United States v. Quinn

CourtCourt of Appeals for the Fourth Circuit
DecidedMarch 4, 2004
Docket02-4753
StatusPublished

This text of United States v. Quinn (United States v. Quinn) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth 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. Quinn, (4th Cir. 2004).

Opinion

PUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

UNITED STATES OF AMERICA,  Plaintiff-Appellee, v.  No. 02-4753 CLIFFORD J. QUINN, Defendant-Appellant.  UNITED STATES OF AMERICA,  Plaintiff-Appellee, v.  No. 02-4762 JAN P. BLANTON, Defendant-Appellant.  Appeals from the United States District Court for the District of Maryland, at Greenbelt. Alexander Williams, Jr., District Judge. (CR-00-275-AW)

Argued: December 3, 2003

Decided: March 4, 2004

Before MICHAEL, TRAXLER, and SHEDD, Circuit Judges.

Affirmed in part, vacated in part, and remanded by published opinion. Judge Shedd wrote the opinion in which Judge Michael and Judge Traxler joined. 2 UNITED STATES v. QUINN COUNSEL

ARGUED: Robert Charles Bonsib, MARCUS & BONSIB, Green- belt, Maryland, for Appellant Quinn; Michael Joseph, BLANK ROME, L.L.P., Washington, D.C., for Appellant Blanton. Bonnie S. Greenberg, Assistant United States Attorney, Greenbelt, Maryland, for Appellee. ON BRIEF: Alex Blanton, BLANK ROME, L.L.P., Washington, D.C., for Appellant Blanton. Thomas M. DiBiagio, United States Attorney, Sandra Wilkinson, Assistant United States Attorney, Greenbelt, Maryland, for Appellee.

OPINION

SHEDD, Circuit Judge:

A grand jury indicted Clifford Quinn, Jan Blanton, and Christopher Beisler on two counts of soliciting a bribe, three counts of conflict of interest, two counts of "honest services" wire fraud, and one count of conspiracy to defraud the government. Beisler pled guilty and agreed to testify against Quinn and Blanton. After a three-week trial, the jury found Quinn guilty on all counts and Blanton guilty on all counts but one. The district court sentenced Quinn and Blanton each to 87 months’ imprisonment and a $15,000 fine. Quinn and Blanton timely appealed, challenging their convictions on the two bribery counts and their sentences. For the reasons that follow, we affirm the convictions but vacate the sentences and remand the case for resentencing.

I.

From 1994 to 1998, Blanton served as Director of the Executive Office for Asset Forfeiture ("EOAF"), the agency within the Depart- ment of the Treasury responsible for administration of the Treasury Forfeiture Fund.1 Various law enforcement agencies within the Trea- 1 Because Quinn and Blanton appeal from judgments of conviction, we view the facts in the light most favorable to the government. See United States v. Glasser, 315 U.S. 60, 80 (1942); United States v. Burgos, 94 F.3d 849, 862-63 (4th Cir. 1996). UNITED STATES v. QUINN 3 sury Department deposit non-tax forfeited assets into this fund. Among other things, the monies deposited in the Treasury Forfeiture Fund may be used to finance internal EOAF projects. In the spring of 1997, Blanton hired her paramour, Quinn, to oversee the operation of EOAF’s asset forfeiture tracking systems. Shortly after assuming his duties at EOAF, Quinn requested and Blanton approved a no-bid con- tract for Quinn’s friend Beisler to repair a computer system that had been installed only a month earlier. Quinn set the price of this con- tract at $50,000; Beisler completed the work in two nights.

At about the same time, Quinn began discussing with Beisler a business venture, later known as Equus, to develop asset tracking software for use by federal, state, and local law enforcement agencies. State and local law enforcement agencies may make claims against the Treasury Forfeiture Fund for shares of certain forfeited assets held in the fund, and Quinn asked Beisler to write software for Equus that would allow state and local officials to manage their asset tracking information requests to the federal government. Quinn suggested that the new business be funded by monies that Beisler would receive from EOAF contracts. While Quinn and Beisler maintained this pro- spective business arrangement, Quinn and Blanton approved two more no-bid contracts for Beisler, one for $50,000 and another for $24,500.

Shortly after Beisler began his work at EOAF, Quinn began dis- cussing his goal of fully automating the office. Quinn’s experience in government offices convinced him that the existing programs were wasteful and inadequate. At the same time, Quinn saw an opportunity to profit from his Equus applications. According to Beisler, Quinn estimated that they could make between $30 million and $60 million from Equus once the EOAF office was fully automated. Quinn could "wire up these contracts" so Beisler would do the work; Quinn would then quit his government job and go to work for Beisler.

In July and August 1997, Quinn and Blanton approached Counter Technology, Inc. ("CTI") to discuss a contract for the full automation of the EOAF system. At a July 24 meeting, Quinn presented a busi- ness plan for a joint venture between CTI and Equus. This presenta- tion included slides describing potential applications of Equus software to EOAF functions and prices for Equus products. The pric- 4 UNITED STATES v. QUINN ing schedule made reference to fully automated versions of Equus products designed to interact with "mirror capabilit[ies]" at EOAF and other government agencies. Quinn’s presentation also covered the estimated costs of the EOAF automation project. A week after this initial meeting, Quinn faxed CTI a letter proposing a "joint venture between Equus and CTI" to market the new software. Equus would produce the software and provide technical expertise, while CTI would handle marketing. Quinn stated that EOAF intended to award a contract for development of an automated system in October 1997; he further proposed that he "manage this effort from the private sec- tor."

Quinn and Blanton subsequently had dinner at the home of CTI’s principals. At this meeting, Quinn again promoted his Equus software and Blanton indicated that she wanted to award a no-bid contract to CTI for the automation of the EOAF system. Blanton told CTI that this contract would be worth more than $4 million and that she would structure the deal in a manner that would satisfy applicable contract- ing rules.

A few days after this dinner meeting, Quinn faxed CTI another document indicating specific terms for the proposed joint venture. Quinn proposed that he "come to work as an employee of CTI with a base salary of $125,000; management of any federal procurement utilizing the design of any of the Equus packages; . . . 40% of the net revenues of any procurement utilizing the Equus applications; person- nel authority over any application managed; [and] management of any application as a profit center with performance bonuses tied to profit- ability." In a subsequent telephone conversation with one of CTI’s principals, Blanton stated that she wanted Quinn to be the project manager for the automation project once CTI was awarded the con- tract. Blanton told one CTI official that CTI needed to hire Quinn so she could "sustain her lifestyle."

Hoping to avoid a conflict with Blanton, CTI made no response concerning the automation contract. CTI soon learned that Blanton was removing CTI employees from work details at EOAF and com- plaining to other government officials about CTI’s work. When another government official asked CTI what was causing these new complaints, a CTI representative suggested that Blanton was upset UNITED STATES v. QUINN 5 because CTI was dragging its feet on the automation contract pro- posal. Blanton did not award the automation contract to CTI.

Blanton continued her search for a contractor to automate the EOAF office. In September 1997, she approved a procurement request for the automation project, then valued at $10 million. Quinn and Blanton specifically requested that Beisler perform the automa- tion work.

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