United States v. Walters

963 F. Supp. 2d 138, 2013 WL 5928509, 2013 U.S. Dist. LEXIS 159158
Procedural entryThis page is a short order in United States v. Walters. Read the opinion of the Court — 963 F. Supp. 2d 125
District Court, E.D. New York·Decided October 16, 2013·No. No. 11 CR 683(NG)(RML)·Published

Opinion

OPINION & ORDER

GERSHON, District Judge:

By this motion, defendant Stevenson Dunn (“Dunn”) seeks to suppress certain statements he made following his arrest in connection with his alleged participation in a kickback scheme involving the New York [140]*140City Department of Housing Preservation and Development. Dunn argues that he made the statements at issue without having been properly advised of his rights under Miranda v. Arizona, 384 U.S. 436, 86 S.Ct. 1602, 16 L.Ed.2d 694 (1966), and with respect to some of the statements, that he expressly requested legal counsel, which request was not honored.

For the reasons set forth below, Dunn’s motion is granted in part and denied in part.

I. Background

According to the Indictment,1 between 2005 and 2011, the New York City Department of Housing Preservation and Development (“HPD”) administered various programs intended to develop affordable housing. (Ind. ¶¶2, 13.) In connection with these programs, HPD selected real estate developers, or “sponsors,” who would then, with HPD, select general contractors to manage the construction and other work the projects required. (Id. ¶ 3.) One such developer selected by HPD was defendant Dunn, whose corporate entities included SML Development LLC, SML Bed Stay Development, LLC, and Hancock Street SML LLC (collectively, the “SML Entities”). (Id. ¶ 7.) Defendants Lee Hymowitz (“Hymowitz”) and Michael Freeman (“Freeman” or “Mike Freeman”) were partners, with Dunn, in the SML Entities, and, separately, in the law firm of Hymowitz & Freeman.2 (Id.)

The government alleges that Dunn, Hymowitz and Freeman solicited and received kickback payments from certain general contractors in exchange for awarding work in connection with various HPD projects and that the three defendants engaged in wire fraud and money laundering to conceal the nature of the kickback payments. (See id. ¶ 13.) Specifically, the government alleges that Dunn, Hymowitz and Freeman included the amounts of the kickback payments in requisitions submitted to HPD, “thereby passing on the costs of their own corrupt activity to HPD,” and that they further concealed the nature of the kickback payments they received by providing to John Doe # 1 (a general contractor) a phony retainer agreement for legal services, and providing to both John Doe # 1 and John Doe # 2 (another general contractor) “false and inflated invoices” for certain services and supplies. (Id. ¶ 13.) The Indictment also contains allegations against Dunn of racketeering, extortion and bribery, as the government alleges that Dunn threatened John Doe #2 and his family with violence when John Doe # 2 failed to make some of the kickback payments, and further, that Dunn made a cash bribe payment to John Doe #3. (Id.)

Following his arrest in connection with these charges on October 5, 2011, Dunn made a series of inculpatory statements. By this motion, Dunn seeks to suppress the statements on the basis that they were obtained in violation of his rights under Miranda, and under the Fifth and Fourteenth Amendments.3

[141]*141A. Dunn’s Motion and Supporting Affidavits

In his initial motion papers and accompanying affidavit, filed December 14, 2012, Dunn argued that his post-arrest statements are inadmissible because he was never advised of his rights against self-incrimination as required by Miranda, and that his requests to speak to an attorney were refused. He asserted that he was not given his Miranda warnings at the time of his arrest, nor while in transit from the location of the arrest, nor at any time during the course of his post-arrest interview in Manhattan. (See Dunn Aff.4 ¶¶ 12, 17, 20.) While in the interview room, Dunn avers that he was shown a form, which he believed to be a criminal indictment bearing his name as a defendant, and:

Once I was shown this document, I immediately stated to Agent Richards and the others that I wanted to talk to my attorney. I said this clearly and without equivocation.
Agent Richards responded that I didn’t have an attorney because he was also being arrested. I was immediately asked again about some alleged scheme I concocted or assisted in concocting with real estate developers.... They told me that I was also implicated in these activities and was in serious trouble. At this time I again asked to speak to my attorney but was again rebuffed.
I specifically stated that if Lee Hymowitz was not available that I be allowed to call Mr. Tarik Davis.... I was not allowed to call Mr. Davis, and the questioning in that room did not stop.... I was questioned for approximately another 5-6 hours in that room.
I could not eat because eating would cause my blood sugar to spike and I did not have my insulin to control it.
I was afraid in that room. I was afraid that my blood sugar would drop and I would go into diabetic shock. After having been held for many hours since having been grabbed out of a car at dinner time, I felt I had to give the agents something, anything to let me go.

(Id. ¶¶ 21-27, emphasis in original.)

In his moving papers, Dunn argued that there was no evidence that he had been given his Miranda rights, as there was “no form acknowledging and understanding the Miranda warnings or any form, for that matter, signed by Mr. Dunn.” (Mem. in Supp.5 9.) Furthermore, Dunn argued that, to the extent he might have waived his rights, such waiver was the product of coercion and therefore not voluntary.

In connection with its opposition papers, filed January 14, 2013, the government submitted a copy of the FD-395 form (the “Advice of Rights Form”), dated October 5, 2011 and bearing the signature of Stevenson Dunn. (See Mem. in Opp.,6 Ex. 1.) [142]*142The government argued that the existence of this form is “dispositive” on the issue of whether or not Dunn received — and waived — his Miranda rights. (Mem. in Opp. 25.) The government further argued that this form, along with the arrest log {id., Ex. 2.), contradicts many of the assertions contained in Dunn’s affidavit, thereby rendering an evidentiary hearing unnecessary. {See id. at 37.)

Dunn did not submit any papers in reply to the government’s opposition, but following oral argument on the motion to suppress, submitted a supplemental affidavit, in which he avers, again, that he was not given his Miranda rights, nor was he given access to the medication he requested. (Dunn Supp. Aff.7 ¶¶ 8-9.) He further states, “I have no recollection of writing a statement, signing a statement or any waiver of my rights,” and reasserts his request for an evidentiary hearing. {Id. ¶¶ 14-15.)

B. The Evidentiary Hearing

On May 20, 2013, an evidentiary hearing was conducted. The government offered the testimony of Special Agent Nashaun Richards (“Agent Richards”) of the Federal Bureau of Investigation (the “FBI”).

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United States v. Walters, 963 F. Supp. 2d 138, 2013 WL 5928509, 2013 U.S. Dist. LEXIS 159158 (E.D.N.Y. 2013).

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