United States v. Richard O. Kelly

540 F.2d 990
CourtCourt of Appeals for the Ninth Circuit
DecidedSeptember 13, 1976
Docket74-1535
StatusPublished
Cited by16 cases

This text of 540 F.2d 990 (United States v. Richard O. Kelly) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth 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 O. Kelly, 540 F.2d 990 (9th Cir. 1976).

Opinion

ALFRED T. GOODWIN, Circuit Judge:

Richard 0. Kelly appeals from a conviction on one count of perjury. 1 We affirm.

In February, 1968, Kelly was introduced to William J. Cudd, who appeared to be a man of means. Cudd represented that he possessed considerable wealth in the form of promissory notes issued by the Baptist Foundation of America. Cudd told Kelly he wished to buy a yacht, using some of the promissory notes as purchase money. Kelly set out to acquire a yacht for Cudd on some basis that would be profitable to Kelly. Kelly associated Dan Manning in the venture. Either Manning or Kelly contacted James Powell 2 , a salesman employed by the Kona Marina in San Diego. Powell eventually located Ralph Kappler, an Oregon resident, who agreed to sell his yacht, the Gannett, II, for $330,000 in BFA notes. Under the agreement, the sale was to be made to Manning’s wholly owned corporation, M-K Enterprises. Kelly’s plan was that M-K Enterprises would convey the yacht to him and he would convey it at a profit to Cudd. The initial seller, Kappler, was not made aware of the involvement of either Kelly or Cudd in the transaction.

After the agreement was reached, Kelly informed Cudd that he had located a suitable vessel. Kelly stated that the purchase price would be $560,000 in BFA notes plus $55,000 in cash. Kelly intended to use the cash to pay Powell’s brokerage commission and to compensate Manning for guaranteeing payment of the BFA notes to be issued Kappler. Kelly intended to keep the remaining price difference, $230,000 in BFA notes, as his profit.

Cudd agreed to the transaction and delivered $560,000 in notes to Kelly. Manning then used $300,000 in BFA notes and a personal note for $30,000 3 to pay Kappler the purchase price. Kelly’s name did not appear on the chain of title to the notes, which ran from Cudd directly to M-K En *992 terprises. 4 Title to the boat was transferred to M-K Enterprises. Kelly used the excess $230,000 in BFA notes, his profit, to settle various claims.

In September, 1968, the interest came due on the notes held by Kappler. When the interest was not paid, Kappler called Manning and demanded payment. Manning made repeated assurances, but the payment was not forthcoming. Then, on February 10, 1969, Kelly called Kappler. Kappler was away from his phone, but returned the call from his architect’s office. In this call, Kelly told Kappler that he, Kelly, was associated with the Baptist Foundation and that he would be meeting with the Foundation the next day regarding payment of the interest. On February 11, 1969, Kelly again called Kappler and requested that he voluntarily reset the interest date back six months. Kelly further stated that if Kappler would reset the interest dates, Kelly would see that the Foundation paid the principal and interest from then on as they became due. Kappler asked for time to think over the request. When Kelly called again on the evening of February 11, he told Kappler that if Kappier would reset the interest date then the overdue interest would be paid when the notes matured. When Kappler refused, Kelly told him that the interest had already been paid to a Bill Cudd.

Four years later, on February 16, 1973, Kelly was called before a federal grand jury investigating possible violations of federal laws resulting from the negotiation of worthless BFA notes. He testified in part that he had not had any direct dealings with Kappler and, more particularly, that he had not telephoned Kappler on February 11, 1969, to ask him to reset the interest dates on the BFA notes. 5 Kelly was subsequently indicted under 18 U.S.C. § 1623 for perjury. After a nonjury trial, Kelly was convicted on one count of the indictment.

I. Lack of Target or Miranda Warnings Kelly contends that the grand jury testimony should have been suppressed because he was not given a Miranda warning or advised that he was a possible target of the grand jury investigation.

Kelly was adequately advised of his Fifth Amendment rights. 6 His appearance *993 before the grand jury was not a custodial interrogation. A full Miranda or target warning was not required. United States v. Mandujano,-U.S.-, 96 S.Ct. 1768, 48 L.Ed.2d 212 (1976); Gollaher v. United States, 419 F.2d 520, 523-24 (9th Cir. 1969). 7

Kelly contends that his telephone calls to Kappler were insufficiently material to support a conviction. The test for materiality in perjury prosecutions was set forth by this court in United States v. Loco-co, 450 F.2d 1196, 1199 (9th Cir. 1971). 8 Under the Lococo test, the government need not show that the false testimony actually impeded the grand jury investigation or that it related to the primary subject of the investigation. It is sufficient for the government to prove that the testimony was relevant to any issue under consideration by the grand jury. If the falsity of the testimony would have the natural tendency to influence the grand jury’s investigation, it is material. 450 F.2d at 1199. 9 Here, one of the subjects of the grand jury’s investigation was the extent of Kelly’s involvement in the negotiation of BFA notes. By-testifying falsely, he withheld from the grand jury direct evidence of the extent of his personal involvement. The testimony was thus material.

III. Actual Falsity

Kelly contends that the evidence was insufficient to show the actual falsity of the statements made to the grand jury. Kappler testified at trial that he received three telephone calls from Kelly. However, Kappler had no recollection of two other calls which Kelly’s telephone bills indicate were placed to Kappler’s telephone 10 and one other call which the bills indicate was placed to Kappler’s architect’s phone. 11

The bare telephone records are insufficient to show the actual falsity of Kelly’s testimony denying the calls which Kap-

II. Materiality *994 pier did not remember. United States v. Laughlin, 226 F.Supp. 112, 113 (D.D.C.1964). Nor does Kelly’s in-court stipulation that five telephone calls were made between his telephone and Kappler’s telephone

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540 F.2d 990, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-richard-o-kelly-ca9-1976.