United States v. Raul Martinez

14 F.3d 543, 1994 U.S. App. LEXIS 1903, 1994 WL 28476
CourtCourt of Appeals for the Eleventh Circuit
DecidedFebruary 2, 1994
Docket91-5619, 92-4668
StatusPublished
Cited by54 cases

This text of 14 F.3d 543 (United States v. Raul Martinez) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh 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. Raul Martinez, 14 F.3d 543, 1994 U.S. App. LEXIS 1903, 1994 WL 28476 (11th Cir. 1994).

Opinion

HATCHETT, Circuit Judge:

Because the jury considered extrinsic materials during its deliberations and received improper instructions, we reverse this case and remand it to the district court for a new trial. 1

FACTS

The voters of the city of Hialeah, Florida, elected Raul Martinez mayor in 1981 after he had served on the city council. The city council of Hialeah, comprised of seven voting members, regulated zoning and land use and bore responsibility for granting variances and rezoning permits. As mayor, Martinez had the authority to veto any ordinance the city council passed. In addition to being mayor, Martinez was a registered real estate broker, through his company, Martex Realty, Inc., and operated a Spanish language newspaper.

In 1981, following Martinez’s victory in the mayoral election, Silvio Cardoso, a land developer, approached Martinez in an attempt to forge a political alliance. From 1981 until 1987, Martinez participated in various real estate transactions involving Cardoso, Renan Delgado, and Jose Portnoy, and in doing so significantly increased his net worth. His *545 involvement in seven of these transactions provides the basis for the criminal charges in this case.

Esperanza Project

In Racketeering Act No. 1, the government alleged that Martinez committed extortion when he attempted to funnel a federally funded housing project to developer Camilo Padreda. Specifically, the government alleged that between December, 1981, and March, 1983, Martinez conspired with Hialeah Housing Authority (HHA) commissioner Antonio Cardona to award the project to Padreda despite Padreda’s inferior proposal. At trial, Padreda testified that Martinez demanded $150,000 for his assistance, but that he never paid the money and ultimately withdrew the proposal. The jury acquitted Martinez on this charge.

Marivi Gardens

In 1983, Silvio Cardoso invited Martinez to “participate” in Marivi Gardens, a low cost housing development consisting of twelve substandard lots. To obtain the appropriate variances and city council approval for rezoning, Cardoso sought Martinez’s help, in exchange for one of the lots. After discussions with Martinez, Cardoso obtained the variances, obtained rezoning, and purchased the lots. In mid-1984, Cardoso delivered to Martinez the deed to an enlarged lot in Marivi Gardens. Although Cardoso transferred the lot to Martinez for cost, losing a potential $15,-000 profit, he testified that he gave the lot as a gift. Martinez’s involvement in Marivi Gardens constituted Racketeering Act No. 2.

Danielle Marie Gardens— Abida Subdivision

Martinez’s involvement in Marie Gardens supplied the basis for Racketeering Act No. 3, constituting Counts III and IV of the indictment. In late 1983, Cardoso began negotiations to purchase forty-two lots in the Danielle Marie Gardens subdivision for $600,-000. To close the deal, Cardoso needed to re-plat the forty-two lots and rezone a portion from residential to retail commercial. Before Cardoso obtained the variances, Martinez informed Cardoso that he wished to purchase ten of the lots at cost. Although Cardoso wanted a higher price for the lots, he acceded to Martinez’s request, losing almost $70,000 in profit. Ultimately, the city council passed, and Martinez signed, the rezoning ordinances. In November, 1984, Car-doso sold Martinez’s ten lots for $30,000 each, making Martinez a $70,000 profit.

Las Palmas

The allegations supporting Racketeering Act No. 4, Count V of the superseding indictment, involved Cardoso’s purchase of “Las Palmas” from Jose Portnoy. After Martinez expressed his desire to “participate” in this development, Cardoso purchased the property and built a sixteen unit condominium. Thereafter, Cardoso sold all of the units in the condominium development and paid Martinez $32,000, because Martinez agreed to act as Cardoso’s partner in a separate, unrelated Housing and Urban Development (HUD) project. Although HUD failed to award the project to Cardoso, he never asked Martinez to return the money from the Las Palmas project. The jury acquitted Martinez of this count.

Steve’s Estates

Racketeering Act No. 5 alleged that in 1983, Martinez paid $10,000 below market price to developer Renan Delgado for two lots in the Steve’s Estates Subdivision in return for his agreement not to interfere with Delgado’s proposed zoning legislation before the city council. After obtaining a purchaser of one of the lots for Delgado, Martinez directed Delgado to sell him two of the lots for a discounted price, which Delgado agreed to do. Before Delgado obtained rezoning approval, however, Martinez informed him that he could not pay the purchase price of $125,000. Thus, Delgado allowed Martinez to pay for the lots with a $5,000 cash deposit and an unsecured note, payable in one year. Martinez never paid the deposit. After the city council passed the rezoning ordinance, but before he signed it, Martinez closed the deal with Delgado, unilaterally changing the terms of their agreement. Ultimately, Martinez defaulted on the debt.

*546 Delgado Subdivision

Racketeering Act No. 6, constituting Counts VI and VII of the superseding indictment, involved Delgado’s development of a second subdivision in March, 1984, with his partner, Jose Portnoy. During the rezoning process, Delgado told Portnoy they would have to sell Martinez some of the lots at cost. With Martinez’s help, in spite of public opposition, Delgado and Portnoy secured rezoning two weeks after Martinez purchased the lots at cost. Later, at Martinez’s direction, Delgado and Portnoy sold a third lot at cost to Councilman Ray Robinson, a close friend of Martinez’s. Although Martinez made a $45,-000 profit, Portnoy and Delgado lost between $30,000 and $40,000 on the sales of the three lots.

Sevilla West

Racketeering Act No. 7, constituting Count VIII of the superseding indictment, alleged that developer Santiago Alvarez agreed to sell Martinez two lots in his Sevilla West development at a reduced price, to prevent Martinez from vetoing the rezoning. After the council overwhelmingly approved Alvarez’s rezoning proposal, Martinez vetoed it, causing Alvarez and his partner, Mario Farrell, to lose $400,000. When Alvarez and Farrell reapplied for rezoning, they agreed to sell Martinez two lots for $175,000, $55,000 less than the bank’s appraisal of the property. Thereafter, Martinez withdrew his opposition to the requested rezoning and supported the changes when they came before the council. The jury acquitted Martinez of this count.

To rebut the government’s charges of extortion, racketeering, and bribery, Martinez sought to establish that he never threatened any of the alleged victims of the extortion, and never requested nor offered any help to secure rezoning in exchange for favorable terms in real estate ventures. To bolster his defense, Martinez demonstrated that Florida law permits politicians to maintain business interests outside their public offices. Finally, Martinez sought to show that he received favorable terms in business transactions only because developers and politicians sought to maintain positive relations with him.

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Cite This Page — Counsel Stack

Bluebook (online)
14 F.3d 543, 1994 U.S. App. LEXIS 1903, 1994 WL 28476, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-raul-martinez-ca11-1994.