United States v. Uni Oil, Inc.

646 F.2d 946
CourtCourt of Appeals for the Fifth Circuit
DecidedMay 19, 1981
DocketNos. 79-2488, 79-3082
StatusPublished
Cited by34 cases

This text of 646 F.2d 946 (United States v. Uni Oil, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth 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. Uni Oil, Inc., 646 F.2d 946 (5th Cir. 1981).

Opinion

JAMES C. HILL, Circuit Judge:

Under regulations adopted by the Department of Energy, see 10 C.F.R. §§ 212.-[948]*9481-212.188 (1980),1 vendors of domestic crude oil operate subject to various price controls. This appeal is a consolidation of two cases in which appellee oil dealers were indicted for various fraudulent schemes and practices which allegedly enabled them to sell domestic crude oil for prices in excess of legal maxima.2 See 10 C.F.R. § 212.131 (1980).

Although the indictments exclusively charge Title 18 offenses, both the indictments and the defenses thereto make use of the Emergency Petroleum Allocation Act (EPAA) 15 U.S.C. § 751 et seq. and its regulations. The tension between Title 18 and the EPAA poses difficult questions regarding our jurisdiction and the sufficiency of the indictments. The district court dismissed both indictments. For the reasons set out below, we conclude that we have jurisdiction to consider this appeal and that both indictments are sufficient. Therefore, we reverse and remand to the district court.

I. The Indictments

On March 7, 1979 a grand jury in Houston, Texas returned an eighty-four count indictment against Uni Oil, Ball Marketing Enterprise and five named individual defendants, Thomas “Mick” Hajecate, Thomas “Tom” Hajecate, James Fisher, Charles Akin, and Charlie Goss. United States v. Uni Oil, Inc., No. 79-2488 (hereinafter Uni Oil). The indictment charged that the defendants conspired to violate the Racketeer Influenced and Corrupt Organizations (RICO) statute in order to miscertify and sell oil that was properly considered “old” oil as “new” oil, 18 U.S.C. § 1962(d) [Count 1] , conducted the affairs of an enterprise, Uni Oil, through a pattern of racketeering activity which included mail fraud and commercial bribery, 18 U.S.C. § 1962(c) [Count 2] , furthered a scheme and artifice to defraud the United States and its agencies through mailings which fraudulently certified “old” oil as “new” oil, 18 U.S.C. § 1341 [Counts 3-34], engaged in wire fraud to further the same scheme and artifice, 18 U.S.C. § 1343 [Counts 35-59], and made false and fraudulent representations regarding the origin of oil in records caused to be prepared and submitted pursuant to government regulation. 18 U.S.C. § 1001 [Counts 60-84].

The appellees challenged the indictment on numerous grounds. After extensive briefing, a hearing was held before the Honorable Ross N. Sterling of the United States District Court for the Southern District of Texas on May 29, 1979. At the close of argument, Judge Sterling announced that the appellees’ motions to dismiss were granted. One week later the judge issued a one sentence order dismissing the indictment. Despite the complexity of the issues, the order was not accompanied by a memorandum or by any other analysis by the district judge.

On April 30, 1979 a grand jury in Houston, Texas returned a twenty-nine count indictment against the Mid-Atlantic Petroleum Company, Ltd., The Crude Company, Uni Oil, Inc., H.C. Iran, Ltd. and five named individuals, John Allen Masek, Thomas “Tom” Hajecate, Thomas “Mick” Hajecate, Charles R. Akin, and R. Stanley Corbitt. United States v. Mid Atlantic Petroleum Co., Ltd., No. 79-3082 (hereinafter Mapco). The indictment charged that the defendants conspired to conduct the affairs of an enterprise, Uni Oil, through a pattern of racketeering activity in order to disguise oil that was properly to be considered “old” oil as “new” oil, 18 U.S.C. § 1962(d) [Count 1], conducted the affairs of Uni Oil through a pattern of racketeering activity, 18 U.S.C. § 1962(c) [Count 2], caused false and fraudulent invoices and certificates to be placed [949]*949in the mail 18 U.S.C. § 1341 [Counts 3-23], and knowingly made false and fraudulent representations in a matter within the jurisdiction of the Federal Energy Administration, i. e., falsely certifying domestic crude oil, 18 U.S.C. § 1001 [Counts 24-29].

As in Uni Oil, the appellees challenged the indictment on numerous grounds. After extensive briefing, oral argument was held before the Honorable Ross N. Sterling of the United States District Court for the Southern District of Texas. From the bench, Judge Sterling ordered dismissal of the indictment for “the reasons stated in the Defendants’ briefs.” On July 25, 1979, Judge Sterling issued a written order granting the motions to dismiss “for the reasons set out in the Defendants’ briefs.” II. Discussion

A. Jurisdiction

The threshold question is whether we have jurisdiction to consider this appeal. Section 211(b)(2) of the Economic Stabilization Act of 1970 provides that the Temporary Emergency Court of Appeals shall have “exclusive jurisdiction of all appeals from the district courts of the United States in cases and controversies arising under this title or under regulations or orders issued thereunder.” 12 U.S.C. § 1904 note (West Supp.1977). Section 5(a)(1) of the Emergency Petroleum Allocation Act, as amended, 15 U.S.C. § 754, incorporates and carries forward this grant of special jurisdiction. Accordingly, if the district court adjudicated an EPAA issue we lack jurisdiction. Coastal States Marketing, Inc. v. New England Petroleum Corp., 604 F.2d 179, 187 (2d Cir. 1979).

We begin by noting that an EPAA issue is not raised simply because the indictments “included an explanation of the EPAA regulations proscribing miscertification and that such regulations provided a convenient format for defendants’ [alleged] scheme of fraud and criminal enterprise,” United States v. Zang, 645 F.2d 999 at 1003 (Em.App. 1981). However, the thrust of appellees’ argument is not that the indictment arose under the EPAA. Rather, they contend that two EPAA issues were raised in defense to the indictment. See Coastal States Marketing, Inc. v. New England Petroleum Corp.,

Related

United States v. Jordan
365 F. Supp. 3d 776 (E.D. Texas, 2019)
United States v. Taylor
582 F.3d 558 (Fifth Circuit, 2009)
United States v. Mary Rose Oakar and Joseph Demio
111 F.3d 146 (D.C. Circuit, 1997)
Pennzoil Exploration & Production Co. v. Lujan
928 F.2d 1139 (Temporary Emergency Court of Appeals, 1991)
In Re Seneca Oil Company
906 F.2d 1445 (First Circuit, 1990)
United States Department of Energy v. Seneca Oil Co.
906 F.2d 1445 (Tenth Circuit, 1990)
United States v. Young & Rubicam, Inc.
741 F. Supp. 334 (D. Connecticut, 1990)
Plains Resources, Inc. v. Gable
782 F.2d 883 (Tenth Circuit, 1986)
United States Department of Energy v. West Texas Marketing Corp.
763 F.2d 1411 (Temporary Emergency Court of Appeals, 1985)
United States v. Hollingsworth Oil Co.
760 F.2d 1295 (Temporary Emergency Court of Appeals, 1985)
Finn v. Davis
602 F. Supp. 801 (S.D. Florida, 1985)
Rainey v. Union Oil Co.
732 F.2d 1563 (Temporary Emergency Court of Appeals, 1984)
Morosani v. First Nat. Bank of Atlanta
581 F. Supp. 945 (N.D. Georgia, 1984)
United States v. Texas Energy Petroleum Corp.
719 F.2d 394 (Temporary Emergency Court of Appeals, 1983)
Ralston v. Capper
569 F. Supp. 1575 (E.D. Michigan, 1983)

Cite This Page — Counsel Stack

Bluebook (online)
646 F.2d 946, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-uni-oil-inc-ca5-1981.