United States v. Michael J. Morley, II

199 F.3d 129
CourtCourt of Appeals for the Third Circuit
DecidedDecember 20, 1999
Docket98-1894
StatusPublished
Cited by45 cases

This text of 199 F.3d 129 (United States v. Michael J. Morley, II) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third 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. Michael J. Morley, II, 199 F.3d 129 (3d Cir. 1999).

Opinion

OPINION OF THE COURT

McKEE, Circuit Judge.

We are asked to decide whether the District Court abused its discretion by allowing the prosecution to introduce “prior bad acts” evidence during Michael Morley’s trial on charges of criminal conspiracy, bank fraud, mail fraud and wire fraud. Those charges arose from Morley’s attestation to a forged signature on a fake will. The evidence in question pertained to an incident that occurred 14 months prior to the events charged in the indictment when Morley asked his parents (both of whom were notaries) to notarize signatures on bonds that had been signed out of their presence. The signatures were forgeries, although the government does not contend that Morley knew that when he asked his parents to notarize the bonds. Rather, the government now contends that the evidence that Morley caused his parents to improperly notarize documents was relevant to his “intent, knowledge, and absence of mistake in signing the fake will of a dead man he had never met.” Appellee’s Br. at 11. We agree that the District Court abused its discretion by allowing the prosecution to introduce evidence about the improperly notarized bonds. Accordingly, we will vacate the defendant’s conviction and order that Morley be given a *131 new trial. 1

I.

David Thompson died on January 22, 1996, survived by three cousins: Raymond, Robert and Kenneth Thompson. Shortly after David’s death, Robert Thompson contacted Robert Morley in order to get advice on the administration of David’s estate. Morley is a Certified Public Accountant. Morley referred Robert to an attorney named Daniel Holmes who was Morley’s long-time friend and business partner. Neither Holmes nor Morley had known David Thompson.

It is unclear whether or not David Thompson actually left a will, and no will was found during the ensuing search of David’s home. Accordingly, Holmes devised a fraudulent scheme to create a fake will that would appear to leave the entirety of David’s estate to Robert and Raymond. Pursuant to their agreement with Holmes, Robert and Raymond each were to receive one-third of David’s estate, and Holmes was to receive the remaining third. According to the government, Holmes was to split his share with Morley. The fake will thus made no provision for Kenneth Thompson. Pursuant to that scheme, Holmes drafted a will, forged David’s signature, and then had the defendant and two other persons “witness” the forged signature. 2

The fake will that Holmes subsequently drafted was later admitted to probate in Camden County, New Jersey. Thereafter, Holmes and Raymond Thompson took control of David’s estate. They established an account under the name “Estate of David L. Thompson,” and consolidated and liquidated estate assets.

At trial, the government presented evidence that Morley received substantial sums from the estate account. 3 Morley also arranged for a $100,000 loan from the estate to C & H Drilling, a new business venture of one of Morley’s clients. The loan repayments were then directed to Morley who kept some of the proceeds, and distributed the balance to Raymond and Robert Thompson. 4

*132 In June of 1996 the FBI interviewed Morley in connection with its investigation into the fraudulent bank transactions. During that interview Morley admitted that he had signed the attestation on a document as requested by Holmes. However, Morley insisted that he assumed the signature he was attesting to was genuine because Holmes and another business associate had already witnessed it. Thereafter, Morley, Holmes, Raymond and Robert were all indicted on various charges arising from the fraudulent scheme. Holmes, Raymond and Robert pled guilty and cooperated with the government in the prosecution of Morley. 5

Prior to Morley’s trial, the government informed Morley that it intended to introduce evidence that 14 months prior to David’s death, Holmes had asked Morley to have his parents notarize approximately 100 savings bonds purportedly signed by Joseph DiStefano (the rightful owner), and that Morley had done so. The government would establish that Morley’s parents had notarized the bonds as Morley requested, however, DiStefano’s signature had actually been forged by Holmes. Morley filed a motion in limine to preclude the government from introducing this evidence.

The government filed a “Response to Defendant’s Motion to Preclude Proffered Evidence” in which it argued that the evidence was admissible “pursuant to Fed. R.Evid. 404(b) to prove the defendant’s motive, opportunity, intent, preparation, planning, knowledge and absence of mistake.” The government also stated that “[ejvidence that the defendant obtained the notarization of over 100 U.S. Savings Bonds ... when the signatory was neither known nor present is proper to show the defendant’s knowledge, intent, plan and modus operandi of falsely witnessing the will of a dead man, who was neither known nor present.” The government did not then, nor does it now, argue that the defendant knew that the signatures on the bonds were forgeries, or that it was the defendant who actually notarized the bonds.

The District Court denied the defense motion to exclude the evidence and the matter proceeded to trial where Morley took the witness stand and denied knowingly engaging in a fraudulent scheme. Morley did not deny signing the fake will as a witness, rather he insisted that he had done so believing that the purported signature was genuine.

On cross examination, the Assistant United States Attorney inquired into the incident regarding the notarized bonds. The government was able to establish that 14 months before Holmes forged Thompson’s will, Holmes had asked Morley to get his parents to notarize the aforementioned U.S. Savings Bonds, and that Morley had agreed to do so in return for $5.00 per bond. The government’s evidence also showed that the signatures on- those bonds were forged. In closing argument, the Assistant United States Attorney referred to the prior incident as follows:

And here’s the big CPA who gets over a hundred bonds, two times in a one-month period, and what’s he do? He puts his parents at risk. He asks his parents to do something he knows is wrong.... And Michael Morley puts his parents in jeopardy and has them falsely witness the savings bonds. He doesn’t want to take the big risk then, he wants his parents to do it.

(Appendix (“App.”) at 142a-143a). In addition, despite the fact that the government failed to introduce any evidence tending to show that Morley knew the bonds had been forged, the Assistant United States Attorney argued in closing that the bond evidence should cause the jury to conclude that Morley knew the signing of the will was part of a fraudulent scheme:

*133 Why does he allow Dan Holmes to bring him a will and ask him to sign it when he knows it’s illegal, he knows it’s wrong, he knows it’s criminal.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Nickolas Oscar Geno v. Commonwealth of Kentucky
Court of Appeals of Kentucky, 2025
Commonwealth v. Yale, E., Aplt.
Supreme Court of Pennsylvania, 2021
Commonwealth v. Hicks, C., Aplt.
156 A.3d 1114 (Supreme Court of Pennsylvania, 2017)
United States v. Shirley
214 F. Supp. 3d 1124 (D. New Mexico, 2016)
Leon v. Fedex Ground Package System, Inc.
313 F.R.D. 615 (D. New Mexico, 2016)
United States v. Ivan Lee
634 F. App'x 862 (Third Circuit, 2015)
United States v. Folse
163 F. Supp. 3d 898 (D. New Mexico, 2015)
United States v. Rodella
101 F. Supp. 3d 1075 (D. New Mexico, 2015)
Peshlakai v. Ruiz
39 F. Supp. 3d 1264 (D. New Mexico, 2014)
United States v. Akeem Caldwell
760 F.3d 267 (Third Circuit, 2014)
United States v. Aaron Smith
505 F. App'x 149 (Third Circuit, 2012)
United States v. Dwyer
493 F. App'x 313 (Third Circuit, 2012)
United States v. Kubacki
811 F. Supp. 2d 1128 (E.D. Pennsylvania, 2011)
United States v. Lenegan
425 F. App'x 151 (Third Circuit, 2011)
Bhandari v. VHA SOUTHWEST COMMUNITY HEALTH CORPORATION
778 F. Supp. 2d 1155 (D. New Mexico, 2011)
United States v. Higdon
638 F.3d 233 (Third Circuit, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
199 F.3d 129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-michael-j-morley-ii-ca3-1999.