United States v. Kotsiris

543 F. Supp. 2d 966, 2008 U.S. Dist. LEXIS 31911, 2008 WL 1744591
CourtDistrict Court, N.D. Illinois
DecidedApril 17, 2008
Docket89 CR 39
StatusPublished

This text of 543 F. Supp. 2d 966 (United States v. Kotsiris) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Kotsiris, 543 F. Supp. 2d 966, 2008 U.S. Dist. LEXIS 31911, 2008 WL 1744591 (N.D. Ill. 2008).

Opinion

OPINION AND ORDER

CHARLES R. NORGLE, District Judge.

Before the court is Defendant Gary Kot-siris’ Motion to Expunge. For the following reasons, the Motion is denied.

I. BACKGROUND

In May 1987, a federal grand jury indicted Defendant Gary Kotsiris (“Kotsiris”) along with fifteen co-defendants in connection with their activities at the Chicago area offices of the First Commodity Corporation of Boston (“First Commodity”), a registered futures commission merchant. First Commodity employed Defendants as either salesmen, sales managers, or branch managers. Kotsiris was a salesman. The indictment charged that Defendants, including Kotsiris, devised and participated in a scheme to defraud clients by making false representations and promises concerning the potential benefits of trading in *968 commodities through First Commodity. Defendants, including Kotsiris, misled potential customers by representing that the risks involved with commodities trading were minimal, when the truth was that these investments were high-risk, and that the customers were likely to lose money. Defendants fraudulently induced over 2,600 customers to invest in the commodity futures market with First Commodity. United States v. Biesiadecki, 933 F.2d 539, 540 (7th Cir.1991). Approximately ninety percent of these individuals lost money. Id. at 542. The indictment charged Defendants with mail and wire fraud, racketeering, and conspiracy to commit racketeering. Id. at 540.

Fifteen Defendants, including Kotsiris, pled guilty prior to trial. Id. The remaining Defendant, Jan Biesiadecki, elected to exercise his right to trial by jury, and was found guilty on all counts. Id. The Honorable District Judge Rovner (now a Seventh Circuit Judge) sentenced Biesiadecki to three months imprisonment, five years probation, and restitution. Id. The Seventh Circuit affirmed. Id.

In Kotsiris’ Plea Agreement, signed and dated August 29, 1989, he agreed to enter pleas of guilty to two counts of the indictment, and admitted to, inter alia, the following facts. He was employed as a salesman by First Commodity branch offices in Chicago and Oakbrook, Illinois from June 1983 until March 1985. While employed by First Commodity, he participated with other salesmen and managers in a scheme to defraud potential investors and customers of First Commodity by means of false and misleading representations. Specifically, Kotsiris admitted that in soliciting potential clients for First Commodity, he falsely represented that: First Commodity’s customers generally received favorable returns on their investments, when he was aware that most customers in fact lost money; he would pull investors out of the commodity market if it started to decline, when in fact he was not able to preclude losses by customers; and he worked many hours analyzing the market to find profitable investments for First Commodity’s clients, when in fact he spent the vast majority of his time on the telephone soliciting new customers.

Kotsiris ultimately pled guilty to, and was convicted of, mail fraud and conspiracy to participate in a scheme of racketeering. As a part of his Plea Agreement, Kotsiris agreed to cooperate with the government. On January 30, 1990, Judge Rovner sentenced Kotsiris to five years probation, and $25,000 in restitution. He did not appeal. The court has reviewed Kotsiris’ probation reports, and there is no indication that he failed to comply with the conditions of his probation.

On March 25, 2008, Kotsiris filed the instant Motion to Expunge. In support of this Motion, Kotsiris asserts that he has not committed any other criminal offenses since his conviction, and that he may face adverse employment consequences in the future as a result of this conviction. The Motion is fully briefed and before the court.

II. DISCUSSION

A. Standard of Decision

1. Expungement

A motion to expunge a criminal conviction differs substantially from a motion to vacate or set aside a conviction. “[W]hen a defendant moves to expunge records, she asks that the court destroy or seal the records of the fact of the defendant’s conviction and not [vacate or set aside] the conviction itself.” United States v. Crowell, 374 F.3d 790, 792 (9th Cir.2004). Without more, expungement of a criminal conviction “does not alter the legality of the previous conviction and *969 does not signify that the defendant was innocent of the crime to which he pleaded guilty.” Dickerson v. New Banner Institute, Inc., 460 U.S. 103, 115, 103 S.Ct. 986, 74 L.Ed.2d 845 (1983). In other words, an individual who files a motion to expunge seeks “the judicial editing of history.” Rogers v. Slaughter, 469 F.2d 1084, 1085 (5th Cir.1972). The process of editing history, the court notes, consumes a tremendous amount of judicial resources. In adjudicating this motion, the court was required to search extensively through boxes of archived case documents and probation reports, simply to verify Kotsiris’ factual assertions regarding his conviction, sentence, and probation.

2. Jurisdiction

Before addressing merits of this Motion, the court must be assured that it has jurisdiction to proceed. The court notes initially that it has no general statutory power to expunge criminal records, Crowell, 374 F.3d at 793, although there are a few scattered and narrowly drawn exceptions. See, e.g., 18 U.S.C. § 3607(c) (providing that criminal records in certain drug possession cases may be expunged); 42 U.S.C. § 14132(d) (providing that DNA records maintained by the FBI may be expunged where a conviction is overturned).

It is axiomatic that “[f]ederal courts are courts of limited jurisdiction ... possessing] only that power authorized by Constitution and statute, which is not to be expanded by judicial decree.” Kokkonen v. Guardian Life Ins. Co. of America, 511 U.S. 375, 377, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994) (citations omitted). If this court has jurisdiction to expunge criminal records, it must therefore arise from its inherent powers. The Kokkonen decision, however, indicated that a federal court may only exercise its “ancillary jurisdiction” in two contexts: “(1) to permit disposition by a single court of claims that are ...

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Related

Dickerson v. New Banner Institute, Inc.
460 U.S. 103 (Supreme Court, 1983)
Kokkonen v. Guardian Life Insurance Co. of America
511 U.S. 375 (Supreme Court, 1994)
United States v. Coloian
480 F.3d 47 (First Circuit, 2007)
United States v. James P. Linn
513 F.2d 925 (Tenth Circuit, 1975)
United States v. Zalmon Schnitzer
567 F.2d 536 (Second Circuit, 1977)
United States v. Jan Biesiadecki
933 F.2d 539 (Seventh Circuit, 1991)
United States v. James P. Smith
940 F.2d 395 (Ninth Circuit, 1991)
United States v. Mitchell S. Janik
10 F.3d 470 (Seventh Circuit, 1994)
United States v. Thomas Alan Sumner
226 F.3d 1005 (Ninth Circuit, 2000)
United States v. Dennis Dunegan
251 F.3d 477 (Third Circuit, 2001)
United States v. Eileen Crowell
374 F.3d 790 (Ninth Circuit, 2004)
United States v. Katherine Ann Flowers
389 F.3d 737 (Seventh Circuit, 2004)
United States v. Michael Meyer
439 F.3d 855 (Eighth Circuit, 2006)

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Bluebook (online)
543 F. Supp. 2d 966, 2008 U.S. Dist. LEXIS 31911, 2008 WL 1744591, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-kotsiris-ilnd-2008.