United States v. Katakis

252 F. Supp. 3d 988, 2017 WL 1956014, 2017 U.S. Dist. LEXIS 72350
CourtDistrict Court, E.D. California
DecidedMay 11, 2017
DocketNo. 2:11-CR-0511 WBS
StatusPublished
Cited by1 cases

This text of 252 F. Supp. 3d 988 (United States v. Katakis) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Katakis, 252 F. Supp. 3d 988, 2017 WL 1956014, 2017 U.S. Dist. LEXIS 72350 (E.D. Cal. 2017).

Opinion

ORDER DENYING MOTION FOR NEW TRIAL

WILLIAM B. SHUBB, UNITED STATES DISTRICT JUDGE

Before the court is defendant Andrew B. Katakis’ Second Amended Motion for New Trial Under Fed. R. Crim. P. 33 filed February 21, 2017 (Docket No. 611), and defendant Donald M. Parker’s-joinder in Katakis’ motion (Docket No. 622).

I. Factual and Procedural History

This case concerns allegations of a scheme to rig bids at public real estate foreclosure auctions in San Joaquin County, California in 2008 and 2009.- Specifically, the government alleges that Katakis and Parker, two real estate investors, along with other individuals, and aided by auctioneer or “crier” W. Theodore Long-ley, agreed not to compete to purchase certain properties at public auctions, designated which conspirator would bid for the properties at the auctions, refrained from bidding for the properties, and made payoffs to and received payoffs from one another in return.for refraining from bidding at the auctions. (Superseding Indictment 3-4 (Docket No. 136).)

The agreement eventually developed into a scheme whereby Katakis and others agreed that only one person would, bid on a property at the public auction on the courthouse steps, and then the conspirators would hold a secondary auction or “round robin” across the street. The winner of the secondary auction would then pay the other bidders at the secondary auction the “pot,” or the difference between the price paid at the public auction and the round robin, with each failed bidder receiving a portion, or “chop,” of the pot. The government also alleges that .after Katakis learned about the government’s investigation into the conspiracy, he deleted emails using computer software to overwrite the records so they could not be recovered, in an attempt to obstruct the investigation. (Superseding Indictment 8-9.)

In the Superseding Indictment, the government charged defendants Katakis, Parker, and Longley with violation of the Sherman Antitrust Act under 15 U.S.C. § 1 and conspiracy to commit mail fraud under 18 U.S.C. § 1349.1 The government [992]*992also charged Katakis with obstruction of justice under 18 U.S.C. § 1519. After a twenty-three day jury trial,2 the jury found Katakis and Parker guilty of the Sherman Act antitrust charge but was unable to reach a verdict on the mail fraud charge. The jury also found Katakis guilty of the obstruction of justice charge. The jury acquitted Longley on both the Sherman Act antitrust and mail fraud charges. (Docket Nos. 277, 278, 279.)

After trial, Katakis moved for a new trial on his antitrust conspiracy conviction and separately moved for judgment of acquittal as to the obstruction of justice conviction. This court granted the motion for judgment of acquittal on the obstruction conviction, holding that evidence was insufficient to show that Katakis actually deleted or concealed electronic records or files. (Docket No. 317.) The Ninth Circuit affirmed, holding, among other things, that while there was “truly overwhelming” evidence of Katakis’ intent to delete emails, there was insufficient evidence that he actually deleted any emails. United States v. Katakis, 800 F.3d 1017, 1027 (9th Cir. 2015).

After the Ninth Circuit affirmed this court’s judgment of acquittal as to Katakis’ obstruction of justice conviction, and after Katakis obtained extensive further discovery, Katakis filed his Second Amended Motion for a New Trial, and Parker joined in the motion.

II. Legal Standard

Under Federal Rule of Criminal Procedure 33(a), a “court may vacate any judgment and grant a new trial if the interest of justice so requires.” In evaluating a motion for a new trial under Rule 33, “[t]he court is not obliged to view the evidence in the light most favorable to the verdict, and it is free to weigh the evidence and evaluate for itself the credibility of the witnesses.” Id. The burden of justifying a new trial rests with the defendant, United States v. Endicott, 869 F.2d 452, 454 (9th Cir. 1989), and “[a] motion for new trial is directed to the discretion of the judge,” United States v. Pimentel, 654 F.2d 538, 545 (9th Cir. 1981). Accord United States v. Kellington, 217 F.3d 1084, 1097 (9th Cir. 2000) (district court’s decision to grant or deny a new trial is reviewed for abuse of discretion). While the burden on a motion for new trial is not as demanding as that for a motion for acquittal, such motions are generally disfavored and should only be granted in exceptional cases. See United States v. Del Toro-Barboza, 673 F.3d 1136, 1153 (9th Cir. 2012).

III. Discussion

1. Newly discovered evidence

Katakis’ first argument in support of his motion is that he is entitled to a new trial based the discovery of new evidence obtained after trial. Specifically, he contends that new evidence, including a declaration from his co-defendant Wiley Chandler, shows that Chandler, Richard Northcutt, Ken Swanger, and Steve Swanger were conspiring against him and his companies, causing him to purchase properties at inflated prices and enriching themselves in the process. In his view, had the jury been presented with this additional evidence of the alleged conspiracy against Katakis, the jury would have discredited the cooperat[993]*993ing witnesses’ testimony and would have concluded that Katakis did not engage in a conspiracy which had the objective of defrauding him.3

To prevail on a Rule 33 motion for a new trial based on newly discovered evidence, a defendant must show that (1) the evidence was newly discovered; (2) the failure to discover the evidence sooner was not the result of a lack of diligence on the defendant’s part; (3) the evidence is material to the issues at trial; (4) the evidence is neither cumulative nor merely impeaching; and (5) the evidence indicates that a new trial would probably result in acquittal. United States v. Harrington, 410 F.3d 598, 601 (9th Cir. 2005) (quoting United States v. Kulczyk, 931 F.2d 542, 548 (9th Cir. 1991)).

Here, even assuming Katakis has met all the other requirements of Harrington, 410 F.3d at 601, he has not shown that the new evidence he has identified would probably result in acquittal if he was allowed to present it in a new trial. Katakis’ new evidence may support a theory that alleged co-conspirators Northcutt, Chandler, and the Swangers were profiting at Katakis’ expense.

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Bluebook (online)
252 F. Supp. 3d 988, 2017 WL 1956014, 2017 U.S. Dist. LEXIS 72350, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-katakis-caed-2017.