United States v. Krilich

163 F. Supp. 2d 943, 2001 WL 341029
CourtDistrict Court, N.D. Illinois
DecidedApril 6, 2001
Docket00 C 6078, 94 CR 419-1
StatusPublished

This text of 163 F. Supp. 2d 943 (United States v. Krilich) 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. Krilich, 163 F. Supp. 2d 943, 2001 WL 341029 (N.D. Ill. 2001).

Opinion

MEMORANDUM OPINION

KOCORAS, District Judge.

This matter is before the Court on Robert Krilich, Sr.’s motion to vacate, set aside, or correct his sentence pursuant to *945 28 U.S.C. § 2255. For the reasons set forth below, we deny the motion.

BACKGROUND

In approximately March 1993, Petitioner Robert Krilich, Sr. learned that he was under federal investigation for bribery and other crimes in connection with suspected government corruption in Oakbrook Terrace, Illinois. Krilich retained Jeffrey Steinback, who was concurrently representing his son, Robert Krilich, Jr. (“Rob Krilich”), in an unrelated federal investigation, to represent him. Allegedly in an attempt to obtain a favorable plea bargain for his son, Krilich decided to cooperate in the government’s investigation qf his and his companies’ past activities.

In December 1993, prior to Krilich’s substantive cooperation with the investigation, the United States Attorney’s Office for the Northern District of Illinois (the “Government”) provided Krilich with a standard proffer letter (the “proffer agreement”) stating that anything related to the government during a proffer could not and would not be used against Krilich in the Government’s case-in-chief or in aggravation of Krilich’s sentence. The letter warned, however, that the Government could use the proffer statements for impeachment or in rebuttal if Krilich “should subsequently testify contrary to the substance of the proffer or otherwise present a position inconsistent with the proffer.” According to Krilich’s § 2255 petition, Steinback advised Krilich that the government could only use his statements at trial if he were to take the stand and testify inconsistently with the statements he provided in proffer interviews or put on a witness who testified directly contrary to those statements. Krilich was allegedly never informed that his cross-examination of the Government’s witnesses at trial, or the presentation of circumstantial evidence of his innocence through defense witnesses, could potentially open the door to the introduction of his proffer statements.

Based on his understanding of the proffer agreement, Krilich submitted to a number of interviews in which he provided substantive information about his activities to the United States Attorney’s Office, the FBI, and the Internal Revenue Service. In particular, Krilich admitted that he bribed Oakbrook Terrace Mayor Richard Sarallo in order to obtain favorable commercial zoning, that he effected the bribe through a phony $40,000 hole-in-one contest in which he personally ensured the success of the mayor’s son, and that he shifted the cost of the bribe to the National Hole-In-One Association, from whom he had obtained an insurance policy to cover the contest. Krilich also admitted falsifying vendor invoices in order to withdraw, for his own personal use, municipal bond sale proceeds raised to finance Kri-lich’s development projects. Krilich was ultimately unable to come to an agreement with the government regarding a plea in part, he claims, because of his insistence on bartering his cooperation for leniency in the Government’s treatment of his son. As a result, Krilich was indicted and proceeded to trial.

Krilich was represented at trial not by Steinback but by two other attorneys, Dennis Berkson and Harry Samuels. Berkson and Samuels were aware of the proffer agreement and the statements Kri-lich had made pursuant to its execution. In order to avoid opening the door to the introduction of Krilich’s proffer statements, Berkson and Samuels advised Kri-lich not to take the stand, and he agreed, stating on the record that he waived his right to testify. See Tr. at 2356. Berkson and Samuels also avoided eliciting from defense witnesses testimony that they believed directly contradicted the information in the proffer. They did, however, *946 conduct broad cross-examination of the Government’s witnesses, some of whom were friendly to Krilich, on topics covered by the proffer, and elicited circumstantial evidence of Rrilich’s innocence from defense witnesses on direct examination.

Following the close of Krilich’s case, the Government argued that defense counsel had “present[ed] a position inconsistent with the proffer” and sought leave to introduce portions of the proffer in rebuttal. Over defense counsel’s objections, the court permitted the Government to introduce in evidence Krilich’s proffer statements to the effect that he had staged the hole-in-one contest in order to effect a bribe to the mayor and that he had falsified invoices to obtain municipal bond proceeds for his personal use. Krilich was then convicted of fraud and conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO) and sentenced to 64 months in federal prison.

Krilich appealed his conviction, arguing inter alia that the trial court erred in permitting the Government to introduce evidence of the proffer. Krilich, through appellate counsel Berkson and Samuels, argued first that the waiver clause in the proffer agreement should be limited to evidence presented by the defendant’s own witnesses and should exclude evidence obtained by cross-examination. The Court of Appeals disagreed, opining that the defense position “would be an unnatural reading of the language”:

Evidence is evidence, whether it comes out on direct or cross-examination. One can “otherwise present” a position through arguments of counsel alone, so it is easy to see how a position can be “presented” by evidence developed on cross-examination and elaborated by counsel. When the prosecution’s witnesses are inclined to accommodate the defense, as many were in this case, developing one’s position through cross-examination is especially attractive. Krilich, 159 F.3d at 1025.

The court then went on to hold that the trial court’s finding of a “genuine inconsistency” between the proffer and the evidence presented, through any means, by the defendant at trial was not clearly erroneous. The court noted that the defense had cross-examined the Government’s witnesses in such a way as to suggest that Krilich was not at the ninth hole at the time the mayor’s son supposedly hit the winning hole-in-one and that no bribes were required because the city attorney thought the new zoning to be correct. It also found defense counsel’s questioning of the defendant’s own witnesses to be inconsistent with the proffer in that their testimony implied that it was unlikely that any bribes were ever made.

Krilich also argued on appeal that if the trial judge’s ruling was not erroneous, then Krilich’s waiver of the plea statement rules was unknowing and involuntary, and thus unenforceable. The court ruled that under Rule 410 of the Federal Rules of Evidence and Rule 11(e)(6) of the Federal Rules of Criminal Procedure

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Bluebook (online)
163 F. Supp. 2d 943, 2001 WL 341029, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-krilich-ilnd-2001.