United States v. Ratcliff

CourtCourt of Appeals for the Fifth Circuit
DecidedAugust 13, 2007
Docket05-30666
StatusPublished

This text of United States v. Ratcliff (United States v. Ratcliff) 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. Ratcliff, (5th Cir. 2007).

Opinion

REVISED August 13, 2007

IN THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT United States Court of Appeals Fifth Circuit

FILED May 31, 2007 No. 05-30666 Charles R. Fulbruge III Clerk UNITED STATES OF AMERICA

Plaintiff - Appellant - Cross-Appellee

v.

BARNEY DEWEY RATCLIFF, JR

Defendant - Appellee - Cross-Appellant

Appeal from the United States District Court for the Middle District of Louisiana, Baton Rouge

Before KING, GARZA, and PRADO, Circuit Judges.

KING, Circuit Judge:

Defendant-appellee-cross-appellant Barney Dewey Ratcliff,

Jr. was charged by indictment with fourteen counts of mail fraud,

in violation of 18 U.S.C. § 1341, based on alleged activities

involving election fraud in Louisiana. The district court

granted Ratcliff’s motion to dismiss the counts, concluding that

the indictment did not allege a scheme to defraud anyone of money

or property, thereby failing to state the offense of mail fraud

under § 1341. The United States now appeals, arguing that a

scheme to obtain the salary and employment benefits of elected

1 office through election fraud satisfies the requirements of the

mail fraud statute. We AFFIRM.1

I. FACTUAL AND PROCEDURAL BACKGROUND

Livingston Parish, Louisiana, operates under a home rule

charter providing that its citizens elect a parish president for

a four-year term. See LA. CONST. art. VI, § 5; LIVINGSTON PARISH HOME

RULE CHARTER § 3-02. In 1999, Ratcliff was the incumbent

Livingston Parish president and a candidate for reelection.

Candidates for public office in Louisiana must abide by the

provisions of Louisiana’s Campaign Finance Disclosure Act

(“CFDA”), LA. REV. STAT. ANN. §§ 18:1481-:1532. The CFDA prohibits

any candidate for parishwide elective office, including the

parish presidency, from receiving contributions, loans, or loan

guarantees in excess of $2500 from any individual. Id. §§

18:1483(7)(b), :1505.2(H). Candidates must also file campaign

finance disclosure reports with the Louisiana Board of Ethics

(the “Board” or “Board of Ethics”). Id. § 18:1484. The reports

are to detail all campaign contributions, loans, loan guarantors,

and expenditures. Id. § 18:1495.5.

According to the indictment, Ratcliff obtained several loans

violative of the CFDA from September to November 1999. On

September 23, 1999, Ratcliff obtained a $50,000 bank loan for the

1 Because we affirm the dismissal of Ratcliff’s indictment,

we do not address his cross-appeal, as it is moot.

2 purpose of financing his reelection campaign. Ratcliff had

insufficient income and assets to qualify for the loan, and a

local businessman with sufficient assets served as cosigner. One

week later, on October 7, Ratcliff obtained another $50,000 loan

with the same businessman as cosigner. The cosigner also

assigned a $50,000 certificate of deposit as collateral.

On October 12, Ratcliff filed with the Board of Ethics a

campaign finance disclosure report in which he disclosed the

first loan and the businessman’s guarantee of that loan. On

October 19, a staff member of the Board advised Ratcliff that the

businessman’s guarantee possibly violated the CFDA. In response,

Ratcliff informed the Board that he had instructed the bank to

prepare new loan documents for his signature alone.

On October 22, Ratcliff obtained two new loans to pay off

the loans that had been improperly guaranteed by the businessman.

The indictment charges that the new loans were secured by a

pledge of $99,000 in cash, supplied by one of Ratcliff’s wealthy

supporters who had a financial interest in the transfer of a

permit for operation of a landfill in Livingston Parish to Waste

Management, Inc. (“Waste Management”). The transfer, which was

allegedly supported by Ratcliff, was a major election issue.

Ratcliff obtained another $50,000 loan on November 3, allegedly

secured by a pledge of $55,000 in cash supplied by the same

wealthy supporter. The indictment asserts that Ratcliff knew

that his receipt of the cash for all three loans violated the

3 $2500 individual loan limitation and that he did not report it in

his campaign finance disclosure reports.

Ratcliff was reelected as parish president on November 20.

During the course of the campaign, Ratcliff had contracted with a

political consultant to help with his reelection bid, and by the

time of the election, Ratcliff owed the consultant over $57,000.

On November 22, a Waste Management lobbyist allegedly gave

Ratcliff approximately $44,000 in cash for Ratcliff’s political

consultant to hold as collateral until Ratcliff paid the

consultant the money owed. The indictment alleges that Ratcliff

knew that his use of the cash to secure a campaign debt violated

the $2500 statutory limitation and that Ratcliff did not disclose

the illegal loan in his campaign finance disclosure reports.

In addition to Ratcliff’s failure to report the amount and

source of certain cash and loans he received, he allegedly misled

the Board of Ethics during its investigation of his activities.

Specifically, the indictment alleges that Ratcliff falsely

represented that he had the creditworthiness to obtain the

original loans on September 23 and October 7, 1999, without a

cosigner and that the replacement loans were obtained on the

basis of his independent creditworthiness. And despite requests

from the Board for information on his use of collateral to secure

the replacement loans, Ratcliff allegedly failed to disclose that

the collateral was borrowed cash. The indictment also asserts

that Ratcliff used the mails to submit a campaign finance

4 disclosure report and two letters concerning the ethics

investigation to the Board of Ethics, as well as to receive the

financial benefits of office.

After Ratcliff’s reelection as parish president, Ratcliff

served in office from January 10, 2000, to January 12, 2004.

During this term, Ratcliff allegedly received over $300,000 in

salary and employment benefits from the parish.

On November 3, 2004, Ratcliff was charged by indictment with

fourteen counts of mail fraud and one count of making a false

statement to a financial institution.2 With regard to the mail

fraud counts, the Government alleged that Ratcliff used the mails

in a scheme to defraud Livingston Parish of the salary and

employment benefits of elected office through misrepresentations

he made to the Board of Ethics concerning the financing of his

campaign. According to the Government, Ratcliff secured his

reelection as parish president by obtaining the illegal funding

and concealing his violations from the Board of Ethics.

On March 1, 2005, Ratcliff filed a motion to dismiss the

mail fraud counts. After hearing oral argument on the motion,

the district court granted the motion on May 23. The Government

appealed.

II. DISCUSSION

2 The count involving a false statement to a financial

institution is not at issue in this appeal.

5 The Government contends that Ratcliff’s indictment

sufficiently charged the offense of mail fraud because the salary

and employment benefits of elected office constitute “money or

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