United States v. William Ruffin

613 F.2d 408, 52 A.L.R. Fed. 737, 1979 U.S. App. LEXIS 9265
CourtCourt of Appeals for the Second Circuit
DecidedDecember 28, 1979
Docket559, Docket 78-1361
StatusPublished
Cited by58 cases

This text of 613 F.2d 408 (United States v. William Ruffin) 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. William Ruffin, 613 F.2d 408, 52 A.L.R. Fed. 737, 1979 U.S. App. LEXIS 9265 (2d Cir. 1979).

Opinions

MANSFIELD, Circuit Judge:

William Ruffin appeals from a judgment of the District Court for the Eastern District of New York entered by Judge Mark A. Costantino on September 29, 1978, following a jury trial, convicting Ruffin of three counts charging that he and his co-defendant Olga Defreitas had obtained by fraud from Community Sponsors Inc., Young Mothers Training Program (YMP) monies that were the subject of federal financing under the Economic Opportunity Act of 1964 as amended, all in violation of 42 U.S.C. § 2703. Ruffin was acquitted of a fourth count charging him and Defreitas, YMP’s director, with conspiracy in violation of 18 U.S.C. § 371 to obtain the monies by fraud. A fifth count, charging both defendants with a substantive violation of § 2703 was dismissed before the case was submitted to the jury. Appellant’s co-defendant Defreitas was acquitted of the four counts submitted to the jury.

The central issue raised on this appeal is whether a person incapable of personally committing a specified crime (in this case because he was not an officer, director, agent or employee of an agency receiving federal financial assistance) who causes an innocent agent meeting the capacity requirements to engage in the proscribed conduct may be punished as a principal under 18 U.S.C. § 2. We hold that he may and affirm.

[410]*410Title 42 U.S.C. § 2703 provided in pertinent part that

“Whoever, being an officer, director, agent, or employee of, or connected in any capacity with, any agency receiving financial assistance under this chapter embezzles, willfully misapplies, steals, or obtains by fraud any of the moneys, funds, assets, or property which are the subject of a grant or contract of assistance pursuant to this chapter, shall be fined not more than $10,000 or imprisoned for not more than two years, or both.”

The statute was part of the Economic Opportunity Act of 1964, as amended, 42 U.S.C. § 2701 (the “Act”), an omnibus antipoverty law designed to provide several types of aid programs to be administered at state and local levels with massive federal fund assistance. The Act provided for the funding of Urban Community Action programs, called “community corporations” and their independent components dr delegate agencies (42 U.S.C. §§ 2701, et seq.). Federal and local funds were allocated and distributed to these community corporations and agencies in New York City through an administrative hierarchy (Office of Economic Opportunity, Human Resources Administration, and Community Development Agency).

In the present case the fund grants were at all relevant times channeled through a community corporation known as BedfordStuyvesant Young in Action Community Corporation (BSYIA) to delegate agencies, including YMP, which had entered into contracts with the New York City Human Resources Administration to provide medical, educational and economic assistance to young pregnant unwed women in the Bed-ford-Stuyvesant district of Brooklyn. In order to function YMP required headquarters and housing, which led to the frauds forming the basis of the prosecution of Défreitas and Ruffin.

Olga Defreitas was the executive director of YMP. William Ruffin was her close personal friend. From October 1970 to August 1974 they arranged to have YMP lease from Rugore Associates, Inc., of which Ruffin was the sole stockholder and president, an unused, uninhabitable, condemned, unsafe building at 1402 Bedford Avenue, Brooklyn, to be used by YMP after the building had been renovated according to the lease agreement and architect’s specifications. In 1969 Ruffin had purchased the run-down premises for $35,000 after persuading Defreitas that it could be renovated arid leased by YMP. By a separate agreement BSYIA community corporation, of which YMP was a delegate agency, then engaged a private contractor to renovate the premises on the understanding that Ruffin would pay one-half the cost. However, the contractor was unable to complete the project and ceased work by January, 1970.

Notwithstanding the condition of the 1402 Bedford Avenue premises and the cessation of renovations, Ruffin, although he knew that the renovation would not be completed and that the building was doomed to be demolished, influenced Defreitas to obtain the necessary rubber-stamp authority from YMP’s Board of Directors to continue leasing the premises from October 1970 through' August 1974 from Rugore Associates, for which Ruffin received rentals totalling $115,000. The rental checks, which amounted to 25% to 35% of YMP’s total yearly program budget during this period, were paid to Ruffin and deposited by him in his personal bank accounts. During the same period Ruffin made various payments to Defreitas personally or for her account, totalling approximately $30,000.

The four substantive counts of the indictment charged that at various times from December, 1970, to October, 1974, Defreitas and Ruffin obtained by fraud and misapplied monies which were the subject of a contract of assistance under the Act, causing the monies to be paid by YMP to Ruffin as rent for the 1402 Bedford Avenue building, although they both knew that the building was not in fact occupied by YMP, was “in an uninhabitable condition,” and was never “rendered habitable” in accord[411]*411anee with obligations undertaken by Ruffin. Although Defreitas was the only defendant who was a “director” and “employee” of an agency receiving federal funds, each of the substantive counts charged that the two defendants jointly, without distinction between them, engaged in the alleged conduct in violation of 42 U.S.C. § 2703 and of 18 U.S.C. § 2, which provides as follows:

“(a) Whoever commits an offense against the United States or aids, abets, counsels, commands, induces or procures its commission, is punishable as a principal.
“(b) Whoever willfully causes an act to be done which if directly performed by him or another would be an offense against the United States, is punishable as a principal.”

After reading both of the foregoing sections to the jury as part of his instructions to the jury, the trial judge instructed the jury:

“In other words, every person who wilfully participates in the commission of a crime may be found to be guilty of that offense. Participation is wilful if done voluntarily and intentionally, and with the specific intent to do something the law forbids, or with the specific intent to fail to do something the law requires to be done; that is to say, with bad purpose either to'disobey or to disregard the law.

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Bluebook (online)
613 F.2d 408, 52 A.L.R. Fed. 737, 1979 U.S. App. LEXIS 9265, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-william-ruffin-ca2-1979.