United States v. Lund

670 F. Supp. 654, 1987 U.S. Dist. LEXIS 12956
CourtDistrict Court, E.D. Virginia
DecidedOctober 5, 1987
DocketCrim. No. 87-00191-A
StatusPublished
Cited by1 cases

This text of 670 F. Supp. 654 (United States v. Lund) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Lund, 670 F. Supp. 654, 1987 U.S. Dist. LEXIS 12956 (E.D. Va. 1987).

Opinion

MEMORANDUM OPINION

ELLIS, District Judge.

Defendant, James M. Lund, was indicted on conflict of interest charges brought pur[655]*655suant to 18 U.S.C. § 208(a) (1982) (“Acts affecting a personal financial interest”). Defendant has moved to dismiss the indictment, asserting that his alleged conduct is not proscribed by § 208(a). For the reasons stated below, this court grants defendant’s motion and dismisses the indictment.

I. BACKGROUND

Defendant Lund is an employee of the Defense Communications Agency (DCA). In December 1985, Lund married one of his subordinate employees. Thereafter, Lund allegedly continued to supervise his wife without disclosing their relationship to the DCA.

In July 1987, Lund was indicted on three counts of violating 18 U.S.C. § 208(a) (1982). The three violations alleged were: (1) defendant’s certifying his wife’s work as “acceptable,” thus enabling her to collect a within-grade salary increase; (2) selecting his wife over another applicant to fill a certain position within his DCA component; and (3) nominating his wife for a masters’ degree program which was to be paid for by the DCA.

Defendant’s conduct amounts to simple nepotism.1 He asserts that this conduct falls outside the statute. In support, he points to the statute’s ambiguities, the policies calling for strict construction of penal statutes, and the somewhat arresting fact that neither this 25 year-old conflict of interest statute, nor its century-old progenitor,2 has ever before been applied to such conduct. Instead, defendant argues, history confirms that § 208’s reach must be limited to conflict of interest transactions between defendants in federal agencies and external entities in which he or she, a spouse or a minor child have an interest.

The United States concedes that its interpretation of the statute is novel,3 but asserts that defendant’s conduct is proscribed by the statute’s plain meaning. The issue before the Court, therefore, is whether Lund’s conduct, which may be characterized as simple nepotism, i.e., the internal promotion of a spouse, is the type of “conflict of interest” intended to be proscribed by § 208.

II. ANALYSIS

Title 18 U.S.C. § 208(a) provides, in pertinent part, that:

(W)hoever, being an officer or employee of the executive branch of the United States Government, of any independent agency of the United States, a Federal Reserve bank director, officer, or employee, or of the District of Columbia, including a special Government employee, participates personally and substantially as a Government officer or employee, through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, in a judicial or other proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter in which, to his knowledge, he, his spouse, minor child, partner, organization in which he is serving as officer, director, trustee, partner or employee, or any person or organization with whom he is negotiating or has any arrangement concerning prospective employment, has a financial interest—
Shall be fined not more than $10,000, or imprisoned not more than two years, or both.

The government argues that under the plain meaning of the statute defendant’s conduct is prohibited because he participated “personally and substantially” in a [656]*656“contract” affecting his spouse (her within-grade salary increase) and in his wife’s “applications” for a new position and for free graduate school tuition. In addition, the government asserts that the omnibus term “other particular matter” also embraces the actions taken by Lund. The government urges the Court to give these terms their “ordinary, contemporary and common meaning” in construing § 208(a). See Perrin v. United States, 444 U.S. 37, 42, 100 S.Ct. 311, 314, 62 L.Ed.2d 199 (1979).

Although “the starting point in every case involving construction of a statute is the language itself,” Blue Chip Stamps v. Manor Drug Stores, 421 U.S. 723, 756, 95 S.Ct. 1917, 1935, 44 L.Ed.2d 539 (1975) (Powell, J., concurring), the ambiguous text of § 208(a) affords little guidance as it refers to “application,” “contract,” and “other particular matter” without definition. Nor is it plain from the text of § 208 what contracts, applications, or matters Congress intended to criminalize and in what context these terms were to be applied.

The Fourth Circuit faced a similar statutory construction problem in United States v. Jackson, 759 F.2d 342 (4th Cir.), cert. denied, 474 U.S. 924, 106 S.Ct. 259, 88 L.Ed.2d 265 (1985). There, defendant was convicted of violating 18 U.S.C. § 649 (embezzlement statute) by failing to make timely deposits of cash and checks paid to the United States. Section 649(a) provided that “whoever, having money of the United States in his possession ... fails to deposit it, ... (shall) be guilty of embezzlement.” 18 U.S.C. § 649(a) (1982). The issue on appeal was whether checks payable to the United States were to be considered “money” within the meaning of the statute.

Finding that “money” was not defined in § 649(a), the Fourth Circuit examined the dictionary definition of the term. “Dictionary definitions of statutory words that express commonly accepted meaning deserve some weight in the interpretive process.” Id. at 344 (quoting Addison v. Holly Hill Fruit Products, Inc., 322 U.S. 607, 617-18, 64 S.Ct. 1215, 1221, 88 L.Ed. 1488 (1944)). The Court found, however, that “dictionary definitions of ‘money’ were not helpful in determining congressional intent in employing that term in § 649(a).” Id. at 344. Therefore, the Court turned to construing the statute by viewing its “legislative history, prior interpretations, related statutes, and the underlying congressional purpose and public policy considerations.” Id. at 344.

Here, as in Jackson, this Court finds that dictionary definitions of “contract,” “application,” and “other particular matter” are neither dispositive nor helpful in determining congressional intent in employing these terms in § 208(a). This Court therefore follows the Fourth Circuit’s guidance for construing the meaning of statutory terms by examining the legislative history, prior interpretations, related statutes, and the underlying congressional purpose of § 208(a).

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Related

United States v. James Milton Lund
853 F.2d 242 (Fourth Circuit, 1988)

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Bluebook (online)
670 F. Supp. 654, 1987 U.S. Dist. LEXIS 12956, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-lund-vaed-1987.