $66,350, that two Ohio businessmen gave them to refinance their real estate loans. A Maine businessman paid appellants over $54,000 in advance fees only to lose another $35,-000 in forfeited deposits on properties he was unable to buy when the promised financing never materialized. Appellants’ received from the victims named in the indictment approximately $373,000 over a four-year period between 1978 and 1982.

PROCEDURAL HISTORY

A jury convicted LaSpesa, Murgo, Aime Sarault, Stephen Sarault, and James Cally of mail fraud and conspiracy to commit mail fraud (Counts I and II, respectively). 1 The jury also convicted Murgo on two additional counts of mail fraud and conspiracy to commit mail fraud (Counts IY and V), and twenty counts of illegal transportation of money taken by fraud (Counts VI through XII and XIV through XXVI).

On May 11, 1983, two months after the jury returned its verdict, the district court granted appellants’ motion to set aside the guilty verdicts and enter a judgment of acquittal. Two days later, the district court filed a supplemental memorandum, explaining that it had intended only to acquit all the appellants of Counts I and II, and to grant a new trial to Murgo on all the remaining counts for which he had been convicted. Because the district court believed it could not change its first order “without raising serious jeopardy problems,” it invited the appeals court to reverse and remand for a new trial Murgo’s convictions on Counts IV through XII and Counts XIV through XXVI. Instead, the government filed a motion for reconsideration. On August 24, 1984, the district court granted the government’s motion and reinstated the jury verdicts against all the appellants. An appeal followed.

In October, 1986, this court remanded the case to the district court for correction of the record because transcripts were missing from the file. The district court clerk supplemented the record. Appellants then moved in this court for summary reversal on the ground that items were still missing from the record. On January 9, 1989, this court again remanded the case to the district court for a reconstruction of the record pursuant to Federal Rule of Appellate Procedure 10.

Following a reconstruction hearing, the district court filed a forty-page “Report of Limited Remand.” The district court recommended a new trial for Murgo on Counts IV and V of the indictment because of a missing transcript. The court also recommended affirmance of the reinstated guilty verdicts on all other counts.

ISSUES

(1) Whether the evidence was sufficient to support the jury’s finding of a single conspiracy; (2) whether the district court erred in joining the appellants and the charges for one trial; and in denying the motions to sever; (3) whether the trial court erred in refusing to grant a mistrial after the judge’s law clerk make unauthorized remarks to jurors during the trial; (4) whether reinstatement of the guilty verdicts violated the Double Jeopardy Clause of the Fifth Amendment to the U.S. Constitution; (5) whether the district court erred in its reconstruction of the record; (6) whether the evidence was sufficient to support appellants’ convictions under 18 U.S.C. § 2314, the transportation of stolen money statute; (7) whether the trial court committed plain error in allowing certain state *1031

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Cite This Page — Counsel Stack

Bluebook (online)
956 F.2d 1027, 1992 U.S. App. LEXIS 5387, 1992 WL 44986, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-joseph-laspesa-victor-e-murgo-steven-a-sarault-aime-ca11-1992.