United States v. Ronald W. Wright

835 F.2d 1245, 1987 U.S. App. LEXIS 16597, 1987 WL 24910
CourtCourt of Appeals for the Eighth Circuit
DecidedDecember 23, 1987
Docket87-1362
StatusPublished
Cited by5 cases

This text of 835 F.2d 1245 (United States v. Ronald W. Wright) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth 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. Ronald W. Wright, 835 F.2d 1245, 1987 U.S. App. LEXIS 16597, 1987 WL 24910 (8th Cir. 1987).

Opinions

LARSON, Senior District Judge.

Defendant Ronald W. Wright was convicted of nine of fifteen counts of misapplication of bank funds, in violation of 18 U.S.C. § 656. The district court sentenced him to concurrent eighteen month terms of imprisonment on Counts 1, 9, 11, 13, and 15. Sentence was suspended and Wright was placed on concurrent three year terms of probation on Counts 6, 10, 12, and 14. As a condition of his probation, the Court ordered the defendant to make restitution in the sum of $414,774.35, with credit given for any amounts paid by any other person.

Defendant has appealed, alleging that (1) the trial court erred in not declaring a mistrial based upon statements made by the prosecutor during the rebuttal portion of his closing argument, and (2) there was insufficient evidence to sustain the jury's guilty verdicts on Counts 1 and 10. We affirm, except as to Count 10. We agree that there is insufficient evidence to support the jury’s verdict on Count 10, and, accordingly, we reverse defendant’s conviction on that count.

[1247]*1247I. BACKGROUND

Defendant was the chief executive officer of the Oakland Savings Bank in Oakland, Iowa, from 1972 through the spring of 1984. In the late 1970’s, defendant and a number of other local individuals sought to bring new business to Oakland. They formed a company called Oakland Forgings, which manufactured parts for various other concerns. Defendant was chairman of the board. Unfortunately, the company lost money throughout its history.

In 1982, Oakland Forgings reached its loan limit at the Oakland Savings Bank. At this time, defendant was actively involved both in overseeing Oakland Forgings’ business and in overseeing the day to day operations of the bank. Defendant called numerous meetings of Oakland Forgings’ board of directors to discuss the company’s financial condition and to find ways to obtain the funds needed to keep the company going. As a result of these meetings, the Oakland Savings Bank made a series of loans to five individuals on Oakland Forgings’ board of directors: Robert Emken, Mark Gardner, Charles Gross, Harry Sivers, and Donald Hummel. Proceeds from these loans were invested directly into Oakland Forgings. Some of the loans were made through internal debit slips only; for others, the individuals signed blank promissory notes at defendant’s request, which the defendant then filled out.

By 1984, Oakland Forgings’ losses were so large that it was forced to declare bankruptcy. That same year, the Oakland Savings Bank was declared insolvent and the Federal Deposit Insurance Corporation (FDIC) stepped in. Defendant was indicted two years later for misapplication of bank funds as a result of the loans to Emken, Gardner, Gross, Sivers, and Hummel.

The court instructed the jury that defendant was liable for misapplication if the individuals to whom the loans were made were not aware their names were being used for the debt or if defendant had assured them they would not be obligated to repay the loan in the event of default. At trial, these five individuals testified they believed they were not personally responsible for the loans, since the defendant had told them the loans would be repaid from Oakland Forgings’ profits. As to some transactions, they also testified that they did not remember signing the notes, that they believed they were signing in their corporate capacity only, that they signed blank notes and were never informed of the amounts, or that they believed the amounts were for far less than actually appeared on the bank records.

Wright’s defense was premised on the fact that it was in these individuals’ financial interest to disclaim responsibility for the loans since the FDIC had instituted civil actions against them for repayment. In fact, all five individuals had had substantial net worths at the time the loans were made, but two had subsequently filed for bankruptcy under Chapter 11.

II. THE PROSECUTOR’S COMMENTS

In his rebuttal argument, the prosecutor attempted to undercut the defense argument that each of the five had a financial motive to lie by stating, “[ajssume this is a debt that has been wiped out in bankruptcy. They have no motive if_” Upon defense counsel’s objection, the district court immediately instructed the jury to disregard the prosecutor’s statement concerning the effect of bankruptcy and again after argument instructed the jury to disregard the bankruptcy issue in weighing credibility. Defense counsel made no motion for a mistrial or for a new trial, stating after the court’s second curative instruction that “[t]he Court’s statement is quite acceptable to the defendant.”

Defendant now contends on appeal that the court’s instructions did not cure the prejudice created by the prosecutor’s inference that all five individuals had declared bankruptcy (instead of just two) and that all of their loans would be discharged when in fact under Chapter 11 this may or may not be true.

While we are troubled by the prosecutor’s comments, we find insufficient grounds for declaring a mistrial in this case. Defense counsel himself brought out [1248]*1248the bankruptcy status of two of the five individuals on cross-examination. One of the five, Robert Emken, testified that he believed his debt would be discharged through his Chapter 11 bankruptcy proceeding. The other, Charles Gross, testified that he simply did not know whether he could avoid his debts and retain his land as a result of the Chapter 11 proceedings. Moreover, the court correctly instructed the jury that:

[I]n weighing the credibility of the witnesses, you shall give no consideration one way or the other as to whether or not the evidence relating to bankruptcy will affect their obligation to pay the debts one way or another. The record is not complete enough on that for the matter to be considered.

Defendant’s counsel expressed satisfaction with the district court’s handling of the matter at trial and never requested a mistrial or a new trial on the grounds that the prosecutor’s statements deprived the defendant of a fair trial. Defendant’s failure to raise the issue before the district court precludes our review unless we find plain error. See United States v. Roenigk, 810 F.2d 809, 815 (8th Cir.1987); United States v. Beran, 546 F.2d 1316, 1319-20 (8th Cir.1976), cert. denied, 430 U.S. 916, 97 S.Ct. 1330, 51 L.Ed.2d 595 (1977). Under these circumstances, we do not believe the prosecutor’s comments require a reversal of the defendant’s convictions, particularly since the district court took immediate action to cure any prejudice which may have resulted. See United States v. Dougherty, 810 F.2d 763, 767-68 (8th Cir.1987); United States v. Pierce, 792 F.2d 740, 742 (8th Cir.1986); United States v. Hernandez, 779 F.2d 456, 458-59 (8th Cir.1985).

III. SUFFICIENCY OF THE EVIDENCE

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Related

United States v. Glenn
312 F.3d 58 (Second Circuit, 2002)
United States v. William Victor Powell
853 F.2d 601 (Eighth Circuit, 1988)
United States v. Ronald W. Wright
835 F.2d 1245 (Eighth Circuit, 1987)

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Bluebook (online)
835 F.2d 1245, 1987 U.S. App. LEXIS 16597, 1987 WL 24910, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-ronald-w-wright-ca8-1987.