United States v. William F. Quarry, David William Russo, Bruce Lester Dempsey, and Mark Reeve Fowden, 576 F.2d 830, 10th Cir. (1978)

576 F.
2d 830
UNITED STATES of America, Appellant,

v.
William F. QUARRY, David William Russo, Bruce Lester
Dempsey, and Mark Reeve Fowden, Appellees.
Nos. 77-1175 to 77-1178.
United States Court of Appeals,

Tenth Circuit.
Argued and Submitted May 8, 1978.
Decided May 8, 1978.
Steven W. Snarr, Asst. U. S. Atty., Ramon M. Child, U. S. Atty. for Utah,

Salt Lake City, Utah, on brief, for appellant.
Phil L. Hansen, of Phil L. Hansen and Associates, Salt Lake City, Utah,
for appellees, William F. Quarry (77-1175), Bruce Lester Dempsey (771177), and Mark Reeve Fowden (77-1178).
Dean R. Mitchell, Salt Lake City, Utah, for appellee, David William
Russo (77-1176).
Before SETH, Chief Judge, and HOLLOWAY and McKAY, Circuit
Judges.
SETH, Chief Judge.
Seven defendants, including the appellees, were charged in an information with

conducting an illegal gambling business in violation of 18 U.S.C. 1955. Three
other persons were charged in an indictment as participants in the same
business, but the two cases were not consolidated.
The trial of the seven was concluded, and before the case was submitted to the
jury, motions of two of the seven for judgments of acquittal were granted. The
appellees also moved for judgments of acquittal, but the judge reserved ruling.
The case against the remaining five was then submitted to the jury. As part of
the instructions given to the jury, the trial court said:". . . I want to be very clear
about this. Unless you find them all guilty, you can't find any of them guilty
because there are only five left, only five left, and the requirement is that the
gambling activity involve five or more persons that did these things . . ."
3
Thus the trial court instructed the jury they had to find all remaining defendants
guilty or acquit them all, as to do otherwise would not be in conformance with
18 U.S.C. 1955. The jury deliberated for two and one-half days, and returned
a verdict of guilty as to appellees Quarry, Russo, Dempsey, and Fowden, but
found the fifth defendant, Peake, not guilty.
The motions of appellees, previously made, were granted and the court entered
judgments of acquittal as to each of the four appellees. The trial court stated: ".
. . This jury has acquitted Peake, the statute requires five persons and the
motion for a judgment of acquittal of all five is granted." The Government has
taken this appeal from the judgments pursuant to 18 U.S.C. 3731.
The Government urges on this appeal that the trial judge improperly interpreted
the five or more requirement of 1955 to mean that at least five defendants in
the same proceeding must be found guilty. The appellees argue that to permit
this appeal would be a violation of their Fifth Amendment rights and, in any
event, the result reached by the trial court must be upheld because a defect in
the jury's instructions constituted plain error.
We hold that the case is properly appealable by the Government.
The jurisdictional matter must be considered first. The pivotal question is

whether the Government may take this appeal under 3731 without violating
the defendants' rights under the Fifth Amendment.
The Government maintains that when the trial judge rules in favor of a
defendant after a jury verdict of guilty, the case can be appealed by the
Government. Thus in this case it is argued that if the trial judge was in error on
his interpretation of the five-person requirement, the guilty verdicts may
properly be reinstated because no further factual resolution will be necessary.
The defendants-appellees contend that this court has no jurisdiction under

3731. It is their position that where, as here, there was a judgment of acquittal,
the Double Jeopardy Clause prevents a reinstatement of the jury verdict of
guilty. They also argue that the jurisdictional statute authorizes prosecution
appeals from dismissals, but not from "factual" determination of an acquittal.
10
There is no question but that this court may assert jurisdiction over the
Government's appeals. This is made clear from the line of authority beginning
with United States v. Wilson, 420 U.S. 332, 95 S.Ct. 1013, 43 L.Ed.2d 232
(1975), and culminating in United States v. Calloway, 562 F.2d 615 (10th Cir.
1977). Appellees insist that any judicial act terminating a prosecution which is
denominated as an acquittal is not appealable under any circumstance.
However, in Wilson, supra, the Court said:
11 have rejected this position in the past, and we continue to be of the view that
"We
the policies underlying the Double Jeopardy Clause militate against permitting the
Government to appeal after a verdict of acquittal. Granting the Government such
broad appeal rights would allow the prosecutor to seek to persuade a second trier of
fact of the defendant's guilt after having failed with the first; it would permit him to
re-examine the weaknesses in his first presentation in order to strengthen the second;
and it would disserve the defendant's legitimate interest in the finality of a verdict of
acquittal. These interests, however, do not apply in the case of a postverdict ruling of
law by a trial judge. Correction of an error of law at that stage would not grant the
prosecutor a new trial or subject the defendant to the harassment traditionally
associated with multiple prosecutions."
12
Although the order appealed from in Wilson was not denominated as an

"acquittal," the Court made it abundantly clear, that the Double Jeopardy
Clause does not preclude 3731 appeal where the jury's verdict was overturned
on purely legal grounds. The Wilson rationale was reaffirmed in United States
v. Martin Linen Supply Co., 430 U.S. 564, 97 S.Ct. 1349, 51 L.Ed.2d 642
(1977). We recently addressed nearly identical claims in United States v.
Calloway, 562 F.2d 615 (10th Cir. 1977). There we held that a trial court's postverdict judgment of acquittal was properly appealable under 28 U.S.C. 3731.
Other circuits have reached similar results. See, e. g., United States v. Cravero,
530 F.2d 666 (5th Cir. 1976); United States v. Allison, 555 F.2d 1385 (7th Cir.
1977); United States v. Rojar, 544 F.2d (9th Cir. 1977). It is clear from the
record that the trial judge's post-verdict acquittals were grounded entirely on
technical legal consideration. Under these circumstances, the judge's error of
law can be corrected without offending the defendant's rights under the Double
Jeopardy Clause. The trial judge said, as above mentioned, when he granted the
motions: "This jury has acquitted Peake and the statute requires five persons
and the motion for a judgment of acquittal of all five is granted."
13
The Government argues that the trial court misconstrued the five or more
persons requirement of 1955. The misinterpretation, the Government
maintains, was manifest in the "all or nothing" instruction given to the jury. The
trial court erred when it granted the post-verdict acquittals because the jury
failed to find all five defendants guilty. The Government thus contends that
1955(b)(1)(ii), requires only that it be shown that "five or more persons
conducted, financed, managed, supervised, directed, or own all or part of such
business." The subsection of the statute uses the term "illegal gambling
business" and makes it illegal to "conduct," etc. such a business. To constitute a
violation the "business" is a gambling business which: "(ii) involves five or
more persons who conduct, finance, manage, supervise, direct, or own all or
part of such business and . . . ."
14
The defendants rely on the trial court's interpretation and argue that they were
"acquitted."
15
In United States v. Smaldone, 485 F.2d 1333 (10th Cir. 1973), this court said
that:
16 the five individual participants necessary to sustain a federal conviction need

"And
not carry on or cause the entire gambling operation to function. Congress' intent was
to incorporate within the statute's prohibition all participants, except those who
actually wagered, no matter their roles . . ." At page 1351.
17
In an unpublished opinion United States v. Smaldone, 76-1178, (10th Cir. filed

April 7, 1977), the court found that the Government was able to present
sufficient evidence to establish participation in illegal gambling by at least five
persons. The Government here was able to show that considerably more than
five individuals participated in the distribution of the football betting cards. In
addition to the four appellees, several witnesses who either owned or operated
clubs testified that they had received some form of remuneration from the
defendants for the use of their facilities, or had in fact participated in the
handling and distribution of these betting cards. In United States v. Crockett,
514 F.2d 64 (5th Cir. 1975), the court pointed out that the 18 U.S.C. 1955
requirement of "five persons" could be met where the Government proved that
at least one person was in each of the establishments supervising the operation
where the machine was located. Here, the evidence indicated that there was at
least one person in each of the several establishments where the cards were
distributed and who received proceeds. In our view, the trial judge's
interpretation of the five or more requirement of 1955 was neither consistent
with the statute nor the weight of authority. The Congressional intent was to
include all participants who joined in the conduct etc., of the illegal gambling
business within the definition of "persons" under 1955(b)(1)(ii), regardless of
their status as defendants or not.
18
The trial court did instruct the jury as to the required number of participants
under 1955 by quoting from the statute several times, but gave also the
erroneous instruction as hereinabove stated. Thus he gave partly correct
instructions to the jury and partly wrong. However, we hold that the equivalent
of a fully correct instruction was provided to the jury. The jury rejected one
instruction of the judge as to the number, but followed the statute and followed
his quotation from the statute which he included in his instruction. The jury,
after deliberating a short time, requested that it be provided a copy of the statute
as it related to the number of participants. Without objection the court provided
the jury with a copy of 1955.
19
The provision therein ( 1955) as to the number of participants is entirely clear,

direct and without any technical language. It provides in relevant part:
"2(b)(1) . . . 'illegal gambling business' means a gambling business which

20
21 involves five or more persons who conduct, finance, manage, supervise, direct,
(ii)
or own all or part of such business; . . . ."
22
The jury could easily follow it, and this we hold to be the equivalent of a
correct instruction from the judge. The jury thus had conflicting instructions
and from the verdict it followed the correct one and rejected the incorrect
instruction. Under these somewhat unusual circumstances the verdicts may be
reinstated as supported by the evidence and correct under the five person
requirement.
23
Having decided that this court has jurisdiction, and that the Government did
establish sufficient evidence of participation by at least five persons in violation
of 18 U.S.C. 1955, the jury's verdict below must be reinstated.
24
The contentions of the appellees as to the failure to properly develop the law of
Utah as to gambling presents an issue not before this court as no final judgment
has been entered which would permit their consideration.
25
The judgments of acquittal are hereby set aside as to each appellee, and the
several cases are remanded with directions to reinstate the verdict of guilty as to
each appellee.

United States v. William F. Quarry, David William Russo, Bruce Lester Dempsey, and Mark Reeve Fowden, 576 F.2d 830, 10th Cir. (1978)

Uploaded by

Copyright:

Available Formats

United States v. William F. Quarry, David William Russo, Bruce Lester Dempsey, and Mark Reeve Fowden, 576 F.2d 830, 10th Cir. (1978)

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

United States v. William F. Quarry, David William Russo, Bruce Lester Dempsey, and Mark Reeve Fowden, 576 F.2d 830, 10th Cir. (1978)

Uploaded by

Copyright:

Available Formats

576 F.

UNITED STATES of America, Appellant,

United States Court of Appeals,

Steven W. Snarr, Asst. U. S. Atty., Ramon M. Child, U. S. Atty. for Utah,

Seven defendants, including the appellees, were charged in an information with

We hold that the case is properly appealable by the Government.

The jurisdictional matter must be considered first. The pivotal question is

The defendants-appellees contend that this court has no jurisdiction under

Although the order appealed from in Wilson was not denominated as an

16 the five individual participants necessary to sustain a federal conviction need

In an unpublished opinion United States v. Smaldone, 76-1178, (10th Cir. filed

The provision therein ( 1955) as to the number of participants is entirely clear,

"2(b)(1) . . . 'illegal gambling business' means a gambling business which

You might also like