United States v. Moeller

80 F.3d 1053, 1996 WL 162080
CourtCourt of Appeals for the Fifth Circuit
DecidedApril 9, 1996
Docket93-08894
StatusPublished
Cited by9 cases

This text of 80 F.3d 1053 (United States v. Moeller) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth 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. Moeller, 80 F.3d 1053, 1996 WL 162080 (5th Cir. 1996).

Opinion

DeMOSS, Circuit Judge:

Defendants Mike Moeller, Peter McRae and Billie Quicksall were convicted on multiple counts of bribery, misapplication of state funds, and a single count of conspiracy to commit those unlawful acts. Defendants appeal their convictions, challenging the sufficiency of the evidence, the admission of certain evidence, and the prosecution’s exercise of peremptory strikes against minority jurors. The government cross-appeals, challenging the district court’s application of the sentencing guidelines. We affirm the district court on the issues raised by the defendants’ appeal. We affirm in part, and vacate in part, and remand on the points raised by the government’s cross-appeal.

I. BACKGROUND

This appeal concerns allegations of deep-rooted corruption in the Texas Department of Agriculture (TDA) and the Texas Federal Inspection Service (TFIS). Defendants Mike Moeller, Peter McRae and Billie Quicksall are all former officials of those Texas agencies. The government charged that Moeller, McRae and Quicksall misused their positions with TDA and TFIS by authorizing the award of publicly-funded sham contracts to political consultants Robert Boyd and Russell Koontz. 2 This allegation forms the heart of the counts alleging that the defendants misapplied state agency funds. 18 U.S.C. § 666(a)(1)(A) (prohibiting intentional misapplication of state funds by state officials). The government further charged that the defendants either (1) awarded the sham contracts to Boyd and Koontz to compensate Boyd and Koontz for raising political contributions to support the political campaigns of Moeller, and then later, Texas Commissioner of Agriculture Jim Hightower, or (2) that the campaigning and resulting contributions were a kickback for the illicit contracts. This allegation forms the heart of the bribery counts. 18 U.S.C. § 666(a)(1)(B) (prohibiting state officials from accepting or agreeing to accept anything of value with the intent to be rewarded or influenced in connection with any state agency transaction or series of transactions). 3

From 1985 until 1990 defendant Moeller was the second in command at TDA, serving as deputy commissioner under then Commissioner of Agriculture Jim Hightower. Defendant McRae worked closely with Moeller, holding positions as Moeller’s special assistant at TDA, and as the associate director of *1056 TFIS. 4 Defendant Quicksall also worked for Moeller, holding various positions at both TDA and TFIS.

In the summer of 1987, defendant Mike Moeller decided to “test the waters” to determine whether he could successfully mount a campaign to replace then Texas Commissioner of Agriculture Jim Hightower, who was at that time considering a campaign for a congressional seat. Moeller, McRae, Quicksall, and several other TDA or TFIS officials, met on several occasions at an Austin restaurant for the purpose of planning a strategy. One approach discussed was the formation of a political action committee (PAC) to enhance Moeller’s name recognition. In this regard, Moeller met with Harold Bob Bennett in August 1987. Bennett testified that the idea of a PAC to support Moeller’s campaign was “definitely a concept at that time.”

Shortly thereafter, a PAC dubbed Building Texas Agriculture (BTA or BTA PAC) was formed. Multiple witnesses testified that the purpose of the PAC was to gather a war chest for Moeller’s potential campaign. BTA literature listed Moeller as the PAC’s founder. McRae opened the BTA bank accounts, made deposits, and was authorized to spend the PAC funds. Moeller’s secretary, Nelda Trevino, kept the checks and financial records of BTA. Moeller himself conceded at trial that the BTA PAC became a vehicle for reimbursing his political expenses.

Moeller, McRae and Quicksall were all familiar with political consultants Robert Boyd and Russell Koontz. Boyd and Koontz, both former TDA officials, have been involved in Texas agriculture, and particularly in the politics of Texas agriculture, for several decades. Beginning in the fall of 1987, Boyd and Koontz became actively involved in soliciting contributions to the BTA PAC for Moeller’s benefit. Boyd’s address was listed as the BTA PAC’s mailing address. In June 1988, the same parties formed a non-profit corporation, the Building Texas Agriculture Education Fund, which was also intended to enhance Moeller’s name recognition, and they began soliciting contributions for that organization as well. Multiple donors testified that they considered contributions to either the PAC or the education fund to be political contributions to Moeller’s potential campaign. Funds contributed to the two BTA funds were sometimes commingled.

Between August 1987 and May 1990, Moel-ler, McRae and Quicksall also used their positions at TDA or TFIS to issue, approve or administer a series of consulting contracts in favor of Boyd and Koontz. Those contracts totalled in excess of $170,000. Multiple witnesses provided credible testimony that the work required by those contracts was either redundant or unnecessary, that the work was never performed, or that the contracts required consultation on matters beyond the jurisdiction of the contracting agency. The defendants themselves testified only that the work performed under the contracts involved oral discussions about the subject matter of the particular’ contract, and visits with TDA and TFIS regulated businesses, and banks in which TFIS proposed to deposit funds.

There is no dispute that Boyd and Koontz were actively engaged in furthering Moeller’s campaign. The record contains overwhelming evidence that the primary purpose of the trips taken by Boyd and Koontz was political. Throughout 1988, Quicksall, with the knowledge of Moeller and McRae, visited TDA and TFIS regulated businesses accompanied by Boyd, and on some occasions by Koontz. Boyd and Koontz financed some of those trips with agency funds furnished under their TDA and TFIS consulting contracts. Numerous witnésses testified that Quicksall usually began these visits with agency business, but that the talk quickly turned to the subject of political contributions. Campaign contributions were similarly elicited firom TDA and TFIS employees, and officers of banking institutions in which TFIS proposed to deposit funds. Multiple donors testified that they felt compelled to choose between making a political contribution and receiving unfavorable treatment by TDA or TFIS.

*1057 In January 1989, Jim Hightower announced that he would not seek national office, and that he would instead seek another term as Texas Commissioner of Agriculture. From January 1990 until at least May 1990, while Boyd and Koontz were still operating under contracts awarded or administered by the defendants in this case, Boyd and Koontz solicited campaign contributions for Hightower’s campaign using similar tactics.

Defendant Mike Moeller was convicted on one count of misapplication of state funds, in violation of 18 U.S.C. § 666

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Cite This Page — Counsel Stack

Bluebook (online)
80 F.3d 1053, 1996 WL 162080, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-moeller-ca5-1996.