United States v. Louise H. Marshall, John M. Gliottoni, Jr. And Charles Panici

75 F.3d 1097, 1996 U.S. App. LEXIS 904
CourtCourt of Appeals for the Seventh Circuit
DecidedJanuary 24, 1996
Docket93-2858, 93-2881 and 93-2882
StatusPublished
Cited by64 cases

This text of 75 F.3d 1097 (United States v. Louise H. Marshall, John M. Gliottoni, Jr. And Charles Panici) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh 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. Louise H. Marshall, John M. Gliottoni, Jr. And Charles Panici, 75 F.3d 1097, 1996 U.S. App. LEXIS 904 (7th Cir. 1996).

Opinion

COFFEY, Circuit Judge.

From 1976 to 1991, Charles Panici was the mayor of the City of Chicago Heights, Illinois, while John M. Gliottoni, Jr. and Louise H. Marshall served as commissioners on the city council. However, their terms of office ceased when all three were indicted for substantive and conspiracy violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. § 1962(d).

In Count One of the indictment, each of the defendants was charged with conspiracy *1100 to conduct the affairs of the City of Chicago Heights through a pattern of racketeering activity in violation of the Racketeering Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. § 1962(d). Count Two charged all three defendants with substantive racketeering, alleging thirteen specific predicate criminal acts, in violation of 18 U.S.C. § 1962(e). The three defendants were also charged with committing extortion, in violation of 18 U.S.C. § 1951. Charles Panici was also charged individually with committing extortion and bribery, as well as tampering with a witness, in violation of 18 U.S.C. §§ 1951, 666, & 1512(b)(3), respectively. Louise Marshall was individually charged with bribery, in violation of 18 U.S.C. § 666.

After entering pleas of not guilty, Panici, Gliottoni, and Marshall were tried jointly and the jury convicted each of them on all counts. The defendants’ post-trial motions were denied, and thereafter the trial court sentenced Panici to 120 months’ incarceration on each count, sentences to run concurrently, and ordered him to pay a $800 special assessment fee and $1,100,000 restitution. Gliottoni was sentenced to 60 months’ imprisonment on each count, sentences to run concurrently, and ordered to pay a $150 special assessment fee and $1,100,000 restitution. Finally, Marshall was sentenced to 41 months confinement on each count, sentences to run concurrently, and ordered to pay $200 special assessment fee. Each defendant also received a term of 36 months supervised release to be served following their respective periods of imprisonment. The defendants appeal, raising numerous challenges to their convictions and sentences. We affirm.

I. Background

A. Political Structure of Chicago Heights, Illinois

The city of Chicago Heights, Illinois, is located in the southern suburbs of Chicago and is governed by an elected five-member city council, consisting of a mayor and four commissioners. 1 The council met publicly about twice a month to discuss and vote on civic matters.

The evidence at trial revealed a network of corruption that had its seed in 1974, before the defendants were elected to the city council. At that time, John Gliottoni, a member of the Chicago Heights school board, met with Nicholas LoBue, a local resident and the owner of A.A. Arken Exterminating Company, and inquired of LoBue whether he was interested in running for the position of park district commissioner. LoBue replied yes, and Gliottoni directed him to meet with a local politician named Charles Panici, who was running as a candidate for mayor. In return for LoBue’s promise of political loyalty to Panici, Panici supported LoBue’s candidacy.

In 1975, Charles Panici was elected mayor and John Gliottoni and Louise Marshall were elected to the city council on the “Concerned Citizens ticket,” a nonpartisan local party. LoBue was elected to the park district commission at the same time. Thus began sixteen years of bribery and extortion.

B. The Schemes of Corruption

The evidence presented at trial, including extensive testimony from Nicholas LoBue, revealed that Mayor Panici, Commissioner Gliottoni, and Commissioner Marshall abused their positions for personal financial gain while serving in public office.

In 1976, many residents of Chicago Heights complained of a rust coloring in their drinking water, due to soluble iron present in the well water. To combat this rust color, the city contracted with Gulf Coast Laboratories, a local chemical company. Gulf Coast supplied the city with tri-polyphosphate (commercially known as “Tri-Lux”), a chemical that reacts with iron particles in the drinking water and eliminates the discoloration. However, Gulf Coast’s agreement to supply the city with Tri-Lux included illegal payoffs to city officials.

At trial, Donald Gipple, the owner of Gulf Coast Laboratories, and Nicholas LoBue testified that the bribery scheme operated as *1101 follows. From 1977 to 1979, the city ordered shipments of 35,000 pounds of Tri-Lux from Lobue’s company, A.A. Arken. However, instead of delivering 35,000 pounds of Tri-Lux, A.A Arken arranged for the private delivery of only 24,000 pounds of the chemical from Gulf Coast. The city paid Arken for the full 35,000 pounds; Arken paid Gulf Coast for only 24,000 pounds; and LoBue, the owner of Arken, retained the difference and distributed the overpayment between Paniei, Gliottoni, himself, Ralph Galderio, and a friend of LoBue’s, Mike Constabile. From 1977 to 1979, the city ordered the delivery of TriLux three or four times a year, and the distributed pay-off on each delivery amounted to between $700 and $1000 per person.

In 1979, LoBue joined Panici’s Concerned Citizens ticket and was elected to the city council, replacing another commissioner. To avoid exposure of the Gulf Coast arrangement, LoBue wrote a letter to the city council claiming that he could no longer sell TriLux to the city because of his conflict of interest. At trial however, LoBue admitted that the letter was a sham and that he met with Gulf Coast officials and arranged to continue the over-billing and kickback scheme. As a result of LoBue’s arrangement with Gulf Coast, the city began ordering shipments of Tri-Lux directly from Gulf Coast, bypassing Arken. The overpayment on each of these shipments was between $5,700 and $6,900.

In 1979, the city council was considering awarding a contract to provide cable television to the city and, according to city procedure, the council solicited bids from cable television companies. Mayor Paniei advised LoBue that he and Gliottoni would be taken care of if they would vote to award the contract to Telecommunications Inc., a franchise owned by Panici’s acquaintance. In a city council vote of May 1981, LoBue and Gliottoni voted as Paniei had requested and each of them in turn had their palms greased with a $35,000 payoff.

In 1977, Marty Wondaal owned Fitzpatrick Brothers Disposal, a garbage disposal business, managed by Charles Fitzpatrick. Fitzpatrick Brothers Disposal submitted a bid for the 1977 residential trash pickup contract with Chicago Heights.

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Bluebook (online)
75 F.3d 1097, 1996 U.S. App. LEXIS 904, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-louise-h-marshall-john-m-gliottoni-jr-and-charles-ca7-1996.