United States v. Paul F. Polishan

336 F.3d 234, 61 Fed. R. Serv. 1276, 2003 U.S. App. LEXIS 14107, 2003 WL 21640791
CourtCourt of Appeals for the Third Circuit
DecidedJuly 14, 2003
Docket02-1325
StatusPublished
Cited by45 cases

This text of 336 F.3d 234 (United States v. Paul F. Polishan) 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. Paul F. Polishan, 336 F.3d 234, 61 Fed. R. Serv. 1276, 2003 U.S. App. LEXIS 14107, 2003 WL 21640791 (3d Cir. 2003).

Opinion

OPINION OF THE COURT

AMBRO, Circuit Judge.

Paul F. Polishan appeals his conviction on charges of conspiracy, securities fraud and other related offenses. He argues that the District Court erred in rulings relating to pre-trial discovery procedures and to the admission of evidence at trial. We hold that Polishan waived his right to appeal the rulings on pre-trial discovery procedures by failing to comply with the procedural requirements of a local rule and we find no error in the admission of evidence to which Polishan objects. Thus we affirm.

I. Factual Background

In 1987, Polishan became the Senior Vice President of Finance, Chief Financial Officer and Chief Accounting Officer of Leslie Fay Companies (LFC). Polishan ran Leslie Fay’s Hanover, Pennsylvania facility, supervising its financial operations and the employees involved in those operations. In January 1993, accounting irregularities at LFC came to light, for which LFC’s Corporate Controller and Polishan’s direct subordinate, Donald F. Kenia, initially claimed full responsibility. The LFC Board of Directors’ Audit Committee began an investigation. Two weeks later, during interviews conducted by attorneys and accountants retained by the Audit Committee, Kenia stated that Polishan had directed the illegal conduct. Kenia similarly implicated Polishan in subsequent interviews with federal law enforcement authorities.

In September 1993, the Audit Committee issued a 369-page report concluding that, because of unsupported entries in its ledgers, LFC had overstated by more than *238 $75 million its pre-tax net income for the years 1990-1992. As part of the investigation resulting in the issuance of that report, LFC President Babcock asked Roger Vallecorse, former Vice-President of Human Resources, to interview Polishan, Ke-nia, and the divisional controllers who worked under Polishan and Kenia. The Audit Committee Report did not conclude formally that Polishan participated in the fraud, but did detail the evidence that supported such a conclusion (including Kenia’s statements). In October 1994, Kenia pleaded guilty to charges relating to the making of false statements in financial statements submitted to the Securities and Exchange Commission (“SEC”).

II. Procedural History

In October 1996, a grand jury returned an indictment charging Polishan with, inter alia, conspiracy to falsify the books and records of LFC, the making of false statements in documents submitted to the SEC, securities fraud, bank fraud and wire fraud. Polishan was arraigned shortly thereafter.

A. Discovery

On November 26, 1996, the District Court appointed a Magistrate Judge to supervise discovery. The Government adopted an “open file” policy, whereby it made available to defense counsel all material in the Government’s possession, with the exception of privileged items and attorney work-product. Defense counsel had access to the room in the federal building where the file was located and permission to bring in a photocopier. Discovery was completed on December 15,1998.

On January 5, 1999, Polishan filed pretrial motions arguing, inter alia, that the “open file” policy of the Government had proved impractical. He requested relief in the form of continuing access to the discovery file and, to facilitate áceess, requested that the Court establish a supervised document depository where documents would be stored until trial. The Magistrate Judge rejected this request, concluding that Polishan was given adequate opportunities to conduct discovery.

Polishan also requested identification by the prosecution of material under Brady v. Maryland, 373 U.S. 83, 83 S.Ct. 1194, 10 L.Ed.2d 215 (1963). The Magistrate Judge concluded that “the Government has complied with its Brady obligations by providing a complete open file to the defendant for more than two years.”

B. Trial

While Polishan’s bench trial was initially scheduled for January 27, 1997, it began over three years later - on March 1, 2000. It continued for 35 days over four months. On July 5, 2000, the District Court found Polishan guilty of 18 of the 20 substantive counts. He filed post-verdict motions in August and September 2000. In those motions, he contended, for the first time, that the Magistrate Judge had erred in his rulings on Polishan’s pre-trial motions. On July 27, 2001, the District Court denied those motions. Thereafter Polishan was sentenced to nine years imprisonment, to be followed by three years of supervised release. This appeal followed. 1

III. Discussion

A. Discovery Procedures

Polishan argues that, by holding the Government satisfied its obligation to pro *239 duce documents, the District Court violated his rights under Brady and Federal Rule of Criminal Procedure 26.2. The District Court held that Polishan had waived his right to object to discovery procedures by failing to seek reconsideration of the discovery rulings of the Magistrate Judge prior to trial. 2 We agree.

28 U.S.C. § 686 authorizes a district court to appoint a magistrate judge to hear and decide both dispositive and non-dis-positive matters. For the former, the statute mandates a specific time within which objections are to be filed. 28 U.S.C. § 636(b)(1)(C) (authorizing “any party” to “serve and file written objections” within ten days of service of the findings and recommendations on dispositive motions). In contrast, § 636(b)(1)(A), which authorizes a magistrate judge to hear and decide pretrial non-dispositive matters, provides only that the district court judge “may reconsider any pretrial matter ... where it has been shown that the magistrate judge’s order is clearly erroneous or contrary to law,” without specifying particular procedures for that reconsideration.

In all federal civil cases, Federal Rule of Civil Procedure 72(a) requires a party to serve and file objections to a magistrate judge’s ruling on a “pretrial matter not dispositive of a claim or defense” of any party “[wjithin 10 days after being served with a copy of the magistrate judge’s order,” and that “a party may not thereafter assign as error a defect in the magistrate judge’s order to which objection was not timely made.” There is no analogue to this rule in the Federal Rules of Criminal Procedure, but we have noted “the legislative history indicates that procedures are to be established by local rules.” United Steelworkers of Am. v.

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Bluebook (online)
336 F.3d 234, 61 Fed. R. Serv. 1276, 2003 U.S. App. LEXIS 14107, 2003 WL 21640791, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-paul-f-polishan-ca3-2003.