Federal Circuits, Seventh Circuit (June 17, 1994)
Docket number: 93-2940
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U.S. Supreme Court - United States v. Matlock, 415 U.S. 164 (1974)
U.S. Supreme Court - Schneckloth v. Bustamonte, 412 U.S. 218 (1973)
U.S. Supreme Court - Katz v. United States, 389 U.S. 347 (1967)
U.S. Supreme Court - Brinegar v. United States, 338 U.S. 160 (1949)
U.S. Supreme Court - Carroll v. United States, 267 U.S. 132 (1925)
Ohio Supreme Court - State v. Reynolds (Ohio 1998)
U.S. Court of Appeals for the Second Circuit - USA v. Titemore (2nd Cir. 2006)
Andrew B. Baker, Jr., Asst. U.S. Atty. (argued), Office of the U.S. Atty., Dyer, IN, for plaintiff-appellee.
Arlington J. Foley (argued), Merrillville, IN, for defendant-appellant.Before WOOD, Jr., COFFEY, and KANNE, Circuit Judges.COFFEY, Circuit Judge.Ronald B. Evans appeals his conviction for five counts of a six-count indictment returned against him for allegedly operating an automobile chop shop out of his father's garage in Hebron, Indiana. Count 1 charged Evans with operating, maintaining, and controlling a chop shop in violation of 18 U.S.C. Sec . 2322. Counts 2 and 3 charged Evans with receiving, possessing, concealing, and storing a motor vehicle that had crossed the state line after being stolen, in violation of 18 U.S.C. Secs . 2313 and 2. Count 4 alleged that Evans possessed a 1991 GMC Jimmy with intent to sell it knowing that the Vehicle Identification Number ("VIN") had been unlawfully altered in violation of 18 U.S.C. Secs . 2321 and 2. Count 5 charged Evans with knowingly and unlawfully altering the VIN of the 1991 GMC Jimmy, in violation of 18 U.S.C. Secs . 511 and 2. Count 6 charged Evans with making false statements with the intent to influence a federally insured bank to issue a loan in violation of 18 U.S.C. Sec . 1014.Before trial Evans moved to suppress the evidence seized by the government and statements made after a warrantless search on the property where his car repair business was located. The district court denied the motion to suppress, finding that Evans' father had consented to the search of the property. At the close of the government's case, the trial court granted Evans' motion for a judgment of acquittal on Count 1. A jury found Evans guilty on the remaining five counts.At Evans' sentencing hearing, the district court denied the defendant's request for a two-point reduction of his base offense level under Sec. 3E1.1 of the Sentencing Guidelines ("Guidelines" or "U.S.S.G.") for acceptance of responsibility. The court sentenced Evans to thirty-three months imprisonment, imposed a $6,000 fine, and ordered restitution in the amount of $7,498.98. Evans appeals his conviction and sentence. We affirm.I. BACKGROUNDA. The Hearing on the Motion To SuppressTwo confidential informants told FBI Agent David Roth that Chris Mauger was involved in the theft of vehicles, particularly late model Chevrolet Blazers and pickup trucks. The informants stated that Mauger and his confederates would steal a dealer's license plate from a car dealer's lot, go to another dealer to test drive a vehicle, and duplicate the car key. The thieves would later return and steal the vehicle they had taken on the test drive, and place the stolen dealer's plate on the stolen car. Based upon this information, the FBI decided to conduct an investigation of Mauger and his associates. During their surveillance of Mauger and his associates, the FBI observed them stealing vehicles and attaching dealer plates to stolen vehicles.While surveilling Mauger's residence at 2400 Ralston Street in Gary, Indiana, on December 10, 1992, FBI agents noted that a new green and tan, four-door Chevrolet Blazer truck bearing an Illinois dealer license plate was parked in the driveway. The agents checked the National Crime Information Center ("NCIC") which informed them that, according to the Illinois Secretary of State, the license plate was registered to Currie Motors in Chicago, Illinois. An agent telephoned James Pop, Currie Motor's general manager, who revealed that someone had stolen the license plate from the dealership in March 1992. Pop also informed the agent that Currie Motors was a Lincoln Mercury dealership and therefore did not sell Chevrolet Blazers.The Blazer remained parked in Mauger's driveway until 5:20 p.m., when the agents observed an individual later identified as Mark Kertis, one of Mauger's criminal associates, drive off in the truck. The two confidential informants also had informed the agents that for many years Mauger had been delivering the stolen vehicles to what they referred to as an unknown disposal location. In an attempt to learn the location of the disposal location and the identity of the person receiving the stolen vehicles, the agents followed the Blazer as it proceeded down the highway until it arrived at 925 State Road 2 in Hebron, Indiana. The Blazer pulled into the driveway for that address and entered a large garage through one of two overhead doors. The door immediately closed.Ten FBI agents drove up the driveway and exited their vehicles. Agent Roth approached the garage, which had two overhead garage doors and two entrance doors, and knocked on the left entrance door. Moments later, Evans exited from the right entrance door. The agents identified themselves to Evans, and placed him under arrest for receiving a stolen vehicle. The justification for Evans' arrest, as reflected in the eventual charges in the indictment, increased as a result of evidence gained during a search of the premises. Mark Kertis, the person who had delivered the Blazer, followed Evans as he exited the garage and the agents arrested him as well. Several agents conducted a protective sweep of the garage, checking for the presence of others involved in the criminal operation. The agents had their guns drawn when they approached the garage, but they holstered their weapons after Evans and Kertis were arrested and the protective sweep was completed. Evans was advised of his Miranda rights and signed a form indicating he understood his rights.As the agents approached the garage, Agent William Warner noticed someone standing in the window of the house on the property, which was located approximately 130 feet from the garage. Warner testified that he observed the person holding either "a rifle or possibly the fold of a curtain" beside him, and that he believed it prudent to investigate. With his gun drawn but pointing down at his side, Warner went to the front door of the house where he was met by Glenn Evans ("Glenn"), the defendant's father. From the threshold of the door, Warner identified himself and requested that everyone in the house remain in the foyer area inside the door until the arrests were completed. Glenn lived in the house with his wife, their daughter, his son-in-law, and two grandchildren. When everyone was in the foyer, Warner holstered his weapon. Warner and Glenn raised their voices and Glenn accused the agents of intimidating his family. Warner loudly explained that the agents were in the midst of arresting suspects near the garage. Warner added that the occupants of the house should remain in the foyer of the house for everyone's safety while the agents completed the arrests at the garage.Glenn ignored Warner's admonition to remain in the house and stated that because he was on his property he would go where he pleased. Glenn eventually walked over to the garage with his son-in-law to speak to Agent Roth. Glenn identified himself to Agent Roth as the defendant's father and the owner and occupant of the residence and the garage. In response to the agent's questions, Glenn stated that his son operated a business out of the garage. He also related that his son did not lease the property and paid neither rent nor utility bills. Agent Roth testified that Glenn informed him that he had keys to the entrance doors of both garage bays, but that he had lost the key to the entrance door to the right bay. Nevertheless, Glenn told Roth that there was an unlocked door inside the garage between the two bays that allowed Glenn to travel freely from the left bay to the right bay where the defendant's business was located.Roth testified at the suppression hearing that Agent May produced a search consent form and informed Glenn that the agents could not search without a warrant and that Glenn had the right to refuse to consent. The agents allowed Evans to speak to his father at this point. The agents overheard Glenn ask his son whether stolen vehicles were on the property, and Evans responded that obviously the automobiles were stolen, or the FBI would not be on the premises. Glenn and Evans were overheard discussing whether Glenn should consent to search, and with Evans' agreement, Glenn signed the consent form authorizing a search of the entire premises. The agents proceeded to search the garage and adjacent areas. Evans repeatedly told the agents that he wished to cooperate, and he stated that there were at least seven stolen vehicles on the premises. After Glenn had signed the consent form, neither Evans nor Glenn objected to any aspect of the search.At the suppression hearing Glenn refuted the agents' testimony in several respects. According to Glenn, the initial encounter with the FBI at the house was more threatening than Agent Warner's description. Glenn stated that the agent refused to tell him what was happening despite his repeated inquiries, and that he ordered everyone out of the house. According to Glenn, the argument between he and the agent and Glenn died down when three other agents appeared and took the obstreperous agent aside.After about ten or fifteen minutes had passed, Glenn stated he went to the garage where an agent met him and asked if he would sign a consent form so the agents could conduct a search.1 The agent allegedly told him that if he signed the consent form the agents would not search his house and that "it would go an awful lot easier on [Evans]"; if he refused to consent, according to Glenn, the agent stated that the FBI would obtain a search warrant and search his house as well as other areas of his premises. Glenn testified that he could not read the form because of the failing light and his weak eyes, and that he asked the agent to explain the form's content. According to Glenn, the agent simply said the form would dispense with the need for a search warrant and allow the agents to look at two other cars. Glenn also refuted the agents' testimony that he had consulted with his son before signing the consent form; Glenn testified that he did not speak to his son until after he signed the consent form. Glenn testified that he would not have signed the consent form if he had been aware of its contents, which authorized a search of the entire premises, although he admitted that he did not ask either the agent or his son-in-law to read the form to him.Glenn's son-in-law contradicted Glenn's testimony and stated that Glenn did request that the son-in-law and the agent try to read the form. The son-in-law claimed that neither he nor the agent could read the form because it was so dark. While the scope of the search purportedly exceeded Glenn's understanding of his consent, Glenn stated that he never complained about the nature of the search during the search because he presumed his written consent justified the agents' actions.Glenn testified that he did not have a key to the overhead door or the entrance door to the right bay and that the interior door between the bays could be locked. Nonetheless, Glenn conceded that although he had no keys to the interior door when it was locked, if he "need[ed] to go in there, [he] probably could." Glenn volunteered that he did not need to consult with his son to consent to a search of the entire building. His son Ron, the defendant, worked in his shop in the garage's right bay by himself, according to his father.After the evidentiary hearing, the district court denied the defendant's motion to suppress and ruled that the FBI had probable cause to arrest Evans, that Glenn had actual and apparent authority to consent to a search of the garage and surrounding structures, and that Glenn's consent was voluntary.B. Evans' TrialAt trial, the government presented evidence establishing the same facts concerning the surveillance of Mauger, the arrests of Evans and Kertis, and the fruits of the search conducted on Glenn's property that had been established at the suppression hearing. The government presented additional evidence at trial establishing the extensive nature of Evans' stolen car operation as well as his illegal financing arrangement for the stolen vehicles. The government also introduced evidence of each of the stolen vehicles found on Glenn's premises and materials used to retag stolen cars with new VIN's and phony inspection affidavits used to obtain titles for rebuilt vehicles.Evans had purchased a salvage 1990 GMC Jimmy2 with VIN 1GKCT18Z5L8507841 for $1,035 from Tech-Cor, Inc. in Markham, Illinois, on October 2, 1991, according to the testimony of its reclamation manager. Tech-Cor auctions vehicles that insurance companies have declared to be total losses. The insurance company then provides salvage titles for the vehicles so that they may be sold. The vast majority of the vehicles with salvage titles are used only for spare parts. For an auto rebuilder who purchased a salvage title vehicle to get a rebuilt title for the vehicle, he must submit an affidavit of parts used to rebuild the vehicle and have a local law enforcement officer inspect the vehicle. Tech-Cor's reclamation manager also testified that Evans purchased two salvage 1992 Chevy Blazers. He paid $3,450 for one of the Blazers.The search the agents conducted after Glenn signed the consent to search form yielded eight stolen vehicles and a number of salvage vehicles. The government presented evidence at trial establishing that Evans' practice was to remove the public VIN tag located on a salvage vehicle's dashboard and then replace the VIN on the stolen vehicles with the salvage vehicle's VIN tag. By retagging the stolen vehicle with the salvage vehicle's VIN tag, Evans was able to pass off the stolen vehicle as a rebuilt salvage vehicle. The final step in the process was to obtain a title for a rebuilt vehicle, which would enable the titleholder to license the previously destroyed vehicle as a roadworthy automobile.Agent Roth testified that an auto rebuilder seeking to obtain a rebuilt title for a vehicle with a salvage title has to submit documentation of the parts used to restore the vehicle and have a law enforcement officer inspect the vehicle.3 The rebuilder must prepare his affidavit of restoration bearing his and the officer's signatures indicating the origin of the major parts used in restoring the vehicle. After the officer inspects the vehicle, he signs his name to the rebuilder's affidavit of restoration. The rebuilder then must send the affidavit and the salvage title to the Indiana Bureau of Motor Vehicles ("BMV") and the BMV will return a rebuilt vehicle title in the individual's name. During their search of the garage, the agents found copies of blank affidavits of restoration bearing what appeared to be the signature of an Hebron, Indiana, police officer. The master copy of the affidavit for restoration of a vehicle had paper affixed over the affidavit with the signature of the officer. Agent Roth testified that the blank affidavits could be filled out for any vehicle and used to obtain a rebuilt vehicle title.Once Evans had a rebuilt vehicle title, he was able to secure loans using the stolen car disguised as a rebuilt vehicle as collateral. Evans, doing business as Ron's Auto, had a $25,000 line of credit at the Hebron, Indiana, branch of the First National Bank of Valparaiso. The bank loaned Evans money for specific vehicles, and the loans were secured by liens on each vehicle's title. Evans would bring a rebuilt vehicle title to the bank and request a loan with the understanding that the vehicle was 90 to 95 percent complete, possibly needing items like a paint job, a touch up, or new glass. Patrick McGinley, branch manager of the bank, testified that he would make loans to Evans within a thousand dollars of the book value of the rebuilt vehicle used as security. On October 8, 1992, Evans sought a loan of $10,000 on a vehicle he stated was a rebuilt 1990 GMC Jimmy. Evans provided McGinley with a copy of his title application. The bank loaned Evans $10,000, relying on Evans' representation that the loan was for a vehicle that was almost completely rebuilt, and received a rebuilt title for a 1990 GMC Jimmy with the VIN 1GKCT18Z5L8507841 from the State of Indiana.In the middle of November 1993, Jerry Rentschler, a private citizen with no knowledge of Evans' car theft operation, happened to drive past Evans' auto shop and noticed several wrecked Chevrolet Blazers parked around the shop on Glenn's property. Rentschler asked Evans if he had a Chevrolet Blazer for sale. Evans showed him a GMC Jimmy that Evans said he had purchased from Tech-Cor with a missing front bumper, missing side molding, a broken steering column, and a missing radio. Rentschler agreed to purchase the vehicle for $10,500, including sales tax, and he gave Evans a $500 down payment. When Rentschler paid an additional $8,000 for the vehicle, Evans gave him the title, but kept the vehicle to make the necessary repairs. Rentschler checked the VIN on the vehicle against his title and noted that the numbers matched. Nevertheless, Rentschler subsequently learned that the vehicle, supposedly a 1990 model, had 1991 wheel rims and a decorative stripe that was first available on the 1991 models. The vehicle Rentschler bargained for was the same vehicle Evans used as collateral for the loan from First National Bank of Valparaiso.On December 10, 1993, FBI agents conducting the surveillance of the residence of Chris Mauger at 2400 Ralston in Gary, Indiana, discovered the Rentschler vehicle and other stolen automobiles when they followed the green and tan 1993 Chevrolet Blazer with the Illinois dealer license plates stolen from Currie Motors to the garage on Glenn Evans' property and conducted a search. As recounted earlier, the agents arrested Evans and Mark Kertis, the driver of the Blazer. The same evidence presented at the suppression hearing concerning the arrests of Evans and Kertis and the search of Glenn's property was admitted at Evans' trial.During Agent Roth's initial interrogation of Evans, the defendant informed Roth that Kertis had called him offering the Blazer. Later during the same interview, Evans contradicted himself and told Roth that he had called Kertis and ordered the green Blazer. Evans said that he was going to use the parts to rebuild a salvaged Blazer he had purchased. Evans admitted that Mark had brought other stolen vehicles to him on prior occasions but he said he only wanted to talk about the vehicles then on the property.During the search, the agents found the green and tan Blazer with the stolen dealer license plate they had followed from Mauger's residence on the right side of the garage. The Blazer was a 1993 model with 123 miles on the odometer. The Blazer, with a dealer's invoice price of $24,228, had been stolen from Bill Jacobs Chevrolet in Plainfield, Illinois. Count 2 of the indictment referred to the green and tan 1993 Blazer.In a shed next to the garage on Glenn Evans' property, agents found the green and tan Blazer salvage hulk that Ron Evans had purchased from Tech-Cor for $3,400. Evans told the agents that he planned to use the salvage Blazer to retag the stolen green and tan Blazer.The red two-door GMC vehicle that Rentschler had purchased from Evans was parked by a nearby building with a collapsed roof. When Agent Roth asked Evans about the vehicle, he initially told the agent that he was rebuilding it and that there was nothing illicit about it. Later Evans claimed that he was rebuilding it with stolen parts, and he eventually admitted that the vehicle was stolen and retagged. The vehicle was a 1991 GMC Jimmy that had been stolen from James Duncan in Dyer, Indiana, on October 16, 1992, four weeks after Duncan had purchased it for $17,000. It was retagged on the dashboard with public VIN4 of the 1990 salvage hulk Evans had purchased for $1,035 from Tech-Cor. The agents found the remnants of the 1990 salvage hulk with its public VIN missing and the federal sticker cut out of the door post in the left bay of the garage. The salvage hulk had no axles, no doors, no windows, and a collapsed roof. Moreover, much of the engine was missing. The agents learned the actual identity of the stolen 1991 GMC Jimmy from the derivative VIN that was stamped on the engine, transmission, and frame of the vehicle. The 1991 GMC Jimmy is the subject of counts 4, 5, and 6 of the indictment.Inside the garage in the right bay next to the stolen 1993 green and tan Blazer was a beige 1989 Oldsmobile 88 stolen from Merrillville, Indiana on July 7, 1992. The covering on the steering column of the Oldsmobile had been broken into to allow the car thief to hot-wire and start the vehicle without a key.In the shed next to the garage, the agents also recovered a 1991 S-10 pickup truck that had been stolen from James Hutnik in Harvey, Illinois on October 20, 1992. The door lock had been forced and the steering column had been broken into. The Hutnik Chevy S-10 is the subject of Count 3 of the indictment.The agents also discovered a white 1991 Chevrolet S-10 pickup truck licensed to a Hal Huering Chevrolet Cadillac dealership in Valparaiso, Indiana on July 8, 1991, and a black 1991 Pontiac Grand Am titled to a Paul Sur Pontiac dealership in Merrillville, Indiana, on June 3, 1991, on the left side of the garage. The steering columns of both vehicles had been broken into to release the locking mechanism and to permit the vehicles to be hot-wired and started without a key.Next to the retagged Rentschler/Duncan GMC by the building with the collapsed roof were a white 1988 Chevrolet Monte Carlo SS stolen from Charles Jefferson in Hammond, Indiana on September 26, 1992, and a red four-door 1992 Chevrolet Blazer stolen from Lori Caputo in Munster, Indiana on November 3, 1992. The steering column of the Caputo Blazer was peeled back to allow the ignition switch to be disconnected and hot-wired. Inside the Caputo Blazer, the agents found a piece of door post with the federal door sticker from a salvage 1992 Blazer that Evans had purchased from Tech-Cor. The agents discovered the public VIN for the salvage Blazer and two special rosette rivets5 in a drawer in a tool box in the garage.Special Agent Arthur Grist, Jr. testified that as he was transporting Evans to the Hammond jail, Evans wistfully commented that he was "glad it was finally over." After inquiring if the agents could relate to his relief, Evans volunteered:I'm glad that it's over. You know what you have been doing is wrong, but you have been doing it so long, there is no way to stop.At trial, Evans' counsel objected to the government's introduction of evidence of five stolen vehicles found on the premises not charged in the indictment as well as the materials for retagging one of those vehicles and the phony inspection affidavits. The trial court admitted the evidence under Fed.R.Evid. 404(b) for the sole purpose of proving the defendant's intent and knowledge as to Counts 2 and 3, and the court gave the jury a limiting instruction immediately after the evidence was admitted and again before they began their deliberations.6II. ISSUESIn his challenge to the district court's order denying his motion to suppress, Evans alleges that the court erred in ruling that the police had probable cause for his arrest and that the agents had obtained a valid consent to search the premises at 925 South State Road 2 in Hebron, Indiana. Evans also contends that the trial court improperly admitted evidence pursuant to Fed.R.Evid. 404(b) and Fed.R.Evid. 403 concerning the discovery during the search of five stolen cars not charged in the indictment. Finally, Evans asserts that the district court clearly erred when it refused to reduce his base offense level for acceptance of responsibility under Guidelines Sec. 3E1.1.III. ANALYSISA. Motion To Suppress1. Probable CauseEvans contends that the FBI agents lacked probable cause to enter Glenn Evans' premises. Evans also contends that the agents lacked probable cause to arrest him. Probable cause exists if under the totality of circumstances it was reasonable for the officer to believe that a particular individual had committed a crime. United States v. Burrell, 963 F.2d 976, 987 (7th Cir.), cert. denied, --- U.S. ----, 113 S.Ct. 357, 121 L.Ed.2d 270 (1992); United States v. Valencia, 913 F.2d 378, 382 (7th Cir.1990) ("Probable cause involves a practical, common sense determination about whether, given all the circumstances present, it is reasonably probable that a person has committed or is committing an offense."). Agent Roth testified at the suppression hearing that the two confidential informants advised the agents that the vehicles stolen by Mauger were disposed of at an unknown location. In ruling that the agents had probable cause to arrest Evans, the district court stated:The facts confronting the FBI on December 10, 1992, when taken as a whole, clearly justify defendant's warrantless arrest. The FBI observed a new Chevy Blazer with a stolen, Illinois dealer license plate leave the home of Christopher Mauger, a man suspected of stealing cars. The FBI's suspicions about Mauger were not baseless; two reliable, confidential informants had told the FBI that Mauger and others stole cars and affixed thereto stolen dealer license plates. Thus the FBI reasonably believed that the Chevy Blazer leaving Mauger's home on December 10, 1992, was stolen, and in hopes of learning the source of Mauger's car theft ring, the FBI followed the car.The car pulled into a garage on the property located at 925 South State Road 2. Surrounding the garage were numerous vehicles. Based on all these facts, a person of reasonable caution could have believed that the garage into which the Blazer drove was involved in Mauger's car theft scheme. Consequently, the FBI reasonably believed a crime--the possession of stolen property--was being committed in the garage ..., and the FBI properly arrested the persons found therein, including the defendant, without a warrant.We review a district court's ruling on a motion to suppress evidence for clear error. United States v. Tilmon, 19 F.3d 1221, 1224 (7th Cir.1994); United States v. Wilson, 2 F.3d 226, 229 (7th Cir.1993), cert. denied, --- U.S. ----, 114 S.Ct. 1615, 128 L.Ed.2d 341 (1994). "A finding is clearly erroneous when, although there is evidence to support it, the reviewing court on the entire evidence is left with the definite and firm conviction that a mistake has been made." Tilmon, 19 F.3d at 1224 (citing United States v. Rice, 995 F.2d 719, 722 (7th Cir.1993)). A defendant seeking to suppress evidence bears the burden of making a prima facie showing of illegality. United States v. Randle, 966 F.2d 1209, 1212 (7th Cir.1992).The agents' approach to the garage did not implicate a Fourth Amendment interest because Evans did not present any evidence at the suppression hearing that he had a reasonable expectation of privacy in the driveway. See Katz v. United States, 389 U.S. 347, 351, 88 S.Ct. 507, 510-11, 19 L.Ed.2d 576 (1967) ("What a person knowingly exposes to the public, even in his home or office, is not a subject of Fourth Amendment protection."); United States v. Ventling, 678 F.2d 63, 66 (8th Cir.1982) (no reasonable expectation of privacy in driveway and area around front porch where observations were made in public view); United States v. Humphries, 636 F.2d 1172, 1179 (9th Cir.1980) (where automobile parked in driveway was visible from street and driveway not enclosed, no reasonable expectation of privacy that would preclude officer from entering driveway to check on the license plate number of parked car), cert. denied,Try vLex for FREE for 3 days
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