United States v. Trainor

477 F.3d 24, 2007 U.S. App. LEXIS 3477, 2007 WL 494921
CourtCourt of Appeals for the First Circuit
DecidedFebruary 16, 2007
Docket05-1553
StatusPublished
Cited by30 cases

This text of 477 F.3d 24 (United States v. Trainor) is published on Counsel Stack Legal Research, covering Court of Appeals for the First 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. Trainor, 477 F.3d 24, 2007 U.S. App. LEXIS 3477, 2007 WL 494921 (1st Cir. 2007).

Opinion

LIPEZ, Circuit Judge.

The primary claim in this criminal appeal is the familiar one that a conspiracy conviction was flawed because the facts revealed multiple conspiracies rather than the single overarching scheme that was charged. The indictment against defendant-appellant William P. Trainor, charg *27 ing both conspiracy to commit wire fraud and multiple episodes of the substantive crime, stemmed from his role in fraudulently securing mortgages on two adjacent properties owned by his family in Maine. Asserting that the conduct related to each property was separate, appellant argues that the conspiracy count — which treated the two ventures as a single scheme— should have been dismissed as duplicitous. He alternatively argues prejudicial variance, contending that the evidence presented at trial showed separate schemes and thus was insufficient to prove the single charged conspiracy. He also claims that spillover in evidence between the two schemes denied him a fair trial on the wire fraud charges, requiring that those convictions also be set aside.

We find no merit in these contentions or his related evidentiary claim. The jury was properly instructed to consider whether a single conspiracy had been proven, and the record amply supports its verdict. We therefore affirm appellant’s conviction on all counts.

I.

A. Factual Background

Appellant Trainor and his family owned two lakeside properties — 12 Trainor Road and 16 Trainor Road — in Lebanon, Maine. Appellant allegedly orchestrated a complex series of financial transactions involving sham deposits, altered checks, forged signatures and myriad other false representations to fraudulently elicit mortgage funds from two different financial institutions. We present the facts as the jury could have found them, reserving additional detail for our discussion of defendant’s claims of error. See United States v. Byrne, 435 F.3d 16, 18 (1st Cir.2006).

1. The Mortgage on 12 Trainor Road

In the summer of 2000, Trainor approached co-defendant John DesMarais, a family friend and carpenter who had done work for him, 1 about buying the house and land at 12 Trainor Road, which was held in the name of Trainor’s wife. DesMarais earned only $40,000 a year and had filed for bankruptcy in 1995, but Trainor offered to help him secure financing. The original purchase and sale agreement showed a sale price of $550,000 and an initial deposit of $10,000. DesMarais had not, in fact, given such a deposit. He previously had purchased a boat from Trainor for $6,000, and Trainor told Des-Marais he would credit the money from the boat purchase toward the property deal. 2

In helping DesMarais obtain a $400,000 mortgage from Chase Manhattan Mortgage (“Chase”), appellant took various steps aimed at creating the false impression that DesMarais had the resources to buy the property. For example, at Trai-nor’s suggestion, DesMarais borrowed *28 $20,000 from an acquaintance, Don Walden, which DesMarais used in part to purchase stock in a company associated with Trainor. 3 DesMarais understood that, like the boat purchase, the money for the stock would be considered a deposit on the property. Walden’s money also was used to fund a $5,240 personal check written to Trainor’s wife, Geraldine, as a deposit. DesMarais subsequently told a Chase loan officer, David Barney, that he planned to finance the property purchase by selling stock worth $157,500. DesMarais testified that the stock value was set by Trainor, and he admitted at trial that he did not own stock of that value. During the loan process, DesMarais did not disclose that he had borrowed money to finance the down-payment, a fact that would have disinclined the mortgage company to issue the loan because an outlay of cash is considered some security against default.

As part of the loan application process, Trainor submitted appraisals for the property that the jury could have found were inflated. See infra note 18. Also among the documents provided to Chase was a memo stating that DesMarais had exchanged his original stock for shares of another company, and that he had a buyer ready to purchase that stock for $106,250. The memo bore the heading “From the Office of John Desmarais” and was signed with the initials “J.D.” DesMarais testified, however, that he had not created the document, that it was not his handwriting on it, and that he never spelled his last name with a lower-case “m.” Barney also was sent a revised purchase and sale agreement, which showed a new sale price of $500,000 and referenced $22,500 in deposits that DesMarais was to have paid by September 30, 2000. DesMarais testified that he did not see the revised purchase and sale agreement until after his arrest, and also stated that the signature that appears on it — his name — was not written by him.

On December 11, 2000, the mortgage company received another memo purportedly from DesMarais, along with photocopies of cancelled checks that were meant to be evidence of his down-payments on the property. The evidence showed, however, that some of the photocopied checks had been altered. 4 On December 21, the company received a faxed copy of DesMarais’s bank statement showing deposits of $18,000 and $87,500 and an account balance of $106,690.83 — “proof’ that DesMa-rais had sufficient funds of his own for the loan to close. The two deposited checks had been written by Trainor, however, on an account of “Fradco Holdings, Inc.” that at the time contained only $7.65. At the closing on December 22, Trainor provided the $91,855.69 that was due from the borrower by using another Fradco Holdings check, this time for $75,000, and a cashier’s check for $16,855.69. Trainor had purchased the cashier’s check with money he obtained from Walden; he gave Walden in return a $17,000 Fradco Holdings check that Walden was told he should hold off on cashing until he heard back from Trainor.

Chase provided $390,083.90 for the closing, and that money was disbursed based on directions from Trainor, who stated in his letter to the mortgage company that he *29 and his wife were donating most of the sale proceeds. The specified disbursements included a $120,000 payment wired to the Fradco Holdings account, which covered the checks that Trainor recently had written on that account: the $17,000 to Walden for the cashier’s check, the $75,000 paid at closing, and the $18,000 check deposited into DesMarais’s account. 5 Trai-nor put a stop payment order on the $87,500 Fradco Holdings check that also had been deposited into DesMarais’s account. Another $20,000 was used to repay Walden for his original loan to DesMarais.

DesMarais moved into the house at 12 Trainor Road and managed to make the loan payments for eighteen months before the bank foreclosed on the property.

2. The Mortgage on 16 Trainor Road

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Bluebook (online)
477 F.3d 24, 2007 U.S. App. LEXIS 3477, 2007 WL 494921, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-trainor-ca1-2007.