United States v. Marroso

250 F. Supp. 27, 63 L.R.R.M. (BNA) 2050, 1966 U.S. Dist. LEXIS 7098
CourtDistrict Court, E.D. Michigan
DecidedFebruary 2, 1966
DocketCrim. No. 41410
StatusPublished
Cited by6 cases

This text of 250 F. Supp. 27 (United States v. Marroso) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Marroso, 250 F. Supp. 27, 63 L.R.R.M. (BNA) 2050, 1966 U.S. Dist. LEXIS 7098 (E.D. Mich. 1966).

Opinion

KAESS, District Judge.

A federal grand jury indictment charges that Samuel J. Marroso “while engaged in negotiations on behalf of Central States, Southeast and Southwest Areas Pension Fund with Leonard Ciaffone for a loan of $1,076,000.00 from the said Central States, Southeast and Southwest Areas Pension Fund, did cause the said Leonard Ciaffone to make and did knowingly receive a payment of $25,000.00 as a kickback for the granting of said loan and because of his activities with respect to the negotiation thereof; in violation of Sections 2 and 1954, Title 18, U.S.C.”

Section 1954 of Title 18, U.S.C., provides, insofar as is relevant to this action, that

“(a) Whoever being—
(1) an administrator, officer, trustee, custodian, counsel, agent, or employee of any employee welfare benefit plan or employee pension benefit plan * * *
receives or agrees to receive or solicits any fee, kickback, commission, gift, loan, money, or thing of value because of or with intent to be influenced with respect to, any of his actions, decisions, or other duties relating to any question or matter concerning such plan or any person who directly or indirectly gives or offers, or promises to give or offer, any fee, kickback, commission, gift, loan, money, or thing of value prohibited by this section, shall be fined not more than $10,000 or imprisoned not more than three years, or both * * *»

Section § 2(b) of Title 18 provides that:

“Whoever causes an act to be done, which if directly performed by him would be an offense against the United States, is also a principal and punishable as such.”

Supplementary motions by defendant for dismissal of the indictment and suppression of evidence having been denied, a trial was held and a verdict of guilty was returned by the jury.

The case is presently before this court on the defendant’s motions for a new trial, in arrest of judgment, and for judgment of acquittal.

Rule 29(a) of the Federal Rules of Criminal Procedure requires that a judgment of acquittal be entered if, after the evidence on either side is closed, the evidence is insufficient to sustain a conviction of the offense charged in the indictment.

The indictment, as aided by the Government’s bill of particulars, charges, in essence, that defendant, while an agent of the Central States, Southeast and [29]*29Southwest Areas Pension Fund1 knowingly received $25,000.00 as a kickback, in violation of Section 1954, and that defendant, in violation of Section 2, caused the payment to be made to him in violation of Section 1954.

Although it is difficult from the testimony of the various witnesses to ascertain all that took place or the exact chronology of events, substantially the following appears to have occurred. Mid City Development Company 2 was formed by Leonard Ciaffone to develop two parcels of land in the Detroit area. Vincent Leone, who had previously loaned Ciaffone $25,000.00 to purchase some of this property, knowing that Ciaffone was desirous of obtaining a substantial loan and having heard of Marroso as one who could arrange such loans, set up a meeting with Marroso at the home of Ciaffone. At this meeting the loan was discussed in general terms, but neither the amount of the loan nor its source were discussed. Marroso indicated that he would have to check with various people and that there would be a fee. Two weeks later another meeting was held at the home of Vincent Leone, at which time Marroso stated that a loan of $1,250,000.00 would be obtained from the Teamsters’ Fund and that it would cost $100,000.00, $25,000.00 in cash, the balance by check. Thereafter several meetings were held. Marroso suggested to Ciaffone that he hire Irving Robinson to act as his attorney during the financing negotiations. Sometimes Ciaffone met only with Robinson. Sometimes Marroso was present. The loan application form was prepared by Ciaffone, and Marroso suggested that one or two changes be made in it. Robinson went to Chicago once with Marroso in connection with this loan, had some correspondence with the Pension Fund attorney and participated in the drafting of the commitment. Marroso discussed the application with Francis J. Murtha, Executive Secretary of the Fund, on several occasions. On August 8, 1962, the Pension Fund issued its commitment to Mid City for $1,076,000.00. Based on this commitment Ciaffone obtained interim financing from another source. Shortly after receiving the commitment, there was a meeting in Robinson’s office, at which Marroso was told that he would get his fee only if the full loan was obtained and he said that he would get it increased. However, as certain requirements of the Fund were not met, the commitment was not increased. The $1,076,000.00 loan from the Fund was actually received in August of 1964. Thereafter 2 or 3 meetings were held regarding Marroso’s fee, which was eventually reduced to $35,000 because the full amount of the loan was not obtained. Vincent Leone received $15,000.00 from Ciaffone, obtained another $10,000.00 and gave it all to Joseph Leone, who in turn gave it to Marroso.

There was ample evidence to establish that the Fund is an “employee pension benefit plan” within the meaning of Section 1954; that Ciaffone, on behalf of Mid City, entered into negotiations to obtain a loan of $1,250,000.00 from the Fund to Mid City; that defendant indicated that he could, for a fee, get Mid City the loan from the Fund; that defendant participated in the preparation of the application, and attempted to influence the granting of the loan; that a loan of $1,076,000.00 was made by the Fund to Mid City; that defendant demanded a fee of $100,-000.00; and that defendant actually received $25,000.00.

It is the contention of defendant, however, that the above actions do not come within the purview of either Section 1954 or the indictment as aided by the bill of particulars, because there is no evidence that he received the money while acting as an agent of the Fund. The Government, on the other hand, while [30]*30conceding that defendant was not an officially designated agent of the Fund, argues that defendant was acting on behalf of the Fund in soliciting this loan application, thereby becoming its “de facto” agent.

The only person who testified directly as to whether defendant was an agent was Francis J. Murtha, Executive Secretary of the Fund. He stated that Marroso was not an employee or a representative of the Fund in any manner. Joseph Leone, who is the brother of Vincent Leone and the one who actually handed the $25,000.00 to Marroso, testified that he thought defendant’s conduct was “unethical”. However, he did not testify that he thought that defendant was representing the Pension Fund. Four witnesses testified as to their dealings with Marroso in relation to attempts to obtain loans.3 However, their testimony does not in any way show that defendant acted as an agent of the fund. Two of the witnesses testified that they thought the fee requested or obtained was a legitimate “finder’s fee”.

Without express appointment and acceptance creation of an agency may be implied from the words and conduct of the parties and circumstances of the particular case. VanKoevering v.

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Bluebook (online)
250 F. Supp. 27, 63 L.R.R.M. (BNA) 2050, 1966 U.S. Dist. LEXIS 7098, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-marroso-mied-1966.