United States v. Richard Keats

937 F.2d 58, 1991 U.S. App. LEXIS 13058, 1991 WL 108689
CourtCourt of Appeals for the Second Circuit
DecidedJune 21, 1991
Docket1213, Docket 90-1643
StatusPublished
Cited by26 cases

This text of 937 F.2d 58 (United States v. Richard Keats) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second 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. Richard Keats, 937 F.2d 58, 1991 U.S. App. LEXIS 13058, 1991 WL 108689 (2d Cir. 1991).

Opinion

TIMBERS, Circuit Judge:

This is an appeal from a judgment entered November 1, 1990, in the Southern District of New York, John E. Sprizzo, District Judge, convicting appellant on one count of conspiracy, in violation of 18 U.S.C. § 371 (1988), and six counts of wire fraud, in violation of 18 U.S.C. § 1343 (1988).

On appeal, Keats’ chief contention is that the evidence was insufficient to support his conviction on the conspiracy and wire fraud counts. He also challenges the court’s imposition of sentence in various respects.

For the reasons which follow, we affirm the judgment of conviction.

I.

We shall summarize only those facts and prior proceedings believed necessary to an understanding of the issues raised on appeal.

On November 11,1987, appellant Richard Keats, a Pennsylvania resident, called Ken Levin at his home in New York. He told Levin that he wished to discuss “an interesting situation”. Unbeknownst to Keats, Levin was cooperating with the government after being convicted on an unrelated charge. Apprehensive about discussing the situation with Levin from his home phone, Keats promised to call the following day when he was “out and about”. The following day Keats called Levin and informed him of a scheme to purchase $15 million in bearer bonds using a check drawn on a German bank. Keats stated that a friend worked as the manager of the broker-dealer services division of a medium size German bank and could obtain bank drafts. When Levin inquired further about the scheme, Keats became concerned that the telephone lines were tapped. After receiving Levin’s assurance that the telephone lines were “clean”, Keats explained that the bonds would be sold before the draft cleared. Neither Keats nor his confederate, however, had any contacts with New York brokerage houses. For this reason, Keats asked Levin, a former broker, if he had any contacts in the brokerage business. Keats suggested that Levin think about the proposal over the weekend and promised to call him again.

On December 5, Levin met Keats in an office at 401 Broadway in New York City. At that meeting, Keats told Levin that he knew an Israeli who was establishing a bank office in Luxembourg. Keats also produced a picture of the Israeli and displayed documents indicating that Keats had an account at the Luxembourg bank office. Acting on instructions from the FBI, Levin told Keats that he would intro *61 duce him to a man named A1 Mara. Levin explained that Mara was associated with the Mafia and would be able to procure the bonds needed to consummate ■ Keats’ scheme.

On December 7, Keats called Levin in New York and arranged a meeting for December 9 in Pennsylvania. Levin and Keats agreed that A1 Mara should attend the meeting. The plans for the meeting were finalized in a call from Levin to Keats on December 8. On December 9, Keats met with Levin and an FBI agent named Dave Maniquis, who posed as A1 Mara, at the Hilton Hotel in Trevose, Pennsylvania. During that meeting, Keats gave to Mani-quis and Levin a detailed description of his plan, including the following. He stated that his friend had opened a bank division called Banker’s Group Broker Dealers Security Division in Luxembourg. Keats’ friend wanted to use a check drawn on a house bank account to purchase $15-20 million in securities, preferably bearer bonds. Keats wanted Maniquis to use his contacts to find a broker who could obtain bonds and “drag [his] heels” before presenting the bank draft. This delay would allow conversion of the bonds for cash before the bank account on which the check was drawn went “bust”.

Maniquis offered a counter proposal whereby they would obtain the bonds by theft rather than using fraudulent bank checks. Maniquis explained that he had a contact in a brokerage house that had just finished an audit of the bond accounts and that it would be six months before the next audit was conducted. Keats and Maniquis then discussed how the bonds would be sold and how the proceeds would be divided. At the conclusion of the meeting, Keats gave Maniquis his telephone number and business card. That evening Keats spoke with Levin by telephone. Keats mentioned that he had just spoken to his friend and that they might be able to sell the bonds before the end of the year. Keats also inquired whether A1 Mara was “happy”.

On December 11, Keats called Levin and again discussed the scheme. Keats mentioned that he had spoken to his friend and that the scheme could be completed after January 1, 1988, but that his friend needed some information from A1 Mara concerning the bonds. On the morning of December 14, Keats and Levin had two phone conversations. Although often speaking in codes, Keats asked Levin to obtain from Mara a list of bonds that would be stolen. On December 16 and 17, Maniquis called Keats and assured him that he had the lists that Keats wanted. They arranged to meet later in the week in New York City. During the phone conversation of December 16, Agent Maniquis told Keats that he would bring to the meeting xerox copies of bonds that would be stolen by his associate.

On December 18, Keats met Agent Mani-quis at a restaurant in upper Manhattan. Keats showed Maniquis various documents, including a bank book and deposit slips, a book on banking havens, a picture of his Israeli confederate, and a copy of European banking regulations. Maniquis showed Keats a copy of two bearer bonds which Keats estimated would yield $26 million after being discounted. Maniquis also showed Keats an original bearer bond which Keats rejected because the coupons had not been clipped for several years. As Keats was leaving the restaurant at the conclusion of the meeting, he was arrested by FBI agents.

On March 17, 1988, Keats was indicted on one count of conspiracy in violation of 18 U.S.C. § 371. On May 26, 1989, a superseding indictment was filed charging Keats with six counts of wire fraud in violation of 18 U.S.C. § 1343 in addition to the one conspiracy count.

Keats waived his right to a jury trial. On March 26, 1990, his bench trial commenced. Telephone records introduced during trial showed that during the period of the conspiracy Keats made 4 calls to Luxembourg and 27 calls to the same number in Israel. One of the calls to Israel occurred at 4:03 p.m. on December 9, 1987, just after the meeting at the Trevose Hilton. After his arrest, no further calls were made to Israel or Luxembourg on calling cards used by Keats. In his defense, *62 Keats called Michael Stenger, a Special Agent of the United States Secret Service. Keats attempted to show that he was an informant for the Secret Service. Agent Stenger testified, however, that he never authorized Keats to act in an undercover capacity or engage in any unlawful activity. Stenger also testified that Keats never told him of the proposed bond transaction.

On April 16, 1990, the court found Keats guilty on the seven counts charged in the superseding indictment.

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Cite This Page — Counsel Stack

Bluebook (online)
937 F.2d 58, 1991 U.S. App. LEXIS 13058, 1991 WL 108689, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-richard-keats-ca2-1991.