United States v. Morrow

39 F.3d 1228, 41 Fed. R. Serv. 648, 1994 U.S. App. LEXIS 31262, 1994 WL 605979
CourtCourt of Appeals for the First Circuit
DecidedNovember 9, 1994
Docket93-1463, 93-1477 and 93-1635
StatusPublished
Cited by37 cases

This text of 39 F.3d 1228 (United States v. Morrow) is published on Counsel Stack Legal Research, covering Court of Appeals for the First 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. Morrow, 39 F.3d 1228, 41 Fed. R. Serv. 648, 1994 U.S. App. LEXIS 31262, 1994 WL 605979 (1st Cir. 1994).

Opinion

BOUDIN, Circuit Judge.

This automobile fraud case poses a tricky issue in conspiracy law that may not have been clearly addressed in this circuit. We conclude that some evidence may have been admitted at trial against both appellants that was admissible only against one of the two, but we also find that the error was clearly harmless. Rejecting all other claims of error, we affirm.

I.

In March 1992, a federal grand jury indicted the two appellants — Charles Morrow and Jacob Nevcherlian — together with Rodney Andreoni, Vito DeLuca and Randal Lane for conspiracy to commit mail fraud. 18 U.S.C. § 371. Nevcherlian was also charged with two substantive violations of the mail fraud statute, 18 U.S.C. § 1341, and Morrow was similarly charged with one such violation.

DeLuca, Andreoni and Lane pled guilty. Morrow and Nevcherlian were tried together in January 1993. At trial, the government’s chief witness was FBI agent Gary Brotan, who had pretended to participate in the scheme. His extensive testimony was supplemented by documents and by recordings of certain of the conversations among the indicted defendants. The government’s evidence, if believed, tended to show the following.

In early 1991, the FBI began investigating a possible case of automobile insurance *1232 fraud. A confidential informant, Mark Ver-milyea, introduced Brotan to Andreoni in March 1991. Andreoni was self-employed as an insurance adjustor. Brotan posed as Ver-milyea’s cousin from Boston and colleague in the subsequent activities. Andreoni described to Brotan how to conduct an insurance fraud scheme involving old but valuable “classic” ears.

Andreoni proposed that Brotan acquire from DeLuca a 1975 Corvette which had been used in prior frauds. It was suggested that Brotan or Vermilyea insure a less expensive car and then substitute the Corvette on the policy. The insured then would file a claim based on an alleged accident involving the Corvette, and shortly thereafter report the car stolen and collect again, presumably from a different insurer. The accident or loss had to be staged within three days of the purported acquisition of the car so that it would not be necessary to register the vehicle in Rhode Island or pay the state sales tax on the acquisition.

About ten days after the initial conversation, Andreoni introduced Brotan to DeLuca. Brotan made a $4,000 down payment to De-Luca to purchase a 1975 Corvette for $10,-000. Although the car belonged to DeLuca, DeLuca had previously registered the car in Florida under Nevcherlian’s name and with Nevcherlian’s consent. DeLuca gave Brotan a receipt and a copy of the title purportedly signed by Nevcherlian. Several weeks later, in April 1991, Brotan paid the $6,000 balance to DeLuca and received from him a bill of sale, again purportedly signed by Nevcherli-an, showing a spurious purchase price of $21,000.

In May 1991, Andreoni offered to stage an accident in which he backed his car into the 1975 Corvette in exchange for payment of $750. In June 1991, Andreoni notified his own insurer, Travelers Insurance Company, that such an accident had occurred on June 7. Shortly thereafter, Andreoni gave DeLu-ca a loss form sent to Andreoni by Travelers and Andreoni asked DeLuca to send it to Nevcherlian in case Nevcherlian, as the listed prior owner, was questioned by the insurance company.

On July 26, 1991, DeLuca, Andreoni, Nevcherlian, Brotan and Vermilyea met at DeLuea’s home. Nevcherlian was not in the room at the outset of the discussion. Brotan asked that a new receipt for the down payment for the Corvette be prepared and re-dated June 3, 1991, to bring it close to the alleged June 7 accident. Brotan also asked that a new bill of sale be dated August 1, 1991, to cover a separate claim for the theft of the vehicle scheduled for August 2, 1991.

After this discussion, Nevcherlian joined the meeting and was introduced as the prior owner of the car. Thereafter, the question arose whether the Corvette’s hard top should also be reported as stolen, Vermilyea saying that it would be strange to claim that the hard top was being used in August. Nevch-erlian suggested that Vermilyea tell the insurance company that the car had air conditioning to explain the use of the hard top, and he farther suggested that it could be falsely claimed that the ear had a stereo system worth $1,000. Nevcherlian also suggested giving a false purchase price of $25,-000 on the new bill of sale to be dated August 1, 1991.

On August 1, Travelers sent Vermilyea a check for just under $5,000 to cover the supposed June 7 accident and, on the same date, Vermilyea substituted the 1975 Corvette for another car on his own insurance policy. The following day he reported to the Narraganset police that the 1975 Corvette had been stolen. Shortly thereafter, Nevch-erlian was contacted in Florida by telephone by a Narraganset police detective and he told the detective that he had sold the car a few years earlier but lacked details; in September 1991, Nevcherlian called the police department and told a sergeant that he had sold the 1975 Corvette to Vermilyea for $25,-000. In response to a request for the paperwork, Nevcherlian then mailed a copy of the Florida title certificate to the Narraganset police.

In the meantime, a second fraudulent transaction was in preparation. On August 5, 1991, DeLuca introduced Brotan to Morrow, who was the owner of a car dealership in Rhode Island and apparently a business partner of DeLuca in other ventures. Morrow agreed to sell Brotan a 1958 Corvette for $15,000; Brotan explained how he intended *1233 to use it in an insurance fraud. Brotan then made a $10,000 down payment; Morrow said he could not release the car at once because he himself had a pending insurance claim relating to the car.

Later in August, Brotan took the 1958 Corvette to Lane’s garage in New Hampshire; Lane agreed to strip the vehicle, have it found after Brotan reported it stolen, and then after insurance inspection replace the original parts, all in exchange for a fee of $2,500. In September 1991, after discussion of the planned fraud, Brotan gave Morrow $5,000 — the balance of the $15,000 purchase price — and Morrow gave Brotan the title certificate and an undated bill of sale showing a fictitious purchase price of $28,500.

On October 4,1991, Brotan reported to the Manchester, New Hampshire, police that the 1958 Corvette had been stolen and later that month received claim forms from Aetna Insurance Company for Brotan’s claim for the alleged theft and stripping of the 1958 Corvette. DeLuca had earlier given Brotan a bill of sale for another ear that Brotan did not own but proceeded to insure so that the 1958 Corvette could be substituted on the policy prior to filing the claim on the Corvette. Morrow subsequently advised an Aet-na investigator that he had sold the 1958 Corvette to Brotan on October 8, 1991, for $28,500.

In his own defense, Neveherlian denied complicity in any plot and testified that he had registered the 1975 Corvette in Florida as a favor to DeLuca.

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

Related

United States v. Abdelaziz
68 F.4th 1 (First Circuit, 2023)
United States v. Chan
352 F. Supp. 3d 54 (District of Columbia, 2018)
United States v. Tavares
844 F.3d 46 (First Circuit, 2016)
United States v. Monserrate-Valentin
729 F.3d 31 (First Circuit, 2013)
United States v. Franco-Santiago
681 F.3d 1 (First Circuit, 2012)
United States v. Hebshie
549 F.3d 30 (First Circuit, 2008)
United States v. Morales-Machuca
546 F.3d 13 (First Circuit, 2008)
United States v. Mubayyid
567 F. Supp. 2d 223 (D. Massachusetts, 2008)
United States v. Trainor
477 F.3d 24 (First Circuit, 2007)
United States v. Pimental
380 F.3d 575 (First Circuit, 2004)
In Re Lupron® Marketing & Sales Practices Litigation
295 F. Supp. 2d 148 (D. Massachusetts, 2003)
Sawyer v. United States
239 F.3d 31 (First Circuit, 2001)
United States v. LiCausi
First Circuit, 1999
United States v. Charles Marzano and Daniel Marzano
160 F.3d 399 (Seventh Circuit, 1998)
United States v. Josleyn
99 F.3d 1182 (First Circuit, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
39 F.3d 1228, 41 Fed. R. Serv. 648, 1994 U.S. App. LEXIS 31262, 1994 WL 605979, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-morrow-ca1-1994.