United States v. Rutkin

208 F.2d 647
CourtCourt of Appeals for the Third Circuit
DecidedJanuary 12, 1954
Docket10795
StatusPublished
Cited by54 cases

This text of 208 F.2d 647 (United States v. Rutkin) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third 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. Rutkin, 208 F.2d 647 (3d Cir. 1954).

Opinions

BIGGS, Chief Judge.

The appellant, Rutkin, was convicted on a charge of willfully attempting to evade or defeat a part of his income tax due for the year 1943. See 26 U.S.C.A. § 145(b). This court affirmed his conviction, one judge dissenting. See 1951, 189 F.2d 431. Certiorari was granted, and the Supreme Court upheld the judgment of this court. See, 1952, 343 U.S. 130, 72 S.Ct. 571, 96 L.Ed. 833. Rutkin then applied to the trial judge for a new trial on the grounds of newly discovered evidence, Rule 33, Fed.Rules Crim.Proc., 18 U.S.C.A., and of alleged fraud perpetrated on the court below by Reinfeld, the principal witness for the prosecution. Following a hearing, this motion was denied without opinion. Rutkin appeals.

Rutkin’s conviction for income tax evasion was based upon his failure to report as taxable income $250,000 in cash received from Reinfeld on May 11, 1943. Rutkin contended that this amount, the receipt of which he acknowledged, represented his distributed share of a capital gain resulting from the sale of the stock of Browne Vintners Corporation. He asserts that he and Reinfeld were two of the beneficial owners of the stock of this corporation. The United States conceded that if this were so, the capital gains tax had been paid prior to the distribution to Rutkin and that therefore there could be no tax liability on Rutkin’s part. It was the contention of the United States, however, that Rutkin possessed no interest in the stock of the corporation, the sale of which produced the $250,000 gain, and that Rutkin had in fact extorted this amount from Rein-feld by threatening to kill him and his family.

The evidence given at Rutkin’s trial was sharply contradictory — contradictory indeed to the point where the trial judge stated that it was obvious that perjury had been committed. Reinfeld testified for the United States that al[649]*649though he and Rutkin had been partners, prior to the repeal of prohibition, in a bootlegging combine, Rutkin received no interest in the legitimate liquor business represented by the Browne Vintners Corporation, which replaced the combine following the repeal of the Eighteenth Amendment. Reinfeld stated that at no time after the organization of Browne Vintners was Rutkin his partner in any business enterprise or venture; he denied that Rutkin was entitled to a share of the proceeds of the Browne Vintners stock. Reinfeld and his brother-in-law, Holtz, testified to various threats made by Rutkin on Reinfeld’s life which, they said, culminated in the payment of the $250,000 by Reinfeld to Rutkin. Rutkin denied making these threats and repeatedly asserted that he had a substantial interest in Browne Vintners, an interest which he said Rein-feld had undertaken to hold for him as a kind of trustee. Rutkin’s conviction demonstrates that the jury accepted Reinfeld’s testimony. The question now before us is whether the showing made by Rutkin on his motion for a new trial is sufficient to require that the jury verdict be set aside and Rutkin tried again.

The United States and Rutkin have agreed that to warrant the granting of a new trial on the ground of newly discovered evidence, “There must ordinarily be present and concur five verities, to wit: (a) The evidence must be in fact, newly discovered, i. e., discovered since the trial; (b) facts must be alleged from which the court may infer diligence on the part of the movant; (c) the evidence relied on, must not be merely cumulative or impeaching; (d) it must be material to the issues involved; and (e) it must be such, and of such nature, as that, on a new trial, the newly discovered evidence would probably produce an acquittal.” Johnson v. United States, 8 Cir., 1929, 32 F.2d 127, 130. This is an accurate statement of the applicable law. See also Evans v. United States, 10 Cir., 1941, 122 F.2d 461, 469; United States v. Hiss, D.C.S.D.N.Y.1952, 107 F.Supp. 128, 136. Rutkin contends that the evidence he presented to the trial judge satisfies all of the requirements.

Rutkin first offered an affidavit of Joseph A. Frayne, executed April 12, 1952, purporting to set forth two conversations between Frayne and Reinfeld. Frayne, according to his affidavit, was at some time Chief of the Fugitive Squad of the Bureau of Internal Revenue of the United States. The affidavit does not set forth the nature of Frayne’s employment at the time of his alleged conversations with Reinfeld. It appears that at the time the affidavit was executed Frayne was no longer employed by the United States. Both of the conversations which we have referred to date from a period after the organization of Browne Vintners but prior to the sale of the stock of that company. In each conversation Reinfeld is quoted as stating that Rutkin was his partner. These admissions, if true, would tend to contradict Reinfeld’s testimony at Rutkin’s trial and to destroy Reinfeld’s credibility. Counsel for the appellant in their brief and during the course of the oral argument on the motion for a new trial took the position categorically that the evidence offered by Frayne in the affidavit was not merely cumulative or impeaching, that it brought to the case for the first time evidence that Reinfeld had admitted that Rutkin was actually a partner of Reinfeld and his associates in the Browne Vintners enterprise.1 This position is not borne out by the record of the trial as will appear hereinafter. [650]*650During the trial evidence was given as to other alleged admissions made by Reinfeld as to his partnership with Rut-kin in Browne Vintners. These admissions tended to contradict Reinfeld’s testimony at Rutkin’s trial that he, Reinfeld, was not Rutkin’s partner in that enterprise. This testimony impeached Rein-feld’s credibility.

Frayne’s affidavit states that the first conversation took place in New York City about the latter part of 1939. At that time Reinfeld is said to have remarked to Frayne in reference to Rut-kin’s refusal to implicate Reinfeld in the operation of an illegal distillery, an operation for which Rutkin had been jailed, “Well, you can always depend on your partners and your pals.” The affidavit further states that Rutkin himself was present when Reinfeld made this remark. We think that Rutkin’s presence at the conversation destroys his claim that this is “newly discovered” evidence. Rutkin should have recalled the conversation prior to his trial. Rutkin’s failure to remember this episode does not entitle him to retry his case. If lapse of memory alone were sufficient to warrant a new trial, there would be no end to litigation. We note that Rutkin does not rely heavily on this conversation in this appeal.

The second conversation is stated to have taken place about the end of 1940 or the early part of 1941. News of the proposed sale of Browne Vintners Corporation had appeared in the newspapers. Frayne swears that he met Reinfeld and his bodyguard, Zimmy, on a Hudson Tube train and remarked to Reinfeld, “I see by the papers that you are getting rid of the Browne Vintners.” Reinfeld is said to have answered, “Yes, my partners will come in for a lot of dough just as soon as the deal is closed.

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Bluebook (online)
208 F.2d 647, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-rutkin-ca3-1954.