United States v. Truman

688 F.3d 129, 88 Fed. R. Serv. 1433, 2012 WL 3023804, 2012 U.S. App. LEXIS 15403
CourtCourt of Appeals for the Second Circuit
DecidedJuly 25, 2012
DocketDocket 11-784-cr
StatusPublished
Cited by39 cases

This text of 688 F.3d 129 (United States v. Truman) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second 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. Truman, 688 F.3d 129, 88 Fed. R. Serv. 1433, 2012 WL 3023804, 2012 U.S. App. LEXIS 15403 (2d Cir. 2012).

Opinion

LOHIER, Circuit Judge:

The Government appeals from a judgment issued by the United States District Court for the Northern District of New York (Hurd, J.) granting Defendanb-Appellee Jeffrey E. Truman, Sr.’s (“Truman”) motion for a judgment of acquittal under Federal Rule of. Criminal Procedure 29(a) and conditionally granting Truman’s mo *134 tion for a new trial under Federal Rules of Criminal Procedure 29(d) and 38(a) after a jury trial in which Truman was convicted of various arson-related charges in connection with the destruction by fire of a vacant building that he jointly owned. A principal witness against Truman at trial, his son, Jeffrey Truman, Jr. (“Truman, Jr.”), had been convicted in New York state court of setting fire to the building and had thereafter cooperated with the federal Government.

Contrary to the District Court’s analysis, we conclude that Truman, Jr.’s refusal to answer certain questions at trial did not render his testimony for the Government “incredible as a matter of law,” and that Truman, Jr.’s prior testimony against Truman in a separate state court trial was properly admitted as nonhearsay under Federal Rule of Evidence 801(d)(1)(A). We also conclude that Truman was not prejudiced by the Government’s improper cross-examination and arguments in summation or by the Government’s reference in summation to a breach of Truman, Jr.’s cooperation agreement. Accordingly, we vacate the District Court’s judgment of acquittal and its order conditionally granting a new trial, and we remand for entry of a judgment consistent with the jury’s guilty verdict and for sentencing.

BACKGROUND

According to the evidence introduced at trial, in November 2005 Truman, along with two partners in JMM Properties, LLC (“JMM”), purchased a vacant commercial building and the property on which it was located on Liberty Street in Oneida, New York (“Liberty Street building” or “the building”) for $175,000. An insurance policy for the property, set to expire November 17, 2006, covered up to $4,250,000 in fire-related losses. Moreover, as Truman later learned from JMM’s real estate broker, the property without the building “was worth as much or more than it was worth with the building on it.”

In January 2006 a small fire started accidentally at the Liberty Street property, causing only minor damage. The day after the fire, the real estate broker reminded Truman that the building was insured for several million dollars, and Truman told an employee responsible for cleaning the building, “[I]f it ever caught on fire again, just get out. It is worth more to me down than it is standing.” Similarly, when Truman’s father-in-law said that leasing the building would be profitable, Truman responded that “it would probably make more money if it burnt.”

By the fall of 2006, JMM was financially strapped. Unable to find tenants or buyers for the property, it faced mounting unpaid financial obligations totaling several thousand dollars, including a significant interest payment on one mortgage loan, due November 17, 2006 — the same day that the insurance policy was set to expire — and a payment of $14,500 in broker fees associated with a second mortgage that Truman had personally guaranteed. After Truman negotiated three extensions of the deadline for the $14,500 payment, JMM’s mortgage broker told Truman the week before the fire that the second loan would be canceled if the payment was not made by November 14. Truman himself experienced significant financial difficulties relating to JMM and unrelated businesses, including a restaurant and a skating rink. He lost $97,000 in other real estate investments in 2005 and in September 2006 was forced to withdraw $135,000 from his retirement savings to pay credit card debts and JMM’s bills. By early November 2006, Truman had less than $5,000 in his personal bank accounts. Nevertheless, the premium payments for the insurance poli *135 cy covering the Liberty Street building remained up to date through November 17, 2006.

The building burned down the evening of November 12, 2006. Investigators soon determined that the fire was the result of arson. The following month, police arrested twenty-year-old Truman, Jr., who confessed that he had burned the building at his father’s direction. Apparently unaware of his son’s confession, Truman and his business partners filed an insurance claim for the building in February 2007. Truman was arrested by state law enforcement officials in March 2007, and both he and Traman, Jr. were indicted by a grand jury in Madison County, New York. Truman, Jr. pleaded guilty to third-degree arson pursuant to a cooperation agreement with the district attorney of Madison County and served a two-year term of imprisonment.

I. State Proceedings

Truman was first tried in state court on arson, fraud, and related charges, with Truman, Jr. as the main witness against him. The charges were dismissed, however, when the State prosecutors proved unable to corroborate Truman, Jr.’s testimony, as required under New York law when an accomplice testifies for the prosecution. See N.Y. Crim. Proc. Law § 60.22(1).

II. Federal Proceedings and Evidence at Trial

After the state charges against Truman were dismissed, the United States began its own investigation. In January 2010 Truman, Jr. entered into a cooperation agreement with the United States Attorney’s Office pursuant to which he agreed to give “complete, truthful, and accurate information during ... statements [to the Government] and subsequent testimony before a federal grand jury and during subsequent proceedings,” and acknowledged that a “failure or a refusal to continue to cooperate or to testify [would] constitute a breach of [the] agreement.” Truman, Jr. testified before a federal grand jury, and soon thereafter Truman was indicted and charged with (1) aiding and abetting arson, in violation of 18 U.S.C. §§ 844(i) and 2 (Count One), (2) mail fraud, in violation of 18 U.S.C. § 1341 (Counts Two and Three), (3) use of fire in the commission of a felony, namely, mail fraud, in violation of 18 U.S.C. § 844(h) (Count Four), and (4) loan fraud, in violation of 18 U.S.C. § 1341, in connection with a second mortgage that Truman obtained to develop the Liberty Street property (Counts Five and Six).

A. Truman, Jr. ’s Testimony and Statement to the Police

At Truman’s federal trial, the Government called Truman, Jr. as a witness.

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Bluebook (online)
688 F.3d 129, 88 Fed. R. Serv. 1433, 2012 WL 3023804, 2012 U.S. App. LEXIS 15403, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-truman-ca2-2012.