Petition — Provenzano v. United States

Supreme Court brief1980

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FILED

IN THE

Supreme Court of the United Ghats?

October Term, 1980 MICHAEL RODAK, JR., CLERK

No.: 80-78

ANTHONY PROVENZANO, STEPHEN ANDRETTA,

and THOMAS ANDRETTA,

Petitioners,

-against-

UNITED STATES OF AMERICA,

Respondent.

JOINT PETITION FOR A WRIT OF CERTIORARI TO

THE UNITED STATES COURT OF APPEALS

FOR THE THIRD CIRCUIT

DONALD CONWAY, ESQ.

Attorney for Stephen Andretta

75 Essex Street

Hackensack, New Jersey 07601

(201) 342-1700

HARVEY WEISSBARD, ESQ.

Attorney for Anthony Provenzano

20 Northfield Avenue

West Orange, New Jersey 07052

(201) 731-9770

ROBERT H. KIERNAN, ESQ.

Attorney for Thomas Andretta

477 Madison Avenue

New York, New York 10022

(212) 688-7788

i

Questions Presented

1. Were the petitioners’ Sixth Amendment rights

to a fair and impartial jury destroyed because the Dis-

trict Court refused to excuse for cause several prospective

jurors who were tainted by pre-trial media coverage; by

compelling the petitioners to exhaust their peremptory

challenges in an attempt to exclude such individuals;

by failing to conduct an in-depth inquiry into the matter

and effect of pre-trial publicity; and by denying the

non-Provenzano petitioners’ motion for severance and

change of venue?

2. a) Were the petitioners, Anthony Provenzano and

Thomas Andretta, denied their Sixth Amendment right

to trial by an impartial jury when one of the jurors who

deliberated upon the case, was discovered, while seques-

tered, smoking marijuana with two alternate jurors at

3 a.m. on a trial day, and the jurors were thereafter

assured by the Trial Court that they need not be con-

cerned about the incident, and no hearing was conducted

to determine the incident of the jurors’ misconduct or

its possible effect on their minds?

b) Should not this Court invoke its supervisory

power to grant petitioners a new trial as a result of this

incident?

c) Did not petitioners’ absence from and ignorance

of the in-chambers conference at which the issue of juror

misconduct was discussed and it was decided to retain

the offending juror, violate the rule laid down in Snyder

v. Massachusetts, 291 U.S. 97 (1934), and deny him due

process of law?

d) Did not petitioners’ absence from the in-

chambers conference violate Rule 43 of the Federal

Rules of Criminal Procedure?

3. Did the Circuit Court’s adaptation of United

States v. Rosenstein, 474 F.2d 705 (2d Cir. 1973), which

ii

allowed admissibility of hearsay evidence on a ground

not urged by the Government, deprive petitioner

Provenzano of due process of law?

4. Is the Racketeer Influence Corrupt Organizations

(“RICO”) Act (18 U.S.C. § 1961 et. seq.) unconstitutional

as applied in this case?

ili

Table of Contents

I SN oe a bik. a beh hve G00 p04 «

RE DEE ok cre bcc Uccspecveccenes erty

I cae Coie s bac iu ee eeseca%e vaeee.s

Constitutional and Statutory Provisions Invoked

ee Aine hk on 6d sa kaa e dew as 00 Ve

A. The Indictment: The Government’s

UE WEIL Vcc ce ec racesecececs

i Se OE Gn cece ace veovesvcoee

(a) The Prosecution’s Case. .....ccsecee-

OR

ree rere eT eee Cr eee ee ee

POINT I -- The Court Below Erred by Failing

and Refusing to Excuse for Cause Several Pros-

pective Jurors Who Were Tainted by Pre-Trial

Coverage: By Compelling the Defendants to

Exhaust Their Peremptory Challenges in an

Attempt to Exclude Such Individuals, by Failing

to Conduct an In-Depth Inquiry into the Nature

and Effect of the Pre-Trial Publicity: And by

Denying the Non-Provenzano Defendants’ Motion

for Severance and Change of Venue. ...........

1. The Jury Selection Process. ............

2. The Trial Court Erred by Failing to Excuse

for Cause Individuals Tainted by Pre-Trial

Media Coverage and by Compelling the

Petitioners to Exhaust Peremptory Chal-

lenges in an Effort to Exclude Such

UIE oe lon ee Peek ada s k's ae os

3. The Trial Court Erred in Failing to Inquire

Further into the Nature and Effect of the

iy i fA rere

4. The Trial Court Erroneously Denied Defense

Motions for Severance and Change of Venue

Ww Ww

NON Ww

19

19

21

29

30

iV

POINT II -- The Circuit Court’s Resolution of

the Juror Misconduct Issue Was Constitutionally

EL. SG veka wk bekie® 04a uke teow we bee

POINT III -- A Split Among the Circuits on the

Issue of Defendants’ Presence At a Conference

on a Juror Issue Makes Review by This Court

fT ITE EE TCU RTT E TOC eT One

POINT IV — The Circuit Court’s Invocation of

the Second Circuit’s “Rosenstein Rule” Deprived

Petitioners of Due Process; Examination by

This Court of the “Rosenstein Rule” Is Both

TIE ORG ADOTODTIBEE. occ ccc cccccccvcceess

POINT V — The Ruling of the Court Below

Utterly Misapprehended the Policy Consider-

ations and Legislative Intent of RICO and Has

Permitted RICO to Be Applied in a Facially

Unconstitutional Manner. ......ccccccesccccce

a A ee a a ore

Appendix A -- Opinion of United States Court

FPP Terre Se Ter Ey Terre eee Te Tee

Appendix B -- Judgment of United States Court

ES Ne errr eye rer rrr ee rere

Appendix C - Order of United States Court

of Appeals on Petition for Rehearing and Sug-

gestion for Rehearing En Banc............44.

Appendix D - Constitutional and Statutory

Provisions Involved in the Case..............

32

36

40

Vv

Table of Authorities

Cases:

Aldridge v. United States, 283 U.S. 308, 75 L.Ed.

ey OE ay SO COED s os ecb hececcwen ven de 29

Anderson v. United States, 417 U.S. 211 (1974) .. 40

Blackwell v. Brewer, 562 F.2d 596 (8th Cir. 1977) 37, 39

Bunch v. State, 381 A.2d 1142 (Md. 1978)....... 37

Commonwealth yv. Robichaud, 264 N.E.2d 374

SCD nv de0-0b5 40 onnnGs oO aenee ab OGns 37

Delaney v. United States, 199 F.2d 107 (Ist Cir.

DEE Kicica bake ae kh subeekea bea eeeues 24

Ellis v. Oklahoma, 430 F.2d 1352 (10th Cir. 1970),

cert. denied, 401 U.S. 1010 (1971) ......... 37, 38, 39

Evans v. United States, 284 F.2d 393 (6th Cir.

DE cciciss Lack ewRbhhoe cheese eee wa cease 39

Faretta v. California, 422 U.S. 806 (1975) ....... 36

Hopt v. Utah, 110 U.S. 574 (1884) ............. 36

Irwin v. Dowd, 366 U.S. 717, 81 S.Ct. 1639

Te a en ike 21, 26, 28, 31, 34

Kiernan v. Van Schaik, 347 F.2d 775 (3rd Cir.

DE cnc bee bikd eae s Chae eR eeaee es 22

Krulewitch v. United States, 336 U.S. 440 (1949) . 40

Lewis v. United States, 146 U.S. 370, 36 L.Ed. 1011,

Oe CM BE Sicacé cen shnkdege kee een eases 28

Marshall v. United States, 360 U.S. 310, L.Ed. 2d

Sa PP Ge ECE CERI ns cberecseebanemass ya ee

Murphy v. Florida, 421 U.S. 794, 85 S.Ct. 2031

ET Rote enas ty 22, 23, 24, 26

Near v. Cunningham, 313 F.2d 929 (4th Cir. 1963) 37, 38

Nevels v. Parratt, 596 F.2d 344 (8th Cir. 1979)... 37, 38

Parker v. Gladden, 385 U.S. 363 (1966) ......... 35

vi

Patterson v. Colorado, 205 U.S. 454, 27 S.Ct. 556,

EN, ae ee ee 29

People v. Harris, 204 N.W.2d 734 (Mich. App.

SN a Ge ad an 6 Ob 4 ooo OE eee bs hs i 37

Rideau v. Louisiana, 373 U.S. 723, 83 S.Ct. 1417,

Be Res ee ee ss bc cee eA ess ueeeaes 26, 31

Ristaino v. Ross, 424 U.S. 589, 96 S.Ct. 1017,

ge Re &. 2 ee ee ee 29

Sheppard v. Maxwell, 384 U.S. 333 (1966) ...... 31

Silverthorne v. United States, 400 F.2d 627 (9th

Cir. 1968), appeal after remand, 430 F.2d 675

(1970), cert. denied, 400 U.S. 1022, 91 S.Ct.

ee Ee a ee ee 24, 30

Snyder v. Massachusetts, 291 U.S. 97 (1934)....1, 36, 39

Swain v. Alabama, 380 U.S. 202, 85 S.Ct. 824

i Perret errr eres ye ere Tree re Pere 21, 28

United States v. Addonizio, 451 F.2d 49 (3d Cir.

‘1972), cert. denied, 92 S.Ct. 949, 405 U.S. 936,

30 L.Ed. 2d 812, rehearing denied, 92 S.Ct.

1309, 40S U.S. 4068, 3) LB. 20 Fal ww cw vcce. 31

United States v. Allen, 588 F.2d 1100 (Sth Cir.

SENN Bc aVew eas Hee SEES Res Aad B ce ebetas 34

United States v. Allsup, 566 F.2d 68 (9th Cir

sce ee Nace bens +62 CRE eo RO ee 21

United States v. Altese, 542 F.2d 104 (2d Cir.

1976), cert. denied, 429 U.S. 1039 (1977) ...... 49, 50

United States v. Baca, 494 F.2d 424 (10th. Cir.

GL Sine Kaun Kee eae a eae RR eek ue 37

United States ex. rel. Bloeth v. Denno, 313 F.2d

364 (2d Cir. 1963), cert. denied, Denno v.

Bloeth, 83 S.Ct. 112, 373 U.S. 978, 10 L.Ed. 2d

| PRC ar Orn UE NED eents reek yw one am mierda 24

United States v. Braunig, 553 F.2d 777 (2d Cir.),

cert. denied, 431 U.S. 959 (1977) ............. 41

vii

United States v. Brown, 571 F.2d 980 (6th Cir.

GE EEE ee ee oe Se ea a 37, 38

United States v. Cappetto, 502 F.2d 1351 (7th

Cir. 1974), cert. denied, 420 U.S. 925 (1975) ... 49

United States v. D’Andrea, 495 F.2d 1170 (3d Cir.

1974), cert. denied, 419 U.S. 855 (1974) ....... 31

United States v. Dansker, 537 F.2d 40 (3d Cir.

i SERIA ah a etree Pee | ro 31

United States v. Dellinger, 472 F.2d 340 (7th Cir.

1972), cert. denied, 410 U.S. 970, 93 S.Ct. 1443,

Se Mee PU Es oyna (a0 Cr dddc eed eee 28, 30

United States ex. rel. Doggett v. Yeager, 472 F.2d

ee ee, SEA we vGaendwendccees abs 23, 24, 25, 30

United States v. Elliot, 571 F.2d 880 (Sth Cir.

Be ny Sree er re ree en 45, 49

United States v. Eubanks, 591 F.2d 513 (9th Cir.

SEE POR Onc Nae ga ee a a gee 22

United States v. Gay, 522 F.2d 435 (6th Cir. 1975) 37

United States v. Giacalone, 588 F.2d 1158 (6th Cir.

DELS. UIST UL Uk abbas CREME RA eR RAK 26

United States v. Howell, 514 F.2d 710 (Sth Cir.

A i cuth ey en vkg bar ake eh aeke seins 36

United States v. Huber, 603 F.2d 387 (2d Cir.

Gh a5 o aw ee wha Che 6 eee AREAS 0400 51

United States v. Kaplan, 510 F.2d 606 (2d Cir.

SO Wh aed Se eea ee ob ba coh as Meee ee 42

United States v. Klee, 494 F.2d 399 (9th Cir. 1974),

cert. denied, 419 U.S. 835 (1974) ............. 33

United States v. Moten, 582 F.2d 667 (2d Cir.

Dh, CEk ak sve sAk eee k vac Kua ENS eRaS Oh Obs 34

RS Tr eee Pe re eee Pere or ree ee 22, 26

Vili

United States v. Nixon, 418 U.S. 683 (1974) ..... 40

United States v. Payner, USS. (June 23,

Pei sa cece adurieuesnsacdecswcitestindin 35

Lnited States v. Rone, 598 F.2d 546 (9th Cir.

EATER ccchvcnSect Chain deen senebeuawieesin 49

United States v. Rosenstein, 474 F.2d 705 (2d Cir.

See hic bn ts ceikens aakcuede bes ete weneee i, 41, 42

United States v. Spencer, 47 P. 715 (N.M. 1896) . 34

United States ex. rel. Stewart v. Hewitt, 517 F.2d

Sie Ce Ga. FU aR k wick svi ckvudkenbereiebsneie 33

United States v. Sutton, 605 F.2d 260

1. Pere ere ree eee 43, 45, 47, 49, 50

United States v. Swiderski, 593 F.2d 1246 (D.C.

Cir. 1978), cert. denied, 441 U.S. 933 (1979) ... 49

United States v. Taliaferro, 558 F.2d 724 (4th Cir.

1977), cert. denied, 434 U.S. 1016 (1978) ...... 33, 34

Wade v. United States, 441 F.2d 1046 (D.C. Cir.

SOT ad A tncdcnwrvinkokuncechkaseabeaakeuua 39

United States Constitution:

Paes PD Civ c's dane dace 4 o8eenusscaes 3, 18

ee Fa ko oo cba ¥en she dink 3, 18, 35

Statutes:

Bik fee | errrer Ter s Prone ers rss li, 3, 18, 44

Ee Se S| ee eee re 3,5, 49

Re 8 ee er rr ae 3

1S Uy Wes hos b ioscan kesdsdueensasenass 4

BO UBA~ DCG one v cc bastbsesinsscusecces 3

USE UE... Ao ee 3, 5

ix

Rules:

Federal Rules of Criminal Procedure,

NG 46s pa esin ve’ [NAS A ATRYN age 41

Federal Rules of Evidence,

se eek sib 00 0 bs 648 40, 41, 42

Other Authorities:

American Bar Association Project on Standards

for Criminal Justice, Fair Trial, Free Press

Marijuana, Research Findings 1976, pp. 140-141

De UE, GE BRIE WY, EDT?) ccc ccccccccvcvene

24

43

33

IN THE

Supreme Court of the United States

October Term, 1980

No.:

ANTHONY PROVENZANO, STEPHEN ANDRETTA,

and THOMAS ANDRETTA,

Petitioners,

-against-

UNITED STATES OF AMERICA,

Respondent.

JOINT PETITION FOR A WRIT OF CERTIORARI TO

THE UNITED STATES COURT OF APPEALS

FOR THE THIRD CIRCUIT

Anthony Provenzano, Stephen Andretta, and

Thomas Andretta jointly pray that a Writ of Certiorari

issue to review the judgment of the United States Court

of Appeals for the Third Circuit affirming the judgment

of conviction against the petitioners by the United States

District Court for the District of New Jersey.

Opinions Below

Following the entry of the judgments in the Dis-

trict Court, petitioners appealed to the Court of Appeals.

The as yet unreported opinion of the Court of Appeals

2

may be found in the joint appendix filed with this peti-

tion (la - 4la).!

Upon the affirmance by the Court of Appeals of

all judgments of conviction, petitioners jointly petitioned

the Panel of the Court of Appeals which affirmed their

convictions for rehearing and suggestion for rehearing

en banc. By order dated July 20, 1980, all applications

were denied (44a).

On July 2, 1980 the Court of Appeals, pursuant to

Rule 41(b) of the Federal Rules of Appellate Procedure,

ordered that as to the petitioner, Stephen Andretta,

the certified judgment in lieu of formal mandate herein,

be stayed pending the timely filing of this petition with

this Court before July 20, 1980, and if such petition is

so filed, further continue the stay until final disposition

by this Court (43a).?

! The following abbreviations are used in this petition: “a” is

a reference to petitioners’ joint appendix, which is filed with this

petition. The appendix also contains the judgment of the United

States Court of Appeals for the Third Circuit in lieu of mandate

dated May 8, 1980; the order of the United States Court of Appeals

for the Third Circuit denying rehearing dated June 20, 1980; the order

of the Court of Appeals staying the certified judgment in lieu of

formal mandate as to petitioner, Stephen Andretta, dated July 2,

1980; and the relevant statutory provisions involved. “A” is a reference

to the 5-volume appendix heretofore submitted to the United States

Court of Appeals for the Third Circuit. These volumes, which con-

tain inter alia pretrial and trial testimony, pleadings, and exhibits,

will be certified to this Court.

2 The petitioners, Anthony Provenzano and Thomas Andretta,

are presently incarcerated and serving their sentence. See F.2d

(3d Cir. 1979). The petitioner Provenzano was sentenced to

a term of imprisonment of 20 years and fined $20,000. Petitioner

Stephen Andretta received a sentence of 10 years and a fine of $15,000.

Petitioner Thomas Andretta was sentenced to a term of imprisonment

of 20 years and fined $20,000.

3

Jurisdiction

The date of the judgment of the United States Court

of Appeals for the Third Circuit was May 8, 1980, which

also was the date of entry. A timely petition for rehearing

en banc was denied on June 20, 1980. This Court’s juris-

diction is invoked under Title 28 U.S.C. § 1254(1).

Constitutional and Statutory Provisions

Invoked in the Case

1. The Fifth Amendment to the Constitution of the

United States.

2. The Sixth Amendment to the Constitution of

the United States.

3. Title 18 U.S.C. §§ 1961, 1962, and 1963. These

constitutional and statutory provisions are set forth

in petitioners’ joint appendix at 45a.

Statement of the Case

A. The Indictment: The Government’s Theory of the Case.

This prosecution commenced on February 22, 1979

with the filing of Indictment No. 79-72 in the United

States District Court for the District of New Jersey

(A. 1, 16-32). In substance, Count I of the prolix indict-

ment charged the petitioner and others with conspiring

to violate the RICO Statute (Title 18 U.S.C. § 1962).

The indictment alleged that the conspiracy was manifested

through a complex scheme in which the defendants

and several unindicted co-conspirators accepted money

from Seatrain Lines, Inc. (hereinafter referred to as

“Seatrain”) and its “house trucker,” Interocean Services,

Inc. (hereinafter referred to as “Interocean”) in return

for “labor peace” to those organizations, in violation of

Title 29 U.S.C. § 186(b). Count II charged the defendants

with a substantive violation of the RICO Statute in

4

that they accepted 42 enumerated payments between

May 31, 1970 and December 16, 1974 in return for pro-

viding “labor peace” to Seatrain and Interocean up

through mid-1974 and thereafter, to Seatrain and its

new house carrier, Di-Jub Leasing Corporation (herein-

after referred to as “Di-Jub”).

It was the Government’s theory that several of

the defendants, om the prosecution believed to be

sophisticated labor leaders, formed an unlawful asso-

ciation, in fact, “the enterprise” (Title 18 U.S.C. § 1964),

in order to funnel money to themselves through ostensibly

legitimate trucking operations.’ In the indictment and

in its opening remarks to the jury, the prosecution

divided the conduct alleged in the indictment into two

specific time frames. Between 1969 and mid-1974, the

Government alleged that the defendants created a

corporation called Cargo Truck Leasing (hereinafter

referred to as “Cargo”), to furnish independent owner-

operators to Interocean. It was the Government’s con-

tention that the defendants would ensure themselves

illegal income by creating a “ghosting” operation in

which Seatrain’s house carrier, Interocean, would be

billed for owner-operators who were not actually sup-

plied to Interocean. The Government further contended

that in mid-1974, after Seatrain decided to phase-out

Interocean, the defendants attempted, through a corpora-

tion known as Liftvan, to succeed to the interests of

Interocean and to continue to over-bill Seatrain. When

that attempt failed, they substituted a corporation

known as Di-Jub in place and instead of Interocean and

then with perfect symmetry, formed a corporation known

as FLT Trucking and Leasing, ‘nc. (hereinafter referred

to as “FLT”) to provide the same services to Di-Jub as

Cargo did for Interocean. This activity, which the

3 The Government’s theory is based upon the alleged unlawful

criminal association formed by the defendants. Neither the labor

union to which some of them belonged, nor any trucking companies

were named as “the enterprise” in the indictment.

5

Government claimed violated Title 29 U.S.C. § 186(b),

formed the pattern of racketeering activity required by

§ 1962(c) and (d).

Crucial to the prosecution’s theory was the fact

that Seatrain and its house carriers knew that the true

purpose of the ghosting or over-billing was for “labor

peace” and actively participated in the payments.

B. The Proof At Trial.

(a) The Prosecution’s Case.

Sometime in 1963, following an aborted college

career, Ralph Picardo, through the assistance of the

Provenzano family, who he claimed were friends of

members of his family, secured a job as a truck driver

for a Newark-based ice cream company. Concomitantly,

he became a member of Local 648 of the International

Brotherhood of Teamsters (hereinafter “IBT”) (A. 949-

951). Shortly thereafter, he left his Newark employment

and in 1964, he transferred to Local 560 of the IBT in

Union City, New Jersey.4 There he met Salvatore

Briguglio, a union delegate who was to become his close

friend, confidante, and mentor (A. 963).5 Between 1966

.nd 1969 Picardo became an organizer for Locals 560 and

84 of the Teamsters. According to Picardo, while an

“organizer,” he, through Salvatore Briguglio, formed

an association with Salvatore Briguglio, his brother,

Gabe Briguglio, Anthony Provenzano, Armand Faugno,

and Thomas and Stephen Andretta to conduct various

unlawful activities. Inasmuch as several members of his

association were members of the Teamsters, he, Picardo,

acted as their “front man” in these activities while all

shared in the profits (A. 960).

* Picardo, an admitted miscreant whose crimes ran the gamut

from corrupting juries to murder, was the Government's chief

witness.

5 Salvatore Briguglio, who is named as a co-conspirator, died

prior to the filing of the indictment.

6

Though the petitioner, Anthony Provenzano, had

no personal contact with Picardo, according to Picardo,

he was the “commander” (A. 982). Salvatore Briguglio,

Picardo’s silent partner in his trucking business, was

second in command, while the Andretta brothers, Armand

Faugno, and Gabe Briguglio were on the same and lowest

level in the “chain of command” as Picardo (A. 963-964).

Picardo also outlined various cliques within the asso-

ciation. Thus, he and the Briguglio brothers formed

one faction, Armand Faugno and the Andretta brothers,

a second, while the third group (A. 975-981) consisted

of the Provenzano family.

After a short tenure as a union organizer, Picardo,

at the insistence of his “associates,” became involved

in managing several trucking companies (A. 985).

According to Picardo’s tale, the rationale for his appren-

ticeship in management was to allow him and his ‘asso-

ciates” to glean a profit from both sides of the union-

management fence without violating the Taft-Hartley Law

(A. 987-988). His initial task under the supervision of

Salvatore Briguglio was to monitor the trucking industry

to look for a lucrative situation in which the “association”

could make a profit in return for supplying “labor peace”

(A. 989-990).

Sometime in 1969, Picardo saw an opportunity

to use the knowledge he had gained from his years of

apprenticeship and observation. A company called

Seatrain had created a house trucker without a union

contract to do the former’s inland trucking. According

to Picardo, the situation seemed like a perfect oppor-

tunity (A. 993).

Seatrain, a steamship corporation specializing

in the transportation of containerized freight, had formed

a “house carrier” called “Interocean” to do Seatrain’s

trucking. Interocean had no union contract even though

7

it operated in ten states (A. 993-995). Interocean had

formed a subsidiary called Switching, Inc., which was

unionized and did local switching work (A. 996-997).’

Picardo believed that as long as he and his associates

could provide labor peace to Interocean, it would be

willing to provide him with money (A. 998). In early

1969, Salvatore Briguglio arranged for Ralph Pellecchia

(“Raffie”), a member of the “association,” to introduce

Picardo to Ray Rosen, the then Vice-President of

operations for Interocean (A. 999).

According to Picardo, he informed Rosen that if

Interocean “use(d) all our drivers,” he, Picardo, would

provide them with “labor peace” (A. 983). Picardo also

told Rosen that by adopting this plan, he would save

30 to 40 percent in expenses and would not have to

pay any union pension or welfare benefits. Picardo

further maintained that he told Rosen that the fee for

providing these valuable services would come from a

“ghosting” operation (billing for the use of no-show or

fictitious drivers). According to Picardo, Rosen, after

consulting with Thomas Durkin, Seatrain’s attorney,

accepted the plan (A. 1003-1004, 1029-1030, 1040, 1151).

6 To support his theory that Seatrain was ripe for an assault,

Picardo explained that in 1967 Seatrain contracted its trucking

work to a union shop known as John J. Cassale. In 1968, the con-

tract went to Victory Motor Lines. In 1969, a wild-cat strike ensued

which became very costly and apparently led to the formation of

Interocean (A. 993-994), In fact, Interocean was formed by Seatrain

to legally avoid unionization. Similar plans were in use by Sealand

Corp. and U.S. Lines, both of whom had house truckers, which

utilized non-union owner-operators.

7 Trucking for shippers involved with containerized cargo

generally falls into two categories. First, trucks are needed to haul

the containers over-the-road. Between 1970 and mid-1974, Sea-

train’s over-the-road hauler was Interocean. Second, trucks or

“rigs” are needed to move containers within a freight yard. This is

referred to as switching. Between 1970-1974, it was performed by

Interocean’s subsidiary, Switching, Inc. (A. 996-997).

8

Although Rosen acknowledged that he had met

with Picardo at Pellecchia’s request “as a man who could

supply us with equipment and drivers for the switching

operation” (A. 2159), he emphatically denied any knowl-

edge of Picardo’s “ghosting” scheme (A. 2212). According

to Rosen, Picardo or his company never submitted ghosted

or padded bills. Rosen further maintained that Interocean

never paid any money to Picardo or “Cargo” for “labor

peace” (A. 2217). Moreover, Rosen testified that although

Picardo boasted of his connections in the labor movement

(A. 2161-2162), Picardo never suggested that he could

supply Interocean or Switching with union protection

and labor peace for a fee (A. 2295-2296). Rosen’s testi-

mony was confirmed by the two dispatchers employed

by Interocean, Messrs. Kunze and Heinlein, who admitted

receiving bribes from Picardo in return for not revealing

his ghosting operation to the officers of Interocean

(A. 1853, 1863, 1877, 1881, and 1883).8

To implement his plan, Picardo, on March 19, 1970,

formed Cargo Truck Leasing Corp. (“Cargo”) as the

medium through which he would supply drivers to

Interocean and Switching and through which he would

funnel money to his associates (GX 46, A. 1045-1046).

Using friends and newspaper advertisements, Picardo

secured approximately 15 owner-operators for use at

Interocean or Switching (A. 1044, 1047).

Once his owner-operators were in place, he began

to supply them to Interocean primarily for use as switchers

(A. 1048). Although he paid the drivers $9.00 per hour,

he never paid any pension and welfare benefits (A. 1050-

8 Rosen conceded that he, on behalf of Interocean, ghosted

switchers with respect to Seatrain. Rosen claimed that his ghosting

was in effect a method of assisting Seatrain in violating their tariff

rates. Rosen’s testimony in this regard was supported by several

Seatrain executives.

9

1051).9 Picardo maintained that his ghosting scheme was

initiated almost immediately and continued until Cargo

terminated its relationship with Interocean in 1974.

Although he admitted bribing Interocean dispatchers,

Messrs. Kunze, Heinlein, and Rotolo, he denied that

the purpose of the bribes was to keep them quiet with

respect to his ghosting operation. Picardo initially

claimed that the bribes were paid to maintain a smooth

working relationship (A. 1053-1054). Later, however, he

claimed that he paid the bribes so that the dispatchers

would not report his operation to the federal authorities

(A. 1277). The dispatchers, however, told a very dif-

ferent story. They admitted knowledge of Picardo’s scheme

and conceded that he bribed them in return for their

silence (A. 1853, 1863, 1877, 1881 and 1883).!° Each of

the dispatchers maintained that they never discussed

Picardo’s ghosting with Rosen or any member of Inter-

ocean’s management (A. 1866).

George Affsa, Interocean’s Vice-President of

Finances, testified that sometime in 1974, he determined

that Cargo had overcharged Interocean $10,000 to

$15,000 (A. 1942-1944, 1961-1962). According to Affsa,

he informed Ray Rosen of the overcharge and was told

by the latter to charge back Cargo for the apparent

overcharge (A. 1945). Affsa complied with Rosen’s

orders (A. 1945). Affsa, like Rosen and Walter Blanken,

Interocean’s President from 1970-1972, denied any

knowledge of any payments made by Interocean to

ensure labor peace (A. 1955-1956).

9 There was no evidence that any of the owner-operators

used by Picardo were members of any union. On the contrary the

proof demonstrated that owner-operators almost never joined the

union.

0 The testimony of the dispatchers was corroborated by Allen

Abramowitz, Picardo’s then office manager, who testified that the

bribes were paid to keep the dispatchers quiet (A. 1853).

10

Despite the testimony of Interocean’s executives

that they knew nothing of Picardo’s ghosting and despite

the concession of Interocean’s dispatchers that they

had been bribed by Picardo not to reveal his ghosting

operations, the Government attempted to prove Sea-

train’s knowledge by calling several middle-level execu-

tives from Seatrain, who sometime in 1971 became aware

- of a “ghosting” operation.!!

In any event, as checks began to arrive at Cargo

from Interocean or Switching, Picardo deposited them

in Cargo’s bank account, paid the owner-operators,

and converted the balance into cash which he maintained

he divided among his associates. Using what he claimed

was invaluable knowledge gleaned from his college

course in accounting, Picardo devised a score of plans

to distribute 75 percent of his illgotten gains to his

friends (A. 1065).!2

His initial and simplest scheme was to write checks,

which varied in amount but averaged $1,000 to $1,500,

to either himself or to a fictitious payee and to cash

them at Joe’s Tavern, a local bar in Jersey City. On

other occasions, these checks, bearing false notations

(A. 1075) would be given to the petitioner, Thomas

'! As it later became clear, the ghosting operation uncovered

by Seatrain executives was an operation conducted by Rosen with

the consent of Seatrain’s upper level executives to make up for lost

revenues incurred as a result of not billing Seatrain’s customers

for trucking services (A. 2241-2243). This, of course, would con-

stitute a violation of their tariff regulations and constitute the

giving of unlawful rebates.

'2 Picardo claimed that he retained 25 percent (A. 1065); 25

percent went to the Briguglios, 25 percent to the Faugno-Andretta

faction, and 25 percent to the Provenzano group (A. 1069-1071).

The petitioner Provenzano, however, never personally received

any money from Picardo (A. 1072). Nevertheless Picardo claimed

that he informed Provenzano of his venture and received a compli-

ment in return (A. 1073).

11

Andretta, who cashed them at Joe’s (A. 1066).'3 On

many occasions, Picardo claimed to have taken checks

directly to Local 560 in Union City (A. 1067). After the

checks were cashed, the proceeds were distributed at

either Local 560 or in Armand Faugno’s office in Jersey

City.

The second method used by Picardo for generating

cash was to loot Interocean’s petty cash advance fund

(A. 1089). This fund was maintained to assist owner-

operators who needed loans or advances for tolls, gaso-

line, and to repair their equipment. Picardo, however,

found another use for the fund. He, through Cargo,

drew cash from the fund each day, which money was

deducted from the total revenues due Cargo from Inter-

ocean. Picardo, however, added phantom drivers to his

weekly bills to cover the amounts he had withdrawn

from petty cash (A. 1090). The cash was then deposited in

the Cargo account, made out to fictitious payees and

cashed at a check-cashing service (A. 1091). A third

method used by Picardo was to take personal loans from

Interocean and repay these loans by adding ghosts to

his invoices (A. 1093, but see for example A. 2003).

According to Picardo, he continued to disburse

the carefully “washed” funds to his associates into 1972.

Sometime in that year, however, Salvatore Briguglio,

throwing caution to the wind, uncharacteristically

asked Picardo to directly and by check, pay Briguglio’s

bills at the Rainbow’s End Horse Farm (A. 1120).

Picardo maintained that he, through Cargo, con-

tinued to pay these bills on behalf of Briguglio and the

'3 Though Picardo claims to have given the majority of these

checks, which formed the first forty acts of racketeering (GX 104-143)

to the petitioner, Thomas Andretta, to cash, the Government's

handwriting expert who examined each of the questioned documents,

determined that Mr. Andretta’s fingerprints were not present on any

of them. See the testimony of the FBI agent, Thomas B. Thompson at

A. 2347-2351. Parenthetically, only Picardo’s prints show up on

exhibits 104-143.

12

petitioner, Provenzano, well into 1975 (A. 1122-1129,

GX 18, 26, 27, 31, 32, 33, and 34).'!4 Picardo, however,

was contradicted by Maryanne Hart (A. 2642) and

Paulette Compton (A. 2481, ef. seq.) who were his

employees and at various times shared his bed (A. 1372-

1373, 2546, 2644-2655).'5 Compton testified that Picardo

informed her that he had given two of his horses to Sal

Briguglio’s daughter as a gift (A. 2481) and had instructed

her and Hart to pay for the horses’ up-keep (A. 2481-

2501). He never told Ms. Compton that either of the

horses were given to Anthony Provenzano or his daughter.

By the late summer of 1973, Picardo learned that

Seatrain was contemplating phasing out Interocean

because of its unprofitability (A. 1149, 2373-2377).

Picardo, therefore, took a bold step. Through a shell

corporation called Trans Container Express Lines, he

acquired the ICC rights to a corporation called Liftvan

Transport, Inc. (A. 1169). Liftvan had ICC rights com-

parable to Interocean’s and was in a position to compete

with the latter for Seatrain’s business.

In the late summer of 1973, Picardo, according to

his testimony, was summoned to Local 560, where he

met with Salvatore Briguglio, Sam Provenzano, and

Thomas Durkin, Seatrain’s attorney. Durkin, according

to Picardo, wanted to know if he would be interested

in operating Liftvan. Under the plan, Durkin, acting as

Seatrain’s attorney, would bankroll the operation. It

was Durkin’s plan to replace Interocean, which Durkin

14 The owner of the Horse Farm, David Rosen (A. 2881, ef. seq.)

did receive payment from Picardo for two horses, one ridden by

Salvatore Briguglio’s daughter, and the other by the defendant

Provenzano’s daughter. Yet Rosen simply assumed that each girl

owned her respective horse (A. 2898). No ownership papers were

available. To the contrary, the veterinary bills demonstrate that

the owner of the horses was Ralph Picardo (GX 26, 32, A. 2898).

'S Picardo prided himself on being a ladies’ man and conceded

that he used his charm to persuade women to assist him in various

illegal schemes (A. 1366).

13

believed to be too costly an operation, with Liftvan,

which had ICC rights similar to Interocean’s (A. 1145,

1147-1149). Following the meeting, Picardo and Briguglio

met privately and agreed that Durkin’s proposition

had merit. Briguglio, therefore, gave him the go-ahead

(A. 1154). Despite Briguglio’s okay, serious problems

arose — Briguglio was sent to jail -- and according to

Picardo, Pellecchia, who was making $50,000 a year

through Interocean, complained that Picardo and Liftvan

would destroy his job (A. 1154-1155). Consequently,

Picardo, representing himself and Briguglio (see GX 371

and 372), travelled to Florida with the petitioner, Stephen

Andretta, where they met the petitioner Provenzano at

his residence in the Americana Hotel in Miami. Once

there, Picardo claimed he convinced Provenzano to

sanction Liftvan (A. 1157).!6

In September 1973, Picardo began to operate Liftvan

as its agent and by December of that year, he had pur-

chased the company from Buck Borden for $205,000

payable over three years with monthly notes (A. 1169-

1170). Picardo maintained that although he was the

“front man,” his associates were equal partners (A. 1171).

Despite Picardo’s grand plan, Liftvan failed because

Picardo was unable to secure any meaningful business

from either Seatrain or other major steamship companies

(A. 1198). In addition, in May 1974, Picardo was indicted

for murder and from that point on devoted less and less

time to his business and more and more of his time in

the defense of the charges against him (A. 1216). In fact,

at the time of Picardo’s conviction for murder in February

of 1975, Liftvan was virtually defunct (A. 2517).

16 An FBI check of the records of the Americana Hotel for

a period which included October and November, 1973 failed to

corroborate Picardo’s tale. On the contrary, FBI Agent Thomas

Smith (A. 3407-3420) testified that he checked the records of the

Americana and found no record of Provenzano, Picardo, or

Andretta being registered guests in the fall of 1973 (A. 3407-3409).

14

Picardo claimed that in the summer of 1974, he

and his associates decided to form a new corporation

to succeed to the rights of Cargo (A. 1194-1195). He

claimed that the reason for the formation of the new

corporation was twofold: to provide the petitioner,

Thomas Andretta, with a legitimate source of inconie;

and second, to take Picardo out of the picture because

many of the steamship companies refused to deal with

him (A. 1195, 2196).

Thereafter, he met with the petitioner Andretta’s

accountant, Thomas Florio, and they mutually agreed

that Andretta’s new corporation would purchase Cargo

for a price of $30,000 (A. 1611-1612).

It was Picardo’s position that the new corporation

would be nothing more than a sham used to funnel

funds from the ghosting operation. Consequently, after

some discussion with the petitioner, Stephen Andretta,

the name FLT was chosen (A. 1198).!? In July of 1974,

FLT took over the operation of Cargo (A. 1198-1200).

Shortly after the formation of FLT, Seatrain began

to phase out Interocean (GX 340).'8 Interocean’s switching

functions were given to a company formed by Ralph

Pellecchia called Di-Jub (A. 1200).

On August 14, 1974 Picardo received a check in

the sum of $12,000 from FLT as the first installment

for the purchase of his business (GX 144). The second

installment for $18,000 was paid at the end of December

'7 Picardo maintained that the name FLT was a joke and an

acronym for a non-existent person. On the other hand, he conceded

that the first names of three of Stephen Andretta’s children coincide

with the initials FLT (A. 1517-1519).

'§ According to the principals of both Seatrain and Interocean,

Interocean was phased out primarily because Seatrain’s Puerto

Rican container operation was shut down. Therefore, Interocean,

the trucking company which served that operation, was no longer

needed.

15

1974 (GX 145). Picardo maintained that he converted

each of these checks to cash and divided the proceeds

among his “associates” (A. 1204-1210).!9

In February of 1975, Picardo was convicted of

conspiracy to commit murder and murder in the second

degree. Following his conviction, he was remanded to the

Hudson County Jail (A. 1217). Though Picardo continued

to have sporadic contact with petitioner, Stephen Andretta

(A. 1217), he no longer actively participated in the alleged

scheme. On the contrary, after all of his attempts to

extricate himself from jail had failed, he began to cooper-

ate with the federal authorities.

Sometime in the summer of 1974, Raymond Rosen

was informed by Pellecchia that FLT would take over

Picardo’s brokerage operation (A. 2193-2194). According

to Rosen, Pellecchia said that despite Picardo’s absence,

everything would be handled by FLT (A. 2196). Thereafter,

and through Labor Day of 1974, FLT supplied Interocean

with drivers and Interocean paid FLT the same fee it had

been paying Cargo (A. 2197-2199).

On Labor Day of 1974, Interocean formally stopped

operating and was replaced in part by Di-Jub (A. 2205-

2207). Thereafter and through December 1976, Di-Jub

paid FLT its commission as the broker for the drivers

(A. 2210-2211, GX 53-60, 224, 230).

In order to corroborate Picardo’s testimony that

FLT was nothing more than a paper corporation used

to funnel funds to his associates, the prosecution called

a series of “owner-operators,” who, for the most part,

had worked for Ralph Pellecchia under contract to Cargo

as switchers in the Seatrain yard prior to 1974, and then

operated under contract to FLT from mid-1974 until

the end of 1976.

(9 Picardo maintained that that $12,000 payment, together

with an additional $18,000 payment made in December of 1974 by

FLT to Cargo (GX 144, 145), was simply additional means through

which he and his associates laundered money.

16

They testified, during the period of their contractual

relationship with FLT, they never had any direct dealings

with FLT; their salary was paid by Di-Jub; and they,

in fact, had no contact with any one connected with

FLT (A. 2567). Although they knew that petitioner,

Thomas Andretta, was the President of FLT, they never

received any instructions from Mr. Andretta.

Sometime toward the end of December 1976, Di-Jub

learned that FLT and its officers were under criminal

investigation. It, therefore, terminated their relationship

(GX 339).

C. The Petitioners’ Case.

The contentions raised by the defense were estab-

lished through the cross-examination of all the prose-

cution witnesses and witnesses for the defense during

the prosecution’s case-in-chief. In addition, the defense

called a number of witnesses to rebut specific allegations

made by the Government'’s informant. See for example, the

testimonies of FBI Agent Bergholtz, A. 3398, ef. seq.;

FBI Agent Smith, A. 3407, et. seq.; FBI Agent Cummings,

A. 3477, et. seq.; and the testimony of Picardo’s attorney,

Dennis McGill, A. 3167, ef. seqg.; and that of Ronald

Kucks, A. 3384, ef. seq.

The contentions are generally contained within

the statement of facts set forth above. A brief summary

of those facts, however, would not be inappropriate.

The petitioners maintained that Ralph Picardo was testi-

fying falsely when he included them as beneficiaries of

the ghosting operation he conducted through Cargo and

against Interocean. In support of their theory, it will be

recalled that Interocean’s dispatchers, Heinlein and Kunze,

conceded being bribed by Picardo so that they would not

reveal his ghosting operation. Moreover, the defendants

contended that Picardo’s ghosting had no relationship

to labor peace. Toward this conclusion, they pointed to

17

the testimony of witnesses, Affsa, Rosen, and Blanken,

the management of Interocean, who asserted that they

had no knowledge of Picardo’s ghosting operation

(Affsa, A. 1955-1956; Blanken, A. 1980, 1997, 2006,

and 2011; Rosen, A. 2217-2269). These same individuals,

however, admitted that they, at Interocean, had con-

ducted their own ghosting operation. They maintained

that this ghosting operation, which was totally independent

of Picardo’s scheme, had its origin in the special relation-

ship that existed between Seatrain and Interocean. They

believed, as did many of the executives at Seatrain, that

the ghosting operation was conducted to cover up

Seatrain’s violation of the tariff regulations.

Consequently, the petitioners urged that any ghosting

operation conducted by Interocean had absolutely

nothing to do with any labor peace. This assumption

was bolstered by the unequivocal testimony of each of

those representatives that they had no knowledge of

Picardo’s scam.

The petitioners also claimed that there was, in fact,

no need for Seatrain and Interocean to seek labor peace

because under the Fair Labor Standards Management

Act, Interocean had no obligation to unionize, and that

the formation of Switching as a union shop was simply

an accommodation to those prior employees of Victory

Motor Transport who did not strike in 1967 (A. 2233).

In addition, the petitioner, Anthony Provenzano, con-

tended that he simply was not involved in the commission

of any offense with relation to either Interocean or

Seatrain.

At the conclusion of all of the evidence (A. 3493),

each of the petitioners renewed their motions pursuant

to Rule 29 for judgment of acquittal. These motions

were in all respects denied (A. 3497).

18

Reasons for Granting the Writ

This petition raises pressing and substantial questions

of interpretation with respect to the Racketeer Influence

Corrupt Organizations (“RICO”) Act (18 U.S.C. § 1961,

et. seq.), which have not yet been considered by this

Court.

The Third Circuit’s interpretation of RICO to

allow an “enterprise” to include an illegal group or

association casts grave doubt on the constitutionality

of the statute and contradicts, we believe, the congressional

intent. This petition also raises a number of issues which

are critically important in the area of how massive pre-

trial publicity can taint a jury panel so as to deprive

criminal defendants of their right to a fair and impartial

jury and to due process of law under the Fifth and Sixth

Amendments to the Constitution of the United States.

Moreover, this case contains a question relating

to defendants’ exclusion from a conference which resolved

the issue of juror misconduct. An issue relating to the

resolution of the juror misconduct issue by the Circuit

Court is contained herein as well. Finally, a due process

issue is raised over the Circuit Court’s resolution of an

erroneous ruling by the trial court relating to the admis-

sion of hearsay evidence.

19

ARGUMENT

POINT I

The Court Below Erred by Failing and Refusing to Excuse

for Cause Several Prospective Jurors Who Were Tainted

by Pre-Trial Media Coverage: By Compelling the Defend-

ants to Exhaust Their Peremptory Challenges in an

Attempt to Exclude Such Individuals, by Failing to Con-

duct an In-Depth Inquiry into the Nature and Effect of

the Pre-Trial Publicity; And by Denying The Non-

Provenzano Defendants’ Motions for Severance and

Change of Venue.

1. The Jury Selection Process.

The process of jury selection commenced on the

morning of May 7, 1979. Concerned with frequent pre-

trial media coverage directed against the appellant’s

co-defendant, Anthony Provenzano, the Trial Court

proceeded to individually question the potential veniremen

regarding their exposure to the media coverage (A. 433,

488, 549 passim).

In ruling on defense requests to dismiss various

panel members for cause, Judge Meanor analytically

classified those 42 individuals exhibiting familiarity with

the case or the defendants into two categories (A. 4157-

4158). The first category included those veniremen who

were familiar with Mr. Provenzano’s prior murder con-

viction. As to this category, the Court below, with the

consent of the Government, granted defense challenges for

cause (A. 750-752).

The second grouping included numerous panel

members who exhibited a wide variety of prejudicial

connotations relative to the petitioner Provenzano. In most

part, these connotations concerned Mr. Provenzano’s

purported organized crime associations. Provenzano

was stated to be familiar to these jurors as being con-

nected with the “Mafia” or “mob” (A. 518-520, 709);

as a “gangster” (A. 532); a “racketeer” (A. 727, 784);

20

an “underworld figure” (A. 727); or as otherwise being

a member of organized crime (A. 588). Also included

in this category were those veniremen who identified

Mr. Provenzano as involved in “kickbacks into unions”

(A. 589); “paybacks” (A. 725); and “extortion” (A. 600,

725). Jurors associating Mr. Provenzano with the dis-

appearance and/or murder of James R. Hoffa also

fell into this grouping (A. 602, 777) as did jurors citing

Mr. Provenzano’s involvement in union dealings.

As to those jurors included in this second analytical

category, defense challenges for cause were denied by

the Trial Court. As a result, defense counsel, who col-

lectively exercised 14 peremptory challenges, were com-

pelled to exhaust such challenges in an effort to exclude

these veniremen from sitting in judgment of the peti-

tioners.°

Of the 12 panel members ultimately seated, 9 had

read or heard of the case or the defendants.?! Included

among the 9 were two (Jury Members 3 and 5) who had

read or heard of the case that very morning. Another

seated juror had heard of petitioner Provenzano “pretty

regularly the past year,” via newspaper and television,

in the context of “racketeering” (A. 784). The sworn

panel also included a juror who had heard of Mr. Pro-

venzano’s involvement “in some criminal proceedings”

(A. 614).

Sworn as an alternate (Panel Member #52), was

another individual who had read about petitioner Pro-

venzano in that morning’s newspaper. Stated this Juror:

20 This was the total exercise as to both regular and alternate

jurors. Of the 14 challenges exercised peremptorily, 12 had some

adverse knowledge of the petitioner Provenzano.

2! Panel Members Nos. 3 (Juror #5); 10 (Juror #3); 20 (Juror

#1); 26 (Juror #10); 30 (Juror #12); 49 (Juror #9); 54 (Juror #7);

56 (Juror #2); and 61 (Juror #4).

21

“He (Provenzano) was an alleged racketeer and

. . .he was brought up on charges. Extortion.

Paybacks (A. 725). . .he’s supposed to be an alleged

racketeer or whatever, an. underworld figure

(A. 727).”

Only three of the twelve regular jurors had not

originally heard or read of the case.?2 On the other hand,

the Government exercised numerous peremptory chal-

lenges in excluding those individuals who had not heard

of the case or of the petitioner Provenzano,?? or whose

acquaintance with such publicity was so sparse that

they were unable to cite any prejudicial context.”4

2. The Trial Court Erred by Failing to Excuse for Cause

Individuals Tainted by Pre-Trial Media Coverage and by

Compelling the Petitioners to Exhaust Peremptory

Challenges in an Effort to Exclude Such Individuals.

The right to a jury trial guarantees an accused a

fair trial by a panel of impartial, “indifferent jurors.”

Irwin v. Dowd, 366 U.S. 717, 722, 81 S.Ct. 1639, 1642

(1961). The primary method used to achieve this right to

trial by indifferent or impartial jurors is through the notion

of challenges exercised during the jury voir dire. United

States v. Allsup, 566 F.2d 68, 71 (9th Cir. 1977), It,

therefore, follows that inhibition of the right to challenge

for cause or peremptorily is deemed prejudicial error

without the need to show actual prejudice. Swain v.

Alabama, 380 U.S. 202, 219, 85 S.Ct. 824 (1965). Applying

this standard, the United States Court of Appeals for

the Fifth Circuit found it reversible error to force a

party to exhaust his peremptory challenges on a person

who should have been excused for cause for this “has

the effect of abridging the right to exercise peremptory

22 Panel Members Nos. 17 (Juror #8); 23 (Juror #11); and

60 (Juror #6).

23 Panel Members Nos. 12, 24, and 37.

24 Panel Members Nos. 18, 22, and 29.

22

challenges.” United States v. Nell, 526 F.2d 1223, 1229

(Sth Cir. 1976). See also United States v. Eubanks, 591

F.2d 513, 516-517 (9th Cir. 1979). A Trial Court must,

therefore, excuse a prospective juror if actual bias is

discovered during the voir dire. Actual bias, however,

is not always discovered by the exp.esseadmission of a

prospective juror. Often a putative venireman is reluctant

to admit actual bias and the peculiarity of his or her

attitudes must be revealed by “circumstantial evidence.”

See Kiernan v. Van Schaik, 347 F.2d 775, 781 (3d Cir.

1965). In the instant case, the “circumstantial evidence,”

which demonstrated actual bias in a number of prospective

jurors, was based in large measure on media coverage

of the petitioner Provenzano.

In Murphy v. Florida, 421 U.S. 794, 85 S.Ct. 2031

(1975), the United States Supreme Court had occasion

to enumerate the guiding principles controlling the

selection of jurors exposed to pre-trial publicity or

knowledge.

The Supreme Court in Murphy declined to reverse

the defendant’s conviction. In so doing, it defined the

minimal constitutional standard, to be applied when

reviewing state cases, as follows:

“Qualified jurors need not be totally ignorant

of the facts and issues involved; it is sufficient

if the juror can lay aside his impression or opinion

and render a verdict based on the evidence pre-

sented in Court.” 421 U.S. at 800.

The Court, in reasoning that reversal of Murphy’s

conviction was not constitutionally compelled, stated

that while some of the jurors had a vague recollection

of the robbery with which petitioner was charged, and

each had some knowledge of his past crimes, none

betrayed any deep impression of Murphy or a belief

in the relevance of his past to the case at hand.

In so deciding, the Murphy Court distinguished those

instances where a federal appellate tribunal is reviewing

decisions of federal trial courts, and expressly cited its

23

decision in Marshall v. United States, 360 U.S. 310,

L.Ed. 2d 1250, 79 S.Ct. 1171 (1959) and the decision

of the Third Circuit Court of Appeals in United States

ex. rel. Doggett v. Yeager, 472 F.2d 229 (3d Cir. 1973).

In such instances, noted the Court, a less stricter standard

of scrutiny will prevail.?5

Marshall, supra, which contains the standard of

review for federal cases, involved two newspaper articles

containing prejudicial information which reached a

substantial number of the jurors during the trial. The

Trial Court, as in the case sub judice, summoned the

jurors into his chambers and inquired individually

whether they had seen the articles. Each of the jurors

replied that they would not be influenced by the articles,

that they would decide the case strictly on the evidence,

and that they felt no prejudice as a result of the articles.

Nevertheless, in the exercise of its supervisory power to

formulate and apply proper standards for enforcement of

criminal law in the federal courts, and not as a matter

of constitutional compulsion, the Supreme Court reversed

defendant’s conviction and ordered that a new trial be

granted. Obviously this Court did not believe that the

mere expurgatory oath taken by the jurors who had

seen the news stories was sufficient to purge them of

probable bias. In the case sub judice, the Trial Court

admitted that the petitioner Provenzano appeared

frequently in the media (A. 549). On at least three occasions

during the voir dire, the trial judge expressed his belief

that no jury could be impaneled in the Newark area which

had not heard Mr. Provenzano’s name in one context

or another (A. 549, 699, 705).

Upon being asked whether they could sit and judge the

petitioners fairly and impartially, many of the veniremen

expressed their belief that they could do so. However,

25 Indeed, it is interesting to note that Chief Justice Burger,

concurring in Murphy, opined that while the circumstances involved

did not rise to a violation of the Due Process Clause of the Four-

teenth Amendment, he would not hesitate to reverse Murphy's

conviction in the exercise of the Court’s supervisory powers were

it a federal case. 421 U.S. at p. 084.

24

even under the stricter constitutional standard, such

assurances could not be taken at face value based upon

what the trial judge expressly recognized to be wide-

spread pre-trial publicity, and all inferences must be

drawn against such casual assurances. Where, as here,

most veniremen have been exposed to such publicity,

the reliability of their protestations of impartiality must

be drawn into question. Merely going through the form

of obtaining the jurors’ assurances that they are equal to the

task will not suffice. Cf, Murphy v. Florida, supra,

421 U.S. at 800; United States ex. rel. Bloeth v. Denno,

313 F.2d 364, 372 (2d Cir. 1963), cert. den. Denno vy.

Bloeth, 83 S.Ct. 112, 373 U.S. 978, 10 L.Ed. 2d 143;

Silverthorne v. United States, 400 F.2d 627 (9th Cir.

1968), appeal after remand, 430 F.2d 675 (1970), cert.

den. 400 U.S. 1022, 91 S.Ct. 585, 27 L.Ed. 2d 633.

As noted by the United States Court of Appeals for

the First Circuit in Delaney v. United States, 199 F.2d

107, 112-113 (1st Cir, 1952):

“One cannot assume that the average juror is

so endowed with a sense of detachment, so clear

in his introspective perception of his own mental

processes, that he may confidently exclude even

the unconscious influence of his preconceptions

as to probable guilt, engendered by a pervasive

pre-trial publicity.”

In United States ex. rel. Doggett v. Yeager, 472

F.2d 229 (3d Cir. 1973) (later stated by the Murphy

Court to have applied the less stringent Marshall standard

when dealing with federal cases, this Court, in remanding

for a new trial, cited the American Bar Association

Project on Standards for Criminal Justice, Fair Trial,

Free Press, § 3.4(b):

“A prospective juror who has been exposed to and

remembers reports of highly significant informa-

tion, such as the existence or contents of a con-

fession, or other incriminatory matters that may

25

be inadmissible in evidence, or substantial amounts

of inflammatory materials, shall be subject to

challenge for cause without regard to his testi-

mony as to state of mind. (emphasis supplied)

Applying the Marshall- Yeager standard to the facts

of this instant case, one is left with an abiding conviction

that the petitioners were compelled to exercise peremptory

challenges to excuse the jurors who should have been

excused for cause. Typical attempts at judicial ablution

resulted in the following: Panel Member No. 9, Nancy

Swanson -- stated that while she would “try to suppress

her prior knowledge of petitioner Provenzano as a “Mafia”

member, “I don’t know though” (A. 520-521). A defense

challenge for cause was denied by the Trial Court (A. 546)

and petitioners were required to exercise one of their

peremptory challenges (A. 546, 748).

Panel Member No. 11, Edward Popek -- stated

that he “guesses” he could put the publicity out of his

mind (A. 526). Again the defense took a peremptory

challenge.

Panel Member No. 14, Nancy Veit -- knew peti-

tioner Provenzano as a “gangster.” As to her ability

to decide the case fairly, she stated “Yeah, I think -- |

don’t know. . .I think so” (A. 533). The Trial Court twice

refused to excuse Ms. Veit for cause (A. 547, 805), and

the defense again challenged peremptorily (A. 547).

Panel Member No. 59, Michael Sverada -- identified

Mr. Provenzano with the Hoffa disappearance. When

asked if the pre-trial accounts would influence him,

he stated, “I don’t think so. Maybe. I don’t know. I

don’t think so” (A. 778). Once again a peremptory

challenge was employed to exclude Mr. Sverada.

Panel Member No. 21, Loretta Leckie -- identified

the petitioner Provenzano as a member of “organized

crime” (A. 588). When asked if she could render a fair

and impartial verdict, she responded “Yes, I think I

could” (A. 590).

26

A careful reading of the entire voir dire reveals that

although most of the panel members who were interviewed

exhibited a superficial willingness to put aside their bias,

they, in reality, could not. Where a juror’s protestation

of unaffected impartiality is unconvincing or doubtful,

as in the instant case, a new trial must be ordered. (c.f.)

Irwin v. Dowd, 366 U.S. 717, 6 L.Ed. 2d 751, 81 S.Ct.

1639 (1961); Rideau v. Louisiana, 373 U.S. 723, 83 S.Ct.

1417, 10 L.Ed. 2d 663 (1963); Delaney v. United States,

supra.?6

However, in that case the Court erroneously applied

the Murphy standard and none of the tainted jurors served

on the panel. In United States v. Nell, supra, the Court

stated:

“We have no psychic calibers with which to measure

the purity of the prospective juror; rather, our

mundane experience must guide us to the impartial

jury promised by the Sixth Amendment. Doubts

about the existence of actual bias should be resolved

against permitting the juror to serve, unless the

prospective panelist’s protestation of a purge of

preconception is positive, not pallid.” 526 F.2d

at 1230.

Further comments by the Ne// Court as to the import

of peremptory challenges are particularly relevant to

the case sub judice.

“The jury box is a holy place. To ensure that those

who enter are purged of prejudice, both challenges

for cause and the full complement of peremptory

challenges are crucial. Therefore, as a general rule,

it is error for a court to exhaust his peremptory

challenges on persons who should be excused for

cause, for this has the effect of abridging the right

to exercise peremptory challenges. (Citations

26 The defendant is not unmindful of the decision of the Sixth

Circuit in United States v. Giacalone, 588 F.2d 1158 (6th Cir. 1978).

27

omitted). At stake is the party’s right guaranteed

by the Sixth Amendment to an impartial jury;

the principal way this right is implemented is

through the system of challenges exercised during

the voir dire of prospective jurors.” 526 F.2d

at 1226.

In the case sub judice, the defendants collectively

exercised all their peremptory challenges. As noted,

most were necessarily taken on panel members whose

stated ability to be impartial was less than steadfast.

As also noted earlier, the defense was required

to employ peremptory challenges on other jurors exhib-

iting knowledge of the case whom the Trial Court had

declined to excuse for cause. These jurors variously

identified petitioner Provenzano as a “Mafia” member,

a “gangster,” and an “organized crime” figure, as well

as being involved in “kickbacks into unions” and union

activities.

The refusal of the Trial Court to dismiss these

jurors for cause is especially significant in view of the

nature of the Government’s case against the defendants.

The indictment charged these defendants with engaging

in an organized conspiracy to unlawfully accept pay-

ments in return for labor peace. The chief prosecutor

made clear in his opening statement that the charges

against the defendants involved “labor racketeering”

(A. 835). The key prosecution witness, Ralph Picardo, went

to great lengths to consistently emphasize that illegal

payments were being made to an “association” of indi-

viduals, including Thomas and Stephen Andretta, and

guided by Anthony Provenzano.

Pre-trial publicity, which links a defendant with

persons who are called “mob,” “underworld,” “gangster,”

“racketeers,” etc., changes the way jurors perceive that

defendant, reduces the credibility of the defendant, and

raises the resistance of jurors to anything said by or on

28

behalf of the defendant. Jurors predisposed to so cate-

gorize the petitioner Provenzano could naturally be

expected to take a similar view toward these defendants

by virtue of their social or business acquaintances with

him. As a result of such publicity, these jurors would be

predisposed to see these defendants as guilty and to

opt toward guilt in their deliberations.

“The influence that lurks in an opinion once

formed is so persistent that it unconsciously

fights detachment from the mental processes

of the average man.” /rwin v. Dowd, 366 U.S.

717, 727, 6 L.Ed. 2d 751, 579, 81 S.Ct. 1639 (1961).

The Supreme Court has stated that the peremptory

challenge, although not required by the Constitution,

is “one of the most important of the rights secured to

the accused,” and that “the denial or impairment of

the right is reversible error without a showing of preju-

dice.” Swain v. Alabama, 380 U.S. 202, 219, 85 S.Ct. 824,

385, 13 L.Ed. 2d 759 (1965).

“For it is as Blackstone says, an arbitrary and

capricious right; and it must be exercised with

full freedom, or it fails of its full purpose.” Lewis

v. United States, 146 U.S. 370, 378, 36 L.Ed. 1011,

1014, 13 S.Ct. 136.

See also, United States v. Dellinger, 472 F.2d 340 (7th

Cir. 1972), cert. denied, 410 U.S. 970, 93 S.Ct. 1443,

35 L.Ed. 2d 706 (1973).

The evil sought to be prevented is that a defendant

not be compelled to accept an objectionable juror due

to the fact that he be forced to utilize one of his peremptory

challenges to excuse a juror who should have been excused

for cause. In requiring these defendants to exhaust

their peremptory challenges to excuse jurors exhibiting

such prejudicial preconceptions as aforesaid, they were

denied their basic right to exclude peremptorily those

veniremen who may have otherwise been objectionable.

29

3. The Trial Court Erred in Failing to Inquire Further

into the Nature and Effect of the Pre-Trial Publicity.

Many jurors when questioned stated their ability to

be fair despite their prior knowledge of the case. Defense

counsel protested their not being given an adequate

opportunity to demonstrate that the individuals were,

in fact, irreparably prejudicial and should be subjected

to challenge for cause (A. 698-699).

‘

In particular, one panel member indicated that

there had been discussions among the jury panel regarding

petitioner Provenzano and the fact that he was currently

serving a 99-year sentence pursuant to a murder con-

viction. The Trial Court refused to pursue the matter

of such prejudicial discussions among jurors, despite

stringent defense requests to do so (A. 720-723).

It has long been held that:

“The theory of our system is that the conclusions

to be reached in a case will be induced only by

evidence and argument in open court, and not

by any outside influence, whether of private

talk or public print.” Patterson v. Colorado,

205 U.S. 454, 462, 27 S.Ct. 556, 558, 51 L.Ed. 879

(1907).

Although the Trial Court has broad discretion

in its conduct of voir dire, Ristaino v. Ross, 424 U.S.

589, 594, 96 S.Ct. 1017, 47 L.Ed. 2d 258 (1956), its exer-

cise of that discretion is “subject to the essential demands

of fairness.” Aldridge v. United States, 283 U.S. 308, 310,

75 L.Ed. 1054, 1056, 51 S.Ct. 470, 471 (1931).

In refusing to afford defense counsel the opportunity

to further pursue the dissemination of prejudicial

information among the jurors and to ask those questions

which they considered necessary for fully exercising

their challenges, the Trial Court abused its discretion.

The failure to adequately inquire into the effect of pre-

trial publicity upon the jurors or to inquire whether

30

the jurors exposed to the prejudicial information dis-

cusse” it with others constituted error mandating reversal

of the petitioners’ convictions. See, e.g., United States

ex. rel. Doggett v. Yeager, 472 F.2d 229 (3d Cir. 1973);

United States v. Dellinger, supra; Silverthorne v. United

States, 400 F.2d 627 (9th Cir. 1968), appeal after remand,

430 F.2d 675 (1970), cert. denied, 400 U.S. 1022, 91 S.Ct.

585, 27 L.Ed. 2d 633.

4. The Trial Court Erroneously Denied Defense Motions

for Severance and Change of Venue.

Faced with the widespread media identification of

co-petitioner Provenzano, the denial of their challenges for

cause, the fact that they were required to exercise their

challenges jointly with the petitioner Provenzano, and

the curtailment of their unfettered right to exercise

peremptory challenges, defense counsel moved the Court to

consider other alternatives.

Petitioners Thomas and Stephen Andretta and

Gabriel Briguglio, moved for severance in an effort

to free themselves from the taint manifestly attributable to

Provenzano (A. 722-723). However, the Trial. Court

declined the request to sever.

Defense counsel also moved for a change of venue

(A. 791). Notwithstanding that the Trial Court on three

occasions expressed its belief that no jury could be

impaneled in the Newark area that had not been exposed

to the media coverage (A. 549, 699, 705), it declined

to transfer venue.

Courts have repeatedly held that the opportunity

provided by voir dire examination is no substitute for

a venue change from a community impregnated with

prejudice. The Supreme Court has explicitly recognized

that voir dire may be inadequate because it is often

impossible to determine, much less defeat, the subtle

operation of prejudice in a criminal trial in a particular

31

community. Jrwin v. Dowd, supra; Rideau v. Louisiana,

supra; Sheppard v. Maxwell, 384 U.S. 333 (1966).

This reviewing tribunal, in rejecting various chal-

lenges to the voir dire examination of prospective jurors,

has repeatedly highlighted the utility of a change of

vicinage. See, e.g., United States v. Dansker, 537 F.2d

40 (3d Cir. 1976) (jury selected from different vicinage);

United States v. Addonizio, 451 F.2d 49 (3d Cir. 1972),

cert. denied, 92 S.Ct. 949, 405 U.S. 936, 30 L.Ed. 2d

812, rehearing denied, 92 S.Ct. 1309, 405 U.S. 1048,

31 L.Ed. 2d 591 (Trial Court transferred the proceedings

from Newark to Trenton vicinage; court dismissed on

its own motion each prospective juror who indicated

extensive exposure to pre-trial publicity, without regard

to protestations of impartiality). The failure of the

Trial Court, obviously cognizant of the widespread

media attention in the Newark area as reflected in the

responses of the potential jurors, to transfer venue to

a vicinage where the effects of pre-trial publicity would

be minimized can only be classified as error requiring

reversal of these petitioners’ convictions.

In conclusion, it is difficult to imagine a jury selection

more laden with prejudicial overtones than the case at

bar.2? When one adds the fact that the jury panel then

actually discussed a prior conviction and sentence of

a petitioner (Provenzano -- 99 years for murder) and

the Court stonewalled the defense counsel from pursuing

an inquiry as to the effect of this conversation, reversal

becomes even more mandated. Such events were not

27 While petitioners feel that substantial prejudice has been

adequately demonstrated under any test the Circuit Court's appli-

cation of the facts of United States v. D'Andrea, 495 F.2d 1170

(3d Cir. 1974), cert. denied, 419 U.S. 855 (1974) to the instant case

seems misplaced. D’Andrea’s “prejudice” was one article, in one paper

on the 35th day of trial after the evidence had been given to the

jury, and which was read by only one juror and one alternate and con-

tained nothing directly incriminating with the case on trial (referred

to an assault charge in another jurisdiction from the present tax

evasion charge). The dissemblence is amazing save an abiding faith

in the juror’s assurance of continuing impartiality.

32

unavoidable. Surely jurors who had no preconceived

notion of the petitioner could have been brought to

Court if the Presiding Officer were not overly concerned

with a quick jury selection. If his fears that no such jury

were possible in the Newark area, then a change of venue

remedied the problem. No curative measures were taken

or attempted.

POINT II

The Circuit Court’s Resolution of the Juror Misconduct

Issue Was Constitutionally Erroneous.

Despite the fact that one regular juror and two

alternates were found to have engaged in criminal conduct

while the jury was sequestered, the Court of Appeals

found no error arising from the incident. By condoning

the conduct of these jurors, who apparently thought

of their service more as a party than a solemn under-

taking, the Court not only countenanced a violation

of the integrity of the entire federal court system but,

more importantly, deprived petitioners of their Sixth

Amendment right to a fair and impartial jury. Furthermore,

the Court’s error was compounded by its failure to even

address petitioners’ request for an evidentiary hearing

at which the extent of the jurors’ misconduct and its

effect upon them could be explored.

The Court of Appeals, without “engaging in extended

philosophical discussion” of where the line might be

drawn “in a proper case,” simply held that “public knowl-

edge that sitting jurors were smoking marijuana does

not create such an appearance of impropriety as to warrant

reversal of convictions where the jurors were not dis-

missed.” (Slip. Op. 19-20.) By so holding, the Court

went far wide of the mark. While it belies reality to sug-

33

gest that there is no “appearance of impropriety”?8

in permitting jurors, particularly when sequestered,

to violate the law by smoking marijuana,”? this is merely

the beginning of the inquiry, not the end.

The Court of Appeals went on to state that there

was “no serious contention that the drug’s intoxicating

effect affected the jurors’ ability to hear evidence or to

deliberate.” (Slip. Op. 20.) Noting that the consumption

of alcohol is “not prejudicial as a matter of law,” they

held that “appellants have not demonstrated prejudice

as required by such cases as” United States v. Talisferro,

558 F.2d 724, 726 (4th Cir. 1977), cert. denied, 434 U.S.

1016 (1978), and United States v. Klee, 494 F.2d 399,

395 (9th Cir. 1974), cert. denied, 419 U.S. 835 (1974).

That reasoning was shockingly faulty in several respects.

First, petitioners did, and do, seriously contend

that the use of marijuana could affect the mind of the

jurors and therefore their ability to properly receive

and deliberate upon the evidence. Indeed, petitioners

specifically cited a recent Government study dealing

with the long-term effect of marijuana in the human

mind. Marijuana, Research Findings 1976, pp. 140-141

(U.S. Dept. of HEW, 1977). Secondly, and more import-

antly, petitioners were denied a hearing at which they

might have developed evidence concerning the use of

28 As Judge Seitz said, speaking for this same court in United

States ex rel. Stewart v. Hewitt, 517 F.2d 993, 996 (3d Cir. 1975),

the appearance of impropriety has the necessary consequence of

“infecting public respect for the verdict.”

29 As the Court of Appeals correctly noted, possession of

marijuana is illegal under both federal and state law. (Slip. Op. 19).

34

marijuana by this juror, and possibly others,3° and

at which expert testimony could have been presented with

respect to marijuana’s deleterious effect on the mind.

It is the denial of a hearing which makes the Court’s

reliance upon United States v. Taliaferro, supra, so

misplaced, for in that case a full evidentiary hearing

was conducted. See also, United States v. Allen, 588

F.2d 1100 (Sth Cir. 1979). Indeed, it seems almost beyond

question that when juror misconduct raises a reasonable

doubt as to the integrity of the jury, a hearing is required.

See United States v. Moten, 582 F.2d 667 (2d Cir. 1978).

The Sixth Amendment guarantees a defendant

“trial by a panel of impartial, ‘indifferent’ jurors.”

Irwin v. Dowd, 366 U.S. 717, 722 (1961). Included in

that guarantee, petitioners suggest, is an absolute right

to the judgment of jurors whose minds are not, nor could

even be suspected of being, clouded or befuddled by

the use of drugs. That right is hardly satisfied by the

Trial Court’s observation, months after the event, that

the jurors had seemed to him to be functioning normally

(Slip. Op. 20; SA 58-59).3! As one state court noted,

in an old case dealing with alcohol intoxication, “jurors

whose minds are clouded. . .and their powers of con-

ception blunted by its effects, are incompetent to appre-

ciate the high responsibilities of their duties.” United

States v. Spencer, 47 P. 715 (N.M. 1896). Nor is the

fact that only one regular juror was involved of any

significance. As this Court has said, a defendant “is

entitled to be tried by 12, not 9 or even 10, impartial

30 The entire incident cried out for a hearing to determine,

among other things, whether other jurors had participated in the

same misconduct. The marijuana had been passed to the regular

juror by a visitor on Sunday. It is not fanciful to suggest that she

might have shared it with others on Sunday, Monday or on Tuesday

before they were discovered.

31 SA references are to the joint supplemental appendix.

35

and unprejudiced jurors” Parker v. Gladden, 385 U.S.

363, 366 (1966).°2

Apart from the Sixth Amendment violation, this

incident calls for the exercise of this Court’s supervisory

power which, as noted recently in United States v. Payner,

US. (June 23, 1980), is still alive and well.

As Mr. Justice Brennan said in his dissent, the super-

visory power is exercised “to protect the integrity of

the court, rather than to vindicate the constitutional

rights of the defendant. . . .”33 There could hardly be a

more appropriate case than the present one for invocation

of this power to reaffirm the integrity of the judicial

system. The decision below condones the most egregious

type of juror misconduct and places its stamp of approval

on the trial judge’s view that this matter was simply a

“tempest in a teapot” (SA 98). Petitioners suggest that

such an assessment of the incident entirely misses its

significance, not only for these defendants but for the

administration of justice as well. This Court should

grant review in order to condemn this conduct in the

strongest of terms, thereby securing petitioners’ right to

a fair trial and the Court’s right to an untarnished judicial

system.*4.

32 The jurors’ impartiality was also seriously undermined by

the court’s conferring of de facto immunity for their conduct. The

Court of Appeals rejected petitioners’ suggestion that the court's

assurances might prejudice the jurors toward the government, noting

that it was defense counsel who asked for some comment of this

type. (Slip. Op. 20-21.) But the dilemma was not of defendants’

making. The possibility that the jurors might be biased whether

given an assurance or not, simply strengthens petitioners’ position

that the only sure remedy was for the court to sua sponte excuse

the offending jurors.

33 It is precisely because the aim is to protect the integrity of

the court system, and not the defendants, that defense counsel's

acquiesence in retention of this juror is of no moment. (Slip. Op.

19.) This was the position urged by petitioners before the Court

of Appeals.

3 At the very least, this Court should summarily remand the

case for a full hearing on the juror misconduct, its extent and its

effect.

36

POINT III

A Split Among the Circuits on the Issue of Defendants’

Presence At a Conference on a Juror Issue Makes Review

by This Court Appropriate.

Though agreeing that none of the defendants were

personally present at the conference in chambers when

counsel were informed of the marijuana incident, and

that none of the defendants learned of the event until

after the trial (Slip. Op. 19), the Court held that “there

is no constitutional right for a defendant to be present

at a conference in chambers concerning dismissai of a

juror” (emphasis in original) (Slip. Op. 21). This holding

confirms and further widens a split among the Circuits

on this important issue. The Court’s opinion also rejects

the view of most other Circuits that such a conference

comes within the purview of Rule 43 Fed. R. Crim. P.

Neither of these questions have been addressed by this

Court in recent times.

The constitutional issue flows from this Court’s

decisions as far back as Hopt v. Utah, 110 U.S. 574

(1884), and Snyder v. Massachusetts, 291 U.S. 97 (1934).

In the latter case this Court held that the due process

clause gave the defendant a privilege to be personally

present “whenever his presence has a relation, reasonably

substantial, to the fullness of his opportunity to defend

against the charge.” 291 U.S. at 105. His presence is

mandated “to the extent that a fair and just hearing

would be thwarted by his presence.” /d. at 107-108;

Faretta v. California, 422 U.S. 806, 819 n.45 (1975).

On the other hand, the defendant need not be present

“if his presence would be useless or the benefit but a

shadow.” Snyder, supra, at 106.

The view espoused by the Third Circuit in this case

is apparently shared by the Fifth, United States v. Howell,

514 F.2d 710 (Sth Cir. 1975), and the Sixth, United States

37

v. Brown, 571 F.2d 980 (6th Cir. 1978).35 Expressing

a contrary view are the Eighth Circuit, Blackwell v.

Brewer, 562 F.2d 596 (8th Cir. 1977); Nevels v. Parratt, 596

F.2d 344, 346 (8th Cir. 1979); and the Fourth, Near v.

Cunningham, 313 F.2d 929 (4th Cir. 1963), as well as

several well-reasoned state court decisions. Bunch v.

State, 381 A.2d 1142 (Md. 1978); Commonwealth v.

Robichaud, 264 N.E.2d 374 (Mass. 1970); People v.

Harris, 204 N.W.2d 734 (Mich. App. 1972). The position

of the Tenth Circuit is somewhat ambiguous. Compare

United States v. Baca, 494 F.2d 424 (10th Cir. 1974)

with Ellis v. Oklahoma, 430 F.2d 1352 (10th Cir. 1970),

cert. denied, 401 U.S. 1010 (1971).

In Bunch v. State, supra, a juror sent a note to

the court indicating that he might be biased. The defend-

ant was not permitted to be present at a conference

between counsel and the court at which the matter

was discussed and ruled upon. Noting that Maryland

had a court rule virtually identical to Federal Rule 43,

and particularly mindful of the constitutional under-

pinnings of the rule, the court held that proceedings

at which questions of juror disqualification are determined

are stages of the trial requiring the defendant’s presence,

just as much as the initial impaneling of the jury. 381 A.2d

at 1144-1145. In Commonwealth v. Robichaud, supra, the

defendant was also excluded from an inquiry into juror

misconduct at which his attorney was present. The court

concluded the defendant’s presence at such a hearing

38 Where both the defendant and his attorney were absent from

the conference the court reached a different result. United States v.

Gay, 522 F.2d 435 (6th Cir. 1975). It is important to note that in

Brown, as in United States v. Baca, the offending juror was excused,

rather than retained as in this case. Clearly, the court has a great

deal more leeway in excusing questionable jurors than in keeping

them on the jury.

38

“no less crucial as a safeguard of his right to an impartial

jury” than when the jurors are initially examined. Indeed,

the fact that the trial judge found no misconduct war-

ranting relief did not dictate a contrary result. The

important point, the court noted, was that defendant’s

presence might have been of value to his attorney. Nevels v.

Parratt, supra; Ellis v. Oklahoma, supra; and Near y.

Cunningham, supra, all hold that defendant’s absence

from such a conference requires a presumption of pre-

judice due to the constitutional violation involved.

The opinion below has also created a divergence

of views among the circuits on the proper interpretation

of Rule 43. The Court held that the in-chambers con-

ference on juror misconduct “concerned only a question

of law,” thereby falling within the exception provided

by Subsection (c) of Rule 43 (Slip. Op. 22). However,

as the Court acknowledged, that holding is directly

contrary to both United States v. Brown, supra, and

United States v. Baca, supra, the two cases upon which

the Court relied in rejecting petitioners’ constitutional

argument. Thus, with its decision the Court has created

a new split among the Circuits.

The Court’s view that petitioners somehow waived

their Rule 43 right by virtue of their counsel’s failure

to object, is not only specious but circular. If the right

is personal to the defendant and if the defendant is never

informed of the conference by his attorney, it is difficult

to see how he could waive a right of which he never

became aware.36 Adoption of that waiver rationale

would simply negate the Rule.

The Court’s suggestion that any error is cured by

the harmless error doctrine (Slip. Op. 22) does not solve

36 On this waiver issue the court never mentioned that at least

twice earlier in the trial petitioners had specifically requested to

be present at all side-bar and in-chambers conferences (A. 1023-1025,

A. 1215), requests which were denied.

39

the problem, but simply further complicates it. The

Government’s burden to demonstrate harmless error in

this situation is a heavy one. Blackwell v. Brewer, supra.

The standard is not whether the defendant was actually

prejudiced, but whether there was “any reasonable possi-

bility of prejudice.” Wade v. United States, 441 F.2d

1046, 1050 (D.C. Cir. 1971). In effect, because of the

constitutional basis of the right involved, prejudice is

presumed and the record must completely negate any

reasonable possibility of prejudice. Ellis v. Oklahoma,

supra. Where the matter discussed at the conference is

not trivial or insubstantial, it cannot be found to be

harmless. Evans v. United States, 284 F.2d 393, 395 (6th

Cir. 1960). Clearly, the issue of juror misconduct could

rarely be found harmless under these standards, and

certainly not in this case. The Court’s statement that

it is “fanciful” for petitioners to suggest that they would

have demanded replacement of the offending juror if they

had been present at the conference (Slip. Op. 22) is itself

fanciful. The only competent evidence of what petitioners

would have done is found in their own affidavit, where

they categorically state that they would have insisted

on the juror’s removal. It is also difficult to subscribe

to the Court’s view that counsel “vigorously safeguarded”

petitioners’ interests when they did not even inform

them as to the subject matter of the conference. Petitioners’

presence would have been far from “useless.” Rather,

it bore a “reasonably substantial relationship to his

opportunity to defend.” Snyder v. Massachusetts, supra.

With respect to the constitutional issue involved,

the interpretation of Rule 43, and the application of

the harmless error doctrine to either or both of these

issues, this case clearly merits review.

40

POINT IV

The Circuit Court’s Invocation of the Second Circuit's

“Rosenstein Rule” Deprived Petitioners of Due Process;

Examination by This Court of the “Rosenstein Rule” Is

Both Timely and Appropriate.

The case against Provenzano, as even the District

Court acknowledged,?”? was a close one. It was argued

in the Circuit Court that in a case as close as this one,

erroneous admission of prejudicial hearsay could have

been “the weight that tipped the scales” against Peti-

tioners. Krulewitch v. United States, 336 U.S. 440 (1949).

This observation served as the backdrop of the claim

that the District Court had erred in admitting hearsay

which unfairly bolstered what was claimed to have been

the highly suspect testimony of the Government’s principal

witness, Ralph Picardo. The specific claim was that

Picardo’s statements to others, not in furtherance of

the conspiracy, and thus not admissible under Fed. R.

Evid. 801(d)(2)(E) constituted narrative hearsay which

was clearly inadmissible. The “in furtherance” require-

ment is, of course, an important feature of the Rule.

United States v. Nixon, 418 U.S. 683, 702 (1974); Anderson

v. United States, 417 U.S. 211, 218-19 (1974). Thus,

under Rule 104(a) of the Federal Rules of Evidence

it was incumbent upon the District Court to find that

the questioned statements inter alia were made in further-

ance of the conspiracy before admitting them.

In its opinion (page 28) the Court agreed that at

least with respect to some of these statements the Trial

Court had misconstrued the Rule and thus erroneously

admitted the testimony. Although making no finding of

harmless error the Court nevertheless affirmed the con-

viction upon the ground that these statements were admis-

sible under an alternate theory, never argued by the

37 The trial court stated that direct evidence of Provenzano’s

involvement in the conspiracy alleged was “rather sparse.” (A. 3344).

41

Government in the Trial Court, that the statements

were introducible as prior consistent statements under

Fed. R. Evid. 801(d)(1)(B). For this proposition the

Circuit Court relied upon a seven-year-old decision

of the Second Circuit Court of Appeals in United States

v. Rosenstein, 474 F.2d 705, 711-713 (2d Cir. 1973).

In short, Rosenstein stands for the proposition

that a conviction may be affirmed on appeal for reasons

different than those followed in the Trial Court, as long

as the questioned evidence would be alternatively admis-

sible for the same purpose. But application of Rosenstein,

which has now spread beyond the Second Circuit, works an

unfairly inconsistent result. It allows the Government

an advantage on appeal not shared by criminal defend-

ants. And it is also that this advantage is one that

is plainly contradicted by the Federal Rules of Criminal

Procedure.

Rule 12(f) of the Federal Rules of Criminal Pro-

cedure clearly states that “failure by a party to raise. . .

objections. . .shall constitute waiver thereof, but the

court for cause shown may grant relief from the waiver.”

This Rule has caused courts, including the Second Circuit

Court of Appeals, to hold as in United States v. Braunig,

553 F.2d 777, 780 (2d Cir.), cert. denied, 431 U.S. 959

(1977), that:

“ . .where a party has shifted his position on

appeal and advances arguments available but

not pressed below, United States v. Schwartz,

535 F.2d 160, 163 (2d Cir. 1976), and where that

party has had ample opportunity to make the

point in the trial court in a timely manner, United

States v. Rollins, 522 F.2d 160, 165 (2d. Cir. 1975),

cert. denied, 424 U.S. 918, 96 S.Ct. 1122, 47

L.Ed. 2d 325 (1976), waiver will bar raising the

issue On appeal.”

42

When placed side by side with the “Rosenstein rule”

the following appears to be the present state of procedural

law on this subject. A convicted criminal defendant

is on appeal limited, with rare exception under Rule 52(b),

to arguments specifically raised in the Trial Court while

the Government is free to make and develop any argument

on appeal. Such a rule is, it is submitted, fundamentally

unfair. Especially so in this case. As Provenzano urged

in the Court below, there were arguments which could

best be judged by the Trial Court whose intimate familiarity

with the facts was unparalleled, that could well have

stemmed any attempt by the Government to admit this

testimony under the prior consistent statement rule.

For example, the facts of this case will support an argument

that the witness Picardo had a motive to falsify, albeit

a different motive than was created by his arrest for

murder in 1975, at the same time that he allegedly made

these prior statements. This argument, however, was

never made to the District Court because the Government

never attempted to introduce the statements under

Rule 801(d)(1)(E). Since defense counsel did not have

the opportunity at trial to address the peculiar issues

raised by admission under this theory, the Government

should have been foreclosed from arguing it on appeal.

“Arguments defense counsel could have made. . .were

never made because they were not apposite.” United

States v. Kaplan, 510 F.2d 606 (2d Cir. 1974) (on petition

for rehearing).

If the Circuit Courts are to freely apply, as the Third

Circuit did here, the “Rosenstein rule,” there must be

a pronouncement by this Court as to its dimensions.

In this case it is respectfully submitted Rosenstein had

no application and to have applied it deprived petitioners

of their right to due process.

43

POINT V

The Ruling of the Court Below Utterly Misapprehended

the Policy Considerations and Legislative Intent of

RICO and Has Permitted RICO to Be Applied in a

Facially Unconstitutional Manner.

As has been shown, this was a RICO prosecution.

It is the contention of the petitioners that by permitting

the convictions to stand, the Court of Appeals has utterly

misapprehended the policy considerations and legislative

intent of RICO and has sanctioned its facially uncon-

stitutional application. Moreover, the ruling of the

Court of Appeals would appear to place the Third Circuit

in conflict with the Sixth Circuit Panel which decided

United States v. Sutton, 605 F.2d 260 (1979).38

Upon analysis of the RICO floor debates, it becomes

readily apparent that Congress was fully cognizant

that “illegitimate business,” “racketeering,” and “crime

for crime’s sake” had already been comprehensively

proscribed by existing federal and state laws even without

the enactment of RICO as perhaps best typified by

the legislation permitting criminal “conspiracy” prose-

cutions. Indeed, Senator McClellan, who introduced

S. 1861 -- which together with S. 1623 comprises RICO

in its present form -- was prompted to observe that unlike

existing statutes, RICO was specifically aimed at those

who “operate illegitimately in legitimate channels.”

(116 Cong. Rec. at 8671, 1970).

RICO’s legislative history thus makes clear, that

RICO focused upon that special kind of racketeering

activity undertaken to subvert legitimate institutions.

With regard to that type of “racketeering activity” which

affect the particular purpose of causing the subversion

38 We say “appear” because rehearing en banc was sought

by the Government and granted in United States v. Sutton and the

decision of the Panel was vacated pending en banc consideration

(Nos. 78-5134 to 5139, 5141, 5143 (6th Cir. Nov. 7, 1979) (rehearing

held April 2, 1980) ).

44

of legitimate business, RICO prescribed even harsher

penal sanctions than those authorized by federal and

state statutes which had already proscribed “racketeering”

and criminal activity in general.

Central to the RICO statutory scheme is the con-

cept of “enterprise.” Indeed, the salient and distinguishing

feature of every RICO prosecution is that the offense

charged must, as a matter of law, have some connection

with an “enterprise.”

Title 18 U.S.C. § 1961(4) defines “enterprise” as

follows: |

“ ’Enterprise’ includes any individual, partner-

ship, corporation, association, or other legal

entity and any union or group of individuals

associated, in fact, although not a legal entity.”

Although § 1961(4) catalogues the types of organi-

zational units that may qualify as an “enterprise” for

statutory purposes, significantly, the entire RICO legis-

lation is silent as to what these units must do or undertake

to do before they may, in fact, constitute the requisite

“enterprise.” The Sutton Panel stated the dilemma

posed for a reviewing court as follows:

“Obviously every ‘individual’ or ‘group’ of indi-

viduals considered in the abstract, is not an

‘enterprise’. Individuals and groups do not

become an ‘enterprise’ except in relation to some-

thing they do. The statutory definition of ‘enter-

prise’ contained in § 1961(4) is incomplete because

it does not tell us what that ‘something’ is (605

F.2d 265). . .The problem is thus to discover

what the distinction might be for statutory pur-

poses between simple ‘patterns of racketeering

activity, which we think are outside RICO’s

purview, and a ‘criminal enterprise’ which the

Government insists is within the ambit of the

statute. Here the text is no help, for it does not

45

even hint at what the standards should be for

determining when racketeers have crossed the

line to become a ‘criminal enterprise.” (605

F.2d 266).

In Sutton, The Panel observed that the Government

had attempted to “finesse” the “enterprise problem”

by urging that the appellants were a “group of individuals

associated in fact” around numerous patterns of racket-

eering activity. Circuit Judge Merritt, writing for the

Court, succinctly stated the Government’s contention

as follows:

“ . .in the Government’s view, the ‘something’

this group of individuals did to transform them-

selves into an ‘enterprise’ is provided by their

racketeering activity. In short, appellants’ enter-

prise was racketeering.” (360 F.2d 265).

This argument the Sutton Panel refused to accept.

Moreover, it specifically refused to countenance the

Government’s definition of a RICO “enterprise” as

“an amoeba-like infra-structure that controls a secret

criminal network.” United States v. Elliot, 571 F.2d

880 (Sth Cir. 1978). The Sutton Panel thus stated:

“The language Congress did use makes it unlawful

‘for any purpose employed by or associated with

any enterprise. . .to conduct. . .such enterprise’s

affairs through a pattern of racketeering activity.’

Surely, the draftsmen would not have opted for

so complex a formulation if the legislative purpose

had been merely to proscribe racketeering, without

more. A _ straightforward prohibition against

engaging in ‘patterns of racketeering activity’

would have sufficed, and there would have been

no need for a reference to ‘enterprises’ of any

sort. Although the Government reminds us that

the Organized Crime Control Act of 1970 ‘is a

carefully crafted piece of legislation,’ Jannelli v.

46

United States, supra, 420 U.S. at 789, it would

have us treat section 1962(c) as a purposeless

circumlocution, written in terms of ‘enterprises,’

and persons ‘employed’ by them to conduct their

‘affairs,’ but in reality directed at anyone who

commits two acts of racketeering. Under this

construction an individual or a group who robs

two banks ‘for the purpose of making money’

commits a RICO offense.

“Common sense, not to mention the first prin-

ciple of statutory construction, leads us to reject

the Government’s reading and to seek a con-

struction that gives some content to each element

of the crime set forth in the text. The plain

meaning of the words in context indicates that

the reference to ‘enterprise’ was included to

denote an entity larger than, and conceptually

distinct from, any ‘pattern of racketeering activity’

through which the enterprise’s ‘affairs’ might be

conducted. If the ‘enterprise’ element of the

crime is to have independent meaning, but is

still to encompass ‘criminal enterprises’ as the

Government contends, then a ‘criminal enterprise’

must involve something more than simply an

individual or group engaged in a pattern of

racketeering activity.

“In a passage which the Government urges us

to follow, the Fifth Circuit describes a ‘criminal

enterprise’ as ‘an amoeba-like infra-structure

that controls a secret criminal network.’ United

States v. Elliot, supra, 571 F.2d at 897-898.

With all due respect, we think greater precision

than that is required if the statute is not to violate

‘first essential of due process of law’ by forbidding

‘the doing of an act in terms so vague that (persons)

of common intelligence (would) necessarily (have to)

47

guess at its meaning and differ as to its appli-

cation.’ United States v. Culbert, 435 U.S. 371,

374 (1978) quoting Connally v. General Con-

struction Co., 269 U.S. 385, 391 (1926). Although

government prosecutors may be trained nowadays

to recognize an ‘amoeba-like irfra-structure’

when they see one, our instincts are not so keenly

developed, and we think even racketeers are

entitled to know before the fact at what point

their criminal activities will be deemed sufficiently

‘amoeba-like’ to transgress the statute.” (605

F.2d 266).

In its well-reasoned and insightful opinion, the

Sutton Panel enunciated the following definition of

“enterprise” which, we submit, is the only interpretation

consonant with the legislative intent and constitutional

application of RICO:

“We, therefore, hold that an ‘enterprise’ within

the meaning of the statute is ‘any individual,

partnership, corporation, association. . .and any

union or group of individuals associated in fact,’

that is organized and acting for some ostensibly

lawful purpose, either formally declared or

informally recognized. Section 1962(c) is violated

whenever any person associated with such an

enterprise conducts its ‘affairs,’ i.e., undertakes

any activity on behalf of or relating to the purposes

of the enterprise, by committing at least two

criminal acts constituting a ‘pattern of racketeering’

as defined in § 1961(5).” (605 F.2d 270).

Having concluded that appellants were ‘mere

racketeers” whose acts were not shown to have been

related in any way to the affairs of the “enterprise” as

contemplated by RICO, the Sutton Panel reversed

appellants’ judgments of conviction. We urge a similar

result herein for the reasons that follow:

48

As has been set forth more fully, supra, in the case

at bar, the sole and exclusive proof offered by the Govern-

ment to establish what it alleged was an “enterprise”

within the purview of RICO was Picardo’s glib assertions

without more that he formed an “association.” In the

eyes of the Government, this “association” consisted of

five defendants, plus three unindicted co-conspirators,

plus four companies -- which concededly had absolutely

no existence independent of the mere criminal concert

of the alleged participants ~ constituted a RICO “enter-

prise.”

Lest there be any doubt whatsoever as to how the

Government purportedly established the requisite “enter-

prise,” we turn to the prosecutor’s summation:

“And what has he (Picardo) told you? He starts

off saying he joins this group. He calls it an asso-

ciation. The judge later on will charge you that

the law in this case and the indictment calls it

an ‘enterprise’. ” (A. 3517).39

In his charge, the District Judge cryptically addressed

the “enterprise” requirement as follows:

“An enterprise may consist of a combination

of corporations and individuals, which are

associated in fact although not a legal entity.

To establish that the defendants were associated

with the enterprise, the Government must show

a connection between the defendants and the

enterprise. The Government need not show that

the defendants were associated with each com-

ponent part of the enterprise but rather that

they were associated with the enterprise as a

whole.

“The terms ‘conduct’ and ‘participate in the conduct

of an enterprise include the performance of acts,

functions, or duties which are necessary to or

helpful in the operation of the enterprise. A person

9 Paragraph (g) of Count | of the Indictment denominated the

“enterprise” charged herein.

49

may be found to conduct or participate in the

conduct of an enterprise even though he is a

mere servant or employee having no part in the

management or control of the enterprise and no

share in the profits.” (A. 3845).

Viewing the evidence in a light most favorable to

the Government as we must, there was, therefore, abso-

lutely no showing whatsoever that the petitioners’ alleged

acts of racketeering had the effect of subverting any

legitimate institution, which as shown, quintessentially

constitutes the sine qua non of a RICO violation. Indeed,

despite the ranting of the prosecution that this case con-

cerned “labor peace,” as the Court of Appeals duly

noted, the District Judge charged the jury that “. . .the

Government does not contend that either Local 560 or

Local 84 is the enterprise charged in this indictment”

(A. 3854).

Since, as a matter of law, petitioners’ alleged

acts of racketeering were not shown to have been related

in any way to the affairs of an “enterprise” as contem-

plated by § 1962(c), the substantive RICO violation

must fall of its own weight. With it must fall the con-

spiracy count as well, since if, as herein, an illegal group

allegedly engaged in racketeering activity wholly unrelated

to any legitimate organization cannot constitute an

“enterprise” within the contemplation of RICO, it

similarly cannot constitute a “conspiracy” to conduct

the affairs of an “enterprise” in violation of RICO.

In urging this Court to grant certiorari and to ulti-

mately reverse petitioners’ convictions, we are not unmind-

ful that aside from the Third Circuit herein, five other Cir-

cuits have rejected the rationale of the Sutton Panel which

we respectfully urge this Court to adopt.‘

40 United States v. Rone, 598 F.2d 546 (9th Cir. 1979); United

States v. Swiderski, 593 F.2d 1246 (D.C. Cir. 1978), cert. denied,

441 U.S. 933 (1979); United States v. Elliott, 571 F.2d 880 (Sth Cir.),

cert. denied, 439 U.S. 953 (1978); United States v. Altese, 542 F.2d

104 (2d Cir. 1976), cert. denied, 429 U.S. 1039 (1977); United States

v. Cappetto, 502 F.2d 1351 (7th Cir. 1974), cert. denied, 420 U.S.

925 (1975).

50

The common thread running through each of these

respective cases is the notion that limiting RICO to the

corruption of legitimate enterprises “does not make

sense since it leaves a loophole for illegitimate business

to escape its coverage,” United States v. Altese, supra,

542 F.2d at 106-107. Noting, however, that to apply

RICO to persons engaged in racketeering activity wholly

unrelated to any legitimate organization but in further-

ance of something the Government terms a “criminal

enterprise” has the inevitable effect of “read(ing) the

enterprise element entirely out of the statute,”the Sutton

Panel remained unmoved by the holdings of other Cir-

cuits. Thus, Circuit Judge Merritt aptly observed;

“It requires no great insight to recognize that

applying the statute in this fashion renders the

‘enterprise’ element of the crime wholly redundant

and transforms the statute into a simple pro-

scription against ‘patterns of racketeering activity.’

Under the approach reflected in these cases,

every ‘pattern of racketeering activity’ becomes

an ‘enterprise’ whose affairs are conducted

through the ‘pattern of racketeering activity.’

Plainly, that is not the statute Congress has

written.” (605 F.2d 265-266).

Although, as the Sutton Panel noted, the con-

tention that RICO may not be properly applied to

those who may have “merely” committed a series of

racketeering offenses “lacks surface appeal,” (605 F.2d

264) after careful analysis, it determined that consistent

with its judicial function, it could not properly reject the

cogent and telling argument made by the appellants.

We ask this Court to hold likewise. Otherwise, it will

be the law of this land that modest offenses*! can be at

4! Indeed in the case at bar, the alleged criminal acts under-

lying the alleged “pattern of racketeering” constituted misdemeanors.

51

the merest whim of the Government, as here, transmuted

into serious, federal felonies, despite the absence of

even a scintilla of proof to establish the infiltration

or corruption of any legitimate business which vice was

the irrefutable concern of RICO and its raison d'etre.

Indeed, even where the expansive interpretation

of “enterprise” urged by the Government has been adopted,

the need has already arisen to caution prosecutors against

utilizing RICO impermissively to aggrandize federal

jurisdiction so as to multiply punishment for acts that

have already been made criminally punishable by federal

and state statutes other than RICO.

Thus for example, in United States v. Huber, 603

F.2d 387 (1979), the Second Circuit stated:

“We note, however, that the potentially broad

reach of RICO poses a danger of abuse where a

prosecutor attempts to apply the statute to situ-

ations for which it was not previously intended.

Therefore, we caution against undue prosecutorial

zeal in involving RICO. We also emphasize to

the district judges that when RICO is invoked,

each set of facts must be evaluated independently.”

(p. 3930).

In the final analysis then, RICO focused upon the

infiltration and corruption of legitimate business and

was intended to proscribe infiltration and operation of

legitimate enterprises through patterns of racketeering

activity. In the instant case, the Government simply

failed to establish, let alone beyond a reasonable doubt,

that the petitioners were, in the language of Senator

McClellan, operating ‘illegitimately in legitimate channels.”

Given the Government’s utter perversion of RICO,

certiorari should be granted and petitioners’ judgments

of conviction should be reversed.

52

Conclusion

For the foregoing reasons, it is hereby submitted that

a writ of certiorari issue to review the judgment of the

United States Court of Appeals for the Third Circuit.

Respectfully submitted,

DONALD CONWAY, ESQ.

Attorney for Stephen Andretta

75 Essex Street

Hackensack, New Jersey 07601

(201) 342-1700

HARVEY WEISSBARD, ESQ.

Attorney for Anthony Provenzano

20 Northfield Avenue

West Orange, New Jersey 07052

(201) 731-9770

ROBERT H. KIERNAN, ESQ.

Attorney for Thomas Andretta

477 Madison Avenue

New York, New York 10022

(212) 688-7788

Dated: July 17, 1980

APPENDICES

la

Appendix A

Opinion of United States Court of Appeals

UNITED STATES COURT OF APPEALS

FOR THE THIRD CIRCUIT

Nos. 79-1912, 79-2381, 79-1956, 79-1913, and 79-2387

UNITED STATES OF AMERICA, Appellee

v

ANTHONY PROVENZANO, STEPHEN ANDRETTA,

and THOMAS ANDRETTA, Appellants

Appeal From the United States District Court

For the District of New Jersey — Newark

(D.C. Crim. Nos. 79-00072-01, 79-00072-02,

and 79-00072-03)

Argued March 25, 1980

Before: ROSENN, GARTH and SLOVITER,

Circuit Judges

(Filed May 8, 1980)

ROBERT J. DEL TUFO

United States Attorney

Federal Building

Newark, NJ 07101

RALPH A. JACOBS (Argued)

Assistant United States Attorney

DONALD CONWAY, ESQ. (Argued)

25 East Salem Street

Hackensack, NJ 07601

Attorney for Appellant

Stephen Andretta

2a

Appendix A

Opinion of United States Court of Appeals

ISLES, NEWMAN & WEISSBARD

HARVEY WEISSBARD, ESQ. (Argued)

20 Northfield Avenue

West Orange, NJ 07052

Attorneys for Appellant

Anthony Provenzano

ROBERT H. KIERNAN, ESQ. (Argued)

477 Madison Avenue

New York, NY 10022

Attorney for Appellant

Thomas Andretta

OPINION OF THE COURT

GARTH, Circuit Judge

In these consolidated appeals we are presented with

challenges on numerous grounds to the convictions of

Anthony Provenzano, Thomas Andretta, and Stephen

Andretta under the Racketeer Influenced and Corrupt

Organization Act (RICO), 18 U.S.C. § 1962.! The de-

fendants? were convicted by a jury at a joint trial of con-

spiracy to violate RICO and of substantive violations,

and were sentenced to prison terms and fined.3 We have

1. There are five appeals, as follows. Provenzano appeals his

conviction at No. 79-1912 and denial of his new trial motion at No.

79-2381. Thomas Andretta appeals his conviction at No. 79-1913

and denial of his new trial motion at No. 79-2387. Stephen Andretta

appeals his conviction at No. 79-1956.

2. A fourth defendant at the joint trial, Gabriel Briguglio, was

also convicted, and has appealed as well. Briguglio’s appeal, however,

was severed and remanded on an unrelated point.

3. Provenzano and Thomas Andretta received 20-year terms;

Stephen Andretta was sentenced to 10 years in prison. The former

two were denied bail, see United States v. Provenzano, 605 F.2d 85

(3d Cir. 1979); Stephen Andretta is free on bail.

3a

Appendix A

Opinion of United States Court of Appeals

determined that the district court made no errors at trial

which would warrant reversal, and we therefore affirm

the judgment of the district court in all five appeals. In

this opinion we will discuss briefly our resolution of the

appellants’ chief objections to the conduct of their trial.

I.

The facts of this case, as alleged in the indictment

and found by the jury, revolve around a fairly complex

labor kickback scenario. The Government’s theory‘ is as

follows:

Provenzano led a group consisting of himself,

Thomas Andretta, Stephen Andretta, Gabriel Briguglio,

and others, including Ralph Picardo, who was the Gov-

ernment’s chief witness at trial. The group’s aim was to

extort money from trucking companies in return for

“labor peace,” inasmuch as Provenzano was allegedly able

to control the International Brotherhood of Teamsters

Union in New Jersey. The target in this case was a

trucking company named Interocean Services, Inc.

(Interocean), and later a successor company known as

Di-Jub Leasing Corporation (Di-Jub). These companies

were “in house” truckers for Seatrain Lines, Inc.

(Seatrain), a large shipping company which shipped

containerized freight that was ultimately trucked to its

final destination.

4. Because these are appeals from jury convictions, we must

view the facts in a light most favorable to the Government. See, e.g.,

United States v. Pratt, 429 F.2d 690, 691 (3d Cir. 1970) (motion for

acquittal).

4a

Appendix A

Opinion of United States Court of Appeals

Picardo had once been a truck driver and Teamsters

member. Sometime after 1969, at Provenzano’s direction,

he switched to management and became a trucking

manager, so that he could enable Provenzano, a Team-

sters Union official, to be paid secretly for influencing

union actions, in violation of 29 U.S.C. § 186.5

5. 29 U.S.C. § 186 provides in relevant part:

(a) Payment or lending, etc., of money by employer or

agent to employees, representatives, or labor organizations

It shall be unlawful for any employer or association of

employers or any person who acts as a labor relations expert,

adviser, or consultant to an employer or who acts in the interest

of any employer to pay, lend, or deliver, or agree to pay, lend, or

deliver, any money or other thing of value —

(1) to any representative of any of his employees

who are employed in an industry affecting commerce; or

(2) to any labor organization, or any officer or employ-

ee thereof, which represents, seeks to represent, or would

admit to membership, any of the employees of such

employer who are employed in an industry affecting

commerce; or

(3) to any employee or group or committee of employ-

ees of such employer employed in an industry affecting

commerce in excess of their normal compensation for the

purpose of causing such employee or group or committee

directly or indirectly to influence any other employees in

the exercise of the right to organize and bargain collective-

ly through representatives of their own choosing; or

(4) to any officer or employee of a labor organization

engaged in an industry affecting commerce with intent to

influence him in respect to any of his actions, decisions, or

duties as a representative of employees or as such officer or

employee of such labor organization.

(b) Request, demand, etc., for money or other thing of

value

(1) It shall be unlawful for any person to request,

demand, receive, or accept, or agree to receive or accept,

any payment, loan, or delivery of any money or other thing

of value prohibited by subsection (a) of this section.

[footnote continued on following page]

Sa

Appendix A

Opinion of United States Court of Appeals

Picardo went to work for Seatrain. In 1969, Seatrain

owned Interocean, which in turn owned Switching, Inc.

Interocean, under Interstate Commerce Commission

authority, did all necessary long-distance trucking for

Seatrain; and Switching, not under ICC regulation,

moved containers at or near Seatrain’s piers. Interocean,

many of whose officers had come from Seatrain, was not

unionized, while Switching had a Teamsters Union

contract.

Sometime thereafter Picardo negotiated the “labor

peace” deal with Interocean, specifically with Raymond

Rosen, Interocean’s vice-president. Picardo, the “front

man” now operating a company, Cargo Truck Leasing

(Cargo), supplied trucks and owner-operator drivers to

(2) It shall be unlawful for any labor organization, or

for any person acting as an officer, agent, representative,

or employee of such labor organization, to demand or

accept from the operator of any motor vehicle (as defined

in part II of the Interstate Commerce Act [49 U.S.C. 301

et seq]) employed in the transportation of property in

commerce, or the employer of any such operator, any

money or other thing of value payable to such organization

or to an officer, agent, representative or employee thereof

as a fee or charge for the unloading, or in connection with

the unloading, of the cargo of such vehicle: Provided,

That nothing in this paragraph shall be construed to make

unlawful any payment by an employer to any of his

employees as compensation for their services as employees.

6. The Government alleges that it was only through the appel-

lants’ influence that Interocean remained non-unionized, and that

the purpose of Switching’s union contract was twofold: to supply

Picardo and another cohort with union pension and welfare benefits

and to give Interocean sham evidence of unionization to dissipate

suspicion. The Government also claims that Switching violated its

union agreement by avoiding union fund contributions through the

use of non-union owner-operators and that Stephen Andretta arranged

a sham audit on behalf of the pension fund. Appellants dispute

these allegations.

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Opinion of United States Court of Appeals

Interocean, thus enabling Interocean to avoid unioni-

zation and union obligations. In return, Interocean

allowed Cargo to collect from Interocean for ghost

drivers, i.e., Cargo collected extra money for non-existent

truck drivers who, of course, never performed work.

This money was funneled to Picardo and his “associates,”

as he referred to the appellants at trial.

Among the actions charged by the Government,

appellants ensured Picardo’s continued dealings with

Interocean (though Interocean feared Picardo would

hijack its trucks) by threatening labor disruptions, and

appellants extorted more money from Interocean in

return for preventing the Longshoremen’s Union from

disputing the Teamsters Union’s jurisdiction over move-

ment of trucks within and around Seatrain’s pier facil-

ities. To guarantee Cargo’s supply of drivers, appellants

used their influence at Teamsters Local 560 in Union

City, New Jersey, to send drivers to Cargo, where the

drivers received low wages and no benefits, instead of

sending them to union-organized terminals.

The illegally obtained money was distributed in var-

ious ways: checks to fictitious payees, chits, drawings on

petty cash, salaries to a no-show worker, and fees for

upkeep of horses of some of appellants’ relatives. It was

distributed either at a bar or at Local 560 in four shares:

one-quarter to Provenzano and his brothers; one-quarter

to Briguglio and his brothers; one-quarter to Thomas

Andretta and Armand Faugno, who cashed checks; and

one-quarter to Picardo. When Faugno “disappeared” in

1972, Stephen Andretta took his place and collected the

monies previously paid to Faugno.

Overt links with Provenzano occurred in 1972 or

1973, when Picardo told him the details of the scheme

and Provenzano complimented Picardo on it (A1072-73),

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Opinion of United States Court of Appeals

and when Picardo personally delivered cash to Provenzano

in August 1974 (A1073-74, A1297, A1323-37).

The group next acquired control of Lift-Van Trans-

port, a certified common carrier, and attempted to phase

out Interocean and replace it with Lift-Van. Through

appellants’ influence, Lift-Van was able to refuse to renew

its union contract and fire all union employees. When

Picardo, Lift-Van’s front man, was jailed for murder in

1975, his cohorts persuaded him to sell Lift-Van.

Appellants later set up the FLT Corporation to

replace Cargo. Thomas Andretta, who ostensibly ran

FLT, was in prison at all relevant times.

The dispatchers of Interocean who knew of the

ghosting scheme were paid to add the names of the

“ghosts” and to keep quiet.’ When an Interocean auditor

discovered a salary being paid to a no-show employee, he

was told by Rosen and the employee it was not his busi-

ness. When the auditor discovered the ghosting scheme,

Rosen told him the false billings were just overcharges,

which Cargo would be asked to repay. The scheme was

uncovered when Picardo agreed to cooperate with the

Government.

II.

These appeals present fifteen issues, some of which

are raised by all appellants, and some of which affect

only one of the three.

A. Issues Common to All Appellants

1. RICO or Larceny?

Appellants assert that there was a variance between

the indictment and the proofs at trial, i.e., that the indict-

ment charged a RICO violation, while the proof showed

7. Appellants allege that the payments were made to keep

them from telling Seatrain or higher Interocean officials.

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Opinion of United States Court of Appeals

only larceny. A RICO violation required proof that

Interocean, or later Di-Jub, bribed members of appel-

lants’ group in order to secure labor peace. These bribes

constitute the racketeering required by the RICO Act.

18 U.S.C. § 1962,8 because these debts are unlawful

8. 18 U.S.C. § 1962 provides:

(a) It shall be unlawful for any person who has received

any income derived, directly or indirectly, from a pattern of

racketeering activity or through collection of an unlawful debt

in which such person has participated as a principal within the

meaning of section 2, title 18, United States Code, to use or

invest, directly or indirectly, any part of such income, or the

proceeds of such income, in acquisition of any interest in, or the

establishment or operation of, any enterprise which is engaged

in, or the activities of which affect, interstate or foreign com-

merce. A purchase of securities on the open market for pur-

poses of investment, and without the intention of controlling or

participating in the control of the issuer, or of assisting another

to do so, shall not be unlawful under this subsection if the secur-

ities of the issuer held by the purchaser, the members of his

immediate family, and his or their accomplices in any pattern of

racketeering activity or the collection of an unlawful debt after

such purchase do not amount in the aggregate to one percent

of the outstanding securities of any one class, and do not con-

fer, either in law or in fact, the power to elect one or more

directors of the issuer.

(b) It shall be unlawful for any person through a pattern of

racketeering activity or through collection of an unlawfui debt

to acquire or maintain, directly or indirectly, any interest in or

control of any enterprise which is engaged in, or the activities

of which affect, interstate or foreign commerce.

(c) It shall be unlawful for any person employed by or asso-

ciated with any enterprise engaged in, or the activities of which

affect, interstate or foreign commerce, to conduct or partici-

pate, directly or indirectly, in the conduct of such enterprise’s

affairs through a pattern of racketeering activity or collection of

unlawful debt.

(d) It shall be unlawful for any person to conspire to violate

any of the provisions of subsections (a), (b), or (c) of this

section.

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Opinion of United States Court of Appeals

under 29 U.S.C. § 186. Proof of bribery requires knowledge

on the part of the party giving the bribe. The appellants

contend that the Government failed to prove that anyone

at Interocean or Di-Jub knew of Picardo’s and Cargo’s

ghosting scheme, and therefore at best the Government

proved that Picardo, who asserted that he was getting

money to provide labor peace, was actually just stealing

from Interocean.

Appellants point to testimony of Rosen, Interocean’s

vice-president, to the effect that he did not know of

Picardo’s ghosting operations (A2217, A2295).9 In addi-

tion, two Interocean dispatchers testified to receiving

bribes from Picardo; only one, however, said that he sus-

pected that the purpose for the bribe was that he conceal

the ghosting from his Interocean superiors (A1883). The

auditor who discovered the ghosting testified that Rosen

told him Cargo would have to pay back the overcharges

and that in fact Cargo did pay them back (A1945).

On the other hand, Picardo testified to conversa-

tions with Rosen, during which he claimed to have dis-

cussed the specifics of the scheme with Rosen (A1004,

A1029, A1l039-40). Picardo also testified that the pay-

ments were made (A1052). In addition, Rosen’s telling

the auditor that the discrepancies were none of his busi-

ness (A1935-36) and a memorandum revealing that

Interocean had to guarantee money for labor peace

(A2117-18) both support the Government’s theory. With

respect to the bribes paid by Picardo to the dispatchers,

Alan Abramowitz, an employee of Picardo at Cargo,

testified that he never told anyone the money had been paid

9. The only ghosting to which Rosen admitted of being aware

was a separate scheme whereby Interocean overcharged Seatrain to

make up deficits incurred by undercharging customers, thereby

enabling Seatrain indirectly to grant illegal rebates to those customers.

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Opinion of United States Court of Appeals

to keep the dispatchers quiet, but he then admitted,

upon being confronted with a writing, that he had once

told an FBI agent that he believed that the monies had

been paid for this purpose (A1853). He never specified

from whom the secret was to be kept. Both dispatchers

testified they were paid to add the “ghosts” to the list

(A1863, Al881). Only one ambivalently suggested that

he was paid not to tell his superiors (A1883). In any

event, even if Rosen knew of the scheme, Picardo could

reasonably have bribed the dispatchers to keep quiet and

not spread the word to anyone, so as to conceal from

them Rosen’s knowledge and thereby avoid the dis-

patchers’ knowing of and revealing the extent of the

scheme.

The jury apparently believed Picardo’s testimony

that he had informed Rosen of the scheme and that

Rosen, on behalf of Interocean, bribed Picardo’s group,

thus involving the group in a RICO violation. Under the

applicable standard of review, see, e.g., United States v.

Hamilton, 457 F.2d 95, 98-99 (3d Cir. 1972), this jury

verdict of guilty must stand because there was sufficient

evidence for the jury to find beyond a reasonable doubt

that Rosen had knowledge of the scheme and bribed

Picardo’s group. Thus, there was properly proved a valid

RICO-type violation, as opposed to mere grand larceny.

2. “Enterprise”

Appellants acknowledge that the prevailing statu-

tory interpretation in most of the Circuits brings them

and their association within the meaning of the RICO

statute’s requirement of an “enterprise,” as defined in

18 U.S.C. § 1961(4):

“[E]nterprise” includes any individual, partner-

ship, corporation, association, or other legal entity,

and any union or group of individuals associated

in fact although not a legal entity... .

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Opinion of United States Court of Appeals

Yet appellants argue that the. association is not an

“enterprise” because it had no legitimate purpose. They

argue that the legislative history of RICO indicates a desire

to prevent infiltration of legitimate business, and there-

fore all offenses — like those alleged here — not involving

a legitimate business should be prosecuted under other

pre-existing criminal laws. Otherwise, they argue, the

complex RICO statute would have been unnecessary.

Five Circuits have rejected this argument and have

concluded that even an association formed for the sole

purpose of illegal racketeering can satisfy the “enter-

prise” requirement. E.g., United States v. Rone, 598

F.2d 564 (9th Cir. 1979); United States v. Swiderski,

593 F.2d 1246 (D.C. Cir. 1978), cert. denied, 441 U.S.

933 (1979); United States v. Elliott, 571 F.2d 880 (Sth

Cir.), cert. denied, 439 U.S. 953 (1978); United States v.

Altese, 542 F.2d 104 (2d Cir. 1976), cert. denied, 429

U.S. 1039 (1977); United States v. Cappetto, 502 F.2d

1351 (7th Cir. 1974), cert. denied, 420 U.S. 925 (1975).

Only the Sixth Circuit, in a divided panel opinion later

vacated for rehearing en banc, has suggested it would

follow appellants’ theory. United States v. Sutton, 605

F.2d 260 (6th Cir. 1979), vacated and rehearing en banc

granted, Nos. 78-5134 to -5139, -5141, -5143 (6th Cir.

Nov. 7, 979) (rehearing held Apr. 2, 1980).

We have previously held that RICO is to be con-

strued liberally. United States v. Forsythe, 560 F.2d

1127, 1135-36 (3d Cir. 1977). And in United States v.

Frumento, 563 F.2d 1083, 1089-92 (3d Cir. 1977), cert.

denied, 434 U.S. 1072 (1978), this court held that the

word “enterprise” was broader than a private business or

a union, and included a state agency. But we need not go

so far as to adopt generally either the narrow or the broad

definition of “enterprise” in this case. The purpose of

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Opinion of United States Court of Appeals

RICO — prevention of infiltration of legitimate business

by racketeers — would in any event be vindicated by the

convictions here, since the wholly illegitimate Provenzano

association subverted legitimate unions and businesses,

although the Government did not allege that any union

local was the “enterprise” (A3854 — jury charge). We

decline in this case to construe the RICO statute so as

to allow the appellants a defense that they made sure

not to engage in any /egal activity.

3. Picardo’s Testimony About Use of Fear and

Intimidation

Appellants assert that their convictions must be

reversed because the jury heard Picardo testify to other

wrongs that the appellants committed, specifically loan-

sharking and gambling (A958); to appellants’ use of

fear and intimidation (A1000); to their threatening

Picardo should he fail to deliver on his obligations

(A1090); to their fixing of horse races (A1114); and to

their threatening to kill Picardo in jail (A1759). The dis-

trict court admonished Picardo against testifying about

appellants’ other wrongs, and twice even the Government

was surprised by Picardo’s responses (A966 — loan-

sharking and gambling; Al115 — fixing of horse races),

and disclaimed any attempt to prove them.

Of course, evidence of such alleged criminal activity

is not admissible to prove that the appellants were guilty

of the crimes charged. Fed. R. Evid. 404(b). Nevertheless,

evidence of other crimes is admissible for other purposes,

such as to show “motive, opportunity, intent, preparation,

plan, knowledge, identity, or absence of mistake or

accident,” id. Although the Government never attempted

to justify introduction of appellants’ other wrongs on any

of these grounds when appellants objected, and the dis-

trict court diu not explain its reasons for admitting the

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Opinion of United States Court of Appeals

testimony, such a specification is not neccessary, as

long as the statements were in fact admissible. See United

States v. Rosenstein, 474 F.2d 705, 711-13 (2d Cir. 1973)

(appellate court may affirm admission of evidence on

ground never urged or decided in trial court, as long as

evidence is admissible under ground relied on by appellate

court for same purpose for which it was admitted by

trial court);!° cf. PAAC v. Rizzo, 502 F.2d 306, 308 &

n.l (3d Cir. 1974) (appellate court may affirm correct

decision on ground not relied upon by district court),

cert. denied, 419 U.S. 1108 (1975).

Evidence of the use or intended use of fear and

intimidation to control the piers (A1000) was relevant to

show both the opportunity to carry out the scheme and

the plan of how to carry out the scheme. Picardo’s testi-

mony as to his fears of reprisals by the others should he

fail to come up with the money (A1090) was relevant to

show both knowledge of the others and how the others

controlled Picardo’s role (plan), as opposed to the defense

10. Thus, in Rosenstein, the Second Circuit affirmed the admis-

sion of evidence on the basis of the nonhearsay character of state-

ments of coconspirators in furtherance of the conspiracy, while the

trial court had erroneously relied on the business records exception

to the hearsay rule. Both grounds allowed introduction of the evidence

for the same purpose — to establish the truth of what is

said — without different or limiting instructions to the jury.

Rosenstein distinguished Shepard v. United States, 290 U.S. 96

(1933), and United States v. DiMasi, 445 F.2d 251 (2d Cir.), cert.

denied, 404 U.S. 882 (1971), as cases where erroneous plenary admis-

sion of hearsay could not be justified by the more limited theory of

proof of the declarant’s state of mind. See 474 F.2d at 710-11. In

the present case, whether Picardo’s testimony was admissible as

being directly relevant or was admissible to prove such things as plan

or opportunity of the Provenzano group to control the scheme, it

was admissible for the same purpose, /.¢e., to prove the truth of what

it said. Thus, under Rosenstein, the rule 404(b) ground might validly

support the admission of Picardo’s testimony.

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Opinion of United States Court of Appeals

theory that the entire operation was merely a larceny

of Picardo’s own doing. Evidence of the death threat

Stephen Andretta made to Picardo while Picardo was

incarcerated (A1758-59) was relevant to show how the

others controlled Picardo’s role (plan), to the extent that

they forced him to sell Litt-Van when he, being incar-

cerated, could no longer operate it. Moreover, defense

counsel had already elicited from Picardo on cross-

examination that he was angry during his incarceration

at Stephen Andretta (for reasons defense counsel would

not let Picardo explain) (A1611-13), and that Picardo

had already told an FBI agent that Stephen Andretta had

made (unspecified) threats to him (A1669). Defense

counsel had thus cast doubts on Picardo’s credibility,

and evidence of the reason for his anger at Stephen —

i.e., one-time death threat should Picardo not follow

orders — was independently relevant to rebut or explain

Picardo’s motive to lie against his associates, as might be

suggested by a general anger at their not helping him

out of jail over a long period. Finally, defense counsel

had already elicited the f st that Stephen Andretta had

threatened Picardo in some way; so the elucidation of

the precise nature of the threat was, on balance, not

prejudicial.!!

Some of Picardo’s answers, however, i.e., those

relating first to loan-sharking and gambling, and second

to the fixing of horse races, were clearly irrelevant for any

purpose. When Picardo gave these answers, the court

11. Fed. R. Evid. 403, requiring exclusion of evidence the dis-

trict court finds to be more unfairly prejudicial than it is probative,

apparently never was invoked at trial. We will therefore presume

that the district court performed the appropriate balancing, United

States v. Long, 574 F.2d 761, 766 (3d Cir.), cert. denied, 439 U.S.

985 (1978). As the analysis above illustrates, the district court's

decision to admit the testimony was not an abuse of discretion.

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Opinion of United States Court of Appeals

promptly told the jury to disregard the testimony (A958-59,

A1119). Moreover, in the charge to the jury, the district

court again stated that they must disregard questions

and answers, objections to which were sustained (A3800).

In each instance, the prosecutor claimed that he had not

expected such answers, and that he had told Picardo

to avoid inserting extraneous matters (A966, A1114-16).

Both responses came after questions that were designed

to elicit other information.

As to the first, the Assistant United States Attorney

asked Picardo to identify the types of businesses in

which the associaton, Picardo and the appellants, engaged,

expecting Picardo to reply that only trucking was involved.

Instead, Picardo answered, “Trucking, loan-sharking,

gambling” (958). As to the second, Picardo had pre-

viously testified that “ North Jersey Feed Company

was for the purpose of getting into the race track and

to be able to tranquilize horses and fix races” (1114).

The Assistant United States Attorey then asked whether

Picardo had involved his associates with that business,

expecting Picardo to explain that his “associates” were

not involved, and that, on the contrary, it was Picardo’s

way to siphon money secretly from them (A1114-15).

Instead, Picardo answered that he had involved his

associates with North Jersey Feed Company (AI114).

Under these circumstances, we cannot say that the

unsolicited references to loan-sharking, gambling, and

the fixing of horse races were so inflammatory or preju-

dicial that they could not be cured by jury instructions.

which, as noted, were given. We therefore conclude that

defendants were not prejudiced. Nor do we think that

this case falls within the rule of Government of Virgin

Islands v. Toto, 529 F.2d 278 (3d Cir. 1976), requiring

reversal despite the district court’s striking of the testimony.

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Opinion of United States Court of Appeals

The testimony here was not of other convictions, but

rather consisted of an offhand mention that the appellants

were also involved peripherally in other common illegal

activities. Given the long and complex descriptions

of the RICO violations, we are satisfied that the causal

mention of others did not constitute reversible error.

4. Picardo’s Unsolicitcd Comments

Picardo defied the district court’s warnings and con-

versed with marshals while sidebars were being held in

another room. Although these conversations took place

within sight of the jury, they did not take place within

the jurors’ hearing. The jurors all denied hearing anything,

except for one alternate juror (who ended up being

dismissed with the others at the end of the summations),

who “heard him [Picardo] say something about some-

body’s wife” (A974). We cannot say that this conduct,

albeit in disregard of the district court’s ruling, requires

reversal.

5. Pretrial Publicity

Appellants claim that certain jurors were impaneled

when they should have been removed for cause for lack

of impartiality. The crux of the problem was pretrial pub-

licity about Provenzano. The appellants argue that either

many veniremen should have been excused for cause, or

jurors should have been chosen from a different vici-

nage, or Provenzano’s trial should have been severed.!?

Appellants claim prejudice in two ways: first, that biased

jurors decided the case, and, second, that appellants

were prejudiced by the failure of the district court to

excuse other veniremen for cause, forcing appellants to

waste peremptory challenges to excuse them, see United

States v. Nell, 526 F.2d 1223, 1229 (Sth Cir. 1976); ef.

12. The last alternative would have satisfied Thomas and

Stephen Andretta but not Provenzano.

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Opinion of United States Court of Appeals

Swain v. Alabama, 380 U.S. 202, 219 (1965) (denial or

impairment of right to use peremptory challenges, once

given, is reversible error).

The constitutional standard for dismissal of venire-

men was set forth in Murphy v. Florida, 421 U.S. 794

(1975). Pretrial publicity exposure will not automat-

ically taint a juror. Even if the juror has heard of or about

the case and of the allegations of a defendant's guilt,

he may sit if he is still capable of abandoning his prior

impressions and rendering a fair verdict on the evidence.

A juror’s own assurance of this is not the final determinant,

but the accused has the burden of proof to demonstrate

that the juror is partial. See id. at 799-800. Prejudice

is to be presumed only in cases where “the influence

of the news media. . .pervaded the proceedings” id. at

799. Examples the Court gave include a trial where pretrial

publicity consisted of showing a twenty-minute con-

fession three times on television, Rideau v. Louisiana,

373 U.S. 723 (1963), and a trial where cumbersome

television equipment invaded the courtroom, Estes v.

Texas, 381 U.S. 532 (1965).'3

But in the federal courts, Murphy affirms that the

stricter rule of Marshall v. United States, 360 U.S. 310

(1959) (per curiam), and United States ex rel. Doggett v.

13. Cf. Turner v. Louisiana, 379 U.S. 466 (1965) (key prosecution

witnesses acting as juror attendants throughout trial).

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Opinion of United States Court of Appeals

Yeager, 472 F.2d 229 (3d Cir. 1973), '4 still governs, as a

matter of supervisory authority. In federal cases, there-

fore, jurors are to be dismissed on less of a showing of

actual prejudice than that required by Murphy.

14. In Marshall, the court reversed the defendant's conviction

where seven jurors had seen one or both of two newspaper articles

describing how the defendant, on trial for unlawful distribution of

prescription drugs, had previously practiced law without a license,

even though the jurors averred that they would not be and had not

been influenced by the articles. In Doggett the publicity occurred

during trial and consisted of newspaper items indicating that Doggett

had retracted a guilty plea and had attempted to escape. The court

described the case:

The record discloses that the trial court did admonish the

jurors not to read or pay attention to anything about the case

appearing in the newspapers. It also discloses that despite this

admonition some jurors, at least, certainly disregarded it.

Thus, we have before us a case in which prior to the com-

mencement of a trial, counsel, anticipating adverse newspaper

accounts, requested an adjournment; where during the trial

highly prejudicial newspaper accounts did in fact circulate in

the small community in which the trial was being held; where

it was established that at least two of the unsequestered jurors

had read the highly prejudicial newspaper accounts despite an

admonition not to do so; where an examination as to whether

others had also disregarded the admonition was made en banc

rather than individually; where no inquiry was made as to

whether the two jurors who concededly read the prejudicial

newspaper accounts discussed them with others; where an

additional page one prejudicial newspaper account circulated

in the same small community in the vicinity of the unsequestered

jury; where the court would not even permit inquiry respecting

exposure of the jurors to the later newspaper account although

the jurors had access to the newspaper in question; and where

the defendant's position was at all times after the first news-

paper account appeared urged upon the court by timely motions

for a mistrial and a continuance.

472 F.2d 233-34. Doggett involved review of a state trial but this

court at that time applied the Marshall standard to state cases as

well. This was rejected in Murphy, see 421 U.S. at 797.

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Opinion of United States Court of Appeals

We have examined the record and have conductes

an independent review of the circumstances alleged to

constitute pretrial publicity in this case. See United

States v. D’Andrea, 495 F.2d 1170 n.5 (3d Cir.), cert.

denied, 419 U.S. 855 (1974). We have concluded, first,

that the publicity in this case was not presumptively

prejudicial as a matter of law, in contrast to that involved

in cases like Rideau, and, second, that the “substantial

prejudice” required by D’Andrea has not been demon-

strated. Most of the pretrial knowledge in the present

case consisted either of reports that the jury would be

selected that day or of a panel member’s having heard

mere mention in the news of such terms as “Mafia,”

“unions,” “gangster,” “Tony Pro” (Provenzano’s nick-

name), “organized crime,” or “kickbacks” in connection

with the case. No panel member indicated any belief in

this type of generalized innuendo, and each assured the

district judge in response to a series of five to ten search-

ing questions that he or she would decide the case strictly

on the evidence and on the law as explained by the judge

and would not be influenced by publicity. In light of

the record in this case, the district court did not err in

not excusing certain challenged veniremen for cause.!5

6. Juror Misconduct

The jury in this case was sequestered. Toward the

end of the trial, at about 3:00 a.m., a marshal discovered

a juror and two alternate jurors smoking marijuana, and

reported the incident to the district judge, who informed

counsel. The district court suggested that no action be

15. In addition, as to some veniremen, objections were waived

by failure to challenge for cause. See, e.g., United States v. Cepeda

Penes, 577 F.2d 754, 759 (Ist Cir. 1978); United States Hawkins,

566 F.2d 1006, 1013 (Sth Cir.), cert. denied, 439 U.S. 848 (1978);

cf. Davis v. United States, 411 U.S. 233 (1973) (waiver of objection

to composition of grand jury).

20a

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Opinion of United States Court of Appeals

taken; defense counsel, after conferring among them-

selves, agreed but suggested in addition that the district

judge tell the offenders not to be concerned about the

incident, and that they would not be prosecuted. The

district judge did as counsel requested. None of the

appellants were personally present at the conference when

counsel were informed of the incident; in fact none

found out about it until after trial.

Appellants now challenge the course of conduct

chosen by the district court, claiming that he should

have dismissed the offenders sua sponte without soliciting

or accepting counsel’s advice. We disagree. We see no

reason to depart from the longstanding rule that counsel’s

intentional tactical decisions at trial bind his client.

For the same reason, the district court did not err in

denying appellants’ motion for a new trial on the ground

of untimeliness, since counsel, even if not appellants,

knew of the incident before, so it was not newly dis-

covered evidence, and the motion was not made within

seven days after trial. Under United States v. Bujese,

371 F.2d 120, 125 (3d Cir. 1967), “evidence is not ‘newly

discovered’ when it was known or could have been

known by the diligence of the defendant or his counsel.”

Even if we were convinced that appellants had not

waived objection to the district court’s failure to excuse

the offending jurors, we do not think that the smoking of

marijuana by one juror and two alternates warrants

reversal in the instant circumstances. While possession

of marijuana is illegal under both federal and state law,

21 U.S.C. § 844, N.J. Stat. Ann. § 24:21-20, since none of

the offending jurors were ever charged or convicted,

they would not be disqualified from service under 28

2la

Appendix A

Opinion of United States Court of Appeals

U.S.C. § 1865{b)(5).'6 And without engaging in extended

philosophical discussion of where we might draw a line

in a proper case, we hold as well that the public knowledge

that sitting jurors were smoking marijuana does not

create such an appearance of impropriety as to warrant

reversal of convictions where the jurors were not dis-

missed. Nor is there any serious contention that the

drug’s intoxicating effect affected the jurors’ ability to

hear evidence or to deliberate. No one suggested this to

be the case the following day at trial, and the district

judge later observed, when denying the new trial motion,

that the jurors had not been “in any way impaired from

functioning as such” (Joint Supp. App. at SA58-59).

The modern view is that the consumption of alcohol

is not prejudicial as a matter of law, see, e.g., Kealoha v.

Tanaka, 45 Hawaii 457, 470-74, 370 P.2d 468, 475-77

(1962), and appellants have not demonstrated prejudice,

as required by cases such as United States v. Taliaferro,

558 F.2d 724, 726 (4th Cir. 1977), cert. denied, 434 U.S.

1016 (1978}, and United States v. Klee, 494 F.2d 394,

395-96 (9th Cir.) (premature discussion of case among

jurors), cert. denied, 419 U.S. 835 (1974).

Finally, we reject as sheer speculation appellants’

contention that the jurors, who were told not to worry

16. 28 U.S.C. § 1865 describes the method of juror selection

and qualification. Subsection (b\(5) provides:

(b) In making such determination the chief judge of the .

district court, or such other district court as the plan may

provide, shall deem any person qualified to serve on grand and

petit juries in the district court unless he —

***

(5) has a charge pending against him for the commission

of, or has been convicted in a State or Federal court of record of,

a crime punishable by imprisonment for more than one year

and his civil rights have not been restored.

22a

Appendix A

Opinion of United States Court of Appeals

about prosecution, must thereby have felt indebted to

the Government and accordingly felt compelled to vote

to convict out of fear of retaliation by the Government

Moreover, it was defense counsel who insisted on the

judge’s assuring the jurors that they would not be prose-

cuted Jest they favor the Government out of fear of prose-

cution (Joint Supp. App. at SA117-18).

7. Absence of Appellants at Conference Discussing

Incident

Appellants claim that their rights were prejudiced

by their not being included in the conference regarding

marijuana smoking by jurors. They now claim they

would have influenced counsel to ask for disqualification

of the jurors.

It is clear that there is no constitutional right for a

defendant to be present at a conference in chambers

concerning dismissal of a juror. See United States v.

Brown, 571 F.2d 980, 986-87 (6th Cir. 1978); United

States v. Howell, 514 F.2d 710, 714 (Sth Cir.), cert. denied,

423 U.S. 914, 987 (1975); United States v. Baca, 494 F.2d

424, 428-29 (10th Cir. 1974); Ellis v. Oklahoma, 430

F.2d 1352, 1354-56 (10th Cir. 1970) (habeas corpus

motion following state trial), cert. denied, 401 U.S. 1010

(1971). What remains is a question of the interpretation

of Fed. R. Crim. P. 43. Subdivision (a) states:

The defendant shall be present at the arraignment,

at the time of the plea, at every stage of the trial

including the impaneling of the jury and the return

of the verdict, and at the imposition of sentence,

except as otherwise provided by this rule.

On the other hand, subdivision (c)(3) provides:

A defendant need not be present. . [a]t a con-

ference or argument upon a question of law.

23a

Appendix A

Opinion of United States Court of Appeals

We hold that reversal in this case is not required by rule

43 for three reasons. First, any objection to appellants’

nonpresence at the conference was waived by counsel’s

failure to object contemporaneously. See United States

v. Brown, 571 F.2d at 987.'!7 Second, despite the hold-

ings of that case and United States v. Baca, Supra, we

believe that the district court correctly held that under

rule 43(c)(3) the appellants had no right to be present at

the conference. The facts were undisputed, and the con-

ference concerned only a question of law: whether, on

the facts, dismissal of the offenders was compelled. We

have already held that the district court had discretion to

retain or dismiss the jurors. In the exercise of that dis-

cretion, he left this decision up to the defense counsel.

Counsel themselves made the tactical choice to place

their clients’ fate in the hands of the jury which included

one of the offending jurors, rather than in the hands of

the particular alternate who would be called as a replace-

ment.!8

Third, even if rule 43(a) required appellants’ pres-

ence at this stage of the trial, see, e.g., United States v.

Brown, 571 F.2d at 986, this rule is subject to the harm-

less error doctrine, see id. at 987. Examination of the

record reveals that counsel vigorously safeguarded appel-

lants’ interests, to the extent of insisting on procedures

they — counsel — thought would yield the best chance

for acquittal. It is fanciful for appellants to suggest post

17. In United States v. Brown, at least one defendant was

present at the conference and knew of the problem. Counsel in the

present case did not inform appellants of the conference until after

trial, although nothing prohibited them from doing so (Joint Supp.

App. at SAI13-14, SAI19). We do not think that this changes the

analysis significantly.

18. The alternate who would replace the dismissed juror was

identified and known to defense counsel (Joint Supp. App. at SA41,

SA81-82, SAI01).

24a

Appendix A

Opinion of United States Court of Appeals

hoc that they would have demanded replacement of the

offending juror had they been present at the conference.

Therefore, any error in the district court’s failure to dis-

miss the offenders sua sponte was harmless beyond a

reasonable doubt and as such will not warrant reversal.

8. Jury Charge

The appellants contend that the jury charge was

erroneous insofar as it allowed the jury to convict them

under RICO so long as the payee or recipient of the illegal

payment was a member of the conspiracy, even if the

payee or recipient was not a union agent, officer, or

employee. We do not agree. A reading of the relevant

portion of the jury charge as a whole (A3933-35) clearly

shows that the district court correctly instructed the jury

that the payee or recipient must be both a union agent,

officer, or employee, and at that time a member of the

conspiracy, indicted or unindicted.

9. Testimony Read Back to Jury

During their deliberations, the jury requested that

some testimony be reread to them. The district court

reread the direct testimony of one witness and was about

to go on to the testimony of the next witness when defense

counsel reminded him to include the first witness’ cross-

examination (A3894). The judge immediately corrected

his oversight, and no objection was made by counsel.

Appellants’ claim now that this constituted plain error

is clearly frivolous.

In addition, appellants point out that some requested

testimony was never read back to the jury. This, as weil,

was not an abuse of discretion. Only after the rereading

had apparently been concluded and the jury had again

been excused did defense counsel claim that two addi-

tional questions and answers were within the jury’s

25a

Appendix A

Opinion of United States Court of Appeals

request (A3991-92); no objection had previously been

made to the portions selected for rereading. Moreover,

the district court properly recognized that the two ques-

tions and answers were merely cumulative of other testi-

mony of the same witness that had been read back.

Therefore, there was no error in the refusal to recall the

jury for a rereading of two more questions and answers.

B. Provenzano Issues

1. Evidence of Provenzano’s Participation in the

Conspiracy

The evidence of Provenzano’s participation in the

conspiracy must be considered in the light most favor-

able to the Government on review of the jury’s guilty ver-

dict. E.G., United States v. Schoenhut, 576 F.2d 1010,

1014 (3d Cir.), cert. denied, 439 U.S. 964 (1978); United

States v. Pratt, 429 F.2d 690, 691 (3d Cir. 1970). Sim-

ilarly, the evidence must be so viewed in reviewing the

district judge’s determination (A3344-47) of proof of

Provenzano’s participation by a preponderance of evi-

dence independent of coconspirator statements, e.g.,

United States v. Trotter, 529 F.2d 806, 811-12 (3d Cir.

1976); United States v. Bey, 437 F.2d 188, 191 (3d Cir.

1971), upon which was predicated the admission of

coconspirators’ statements, under Fed. R. Evid.

801(d)(2)(E). See, e.g., United States v. Trowery, 542

F.2d 623, 626-27 (3d Cir. 1976) (per curiam), cert. denied,

429 U.S. 1104 (1977). The necessary quantum of evi-

dence has been characterized as “some,” Schoenhut,

576 F.2d at 1027, and “slight,” United States v. Fried,

576 F.2d 787, 793 (9th Cir.), cert. denied, 439 U.S. 895

(1978). What must be shown is Provenzano’s participation

in the conspiracy, i.e. agreement, as opposed to mere

knowledge thereof or approval, but from a showing of

26a

Appendix A

Opinion of United States Court of Appeals

knowledge plus actions taken in furtherance of the

conspiracy, the jury may infer the necessary agreement.

United States v. Klein, 515 F.2d 751, 753 (3d Cir. 1975).

The only direct proof of Provenzano’s participation

in the conspiracy came from Picardo’s testimony.

Provenzano attempts to dismiss Picardo as a biased liar,

Proveu.zano brief at 30, but, of course, Picardo’s state-

ments must be accepted as true for the purpose of deter-

mining the sufficiency of evidence.

Picardo testified that he told Provenzano exactly how

the operation was running, that Provenzano approved,

and that Provenzano was paid from that operation:

Q. [MR. SPEISER, Assistant U.S. Attorney].

Now, did you ever have a personal conversation

with Mr. Provenzano about this operation you were

running with Interocean?

A. [PICARDO]. Yes, I did.

Q. What did you tell him?

A. I told him exactly what we were doing, the

method we were using, and he complimented me

on the successful type of operation.

MR. GOLDBERG [Provenzano Coun-

sel]: Judge, can I have a date? Is that ’73? .

THE COURT: What date was it?

THE WITNESS: I don’t know the exact

date, your Honor.

MR. GOLDBERG: The month?

THE COURT: Do you know the year?

THE WITNESS: I would say ’73.

MR. GOLDBERG: Thank you.

THE WITNESS: Or late °72.

Q. Did you ever personally give Mr. Tony

Provenzano any of the proceeds of this ghosting

operation?

27a

Appendix A

Opinion of United States Court of Appeals

A. I think in one occasion I did personally.

Q. Do you recall when that was?

A. Could you give me a minute to think about

that one?

Q. Yes.

A. Sometime in 1973.

(A1072-73). Picardo also testified just before this collo-

quy that Provenzano received a share (A1072), and

received cash proceeds, either directly or through others

(A1090). See Direct Sales Co. v. United States, 319 U.S.

703, 713 (1943) (stake in venture relevant to participa-

tion in conspiracy). Picardo testified that Provenzano

contributed capital to Lift Van, part of the operation of

which was illegal, and that the illegal intent — “[{t]o

monopolize the industry, not to have a union contract so

we could give suppressed rates and get all the lucrative

business from the major steamship lines” — was dis-

cussed with his “associates” (A1176-77). Picardo testi-

fied that Provenzano was interested in the status of Lift

Van and was “the boss” who decided that Picardo should

acquire Lift Van (A1155-57).

From the above evidence, the district judge could

have concluded by a preponderance, and the jury could

have found beyond a reasonable doubt, that Provenzano

knew of the scheme, contributed money to it, approved

of it, and therefore was a participant. Provenzano argues

that not all of Picardo’s Cargo and Lift Van operations

were totally illegai,'!? so that Provenzano’s approval and

participation in contributions and profits may have gone

to the legal aspects. This may be so, but the judge and

jury were entitled to draw the opposite inference, par-

ticularly since the thrust of Picardo’s testimony was that

19. We note that this line of argument conflicts with the appel-

lants’ contention that their operations could not be a RICO “enter-

prise” because they were wholly illegitimate, see ante at 10-11.

28a

Appendix A

Opinion of United States Court of Appeals

Provenzano’s participation and interest were with respect

to the illegal aspects of the operation, i.e., “ghosting.”

Picardo also testified that he used illegal profits at

Provenzano’s direction to pay bills for the upkeep of

Provenzano’s daughter’s riding horse (A1120-23).

Provenzano argues that this is proof only of association

and not participation, but the judge and the jury were

entitled to infer that Provenzano was doing something to

aid the conspiracy, or at the least, he was a part of it so as

to entitle him to profit from it.

Although the evidence is not overwhelming, and

while it comes from only one witness whose veracity was

certainly open to question, it was sufficient to establish a

conspiracy and to tie Provenzano to that conspiracy.

2. Admission of Picardo’s Statements Under the

Coconspirator Hearsay Exception

At issue here is the testimony of Paulette Compton

and Mary Ann Hart, Picardo’s paramours, and of Alan

Abramowitz, an employee of Picardo, who were allowed,

over objections, to testify to statements Picardo made to

them about Provenzano and his role in the illegal oper-

ations. The statements were admitted under Fed. R.

Evid. 801(d)(2)(E):

(d) Statements which are not h

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