Welsh v. Commonwealth

437 S.E.2d 914, 246 Va. 337, 10 Va. Law Rep. 418, 1993 Va. LEXIS 157
CourtSupreme Court of Virginia
DecidedNovember 5, 1993
DocketRecord No. 921385
StatusPublished
Cited by15 cases

This text of 437 S.E.2d 914 (Welsh v. Commonwealth) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Welsh v. Commonwealth, 437 S.E.2d 914, 246 Va. 337, 10 Va. Law Rep. 418, 1993 Va. LEXIS 157 (Va. 1993).

Opinion

CHIEF JUSTICE CARRICO

delivered the opinion of the Court.

In this case, we consider (1) whether the trial court applied correct legal principles in determining whether the prosecution by state officials was tainted through improper use of immunized testimony, and (2) whether the evidence supported the trial court’s finding that the prosecution had met its burden of proving there was no taint.

From some time in the 1970s until convicted of the offenses involved in this appeal, the defendant, Richard E. Welsh, served as an accountant overseeing the financial activities of the National Caucus of Labor Committees (NCLC), an organization founded by Lyndon H. LaRouche, Jr., to promote his political activities in this country. Welsh also supervised the financial operations of a number of other LaRouche corporations, including Publication and General Management, Inc. (PGM).

In 1984, faced with substantial financial deficits, the LaRouche organization began soliciting loans from individuals nationwide, but misinformed prospective lenders about the financial condition of LaRouche’s operations. Knowing at the time that loans could not be repaid, Welsh, as corporate secretary of PGM, executed and delivered letters of indebtedness and promissory notes to many of the lenders.

In the spring of 1986, federal and state authorities began investigating the financial activities of LaRouche and the individuals and corporations associated with him. This investigation involved the United States Attorneys’ offices in Alexandria, Virginia, and [341]*341Boston, Massachusetts, the office of the Attorney General of Virginia, and the office of the Attorney General of New York.

Virginia’s investigative and prosecutorial team was headed by Assistant Attorney General John Russell, aided by Assistant Attorneys General George Chabalewski, Marcia Davis, and Barbara Gaden. Investigator John Parthum of the State Corporation Commission, Donald Moore, Deputy Sheriff of Loudoun County, and Special Agent Charles Bryant of the Virginia State Police also assisted Russell. In addition to his role as deputy sheriff, Moore was commissioned as a Special United States Deputy Marshal to assist the federal investigatory teams in Alexandria and Boston.

Kent Robinson, Assistant United States Attorney, was the lead federal prosecutor in Alexandria. In Boston, Assistant United States Attorney John Markham headed a prosecutorial team that included Assistant United States Attorney Mark Rasch. Participating in the federal probe were investigators from the Federal Bureau of Investigation, the United States Secret Service, the Internal Revenue Service, and the United States Postal Service.

In the New York prosecution, Assistant Attorney General Katherine Law initially was the lead prosecutor, but she left the Attorney General’s office in July 1988. Assistant Attorney General Dawn Cardi succeeded Katherine Law, and Cardi was assisted by Assistant Attorney General Rebecca Mullane.

On October 6 and 7, 1986, federal and state officers, armed with search warrants, seized more than 450 boxes, containing approximately 1,000,000 documents, from NCLC offices at Leesburg in Loudoun County. The investigators stored most of the seized items in a warehouse at Springfield in Fairfax County, where state and federal officers conducted an examination to identify those documents that might be useful in subsequent grand jury investigations and criminal prosecutions.

On February 17, 1987, a Loudoun County grand jury indicted a number of individuals and organizations associated with the LaRouche movement on a variety of charges stemming from the movement’s fund-raising activities. Welsh was among those indicted, and he was charged with four counts of violating the Virginia Securities Act, Code §§ 13.1-501 to -527.3.1 Retired Judge [342]*342Carleton Penn of the Circuit Court of Loudoun County was designated by this Court to hear the cases, and, in the ensuing two years, he handled numerous motions filed by the several defendants.

A federal grand jury in Alexandria also investigated LaRouche’s fund-raising activities. In May 1987, the grand jury subpoenaed Welsh as a witness. He notified the United States Attorney that he intended to invoke his Fifth Amendment privilege against self-incrimination. Assistant United States Attorney Robinson obtained an immunity order pursuant to 18 U.S.C. §§ 6001 et seq.2 As a result, Welsh testified before the Alexandria grand jury on July 22, 1987, and on six other occasions.

In the fall of 1988, the Alexandria grand jury returned indictments against Lyndon LaRouche and six others on mail fraud charges. LaRouche was also indicted for conspiracy to defraud the Internal Revenue Service. In late 1988, Welsh was compelled, under an immunity order, to testify at trial of the Alexandria indictments.

In the meantime, beginning on December 17, 1987, and continuing until May 4, 1988, trial was conducted in Boston on indictments returned by a federal grand jury against several LaRouche associates. Welsh testified at the Boston trial under an immunity order. Trial of indictments returned by a New York grand jury began on April 10, 1989, and continued until.August 31, 1989. Welsh did not testify in New York.

The first prosecution under the Virginia indictments occurred in January 1989, when Rochelle Ascher, a LaRouche fund-raiser, was brought to trial in Loudoun County. John Russell and George Chabalewski, Assistant Attorneys General of Virginia, prosecuted the case. Welsh did not testify at Ascher’s trial.

On April 12, 1989, upon motion of the remaining Loudoun County defendants, including Welsh, Judge Penn granted a change of venue because of the “extreme difficulty . . . encountered ... in empaneling a jury” at Rochelle Ascher’s trial. The cases were transferred to the Circuit Court of Roanoke County, where Judge Clifford R. Weckstein of the Twenty-Third Judicial Circuit, acting under a designation issued by this Court, presided over the matter.

[343]*343The second Virginia prosecution under the Loudoun County indictments, involving Michael Billington, a LaRouche fund-raiser, took place in September 1989. Assistant Attorneys General John Russell and Barbara Gaden prosecuted the case. Welsh did not testify.

Welsh’s trial on the Loudoun County indictments, with Russell as the lead prosecutor, was scheduled to begin on April 24, 1990. However, on March 30, 1990, Welsh filed a motion to dismiss “all charges” or, in the alternative, to suppress the evidence “to be presented against [him] at. . . trial.” This motion sought “to determine whether and to what extent the Commonwealth made direct and/or derivative use of [Welsh’s] immunized testimony” in preparation for trial of the indictments against him.

In a memorandum filed in support of the motion, Welsh claimed that under Kastigar v. United States, 406 U.S. 441

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Bluebook (online)
437 S.E.2d 914, 246 Va. 337, 10 Va. Law Rep. 418, 1993 Va. LEXIS 157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/welsh-v-commonwealth-va-1993.