United States v. Main Street Distributors, Inc.

741 F. Supp. 353, 1990 WL 94571
CourtDistrict Court, E.D. New York
DecidedApril 26, 1990
Docket88 CR 0261
StatusPublished
Cited by2 cases

This text of 741 F. Supp. 353 (United States v. Main Street Distributors, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Main Street Distributors, Inc., 741 F. Supp. 353, 1990 WL 94571 (E.D.N.Y. 1990).

Opinion

MEMORANDUM OF DECISION AND ORDER

MISHLER, District Judge.

The court’s memorandum of decision of October 4, 1989, directed an evidentiary hearing on the defendants’ motion (a) to suppress physical evidence seized on March 31, 1988; 1 (2) suppression of statements made by defendants Steven Pesce, Robert Cavaliere and Stuart Podolsky; and (3) dismissal of the indictment on the ground that the government intentionally and/or recklessly submitted false testimony to the grand jury.

Motion to Suppress the Seized Evidence

As previously noted (in our October 4, 1989, opinion), the defendants’ challenge to the validity of the search warrants issued on March 2, 1988, and March 30, 1988, based on the claim of lack of probable cause, was rejected in a memorandum of decision by Judge Raggi dated November 22, 1988.

Defendants claim that the evidence seized on March 3, 1988, and March 31, 1988, should be suppressed because the search warrants failed to particularize the premises to be searched. The warrants described the premises to be searched as “Premises Known and Described as Main Street Distributors, Inc., 40-06 Oser Avenue, Hauppauge, New York.” The affidavit, by Special Agent Anthony Giattino, in support of the warrant issued on March 30, 1988, stated:

The Premises occupy a single-floor at 40-06 Oser Avenue in an industrial park in Hauppauge. The greater part of the space at that address consists of a warehouse area containing rows of free-standing metal shelving; also occupying space at that location is an office area at front of the building.

Defendants argue that 40-06 Oser Avenue is not occupied by Main Street Distributors, Inc. (“Main St.”), alone but is a multi-unit building which is also occupied by OMT Distributors (“OMT”) and other businesses.

Defendants urge that the evidence seized on March 31, 1988, be suppressed because of the conduct of the law enforcement officers in executing the warrant on that day.

The hearing established the following facts:

In January 1988, a Customs Inspector stationed in Port Newark, New Jersey, advised Import Specialist John Barry that a shipment believed to be glass crack pipes known as “stems” had arrived at the Rail-head Terminal in Port Newark. Barry advised Special Agent Anthony Giattino of this conversation. Barry and Giattino examined the shipping documents at the terminal and learned that the shipment consisted of 500,000 four-inch glass stems consigned to Freedom Imports, 872 Broadway, New York. Barry interviewed Alain El-kaim, the president of Freedom Imports, and learned that part of the shipment was destined for Main Street.

In April 1987, Barry had visited Main Street to investigate a complaint of the Mini-Grip Corporation, the owner of patents and trademarks for “ziplock” plastic bags which were the subject of a patent exclusion order. When he entered the premises at 40-06 Oser Avenue he noticed a sign with the names Main Street Distributors, Butco, Strike-A-Light, and OMT Distributors on the entrance door.

Barry discussed the complaint with Donna Ferraro, office manager for Main Street. In response to Barry’s inquiry as to whether Main Street imported other merchandise, Ferraro stated that Butco had imported brass screens for pipe filters and that Butco and Main Street were the same company doing business under different names. Defendant Arthur Eisenman entered the conference room where the interview was being held and indicated he knew of the complaint filed by Mini-Grip. *356 Barry observed nothing in the premises to indicate that any individual or entity other than Main Street occupied any part of the building.

Giattino had a basis for believing that Main Street was in the business of distributing drug paraphernalia from the premises at 40-06 Oser Avenue. In February 1988, he assigned Special Agent Gary Kier-nan to conduct a surveillance of the premises. Kiernan noticed a roof sign on the building which read “40-06 Main Street.” No sign described the premises as 40-06 Oser Avenue. The building is located in an industrial park. 40-06 Oser Avenue is the address of a building with party walls on both sides, indicating the use or potential use by firms unrelated to Main Street. In the rear of 40-06 Oser Avenue is a parking area, also a loading dock for Main Street’s warehouse portion of the premises. Giatti-no learned from the utility companies that Main Street paid the bill for all utilities to the building.

Execution of the March 2, 1988, Search Warrant

Special Agent Ray Barrett was the lead agent in the execution of the warrant on March 3,1988. Barrett entered the premises with other law enforcement officers at about 1:00 p.m. and exhibited the warrant to the receptionist. He was advised that the owner (previously identified through a Dun and Bradstreet report as Steven Pesce) was not present. About 15 minutes after entering, while agents were conducting a security sweep, Stuart Podolsky pointed to an area in the warehouse consisting of a room which had an open front gate and stated that the area was used by his company, which was engaged in printing emblems on shirts. Pesce arrived at about 2:30 p.m. and told Barrett that some office space was leased to Mark Benowitz and Podolsky. No signs were displayed nor was there any indication, other than Pesce’s and Podolsky’s statements, that any space in the premises was occupied by any individual or entity other than Main Street. In one of the offices (either A or B), there was a desk with a sign which stated “Steven Pesce, President.”

After consulting by telephone with an Assistant United States Attorney for the Southern District of New York, offices D and E were not searched; items in the warehouse area which Podolsky claimed to be his were not seized since they were not the subject of the search.

The agents seized the contraband they found in the warehouse. They also seized Main Street records. Among the records seized was a letter addressed to “Mr. Stuart Podolsky, Main Street Distributors” (Ex. S-ll) and a letter addressed to “Mark Benowitz, Import Director, Main Street Dist., Inc.” (Ex. S-12).

Execution of the March 30, 1988, Search Warrant

Giattino led a team of law enforcement officers in executing the search warrant on March 31, 1988. He exhibited the search warrant to Ferraro. In answer to Giatti-no's question as to who was in charge, she stated that she had five bosses: Pesce, Benowitz, Cavaliere, Podolsky and Eisen-man — all partners.

Giattino asked Cavaliere, Podolsky and Benowitz what interest they had in Main Street. Cavaliere said he had nothing to do with Main Street; he said he operated a jewelry business under the trade name Golden Opportunities. 2 Podolsky denied any relationship with Main Street; he stated he operated OMT Distributors, which occupied office space in the premises. Be-nowitz stated that he occupied an office in the premises separate and apart from the premises occupied by Main Street.

The agents seized a Main Street record entitled “Corporate Books File Sign Out Corp. Book Sheet” with the following instruction:

IF ANYONE (PARTNERS OR OTHER) TAKE A CORP. BK.

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Cite This Page — Counsel Stack

Bluebook (online)
741 F. Supp. 353, 1990 WL 94571, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-main-street-distributors-inc-nyed-1990.