United States v. Ratliff

63 F. App'x 192
Court of Appeals for the Sixth Circuit·Decided April 10, 2003·No. No. 01-6146·Published·Cited by 6 cases

Opinion

PER CURIAM.

This appeal follows a jury trial and conviction of Defendant/Appellant Donnie Ratliff (“Defendant”) for mail fraud in violation of 18 U.S.C. § 1341. Defendant’s appeal raises three issues: (1) whether the trial court erred in denying the jury’s request to end deliberations for the day; (2) whether the trial court erred in excluding evidence of Defendant’s businesses’ profits as irrelevant; and (3) whether the trial court erred in sentencing Defendant by applying an enhancement for “more than minimal planning.” For the reasons stated below, Defendant’s conviction and sentence are AFFIRMED.

I.

Defendant designed a scheme to trick Kentucky Employers Mutual Insurance Company (“KEMI”) into issuing Defendant’s trucking company underpriced workers compensation insurance. In 1996, Defendant applied for workers’ compensation insurance from KEMI through an independent agent, Ann Ewers. He filled out an application in the name of “Donnie Ratliff Trucking Inc.,” and swore that his estimated payroll would be $3,300, that he did not haul coal, and that he would not be using subcontractors or outsourced em[194] ployees to perform his hauling. Ms. Ewers submitted the application to KEMI through the mail.

Defendant owned and operated three businesses as a sole proprietor: Cowboy’s Truck Service (“Cowboy’s”), Donnie Ratliff Trucking (“Ratliff’), and Patrick Trucking. The primary purpose of Cowboy’s Truck Service was to service the trucks used in the hauling businesses. The other businesses hauled rock, coal, and a coal industry byproduct called “gob,” primarily for Mountain Enterprises and Branham & Baker. At Defendant’s trial, the government presented testimony showing that Ratliff provided over $500,000 worth of hauling business to Mountain Enterprises and Branham & Baker. Defendant’s customers would hire and pay Ratliff, but Defendant instructed his bookkeeper, Ms. Clevinger, to transfer funds between company accounts every pay period and to pay most of the employees through Cowboy’s. As a result, the total payroll paid out of Ratliff for the relevant three years was $25,752.00, and the total payroll paid out of Cowboy’s was $424,067.

At the end of the first year of coverage, a KEMI underwriter increased the premium after noting the number of drivers Defendant had disclosed on the application and concluding that the payroll must have been larger than Defendant represented. Defendant complained about the increased premium to Ms. Ewers, and instructed Ms. Clevinger to prepare and sign a letter reaffirming Ratliffs low payroll. KEMI decreased the premium in response to the letter and unemployment records.

Several of Defendant’s employees were injured during the period of KEMI’s insurance coverage. Prior to their accidents, each had been paid out of the Cowboy’s account. Because Defendant did not purchase workers compensation insurance for Cowboy’s employees, Defendant directed his bookkeeper to report on the First Report of Injury and the insurance claim form that the employees were employed by Ratliff and that their initial dates of employment with Ratliff predated the injuries. The claims were mailed to KEMI.

KEMI unraveled Defendant’s scheme by noticing that there was an unusual coincidence of new hires incurring injuries, that under the previous insurance company’s policy Ratliffs claims were “off the charts,” and that one injured employee could not produce Ratliff pay records to match his reported work history. KEMI auditors visited the bookkeeper and inspected the bank records of Defendant’s companies. KEMI’s subsequent audit revealed that Defendant had understated his payroll by almost $400,000, resulting in premium savings of almost $100,000.

Defendant was indicted on four counts of mail fraud, in violation of 18 U.S.C. § 1341, and the jury convicted him of three counts. The district court increased his offense level by two points for “more than minimal planning” and sentenced him to twenty-one months of imprisonment, three years of supervised release, and $97,260.28 in restitution to KEMI.

II.

A. Jury Coercion

1. Standard of Review

The Court reviews the trial court’s response to a question submitted by a jury for abuse of discretion. United States v. Reed, 167 F.3d 984, 989 (6th Cir.1999).

2. Analysis

Defendant argues that the district court’s response to a jury note requesting to be excused for the evening was coercive, evidenced by the jury reaching a verdict only twenty minutes after the district [195] court’s response. Defendant contends that the court’s response to the note created the impression that “it was more important to be quick than to be thoughtful.” United States v. Markey, 693 F.2d 594, 597 (6th Cir.1982) (citations omitted). Accordingly, Defendant requests a new trial.

“In evaluating for coercive effect a judge’s statement to the jury, this Court must consider the statement in context, assessing it under the totality of the circumstances.” Gibson v. United States, 271 F.3d 247, 258 (6th Cir.2001) (overruled on other grounds, United States v. Leachman, 309 F.3d 377 (6th Cir.2002)).

This Court addressed a similar issue in Gibson, 271 F.3d at 258-59. There, while dismissing an alternative juror at 4:15 p.m., the district court stated:

I’m designating you as the alternate juror. You will be excused. This jury is going to be deliberating this afternoon and it appears that you won’t be able to do that. And unfortunately I don’t have the physical space to let the jury deliberate tomorrow. I have another jury coming in and the grand jury coming in.

Id. at 258.

Since the defendant did not object to the comment at trial the court reviewed the district court’s action for plain error and found that three factors indicated the statement was not coercive. Id. First, the statement was not a charge to the jury, rather it was directed at one juror. Id. at 258-59. Second, the statement was made almost three hours before the jury began deliberations. Id. at 259. Third, the statement was ambiguous: the jury could have interpreted it as requiring them to either deliberate without a break, or to reconvene after two days if they were unable to reach a verdict that day. Id.

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United States v. Ratliff, 63 F. App'x 192 (6th Cir. 2003).

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