United States v. Montecalvo

861 F. Supp. 2d 110, 2012 U.S. Dist. LEXIS 71607, 2012 WL 1862381
CourtDistrict Court, E.D. New York
DecidedMay 21, 2012
DocketNo. 05-CR-924 (ADS)
StatusPublished
Cited by2 cases

This text of 861 F. Supp. 2d 110 (United States v. Montecalvo) 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. Montecalvo, 861 F. Supp. 2d 110, 2012 U.S. Dist. LEXIS 71607, 2012 WL 1862381 (E.D.N.Y. 2012).

Opinion

MEMORANDUM OF DECISION AND ORDER

SPATT, District Judge.

Presently before the Court is a motion by the Defendant, John Montecalvo, to dismiss the indictment and all charges against him, with prejudice, for violation of the Speedy Trial Act. Montecalvo’s [112]*112charges arise from a bid-rigging scheme to artificially inflate prices and manipulate the awarding of publicly-funded contracts to repair and resurface roads in Suffolk County. For the reasons set forth below, the Defendant’s motion is granted.

I. BACKGROUND

A. Factual Background

Montecalvo is associated with Montecalvo Asphalt Paving Corporation, which lays down asphalt that is manufactured by another company, John T. Montecalvo, Inc. Between July 2003 and September 2005, a group of individuals attempted to gain control of bidding on publicly-funded road repaving projects on Long Island. Montecalvo is alleged to have engaged in collusive conduct with these individuals, with the goal of rigging two separate projects: (1) a contract for the Suffolk County Department of Public Works (“SCDPW”) (“the Suffolk County Contract”); and (2) a contract for the Town of Brookhaven’s Division of Purchasing (“the Brookhaven Contract”).

With regard to the Suffolk County Contract, the goal of the conspiracy was to obtain the paving work for William Fehr, Jr. and William Fehr, Sr. The Fehrs allegedly convinced other paving contractors, such as Montecalvo, to either refrain from bidding or to put in higher bids for the work. In exchange, the Fehrs promised to help Montecalvo and another paver, James Haney, to obtain work on the alternative project, the Brookhaven Contract. However, this plan ultimately failed, as the Fehrs were not awarded work on the Suffolk Contract. Instead, William Lyons, an eventual cooperating witness with the Government and his partner, Robert Garone, were awarded the contract.

With regard to the Brookhaven Road Repair Contract, Montecalvo and Haney allegedly agreed with the Fehrs that Montecalvo and Haney would share portions of the road contract as part of the conspiracy. On July 15, 2005, this plan proved to be successful as Montecalvo and Haney were awarded portions of the Brookhaven Contract. However, the contract was rebid on September 27, 2005, and thus the contract was ultimately awarded to the Fehrs’ company.

There is some dispute as to Montecalvo’s involvement and culpability in connection with the collusion surrounding the two contracts. The Defendant stresses that he was a reluctant participant in the whole scheme and that his involvement was merely a reaction to threatening behavior by the Fehrs. {See Def. Mem. at 4 (“In order to pressure Mr. Montecalvo to participate in these illegal discussions, the Fehrs told Mr. Montecalvo that they could withstand any price war, and that they could drive him out of business through predatory pricing.”).) According to the Government, a recorded conversation reveals that Montecalvo was an active and willing member of the cartel as far back as 2004 and that the evidence indicates that Montecalvo intended to conspire with the other co-defendants. However, as will be set forth in more detail below in connection with the relevant legal standard, the strength of the Government’s case and the Defendant’s ultimate culpability is not relevant for the purposes of the present motion.

Montecalvo was arrested on November 23, 2005. Prior to his indictment, Montecalvo met with the Assistant United States Attorney (“AUSA”) assigned to the case and provided a complete and arguably remorseful account of his involvement in the collusive conduct. On December 16, 2005, Montecalvo was indicted along with nine other individual and corporate defendants for two counts of mail fraud conspiracy, in violation of 18 U.S.C. § 1341. Montecalvo was charged with conspiring with each of [113]*113the co-defendants to defraud the SCDPW and Brookhaven in a scheme to rig the bidding process for publicly-funded construction projects that were meant to be competitively awarded.

Throughout 2006, Nicholas Kaizer, Esq., Montecalvo’s attorney at the time, engaged in plea negotiations with the assigned AUSA. In or about May 2006, an initial cooperation agreement was drafted and forwarded to Kaizer, along with a financial disclosure affidavit. The Government claims that it was assured by defense counsel that Montecalvo was prepared to enter a guilty plea upon completion of the financial disclosure affidavit. On May 16, 2006, Kaizer emailed the AUSA and wrote: “John Montecalvo informs me that although he is working on the financial affidavit, it will take him two weeks to assemble the required documentation to faithfully be completed.” However, according to the Government, Montecalvo also began to seek supervisory approval from the Government for a deferred prosecution agreement rather than a guilty plea, because a felony conviction would affect his ability to maintain corporate sponsorship for his car racing business. The Government claims that Kaizer informed them that only if the deferred prosecution option was rejected, would Montecalvo be willing to go forward and enter a guilty plea. Time was excluded under the Speedy Trial Act through December 18, 2006.

Ultimately, the Government did not agree to a deferred prosecution. In December 2006, the AUSA again sent a proposed cooperation agreement to Montecalvo’s attorney, in response to which he suggested modifications. The AUSA then responded by e-mail that she needed to have the changes reviewed by the other AUSAs, who would then contact defense counsel.

According to Montecalvo, he never received any further response from the Government and that in the ensuing four years, there was no further contact between the U.S. Attorney’s Office and counsel for the Defendant. The Government, on the other hand, claims that there were sporadic communications between the U.S. Attorney’s Office and defense counsel, but that these oral conversations all took place over the phone and for that reason cannot demonstrate any evidence of these exchanges. Thus, although there is a factual dispute as to whether any oral discussions took place during this approximate four year period, there certainly is, as defense counsel described at oral argument, a seeming four year “black hole” during which the case did not progress.

By late 2009, Montecalvo had retained his current counsel, Patricia A Pileggi, Esq. of Schiff Hardin LLP. On December 10, 2010, the Defendant’s counsel contacted the Government to request its consent to a dismissal of the indictment with prejudice. Over the course of 2011, written exchanges and meetings took place in pursuit of that goal. The Government remained willing to extend a cooperation agreement to the Defendant. However, on January 18, 2012, the Government informed the Defendant’s counsel that it would not consent to a dismissal with prejudice.

B. Procedural History

On March 26, 2012, the Defendant filed the present motion to dismiss the indictment with prejudice. On April 26, 2012, the government filed its opposition. On May 4, 2012, the Defendant filed a reply. Oral argument was heard on May 18, 2012.

II. DISCUSSION

A. The Speedy Trial Act

The Defendant moves to dismiss the indictment against him, with prejudice, [114]

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Cite This Page — Counsel Stack

Bluebook (online)
861 F. Supp. 2d 110, 2012 U.S. Dist. LEXIS 71607, 2012 WL 1862381, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-montecalvo-nyed-2012.