United States v. Thomas Clevenger

733 F.2d 1356
CourtCourt of Appeals for the Ninth Circuit
DecidedAugust 3, 1984
Docket1356
StatusPublished
Cited by43 cases

This text of 733 F.2d 1356 (United States v. Thomas Clevenger) 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. Thomas Clevenger, 733 F.2d 1356 (9th Cir. 1984).

Opinion

ALARCON, Circuit Judge:

Thomas Clevenger appeals his conviction of one count of conspiracy. (18 U.S.C. § 371), eight counts of mail fraud (18 U.S.C. § 1341), nine counts of wire fraud (18 U.S.C. § 1343), and one count of interstate transportation of funds acquired by fraud (18 U.S.C. § 2314). He contends that the trial court erred in denying his Rule 29 motion for a judgment of acquittal on the ground that criminal intent was not proven. He also argues that the court abused its discretion in denying his motion for a continuance on the date of trial.

We address each of his contentions and the facts pertinent thereto under separate headings.

ONE.

Clevenger contends that the government failed to produce sufficient evidence to permit a rational trier of fact to conclude that *1358 he acted with criminal intent. He argues that no criminal intent was shown because Hartley, an employee of Safeco involved in the scheme, testified on cross-examination that at no time did he, Roberts and Clevenger conspire to commit any criminal acts, but rather that they were merely trying to circumvent Safeco’s conflict-of-interest policy-

In determining the sufficiency of the evidence, the appropriate standard of review is whether “viewing the evidence in the light most favorable to the prosecution, any rational trier of fact could have found the essential elements of the crime charged beyond a reasonable doubt.” Jackson v. Virginia, 443 U.S. 307, 319, 99 S.Ct. 2781, 2789, 61 L.Ed.2d 560 (1979); United States v. Saavedra, 684 F.2d 1293, 1300 (9th Cir. 1982).

Clevenger was charged with conspiracy, mail fraud, and wire fraud. Under 18 U.S.C. § 371, the essential elements of conspiracy are: (1) a scheme to defraud, and (2) by two or more persons. Under 18 U.S.C. § 1341, and 18 U.S.C. § 1343, the essential elements of mail and wire fraud are: (1) a scheme to defraud, and (2) a knowing use of the mail and wire to execute the scheme.

The evidence shows that Van Charles Hartley, a loan officer with Safeco, was an owner, along with Clevenger and Roberts, of Target Industries. In September, 1981, Roberts and Clevenger asked Hartley to present their loan application for $300,000 to Safeco. Upon attempting to attain approval from his superiors, Hartley was told that Safeco could not provide any financing for Target because his status as a stockholder of the applicant constituted a conflict of interest.

Notwithstanding this directive, between November, 1981, and June, 1982, Hartley accepted and approved loan applications from Clevenger and Roberts totalling over $300,000. The loan applications contained false information concerning the name of the applicant, the purpose of the loan, and the adequacy of the collateral. Roberts and Clevenger forged all of the borrowers’ and sellers’ signatures in furtherance of their scheme to defraud Safeco. Hartley was aware at all times that the money obtained through these falsified applications was for Target Industries. False information was sent by Hartley through mail and by wire to Safeco’s Seattle office. As a result of the sham transactions, Safe-co lost $330,000.

To establish fraud, the government must prove that the defendant possessed the requisite intent to defraud. United States v. Beecroft, 608 F.2d 753, 757 (9th Cir.1979). The elements of fraud consist of: (1) a false representation (2) in reference to a material fact (3) made with knowledge of its falsity (4) and with intent to deceive (5) with action taken in reliance upon the representation. Hart v. McLucas, 535 F.2d 516, 519 (9th Cir.1976). 1 Intent need not be proven by direct evidence, “but may be inferred from their own statements and conduct (citation omitted) and from their knowledge that the scheme operated in a deceitful manner.” United States v. Zemek, 634 F.2d 1159, 1180 (9th Cir.1980), cert. denied, 450 U.S. 916, 101 S.Ct. 1359, 67 L.Ed.2d 341 (1981). Such intent can be established by proof “that the defendant was a knowing participant in a fraudulent scheme that utilized the mails (or wire).” United States v. Diggs, 649 F.2d 731, 736 (9th Cir.), cert. denied, 454 U.S. 970, 102 S.Ct. 516, 70 L.Ed.2d 387 (1981). To prove a conspiracy, the evidence must show that each of the appellants was involved. United States v. Beecroft, 608 F.2d 757. The agreement may be inferred from the appellants’ acts pursuant to the fraudulent scheme or other circumstantial evidence. Id.

Clevenger further argues that the government failed to show criminal intent because Hartley testified that he, Roberts and Clevenger did not think they were breaking the law, but rather tried only to *1359 circumvent Safeco’s conflict-of-interest policy. The trier of fact has a wide latitude in which to decide which witnesses to believe or disbelieve. Hiram v. United States, 354 F.2d 4, 7 (9th Cir.1965). The jury was free to accept or reject Hartley’s testimony in whole or in-part.

The evidence, when viewed in a light most favorable to the prosecution, was clearly sufficient to permit a rational juror to conclude beyond a reasonable doubt that Clevenger, with intent to obtain money illegally, conspired with others to file false loan applications containing material misrepresentations and to use the mails and wire to obtain money from Safeco through fraudulent means.

TWO.

Clevenger argues that the trial court abused its discretion in denying his motion for a continuance.

Clevenger’s trial attorney was appointed to substitute for previous counsel on March 28, 1983. The trial, which had been set for April 4, 1983, prior to the substitution of counsel, was continued to May 9, 1983. After a probation violation hearing on another matter, Clevenger’s probation was revoked and on April 13, 1983, he was transferred to Lompoc.

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