United States v. Schaefer

510 F.2d 1307
CourtCourt of Appeals for the Eighth Circuit
DecidedJanuary 3, 1975
DocketNos. 73-1506, 73-1526, 73-1538, 73-1577, 73-1578, 73-1611 and 73-1617
StatusPublished
Cited by31 cases

This text of 510 F.2d 1307 (United States v. Schaefer) 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. Schaefer, 510 F.2d 1307 (8th Cir. 1975).

Opinions

STEPHENSON, Circuit Judge.

These consolidated criminal appeals concern review of convictions for conducting an illegal bookmaking business and conspiracy to conduct that business. We affirm the substantive charges and reverse the conspiracy charges.

All seven defendants (an eighth defendant died subsequent to conviction) were charged in two-count indictments. Count I charged violation of 18 U.S.C. § 1955, “Prohibition of illegal gambling businesses.” Count II charged conspiracy to violate § 1955.

Jury trial was waived and the cases were tried to- the court on essentially undisputed facts, including a lengthy stipulation. Two defendants, Lancaster and Lonsberry, chose not to stipulate regarding expert testimony of an F.B.I. . agent as to bookmaking customs and procedures. Those defendants were severed and tried separately. They went to trial essentially on stipulated facts except for the expert testimony.

All defendants were convicted on both counts. The trial court1 sentenced each defendant to a prison term and fine on Count I. All defendants received suspended sentences on Count II with a probation period to run consecutively to the sentence on Count I.

At the outset we must meet the argument raised by all appellants that the contents of the intercepted oral communications, which formed the greatest part of the government’s case, should have been suppressed because the wiretap application was signed by a Deputy Assistant Attorney General and not the [1310]*1310Attorney General or his specially designated Assistant Attorney General as required pursuant to 18 U.S.C. § 2516.

Since the United States Supreme Court decided United States v. Chavez, 416 U.S. 562, 94 S.Ct. 1849, 40 L.Ed.2d 380 (1974), this court has twice considered Justice Department procedures almost identical to those which led to the wiretaps in the instant case.2 United States v. Brick, 502 F.2d 219 (8th Cir. 1974); United States v. Schullo et al., 508 F.2d 1200 (8th Cir. filed January 3, 1975). As in those prior cases the record here indicates that Attorney General Mitchell initialed the wiretap authorization and submitted his affidavit 'reciting that he had authorized application for the specified interception order. Chavez and this court’s opinions following Chavez have found this procedure to be sufficient. See also United States v. Cox, 462 F.2d 1293 (8th Cir. 1972).

Certain of the appellants further argue that the pen register used by the government to record numbers dialed from certain telephones is not authorized by the Omnibus Crime Control and Safe Streets Act of 1968, 18 U.S.C. §§ 2510— 2520. We have held otherwise. United States v. Brick, supra, 502 F.2d at 223.

Several appellants claim that the affidavit of Robert J. Wilkinson, Special Agent of the F.B.I., was insufficient to demonstrate probable cause and need for the wire interception and the use of the pen register. Citing U.S.Const. Amend. IV; 18 U.S.C. § 2518(l)(c).

The affidavit in question is substantially similar to that approved in Brick, supra at 224. There we said:

The affidavit presented, that of Robert J. Wilkinson, Special Agent of the F.B.I., set forth in detail his personal observations concerning the investigations conducted, as well as those of two unnamed informants, one of whom had provided reliable information for several years to Special Agents “on a continuous basis concerning gambling matters.” The affidavit described ■ in detail the operations of the gamblers, and named certain of the persons involved, together with their places of meetings, movements and conversations. In addition it was stated that the informants, noted above, would not testify, nor, as evidenced by past experience, would the gambler’s customers; that gambling raids had in the past proved ineffective, as had the telephone toll records.
The above representations in the affidavit, in conjunction with others more detailed contained therein, furnished ample probable cause for the order entered and were sufficient to demonstrate on a factual basis, as distinguished from a mere conclusion, that “other procedures reasonably appear unlikely to succeed.” The statute does not require more. (Footnote omitted.)

The same holds true in the instant case.

The most serious problem before the court is whether the evidence shows activity which is proscribed by 18 U.S.C. § 1955.3 That is, whether the facts of [1311]*1311this case evidence the sort of illegal gambling business, “involvpng] five or more persons who conduct, finance, manage, supervise, direct or own all or part of such business,” that Congress sought to arrest.

The parameters of the Congressional intent when enacting § 1955 have now been fairly well defined. Congress sought to draw the line between large scale gambling operations and those that are relatively small. Brick, supra, 502 F.2d at 224; Schullo, supra, 508 F.2d at 1204; 116 Cong.Rec. 603 (1970) (remarks of Senator Allot). The statute is not meant to reach gambling operations that are of insignificant monetary proportions or those that are only occasional or intermittent in operation. Schullo, supra at 1204 and citations. Only gambling that is continuous and substantial was to be proscribed. H.R.Rep.No.1549, 91st Cong., 2d Sess. (1970), 1970 U.S. Code Cong. & Admin.News at 4029.

It has further been established that the alleged violator of the statute need not know that the activity engaged in was composed of five or more participants. Brick, supra, 502 F.2d at 224; see also United States v. Smaldone, 485 F.2d 1333, 1348 (10th Cir. 1973), cert. denied, 416 U.S. 936, 94 S.Ct. 1934, 40 L.Ed.2d 286 (1974); United States v. Iannelli, 477 F.2d 999, 1002 (3rd Cir. 1973), cert. granted, 417 U.S. 907, 94 S.Ct. 2602, 41 L.Ed.2d 211 (1974). However, mere customers of the gambling business are not within the statute’s intended reach. Schullo, 508 F.2d at 1205 and citations.

Congress was aware that it is oftentimes difficult to prove the workings of an organized gambling setup and surmised that the statute would often oper- ' ate against gambling networks much larger than the statutory definition of “five or more” would indicate. S.Rep. No.91 — 617, 91st Cong. 1st Sess. 73 (1969); Schullo, supra at 1205.

In the context of the bookmaking business4 this court has recognized that layoff betting5 is the major link connecting independent operations into an effective gambling organization that will work profitably and well for all concerned. Schullo, supra at 1205; Brick, supra, 502 F.2d at 225; see also United States v. DeCesaro,

Related

United States v. Schultz
917 F. Supp. 1320 (N.D. Iowa, 1996)
United States v. Matthew Trupiano
11 F.3d 769 (Eighth Circuit, 1993)
United States v. Douglas Boss
671 F.2d 396 (Tenth Circuit, 1982)
United States v. Bill R. Clark
646 F.2d 1259 (Eighth Circuit, 1981)
United States v. Dominic Greco, Sr.
619 F.2d 635 (Seventh Circuit, 1980)
United States v. Morris
612 F.2d 483 (Tenth Circuit, 1979)
United States v. Webster
473 F. Supp. 586 (D. Maryland, 1979)
Sanabria v. United States
437 U.S. 54 (Supreme Court, 1978)
United States v. James M. Boyd
566 F.2d 929 (Fifth Circuit, 1978)
United States v. Bennett
563 F.2d 879 (Eighth Circuit, 1977)
United States v. Anthony Turzitti
547 F.2d 1003 (Seventh Circuit, 1977)
United States v. Fred D. Kelley and Paul P. Menz
545 F.2d 619 (Eighth Circuit, 1976)
United States v. James M. McCoy
539 F.2d 1050 (Fifth Circuit, 1976)
United States v. Clarence J. Matya
541 F.2d 741 (Eighth Circuit, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
510 F.2d 1307, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-schaefer-ca8-1975.