Federal Circuits, 10th Cir. (June 06, 1986)
Docket number: 84-2435
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U.S. Supreme Court - McDonough Power Equipment, Inc. v. Greenwood,, 464 U.S. 548 (1984)
U.S. Supreme Court - United States v. Powell, 469 U.S. 57 (1984)
U.S. Supreme Court - Sandstrom v. Montana, 442 U.S. 510 (1979)
U.S. Supreme Court - United States v. Agurs, 427 U.S. 97 (1976)
U.S. Supreme Court - United States v. Park, 421 U.S. 658 (1975)
Mark Wielga (Kevin Michael Shea of Roath & Brega, P.C., Denver, Colo., and Roger C. Elletson, Cheyenne, Wyo., with him on brief), Denver, Colo., for Cattle King Packing Co., Inc., and Rudolph G. "Butch" Stanko, defendants-appellants.
Robert T. McAllister of Dill, Dill & McAllister, Denver, Colo., for Gary Waderich, defendant-appellant.Charles H. Torres, Sp. Asst. U.S. Atty. Robert N. Miller, U.S. Atty. and Douglas W. Curless, Asst. U.S. Atty., Denver, Colo., for plaintiff-appellee.Before BARRETT, ANDERSON, and McWILLIAMS, Circuit Judges.McWILLIAMS, Circuit Judge.In a fifteen count indictment, Cattle King Packing Co., Inc., a Colorado corporation, Rudolph G. "Butch" Stanko, Gary Waderich, and others were charged with various violations of the Federal Meat Inspection Act, 21 U.S.C. Secs . 601-624, 661-680. Eight of the fifteen counts were dismissed prior to trial. In a joint trial, Stanko, Waderich, and Cattle King were convicted by a jury on all seven of the remaining counts. All three were sentenced and now appeal their respective convictions.By way of general background, "Butch" Stanko, a resident of Scottsbluff, Nebraska, on or about June 1, 1981, started a packing plant in Adams County, Colorado, under the corporate name of Cattle King Packing Company, a Colorado corporation. Stanko was an officer and shareholder of the corporation. The operation continued until its closing on or about December 31, 1983. Gary Waderich, one of the three defendants, was a general sales manager of Cattle King and was primarily responsible for commercial sales of meat food products, as well as also being responsible for the daily operation of Cattle King.The six substantive counts against the three defendants fall into three main categories: (1) the fraudulent distribution of adulterated meat products; (2) the intentional circumvention of federal law requiring an inspection by a federal meat inspector of all shipments returned to Cattle King by dissatisfied purchasers; and (3) the fraudulent misbranding of meat shipments by stamping on the shipment a false production date. The defendants were also charged in a separate count, count 1, with conspiring to do, inter alia, the acts described in the six counts charging the substantive offenses.It was the government's theory of the case that at the time Butch Stanko founded Cattle King, it was his intent to circumvent the provisions of the Federal Meat Inspection Act wherever possible, and that before returning to his home in Scottsbluff, Nebraska, in February, 1982, he set company policies and practices designed to violate federal law. These policies and practices he then passed on to his employees, including Gary Waderich, with instructions that such be followed. Although defense counsel would make much of the fact that Stanko returned to Scottsbluff, Nebraska, in February, 1982, and was not thereafter in the Adams County plant on a regular basis, it is nonetheless the government's position, in this regard, that Stanko, from Nebraska, monitored the packing operation by phone calls and occasional visits to the plant to make certain that the policies and practices which he had installed were in fact being followed. In support of its theory of the case, the government called some forty witnesses, including federal meat inspectors and several former employees of Cattle King.In this court, Cattle King and Stanko are represented by the same counsel, and Waderich is represented by separate and different counsel. However, certain matters are urged by all three defendants. We will deal with these issues first.I.All defendants argue that the district court erred in refusing to grant a change of venue under Fed.R.Crim.P. 21 based on massive pretrial publicity which precluded a fair trial. In support of a pretrial motion for a change of venue, defendants offered a survey indicating that a high percentage of the people interviewed had heard about the case and that most believed the defendants to be guilty. We will concede that there was considerable pretrial media publicity concerning the case. Such, however, does not in and of itself dictate a change of venue. The critical issue is whether such publicity resulted in actual prejudice. See United States v. Hueftle, 687 F.2d 1305, 1310-11 (10th Cir.1982). Our study of the record made upon voir dire of the jury convinces us that there was no actual prejudice.It appears that eight of the fourteen jurors who heard the case had not previously heard or read about the case. As concerns the other six, the trial judge carefully explored, in each instance, the possible impact the pretrial publicity had on the jurors' ability to serve impartially. He concluded that each would decide the case on the basis of what he or she heard in the courtroom, and not what he or she had read in the paper or heard on TV. The grant, or refusal to grant, a motion for a change of venue in a criminal case rests within the sound discretion of the trial court, and an appellate court should not reverse a trial court's ruling on the matter unless an abuse of discretion plainly appears. United States v. Neal, 718 F.2d 1505, 1510-11 (10th Cir.1983), cert. denied, --- U.S. ----, 105 S.Ct. 87, 83 L.Ed.2d 34 (1984); United States v. Hueftle, 687 F.2d 1305, 1310-11 (10th Cir.1982). We find no abuse of discretion.II.All three defendants claim that the evidence is legally insufficient to support their convictions on any of the seven counts. The standard of review for determining whether there is sufficient evidence to sustain a criminal conviction is as follows: The evidence at trial must be enough to convince a reviewing court that a rational fact finder could conclude that all necessary elements of the crime have been proven beyond a reasonable doubt. United States v. Powell, 469 U.S. 57, ----, 105 S.Ct. 471, 478, 83 L.Ed.2d 461 (1984); United States v. Austin, 786 F.2d 986, 988 (10th Cir.1986) (petition for rehearing pending). In determining whether the evidence is sufficient, it must be viewed in the light most favorable to the government. Austin, 786 F.2d at 988. Thus, in determining whether there is sufficient evidence to sustain the defendants' convictions, we only need look to see whether there is enough evidence in the record which, if believed, could lead to a rational conclusion that each element of each count had been proven beyond a reasonable doubt. We shall consider each count separately.A.Count 1 charges Cattle King, Stanko, and Waderich with conspiring with themselves and others to violate the Federal Meat Inspection Act. A description of what constitutes a conspiracy is found in our opinion in United States v. Kendall, 766 F.2d 1426 (10th Cir.1985), cert. denied, --- U.S. ----, 106 S.Ct. 848, 88 L.Ed.2d 889 (1986), to wit:A conspiracy is a combination of two or more persons acting in concert to accomplish an unlawful purpose or to accomplish a lawful purpose by unlawful means. The evidence must show circumstances to warrant a jury finding that the conspirators had a unity of purpose or a common design and understanding.... In a conspiracy prosecution, the critical inquiry is whether the circumstances, acts, and conduct of the parties are of such a character that the minds of reasonable men may conclude therefrom that an unlawful agreement exists.... The conspiracy is complete "when one or more of the conspirators knowingly commit an act in furtherance of the object of the agreement." ... The agreement need not be shown to have been explicit. It may be inferred from the facts and circumstances of the case.Id. at 1431 (citations omitted) (dealing with whether there was sufficient evidence to sustain a conspiracy conviction). See also United States v. Buchanan, 787 F.2d 477, 487-88 (10th Cir.1986) (also dealing with whether there was sufficient evidence to sustain a conspiracy conviction). Our study of the record convinces us that there is ample evidence to support the conviction of the three defendants on the conspiracy charge.First, with respect to defendant Stanko, there is substantial evidence that he initiated the conspiracy. Illustrative thereof, and by way of example only, is the testimony of three former employees regarding instructions given them by Stanko at a time when Stanko was in charge of the day-to-day operation of the plant. Bruce Ryan testified that on one occasion when the packing plant was just getting started, a shipment of meat was rejected by an east coast consignee and returned to Cattle King "without the benefit of federal inspection." On this occasion, according to Ryan, Stanko instructed Ryan and a fellow employee to come down on Sunday and "rework" the meat, but "don't let anybody else know about it." Ryan testified the shipment was "reworked" on a Sunday morning and readied for resale.Larry Andrews, another former employee testified that when Stanko was still running the day-to-day operation of the plant, Stanko gave him directions, which he followed, on how, when the "inspector wasn't around," to mix "inedible scrap" with edible meat and thereby enhance the poundage of the salable meat. Andrews also testified that he had discussions with Stanko regarding ways to get returned meat into the plant without federal inspection.Similarly, Gary Tuck, another former employee, testified that in August or September 1981, Stanko established a firm policy that no federal meat inspector was to be allowed to inspect returned meat without Stanko or some other Cattle King official authorizing it.1 Clearly such testimony is evidence of a conspiracy involving Stanko, Ryan, Andrews, and Tuck.There is similar testimony involving Waderich, who was charged with carrying out the policies and practices set by Stanko. As set out in our discussion of the substantive counts immediately below, there is considerable testimony that Waderich was directly involved in all of the substantive violations of the federal meat inspection laws. We find, therefore, that there is sufficient evidence showing a conspiracy to violate federal meat inspection laws involving Stanko, Cattle King and Waderich, to uphold their conspiracy convictions.B.Count 3 charged the defendants with causing, on February 12, 1983, a shipment of meat, which was returned to Cattle King by Western Grocers of Albuquerque, New Mexico, to be brought back into the plant without inspection by a federal meat inspector, and with an intent to defraud. Larry Andrews, a former Cattle King employee, who cooperated with the government investigation, testified that he and Gary Tuck, a co-employee, were instructed by Waderich to rebox the meat without inspection. Andrews went on to further testify that they were attempting to rebox the meat, which had not been inspected, when a government veterinarian came on the scene and demanded to know what was going on. When the matter was presented to Waderich, according to Andrews, Waderich disclaimed all knowledge. The meat in question was later thrown out. Still later, when Andrews and Waderich were discussing the matter, Waderich reportedly commented, "well, we tried, but we got caught."The government veterinarian referred to in the preceding paragraph testified as a government witness and generally corroborated Andrews' testimony concerning the February 12 incident. Further, Tuck, Andrews' co-employee, testified in great detail concerning the meat returned from Western Grocers. Tuck testified that Waderich directed the entire operation of bringing the meat back into the plant, avoiding federal inspection, and "reworking" the meat which included punching holes in bags of meat which were puffy due to bacterial gas buildup.We find that there is sufficient evidence that Waderich directed the illegal circumvention of federal inspection when the Western Grocers' shipment was returned to sustain the convictions on count 3.2C.Counts 4 and 6 relate to a meat shipment to Nobel-Sysco in May, 1983. Count 4 charges the defendants with "misbranding" meat by falsely dating the packages. Bruce Ryan, an erstwhile employee of Cattle King testified concerning the general practice of dating meat the day it was shipped, rather than the date of production. Specifically, he recalled and testified about the shipment to Nobel-Sysco, and the misdating, at Waderich's direction, of that particular shipment of meat.Count 6 charged the defendants with causing the meat rejected by Nobel-Sysco to be brought back into the Cattle King plant, without federal inspection, and with the intent to defraud. The facts and circumstances surrounding the meat shipment returned by Nobel-Sysco strongly suggest that there was no inspection of the meat upon its return to Cattle King. Andrews testified that the bags containing the meat were "puffy" with gas caused by spoilage, and that on instruction from Waderich, the bags were "poked" to let the gas escape, and the meat was then reshipped to Nobel-Sysco the next morning. Kim Gillespie, another Cattle King employee, testified that Waderich himself had told her that the Nobel-Sysco shipment had been returned in "bad condition" and that he, Waderich, had directed that the meat be "reworked" by punching holes in the bags, and that the meat was reshipped to Nobel-Sysco. Chris Ronson, an employee of Nobel-Sysco, testified that Nobel-Sysco marked the boxes of meat that it first rejected, and that the same boxes were reshipped to Nobel-Sysco, thus indicating that Nobel-Sysco received the same meat. Certainly the totality of the circumstances shows that there was no federal inspection of the meat returned from Nobel-Sysco.3 We find, therefore, that there is sufficient evidence to sustain the defendants' convictions on counts 4 and 6.D.In count 9, the defendants were charged with shipping adulterated meat products to California Provisions on August 10, 1983. The evidence concerning this transaction is that the meat in question was first shipped by Cattle King to a company in North Carolina, which company rejected a big part of the shipment because of spoilage. The rejected meat was returned to a Cattle King storage facility in Nebraska, and from there shipped to California Provisions. Witnesses Coffey, Randall, Kim Gillespie, Wilson, and Stephenson testified about this particular transaction. For example, Wilson, the trucker who picked up the meat sold to California Provisions from the Nebraska ice house, testified that the meat was packed in dilapidated boxes and that it "had a funny-looking color and it just--it had a bad smell to it." Also, Stephenson, an employee of S & L Meats, the company which purchased the Cattle King meat from California Provisions, testified that when he received the meat from the trucker, it looked bad, and when the meat was thawed, it was spoiled and unfit for human consumption.Gary Waderich personally inspected the product and ordered that it be resold. It is, therefore, reasonable to conclude that if the shipment of meat to California Provisions was "adulterated," and there is evidence that it was, then Waderich sold this "adulterated" meat intentionally. We find the testimony sufficient to show that adulterated meat was shipped by Cattle King to California Provisions at the direction of Gary Waderich.4E.In count 12, the defendants were charged with preparing meat products from May 1, 1983, through June 30, 1983, with an intent to defraud, which products were adulterated in that plastic cry-o-vac tubes used for packaging the meat had been punched with holes to allow gas to escape. This particular count is referred to by the parties as the King Soopers transaction. In this regard, there was substantial evidence, through the testimony of Bruce Ryan, Larry Andrews, and Gary Tuck, that meat sold to King Soopers was returned because of spoilage, was "reworked," and then, according to witness Tuck, reshipped, all at the direction of Gary Waderich. We find sufficient evidence to sustain the convictions on count 12.F.In count 13, the defendants were charged with selling misbranded, that is, misdated, meat products on March 14, 1983, to Fairfield Farms in Capitol Heights, Maryland. Fairfield Farms is a subsidiary of the Marriott Corporation. The testimony of witnesses Ron Edelmann, a Marriott employee, and that of Andrews and Ryan, establishes, prima facie, that the meat was stamped as of the date of shipment, rather than the date of production as required by Marriott. The fraudulent intent of Waderich is confirmed by Ryan's testimony. Ryan described one situation when Marriott did a quality control check of the Cattle King plant. To keep Marriott from discovering that Cattle King was stockpiling Marriott's meat, Waderich told Ryan to make sure that someone dated the boxes of meat that were already being stored in the cooler.In sum, the facts and circumstances are such that, in our view, there is sufficient evidence to support the jury's verdicts on all the counts. There is little doubt that Cattle King's operation violated federal meat inspection law at about every turn. Cattle King employees shipped adulterated meat, misdated the meat so as to give the consignee an erroneous understanding as to the production date, and evaded federal inspection when rejected meat was returned to the plant. Cattle King employees also "reworked" the returned meat and resold it. Because this activity directly involved Gary Waderich, his challenge of the sufficiency of the evidence must clearly fail. As for the challenges of Stanko and Cattle King, they will be addressed in the next two parts of this opinion.III.Stanko formed Cattle King in June, 1981, and for about eight months thereafter was in charge, on a day-to-day basis, of the plant and its operation. It was during this time, according to government witnesses, that Stanko established the policies and practices of the company out of which the present proceedings arose. Stanko returned to his residence in Scottsbluff, Nebraska, in February, 1982, and though he kept in touch with the plant, the day-to-day supervision of the plant was turned over to others, particularly Gary Waderich, who was instructed to follow the practices prescribed by Stanko, which included misdating of meat, shipping of adulterated meat, and by-passing federal inspection of meat returned to the plant by dissatisfied purchasers. Notwithstanding, counsel for Stanko would make much of the fact that Stanko returned to Scottsbluff, Nebraska, in February, 1982, and, in this regard, points out that all of the substantive charges, as opposed to the conspiracy charge, occurred after the date Stanko returned to Nebraska. Counsel would have us believe that Stanko was somehow insulated from transactions occurring in Adams County, Colorado, when he, Stanko, was in Nebraska. This, in our view, is an overly simplistic view of the matter. All defendants were charged, inter alia, with being aiders and abettors under 18 U.S.C. Sec . 2, and the jury was instructed that whoever aids, abets, counsels, commands, induces, or procures the commission of a criminal act by another is himself punishable as a principal. The fact that Stanko was in Scottsbluff does not absolve him of the criminal acts, for example, of Waderich, which were committed pursuant to instructions from Stanko himself.As a variation on his "I-was-in-Scottsbluff" defense, Stanko charges that the giving of Instruction No. 42 was error. Instruction No. 42, which is based upon the instruction at issue in United States v. Park, 421 U.S. 658, 95 S.Ct. 1903, 44 L.Ed.2d 489 (1975), can, according to Stanko, only be used in misdemeanor cases. Park, however, cannot be read so narrowly. Park clearly shows that an instruction like No. 42 is proper when the defendant is a corporate officer, and the crime alleged is a violation of some law designed to insure that food and drugs are safe. There is nothing in the Park decision limiting its scope to misdemeanors.The applicability of Park to our case is readily apparent. Although the substantive crimes in Park involved violations of the Federal Food, Drug, and Cosmetic Act, not the Federal Meat Inspection Act, the criminal provisions of both are strikingly similar. Both make violations a misdemeanor while providing for the same stiffer felony penalty if any violation is committed with the "intent to defraud."5 More important, both laws were passed to insure that food sold to the American public is safe. In addition, the very issue resolved in Park was whether a nearly identical jury instruction to No. 42 was properly given in the trial of a president of a company engaged in the food business. See 421 U.S. at 665, 95 S.Ct. at 1908.The rationale of the Supreme Court's decision in Park is based upon this premise: Companies that engage in the food business, and the people who manage them, have an affirmative duty to insure that the food they sell to the public is safe. See id. at 670-73, 95 S.Ct. at 1910-12. Accordingly, a corporate officer, who is in a "responsible relationship" to some activity within a company that violates federal food laws, can be held criminally responsible even though that officer did not personally engage in that activity. Id. at 673-74, 95 S.Ct. at 1912-13. Consistent with the rationale of Park, Instruction No. 42 gave the jury the opportunity to decide whether Butch Stanko was responsible for Cattle King's violations of federal meat inspection laws. The jury found that he was.The statute at issue in Park permits a felony sentence if the violation charged is committed with an "intent to defraud." In Park, however, the defendant was not charged with a felony, but rather with a misdemeanor. The issue of whether the defendant in Park could be convicted under the felony provision of that statute, therefore, was not before the Court. Instruction No. 42, therefore, without more, would not be sufficient to find Stanko guilty of a felony.Instruction No. 42, nevertheless, is sufficient to put to the jury the issue of Stanko's criminal responsibility for Cattle King's meat inspection violations. So long as the jury was instructed that it must also find that Stanko had the "intent to defraud," the jury instructions were proper and Stanko's challenge on this basis must fail.It is axiomatic that jury instructions are not to be read in isolation, but rather are to be considered as a whole. Park, 421 U.S. at 674, 95 S.Ct. at 1912-13. Instruction No. 45 specifically charges that for all counts except count 9, "the crimes charged in this indictment require proof of specific intent before the defendants can be convicted."6 Contrary to Stanko's arguments, Instruction No. 45 complements Instruction No. 42 rather than contradicts it. Moreover, each jury instruction of each substantive count except count 9 contains the charge that the jury must find that "the defendant acted with the intent to defraud." Each such instruction also charges that the jury is to evaluate "[t]he question [of guilt] as to each defendant considered separately." It is fair to conclude that a reasonable juror, so instructed, would believe that he or she must find that Stanko had the "intent to defraud" before finding him guilty of the felony charges. See Sandstrom v. Montana, 442 U.S. 510, 514, 99 S.Ct. 2450, 2454, 61 L.Ed.2d 39 (1979). As discussed above, particularly in our discussion of the conspiracy count, there is sufficient evidence that Stanko had such intent.In sum, we find no reversible error in the giving of Instruction No. 42. That instruction must be read in connection with all the instructions. We find that Instruction No. 42 can be used to put to the jury the issue of Stanko's responsibility for Cattle King's Meat Inspection Act violations. And, it can be used to find him guilty of a felony, so long as the jury was properly instructed, as it was in this case, that it must find that Stanko had the requisite "intent to defraud." In any event, this is not an instance where Stanko was in Scottsbluff, Nebraska, not knowing what his employees were doing in Adams County, Colorado. Rather, the evidence is that Stanko set in motion the very acts which were carried out, pursuant to direction, by his employees, clearly a form of aiding, abetting, ordering, commanding, or inducing. 18 U.S.C. Sec . 2. Scottsbluff is not a shield for Stanko.IV.The trial court instructed the jury that Cattle King could be found guilty only if one of its agents committed the crime charged, and three other elements were met:1. The agent was acting within the scope of his or her employment;2. the agent was authorized to do the act;3. the agent was motivated, at least in part, to benefit the corporation.Jury Instruction No. 27. As discussed above, Gary Waderich, an officer of Cattle King, was personally responsible for the commission of all the substantive counts, and he is certainly guilty under the conspiracy charge. Given Waderich's position within Cattle King, there is no doubt that elements 1 and 2 are met. As for element 3, there also is no doubt that Cattle King benefitted by the commission of these crimes. The principal effect of all the crimes committed was that Cattle King reaped great economic rewards. Selling meat which should have been condemned, misdating boxes so that meat could be stockpiled and thus produced more cheaply, all directly benefitted Cattle King economically. There is, therefore, sufficient evidence that Cattle King, as a company, is also guilty of all of the above-discussed crimes.V.Stanko and Cattle King, but not Waderich, argue that their convictions should be reversed because of the admission of hearsay evidence in violation of Fed.R.Evid. 104 and 801(d)(2)(E). The testimony complained about is testimony concerning acts and statements made outside the presence of Stanko by co-conspirators in furtherance of the conspiracy. Under such cases as United States v. Andrews, 585 F.2d 961 (10th Cir.1978) and United States v. Petersen, 611 F.2d 1313 (10th Cir.1979), cert. denied,Try vLex for FREE for 3 days
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