United States v. Traitz

871 F.2d 368
CourtCourt of Appeals for the Third Circuit
DecidedMarch 22, 1989
DocketNos. 88-1048 to 88-1050, 88-1055 to 88-1059, 88-1071 and 88-1152 to 88-1155
StatusPublished
Cited by66 cases

This text of 871 F.2d 368 (United States v. Traitz) 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. Traitz, 871 F.2d 368 (3d Cir. 1989).

Opinion

OPINION OF THE COURT

SEITZ, Circuit Judge.

On October 23, 1986, appellants Stephen Traitz, Jr. (“Traitz, Jr.”), Edward P. Hurst (“Hurst”), Michael Mangini (“Mangini”), Robert Crosley (“Crosley”), Michael Daly (“Daly”), Daniel Cannon (“Cannon”), Mark Osborn (“Osborn”), Robert Medina (“Medina”), Ernest Williams (“Williams”), James Nuzzi (“Nuzzi”), Stephen Traitz, III (“Traitz, III”), Joseph Traitz (“Traitz”), Richard Schoenberger (“Schoenberger”) and six other individuals were indicted. On June 18, 1987, the grand jury returned a sixty-six count superseding indictment which charged violations of the Racketeer Influenced Corrupt Organization Act (“RICO”), RICO conspiracy, mail fraud, solicitation of kickbacks to influence the operation of an employee benefit plan, embezzlement from an employee welfare plan, Hobbs Act extortion, collection of credit and claims by extortionate means, interstate travel in aid of racketeering and embezzlement of union funds in contravention of 18 U.S.C. §§ 1962(c), 1962(d), 1341,1954, 664, 201, 1951, 894, 1952 and 29 U.S.C. § 501(c), respectively.

Appellants were tried and convicted on various counts of the superseding indictment and duly sentenced. This appeal followed.

I. JURISDICTION

The district court had jurisdiction based on alleged violations of federal criminal statutes. We have jurisdiction pursuant to 28 U.S.C. § 1291 (1982).

II. BACKGROUND

Due to the complex nature of this appeal we outline the structure of this opinion. After setting forth both a factual overview and, in a general way, the facts relating to the specific charges, those arguments that were raised in common by several appellants will be resolved. Thereafter, the contentions asserted by individual appellants that are unique to their circumstances will be determined.

On September 23, 1985, listening devices and the interception of communications in the Business Manager’s Office and Business Agent’s Meeting Room at the offices of the Roofers Union Local 30/30B were authorized. Electronic surveillance continued through February 26,1986. The fruits of this surveillance and other material eventuated in the indictments and convictions here involved.

A. MAIL FRAUD

Appellants Medina and Traitz, Jr. were found guilty of mail fraud in violation of 18 U.S.C. §§ 1341 and 1342. The facts con[375]*375cerning this charge are as follows. On June 21, 1985, Medina, while operating an automobile leased for him by the Roofers Union, was involved in a hit-and-run accident. After the accident, Medina took the vehicle to the outskirts of Philadelphia and set it on fire. Medina and Traitz, Jr. then, using the mails, reported to their insurance carrier that the car had been stolen resulting in a payment of $18,075.00 by the insurance company.

B.BRIBERY AND KICKBACKS

On October 16, 1985, Medina was arrested on Pennsylvania state charges for aggravated assault in connection with the motor vehicle accident of June 21, 1985. Thereafter, conversations were intercepted in which Traitz, Jr. said that he was going to “buy Medina out of trouble” and was going to get the “right” judge for the case. When Medina was released on his own recognizance, Traitz, Jr. acknowledged having “arranged” for Medina’s release with the Bail Commissioner Margaret McCook. Later, Traitz, Jr. gave $300 to Philadelphia Police Officer John McCook, the husband of the Bail Commissioner, and said to John McCook, “give that [the $300] to your wife.”

In addition, a conversation on November 11, 1985, among Traitz, Jr., Crosley, Hurst and Mangini, was intercepted in which the men were discussing giving “Christmas” envelopes, containing cash, to various public officials. This discussion was followed by several conversations in November in which Traitz, Jr. and other individuals created the procedure by which the “gifts” were to be made. In order to assure secrecy, the “gift” envelopes would not contain the names of the recipients but would bear a number of hash marks corresponding to the total number of hundreds of dollars contained in the envelope.

On December 6, 1985, Traitz, Jr. met with Tommy Brown. Traitz, Jr. gave Brown 21 envelopes and a list of names of the public officials to whom the envelopes were to be delivered, including how large a “gift" each person was to receive. On December 17, 1985, Brown reported to Traitz, Jr. that he had delivered 19 of the 21 envelopes; Brown returned the undelivered envelopes to Traitz, Jr. Other public officials traveled to the offices of the Roofers Union to collect the “gifts” intended for them. In addition, appellant Nuzzi traveled from Pennsylvania to New Jersey to deliver “gifts” to Sheriff William Simon of Camden, New Jersey and his Deputy, Norbert Zuchowski.

C. OSHA BRIBERY

Evidence presented at trial established that Traitz, Jr. gave Bernard J. Dillon (“Dillon”), Area Director of the Occupational Safety and Health Administration (OSHA), money in return for various favors. Dillon engaged in inspections of nonunion job sites in order to harass the nonunion employers and assisted, at the request of Traitz, Jr., a retired Philadelphia Police Officer to fill out an employment application for OSHA containing false information.

D. HOBBS ACT EXTORTION AND COLLECTION OF CREDIT BY EXTORTIONATE MEANS

Beginning in September, 1985, Local 30B contractors (also called “principals”) were summoned to the offices of the Roofers Union. The purpose of the meetings was to institute a “new policy” and to “request” principals to pay fines for noncompliance with union rules. The new policy required principals to report at least 100 hours of work per month (the “100 hour plan”), thereby mandating a minimum union payment of $60, in contrast to the previous policy which did not contain a minimum reporting requirement. In addition, nonunion contractors were summoned to the union offices to induce them to become union-contractors.

The meetings with the contractors were shown to be confrontational and intimidating in that the principals were often threatened and physically abused by union officials — typically the union business agents who were ex-amateur or ex-professional boxers.

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871 F.2d 368, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-traitz-ca3-1989.