United States v. Walshe

526 F. App'x 834
CourtCourt of Appeals for the Tenth Circuit
DecidedMay 6, 2013
Docket12-1145
StatusUnpublished
Cited by4 cases

This text of 526 F. App'x 834 (United States v. Walshe) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth 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. Walshe, 526 F. App'x 834 (10th Cir. 2013).

Opinion

*836 ORDER AND JUDGMENT *

DAVID M. EBEL, Circuit Judge.

John C. Walshe appeals from his conviction on eighteen counts; specifically, Counts 1-11 (failure to pay taxes withheld from employees) and Counts 12-18 (theft from an employee benefit plan). He argues (1) the district court erred in excluding evidence relating to his mental state; (2) the district court erred in the instructions it gave to the jury; and (8) the district erred by giving the jury a modified Allen charge. For the reasons discussed below, we reject each of these arguments and AFFIRM Mr. Walshe’s conviction.

BACKGROUND

In brief, Mr. Walshe owned and operated Finzer Imaging Services (“Finzer”). He was tried by a jury and found guilty on eighteen counts: (1) Counts 1-11, failure to pay taxes withheld from Finzer employees in violation of 26 U.S.C. § 7202; and (2) Counts 12-18, theft from a benefit plan of Finzer employees in violation of 18 U.S.C. § 664.

As is relevant to this appeal, the following three issues arose at trial. First, the district court excluded certain evidence that the defense sought to introduce at trial. Specifically, to support the argument that Mr. Walshe had not “willfully” violated his known legal duties, the defense attempted to introduce a letter written by Mr. Walshe to an Internal Revenue Services (“IRS”) agent named Victoria Ayers (“Letter”). The Letter was written after Mr. Walshe became the subject of investigation and proposed a “payment plan” on the taxes owed.

The defense argued that the Letter was relevant to the issue of Mr. Walshe’s mens rea. The Government objected on the basis that the Letter was hearsay. The district court rejected the defense’s argument that the Letter fell under the exception for statements demonstrating state of mind, contained in Federal Rule of Evidence 808, and the court therefore excluded the evidence when the defense attempted to introduce it during the cross-examination of Ms. Ayers. But on redirect, the Government introduced the Letter and the court admitted it. The defense did not ask Ms. Ayers any questions about the Letter.

Additionally, the defense sought to introduce testimony from Mr. Walshe’s son, Chris Walshe (“Chris”), regarding Mr. Walshe’s purported mental health problems. The Government objected to the testimony on the basis that it was an attempt to present an expert mental health diagnosis, and was therefore improper lay testimony. In response, the court limited the scope of Chris’s testimony.

Second, the defense raised certain objections to the jury instructions. Jury Instruction No. 15 instructed the jury that, in reference to the counts for failing to pay withheld taxes (Counts 1-11), the Government must prove three elements, including “that Mr. Walshe acted willfully.” Instruction No. 18 defined the term “willfully.” The defense objected to the definition of “willfully” being placed in a separate jury instruction, but the court overruled the objection.

Jury Instruction No. 21, which related to counts of theft from an employee benefit *837 plan (Counts 12-18), stated that the Government must prove that Mr. Walshe acted “unlawfully and willfully.” Instruction No. 24 defined the phrase “unlawfully and willfully,” and also contained additional language. Mr. Walshe objected to Instruction No. 24, arguing that it was inaccurate, but the court overruled the objection.

Third, the defense objected to a modified Allen charge that the court gave the jury when the jury deadlocked on the second set of charges (Counts 12-18, relating to theft from an employee benefit plan). The Government asked the court to provide the jury with a modified Allen charge, as reflected in Tenth Circuit Pattern Jury Instructions, but the defense objected. Thus, the court referred the jury’s attention back to Instruction No. 26, which contained much of the same language as the pattern Allen charge. But the court also read to the jury some language from the pattern Allen charge that was not included in Instruction No. 26.

Approximately 53 minutes after receiving these instructions from the court, the jury returned a verdict of guilty on all counts. Subsequently, the court sentenced Mr. Walshe and entered final judgment, and Mr. Walshe timely filed his notice of appeal.

DISCUSSION

I. Excluded Evidence

Mr. Walshe claims that the district court committed reversible error when it excluded evidence he believes was relevant to his mental state. Specifically, Mr. Walshe argues that the district court erroneously excluded (1) the Letter Mr. Walshe sent to IRS agent Ayers; (2) testimony of Mr. Walshe’s son, Chris, about the cause of “strange conduct on the Defendant’s part during the time frames alleged in the charging document,” (Aplt. Br. at 10); and (3) “evidence of Mr. Walshe’s cooperation with the investigation offered by the Defendant to show his intent,” (Aplt. Br. at 10).

A. Standard of Review

“A district court has broad discretion to determine the admissibility of evidence.” United States v. Leonard, 439 F.3d 648, 650 (10th Cir.2006). Accordingly, “we review the district court’s ruling for abuse of discretion,” and “we will not disturb a trial court’s decision unless we ha[ve] a definite and firm conviction that the [trial] court made a clear error of judgment or exceeded the bounds of permissible choice in the circumstances.” Id. (alterations in original) (internal quotation marks omitted).

B. There Was No Error in Excluding the Letter, But Even if the District Court Erred in Its Ruling, that Error was Harmless

During the cross-examination of Ms. Ayers, Mr. Walshe sought to introduce a Letter he sent to IRS agent Ayers. On appeal, Mr. Walshe contends that the district court erred when it excluded the Letter. Mr. Walshe claims that the Letter was relevant to whether he “willfully” failed to pay his taxes. Specifically, Mr. Walshe argues that the Letter’s “description of] a payment plan” (Aplt. Br. at 10-11.)

But as the district court noted, on the counts relating to Mr. Walshe’s failure to pay taxes, the Government only had to prove that Mr. Walshe “voluntarily], intentional[ly] violated] a known legal duty” to pay his taxes when they came due. See Cheek v. United States, 498 U.S. 192, 201, 111 S.Ct. 604, 112 L.Ed.2d 617 (1991). Thus, the district court properly excluded the Letter on the ground that, as a post *838 hoc offer to “pay later,” the Letter was irrelevant.

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Cite This Page — Counsel Stack

Bluebook (online)
526 F. App'x 834, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-walshe-ca10-2013.