United States v. Sampson
Opinion of the Court
delivered the opinion of the Court.
The appellees were indicted in a United States District Court on charges that they had used the mails “for the purpose of executing” a fraudulent scheme in violation of 18 U. S. C. § 1341
In brief summary, these allegations are:
The individual defendants were officers, directors, and employees of a large, nationwide corporation, also a
The use of the mails relied on in the 34 dismissed counts was the mailing by the defendants of their acceptances of the victims’ applications for their services. As conceded by the Government, prior to each mailing of an acceptance to a victim the defendants had obtained all the money they expected to get from that victim. The district judge’s reason for holding that these counts did not charge a federal offense was that, since the money had already been obtained by the defendants before the acceptances were mailed, these mailings could not have been “for the purpose of executing” the scheme. For this holding the court relied chiefly on Kann v. United States, 323 U. S. 88 (1944), and Parr v. United States, 363 U.S.370 (1960).
In Kann, the defendants defrauded their corporate employer in matters confined to their local region. As a part of their scheme, the defendants had fraudulently obtained checks payable to them which were cashed or deposited at a bank. The use of the mails charged as a violation of the federal statute was the mailing of the checks for collection by the banks which cashed them to the banks upon which they were drawn. Prior to that mailing, the Court found, the defendants had obtained the money they sought, and as far as they were concerned their plan had reached its fruition and come to a complete rest. The scheme, as the Court viewed it, had contemplated no more. The mailing was done by outsiders, the banks, which had no connection whatsoever with the fraud. The checks were mailed for the banks’ own purposes and not in any way for the furthering of the fraudulent scheme. In the Court’s view it was immaterial to the consummation of the defendants’ scheme how or whether the banks which had cashed the checks sought to collect them.
We are unable to find anything in either the Kann or the Parr case which suggests that the Court was laying down an automatic rule that a deliberate, planned use of the mails after the victims’ money had been obtained can never be “for the purpose of executing” the defendants’ scheme. Rather the Court found only that under the facts in those cases the schemes had been fully executed before the mails were used. And Court of Appeals decisions rendered both before and after Kann have followed the view that subsequent mailings can in some circumstances provide the basis for an indictment under the mail fraud statutes.
Moreover, as pointed out above, the indictment in this case alleged that the defendants’ scheme contemplated from the start the commission of fraudulent activities which were to be and actually were carried out both before and after the money was obtained from the victims. The indictment specifically alleged that the signed copies of
At the time the trial court dismissed the substantive counts it also dismissed the conspiracy count without stating additional reasons. In this Court, however, it is contended that the conspiracy count duplicates the 43 substantive counts because each substantive count is in reality a conspiracy count. On this basis, it is argued that there is an unjustified pyramiding of conspiracy counts which could be used by the Government in such a way as to deny the defendants, in particular the salesmen, a fair trial. We cannot anticipate arguments that would be more appropriately addressed to the trial court should the conduct or the result of the trial deny any of the defendants their rights. Since the conspiracy count on its face, like the substantive counts on their faces, properly charges a separate offense against each of the defendants, it was also error to dismiss the conspiracy count.
Reversed.
“Sec. 1341. Frauds and swindles.
“Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, ... for the purpose of executing such scheme or artifice ór attempting so to do, places in any post office or authorized depository for mail matter, any matter or thing whatever to be sent or delivered by the Post Office Department, ... or knowingly causes to be delivered by mail according to the direction thereon, . . . any such matter or thing, shall be fined not more than $1,000 or imprisoned not more than five years, or both.”
18 U. S. C. § 371.
“It was a further part of the said scheme and artifice to defraud that the defendants would secure salesmen . . . who would be agreeable to the use of unethical sales talks and hire and use them as field representatives, and it was a further part of the scheme to teach such salesmen that prospective victims were at a complete disadvantage and would jump and act like puppets if the salesman handled the client right, and to teach them to try and impress upon the victims that said salesman was an expert; to teach salesmen to try and confuse victims and to lead them into believing that LSC was a lending company . . . and to teach said salesmen that LSC and the defendants did not care how such salesmen sold a contract to a victim and that it was perfectly all right for a salesman to use innuendos and half-truths . . . .” Record, pp. 4-5.
Record, p. 8. It was also charged that a further purpose of the mailing was to inform the victims that they could not obtain a refund of their fees, that the contract was not cancellable, and that the victim had no recourse for retrieving his money. Ibid.
See, e. g., United States v. Lowe, 115 F. 2d 596 (C. A. 7th Cir. 1940), cert, denied, 311 U. S. 717 (1941); United States v. Riedel, 126 F. 2d 81 (C. A. 7th Cir. 1942); Clark v. United States, 93 U. S. App. D. C. 61, 208 F. 2d 840, cert. denied, 346 U. S. 865 (1953).
Dissenting Opinion
dissenting.
I think that today the Court materially qualifies Parr v. United States, 363 U. S. 370. There, in the face of the jury’s verdict, we held that a check on a third party’s
It is possible that in this case indictments could be drawn which charge the use of mails to lull existing victims into a feeling of security so that a scheme to obtain money from other victims could be successfully consummated. The opinion does not so construe the indictment but concludes, as I read it, that the mere lulling of existing victims into a sense of security is enough.
We should not struggle to uphold poorly drawn counts. To do so only encourages more federal prosecution in fields that are essentially local.
“Whoever, having devised ... [a] scheme . . . to defraud, or for obtaining money ... by means of false or fraudulent . . . representations, or promises, . . . for the purpose of executing such scheme . . . places in any post office . . . any matter ... to be sent ... by the Post Office Department . . . shall be [guilty of a crime] . . . .” (Italics added.) 18 U. S. C. § 1341.
The indictment, as I read it, charges on this phase only “lulling said victims” into a sense of security.
The Solicitor General states in his brief:
“The government conceded that, after obtaining the advance fee, the defendants had no intention of earning the balance due on the service contracts. No further payments were expected to be got from the victim.”
Reference
- Full Case Name
- UNITED STATES v. SAMPSON Et Al.
- Cited By
- 331 cases
- Status
- Published