United States v. Zali Fried and Simon Brach

464 F.2d 983, 29 A.F.T.R.2d (RIA) 845, 1972 U.S. App. LEXIS 8238
CourtCourt of Appeals for the Second Circuit
DecidedJuly 25, 1972
Docket823, Docket 72-1295
StatusPublished
Cited by7 cases

This text of 464 F.2d 983 (United States v. Zali Fried and Simon Brach) 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. Zali Fried and Simon Brach, 464 F.2d 983, 29 A.F.T.R.2d (RIA) 845, 1972 U.S. App. LEXIS 8238 (2d Cir. 1972).

Opinion

OAKES, Circuit Judge:

Appellants Fried and Brach, mother and son, appeal from convictions on one count of unlawful possession, 18 U.S.C. § 659, and one count of unlawful sale, 18 U.S.C. § 2315, of “Unisonic” AM-FM stereos moving as part of or constituting a foreign shipment of freight. Each appellant was convicted on both counts, but the jury was unable to agree on a theft count (18 U.S.C. § 659) and a conspiracy count (18 U.S.C. § 371) against appellants, or on counts against appellant Fried’s husband, Ishak, and one Aaron Schatten. Some 589 cartons, each containing two sets of the Japanese eight-track stereo units — valued at over $62,000 in terms of the importer’s cost —were stolen on October 22 and 23, 1970, from Pier 21 in Brooklyn, while consigned to the sole American importer, North American Foreign Trading Corporation (“North American”). The theft was discovered on October 26, and within weeks three separate quantities of the missing stereos were found, in the hands of a New York City retailer, Joseph Levy, a Philadelphia wholesaler, William Hendler, and retailers who had purchased sets from a Pennsylvania wholesaler, Carl Beddo.

Of the 85 stereo units seized from an Orchard Street loft in Manhattan from Levy, at least 82 bore serial numbers falling within the range of serial numbers for the missing units. Only one shipping carton was found at Levy’s, and that in the hallway immediately outside the storeroom. Twenty-two units were seized from Hendler along with ten empty cartons; of these, 20 units and eight cartons bore stolen serial numbers. Six units were taken from purchasers from Beddo, of which five bore numbers within the indicated range. Not insignificantly, all of the units seized from Levy and Hendler and at least half of those seized from customers of Beddo were sold by people connected with Fried Trading Co., a Brooklyn firm owned by appellant Zali Fried and her husband, and employing appellant Brach as a trucker.

While appellants dispute the sufficiency of the evidence, there were ample facts to support their convictions. On October 28, 1970, according to Hendler, Mrs. Fried called him and sold him over the telephone “a couple of dozen” of the stereos at only $5.00 per unit above North American’s cost and a full $7.00 below North American’s lowest selling price to retailers. Curiously, Hendler received no bill or invoice from the Frieds when the units were delivered a few days later, and the shipping label on the cartons referred to a supposed Manhattan company — the “G & S Trading Co.” — that was later shown to be fictitious. Appellant Brach disclaims knowledge that the stereos he delivered to Levy had been stolen, suggesting that it was coincidence that he had Levy’s 100 stereo units delivered in a truck driven by a part-time New York City policeman, who was “moonlighting” for Brach’s trucking business. But no invoice or bill was received for these units either, and Brach retained the receipt for the goods he had Levy sign. Beddo purchased his stereos over-the-tailgate, so to speak, out of a parked truck at the *985 Fried place of business from one of the younger Fried sons. It remains a bit of a mystery how Fried Trading Co. people in late October 1970 became Unisonie purveyors, for nobody connected with Unisonie or North American ever sold stereos to the Frieds or their firm. A footnote is that the Fried Trading Co. does import Japanese stereos, but these are brand-named “Granada" and not “Unisonie.”

It may be that, giving appellants the benefit of the doubt, the evidence against appellants is circumstantial because not all of the stereos and cartons seized fit the range of serial numbers on the bill of lading for the stolen stereos or because there is nothing to match each stereo unit to a carton. So is most evidence, however, upon close analysis, and when stereos with the same serial numbers as the missing units in 80 or 90 per cent of the eases, and cartons with the same numbers in several instances, are sold by a business that has never bought them, at a price a little lower than the usual wholesale price, and without the customary invoicing, the inference that can be drawn by a rational trier of fact is not very remote. To appellate judges who review records, it is difficult to see how any other inference could be drawn in this case.

While there was no direct evidence connecting appellant Fried with the Levy sale, in light of her participation in the Hendler sale and her activity in a managerial capacity in the family business operation, see Nye & Nissen v. United States, 336 U.S. 613, 619-620, 69 S.Ct. 766, 93 L.Ed. 919 (1949), and in light of what was a sound and fair aiding and abetting charge, she was properly found guilty on the Levy sale count. Cf. United States v. Callahan, 439 F.2d 852, 861-862 (2d Cir.), cert. denied, 404 U.S. 826, 92 S.Ct. 56, 30 L.Ed.2d 54 (1971).

Brach’s knowledge that the Levy stereos had been stolen was also proven inferentially only, but it was proven —not merely because the goods his trucking concern delivered were stolen or by his relationship to his mother as a Fried Co. owner, but also by the unusual circumstances of his delivery of $5,000 worth of stereos without a bill or an invoice and by the use of a part-time police officer for delivery purposes, thereby removing Brach himself from transportation of the stolen goods, although he was on hand at Levy’s at the time of delivery. Cf. United States v. Edwards, 366 F.2d 853, 867 (2d Cir.1966), cert. denied, Jakob v. United States, 386 U.S. 908, 87 S.Ct. 852, 17 L.Ed.2d 782 (1967) (“surreptitious and furtive” transfers of stock in bars and lavatories for fraction of face value circumstantial evidence of theft and knowledge that stock was stolen). Even if this evidence were not enough standing alone, “ ‘[possession of the fruits of crime, recently after its commission, justifies the inference that the possession is guilty possession, and, though only prima facie evidence of guilt, may be of controlling weight unless explained by the circumstances or accounted for in some way consistent with innocence.’ ” United States v. Minieri, 303 F.2d 550, 554 (2d Cir.), cert. denied, 371 U.S. 847, 83 S.Ct. 79, 9 L. Ed.2d 81 (1962), quoting Wilson v. United States, 162 U.S. 613, 619, 16 S. Ct. 895, 40 L.Ed. 1090 (1896). In light of the circumstances just recited, Brach’s failure to offer any explanation is fatal to his claim of innocent possession.

Appellant Fried claims prejudice from the testimony of two witnesses.

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Related

Simon Brach v. United States
542 F.2d 4 (Second Circuit, 1976)
United States v. Zali Fried
486 F.2d 201 (Second Circuit, 1973)
United States v. Pui Kan Lam
483 F.2d 1202 (Second Circuit, 1973)
United States v. Fried
359 F. Supp. 227 (E.D. New York, 1973)
Brach v. United States
409 U.S. 1059 (Supreme Court, 1972)
United States v. Edward Sawyer
469 F.2d 450 (Second Circuit, 1972)
United States v. John Carneglia
468 F.2d 1084 (Second Circuit, 1972)

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Bluebook (online)
464 F.2d 983, 29 A.F.T.R.2d (RIA) 845, 1972 U.S. App. LEXIS 8238, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-zali-fried-and-simon-brach-ca2-1972.