United States v. Michael Rudy Tham

665 F.2d 855
CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 16, 1981
Docket80-1362
StatusPublished
Cited by44 cases

This text of 665 F.2d 855 (United States v. Michael Rudy Tham) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth 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 Rudy Tham, 665 F.2d 855 (9th Cir. 1981).

Opinion

WALLACE, Circuit Judge:

Tham appeals from a conviction on 15 counts of embezzlement of union assets, 29 U.S.C. § 501(c), and 4 counts of false entry in union records, 29 U.S.C. § 439(c). He was ordered to spend six months in prison, pay $50,000 in fines, and he was placed on probation for four years. One of the conditions of probation was that he make restitution to the union. We affirm.

I

Tham was Secretary-Treasurer, the chief executive officer, of Local 856 of the Freight Checkers, Clerical Employees and Helpers Union, an affiliate of the International Brotherhood of Teamsters. Tham was also a member of several local and national Teamster committees. The government charged that Tham used union funds for non-union purposes, and made false entries in union records concerning those expenses.

The government alleged that Tham spent union funds on travel and entertainment expenses in Lake Tahoe and New York and that most of the expenditures were made on behalf of Aladena (Jimmy) Fratianno. The government also alleged that Tham spent union funds on gifts and entertainment for other friends not related to union business. Tham concedes that these expenditures were made, and that they were made from union funds. He claims, however, that the funds were spent on union business. Specifically, he contends that he spent money on Fratianno because Fratian-no was attempting to develop eye and dental care plans suitable for the union. Tham argues that the union’s bylaws permitted him to spend union funds on entertainment and travel that would benefit the union, directly or indirectly, and that his expenditures fell within those permitted by the bylaws.

II

Tham first contends that the district judge erred in failing to instruct the jury *858 concerning the specific provisions of the bylaws that Tham claims authorized him to spend union funds in the way he asserts he did. In his brief, Tham summarizes his argument as follows: “The. critical factual issue for the jury to determine was whether [Tham] had a good-faith belief that his expenditures were for the benefit of the union.” Tham argues that his good-faith belief was established by his adherence to the bylaws of the union. Thus, he asserts that the judge should have instructed the jury on the specific bylaws.

The district judge gave the following pertinent instructions to the jury:

[T]he government must prove beyond a reasonable doubt that the defendant did not have a good-faith belief that the union funds were spent for the benefit of the union. Unless you are convinced beyond a reasonable doubt that the defendant lacked a good-faith belief that the expenditure of the funds was for the benefit of the union, then an embezzlement, theft, abstraction or conversion would not have occurred within the meaning of the law.
In evaluating the defendant’s intent, you may consider whether or not he acted in good faith under the applicable provisions of the international constitution and bylaws of Local 856, which are in evidence before you.
Now, the bylaws may establish broad purposes for all kinds of different things that may be done for the benefit of the union.... But no matter how broad the bylaws may be in that regard, that does not mean that an officer can spend money for any old thing, ... or for personal purposes of his own.

These instructions constitute an accurate statement of the law. The judge adequately covered Tham’s theory of the case by instructing that the jury could consider the bylaws in determining whether Tham held a good-faith belief that he was using the funds for a union purpose. It was not an abuse of discretion for the district judge to refuse to read the specific bylaws to the jury, or to instruct the jury about those specific bylaws. See United States v. Shelton, 588 F.2d 1242, 1252 (9th Cir. 1978), cert. denied, 442 U.S. 909, 99 S.Ct. 2822, 61 L.Ed.2d 275 (1979).

Tham raises a related issue concerning the district judge’s supplementary instruction in response to the jury’s request to have certain testimony reread to them. A witness called by Tham, Albert Brundage, a labor lawyer who had participated in the drafting of the bylaws, testified concerning the applicable provisions of the bylaws and the chief executive officer’s discretion to interpret them. The jury requested that Brundage’s testimony be read to them. The government expressed concern that the jury would infer that the law was as Brundage stated it, not as the court instructed. The district judge instructed the jury that they were entitled to hear the testimony, but that they should follow the court’s instructions concerning the law, not Brundage’s exposition of the law. The judge then asked the jury whether they still wanted to hear the testimony, indicating that it was perfectly all right if they did. The jury then withdrew its request to hear the testimony.

The response to a request for additional instructions rests with the discretion of the district judge. United States v. Collom, 614 F.2d 624, 631 (9th Cir. 1979), cert. denied, 446 U.S. 923, 100 S.Ct. 1862, 64 L.Ed.2d 278 (1980). Tham argues that the instruction implicitly discredited Brundage’s testimony by indicating that the testimony was inconsistent with the law. This is not a reasonable inference to draw from the instruction. Rather, the instruction merely indicated that to the extent there was any discrepancy, the jury was to follow the court’s instructions. This is hardly, as Tham characterizes it, “coercive.” The district judge made it clear that the jury could hear the testimony if it still found the testimony worthwhile in light of the court’s cautionary instruction. No abuse of discretion was demonstrated.

*859 m

Tham contends that the district court erred in failing to order the government to disclose the identity of a confidential informant, or in failing to require an in camera examination of the informant. The informant, identified only as Source Four, stated in an affidavit used as a basis for a wiretap application in a related investigation that he overheard Tham, Fratianno, and Tommy Marson discussing an eye care plan that they were promoting with regard to unions on the West Coast. This discussion took place at a concert in Tarrytown, New York. Tham’s travel and entertainment expenses for this concert and trip to New York are the basis of one of the counts of the indictment before us.

Tham argues that Source Four’s information that he was discussing an eye care plan is exculpatory. He contends that if he was in fact discussing an eye care plan with Fratianno at this concert, he was spending union funds to benefit the union. Tham claims that it was crucial to his defense to have the opportunity to interview Source Four.

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Bluebook (online)
665 F.2d 855, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-michael-rudy-tham-ca9-1981.