United States v. Coppola
Justia.com Opinion Summary: Defendant appealed his conviction for substantive and conspiratorial racketeering stemming from his involvement with the Genovese organized crime family. The court concluded that: (1) Racketeering Act One stated valid subpredicate offenses under the Hobbs Act, 18 U.S.C. 1951(a), (b)(2), for substantive and conspiratorial extortion of intangible rights under the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA), 29 U.S.C. 501(a), and the jury's finding that such offenses were proved was supported by sufficient evidence; (2) the evidence was sufficient to permit a reasonable jury to find the requisite pattern of racketeering proved; (3) the district court's admission of challenged evidence did not exceed its discretion under Fed. R. Evid. 401, 403, or 801(d)(2)(E); various challenges to the district court's jury instructions were without merit; and the challenged sentence was reasonable both as a matter of procedure and substance. Accordingly, the court affirmed the judgment of the district court.
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10-0065-cr
United States v. Coppola
UNITED STATES COURT OF APPEALS
FOR THE SECOND CIRCUIT
August Term, 2010
(Argued: May 20, 2011
Decided: February 14, 2012)
Docket No. 10-0065-cr
UNITED STATES OF AMERICA,
Appellee,
v.
MICHAEL COPPOLA,
Defendant-Appellant.
Before:
RAGGI, LYNCH, and WALLACE, Circuit Judges.*
On appeal from a judgment of conviction for substantive and conspiratorial
racketeering entered after trial in the United States District Court for the Eastern District
of New York (Gleeson, Judge), defendant Michael Coppola challenges (1) the legal
validity of the extortion and wire fraud subpredicates comprising Racketeering Act One,
particularly after Skilling v. United States, 130 S. Ct. 2896 (2010); (2) the sufficiency of
*
Judge J. Clifford Wallace of the United States Court of Appeals for the Ninth Circuit,
sitting by designation.
the evidence to prove any of the Racketeering Act One subpredicates; (3) the sufficiency
of the evidence to prove the pattern element of racketeering; (4) various evidentiary
rulings; (5) the jury charge; and (6) the reasonableness of his sixteen-year prison
sentence.
AFFIRMED.
ROBERT A. CULP, Esq., Garrison, New York, for DefendantAppellant.
AMY BUSA (Peter A. Norling, on the brief), Assistant United States
Attorneys, for Loretta E. Lynch, United States Attorney for the
Eastern District of New York, Brooklyn, New York, for Appellee.
REENA RAGGI, Circuit Judge:
Defendant Michael Coppola was found guilty after a jury trial in the United States
District Court for the Eastern District of New York (John Gleeson, Judge) of conducting
and conspiring to conduct the affairs of the Genovese organized crime family through a
pattern of racketeering activity evidenced by the use of extortion and fraud to control the
New York–New Jersey waterfront generally and International Longshoreman’s
Association (“ILAâ€) Local 1235 in particular, and by the possession of false identification
documents. See 18 U.S.C. § 1962(c), (d). On this appeal from the December 31, 2009
amended judgment of conviction sentencing him to concurrent terms of sixteen years’
2
incarceration, Coppola challenges (1) the legal validity of the extortion and wire fraud
subpredicates charged as Racketeering Act One, particularly after Skilling v. United
States, 130 S. Ct. 2896 (2010); (2) the sufficiency of the evidence to prove any of these
subpredicates; (3) the sufficiency of the evidence to prove the pattern element of
racketeering; (4) various evidentiary rulings; (5) the jury charge; and (6) the
reasonableness of his sentence. For the reasons stated herein, we reject these arguments
and affirm the judgment.
I.
Background
A.
The Crimes of Conviction
Coppola was convicted on a two-count superseding indictment charging him with
substantive and conspiratorial racketeering in connection with his activities over three
decades as an associate, soldier, and ultimately captain of the Genovese organized crime
family, one of the five arms of La Cosa Nostra in the New York metropolitan area.1 The
pattern of racketeering through which Coppola was alleged to have conducted and
participated in the affairs of the Genovese family was charged in three predicate acts.
Racketeering Act One alleged conspiracy to extort, extortion, and wire fraud in
connection with the Genovese family’s control of ILA Local 1235. See 18 U.S.C.
§§ 1343, 1346, 1951(a), (b)(2). As to the extortion subpredicates, the indictment charged
1
In New York, La Cosa Nostra has traditionally operated through five organized
crime families: Bonanno, Colombo, Gambino, Genovese, and Lucchese. See United States
v. Eppolito, 543 F.3d 25, 28 (2d Cir. 2008); accord United States v. Basciano, 599 F.3d 184,
188 n.1 (2d Cir. 2010).
3
that between January 1974 and March 2007, Coppola and others obtained or conspired to
obtain the property of Local 1235 members both in the tangible form of “Local 1235
labor union positions, money paid as wages and employee benefits and other economic
benefits that such Local 1235 union members would have obtained but for the defendant
and his co-conspirators’ corrupt influence over such union,†and in the intangible form of
“the right of Local 1235 members to have the officers, agents, delegates, employees and
other representatives of their labor organization manage the money, property and
financial affairs of the organization in accordance with Title 29, United States Code,
Section 501(a).†Indictment ¶¶ 16, 19.2 The property was allegedly obtained with the
consent of union officials “induced by wrongful use of actual and threatened force,
violence or fear.†Id.
As to the wire fraud subpredicate of Racketeering Act One, the indictment charged
that between January 1974 and March 2007, Coppola and others devised a scheme to
defraud Local 1235 union members of (1) the same tangible property charged in the
extortion subpredicates, and (2) intangible property in the form of “the right of the honest
services of the Local 1235 Presidents.†Id. ¶ 20. The particular use of wires charged to
execute the scheme was an interstate telephone conversation between Coppola and an
unindicted confederate, Edward Aulisi, on March 6, 2007.
2
Although the indictment also charged extortion of “the right of Local 1235 union
members to free speech and democratic participation in the affairs of their labor
organization,†Indictment ¶¶ 16, 19, that theory was not submitted to the jury, and we discuss
it no further.
4
Racketeering Act Two charged Coppola with the April 10, 1977 attempted and
actual murder of Giovanni Larducci, also known as “John Lardiere†and referred to as
such in the record. See N.J. Stat. Ann. §§ 2A:113-1, 2A:113-2 (1977).
Racketeering Act Three alleged that between August 1996 and March 2007,
Coppola conspired to possess with intent to use various false identification documents.
See 18 U.S.C. § 1028(a)(3), (f).
Because the jury found only the first and third predicates proved, our factual
discussion focuses on these matters, with the evidence viewed in the light most favorable
to the verdict. See, e.g., United States v. Jass, 569 F.3d 47, 50 (2d Cir. 2009).
B.
Trial Evidence
The government adduced extensive evidence of the Genovese family’s criminal
control over the Manhattan and New Jersey waterfronts generally and over Local 1235 in
particular.
Genovese family member George Barone, Genovese associate Michael
D’Urso, Gambino family member Primo Cassarino, and Lucchese family member
Thomas Ricciardi testified that mob control over the metropolitan area waterfront dated
from the 1950s, with an understanding between the Genovese and Gambino families that
the former enterprise would dominate unions and businesses operating on the Manhattan
and New Jersey docks, while the latter enterprise dominated unions and businesses
operating in Brooklyn and Staten Island. Asked how such control was exercised, Barone
replied, “intimidation, fear, whatever.†Trial Tr. at 1114. While much of Barone’s
5
testimony focused on mob dominance of Manhattan-based ILA Local 1804-1, which was
eventually exercised by Coppola and his one-time Genovese captain, Tino Fiumara, the
totality of the evidence demonstrated that intimidation and fear was the common scheme
or plan used by the Genovese family to secure and maintain waterfront control. In a
recorded conversation, Local 1804-1 vice-president Thomas Buzzanca stated that
“everybody fears and respects [Fiumara],†and “we all live under[] fear.†Gov’t Ex. TRCD-5b at 1–2, 5 (emphasis added).
Evidence showed that the Genovese family used its control of unions to dictate
what businesses worked on the waterfront. D’Urso explained that if an “ordinary guy
wanted to go into the trucking business on the docks, or wanted to open up something on
the docks†the Genovese family would “sic the union on the them.†Trial Tr. at 877. In
short, because the Genovese family “ran the union[s],†it “could bring [a legitimate]
business to a screeching halt.†Id.; see also Gov’t Ex. TR-CD-3 (T1).
Robert Delaney, a New Jersey State police officer who had participated in an
undercover investigation of organized crime on the New Jersey waterfront in the 1970s,
corroborated this account with particular reference to Coppola. Delaney testified that
while he was posing as the owner of a trucking company, Coppola had represented that he
and Fiumara, through “contacts,†could provide “labor peace on the waterfront where
[Delaney’s] trucks were picking up containers.†Trial Tr. at 148. Such peace, however,
came at a price in the form of “tribute†payments that the Genovese family demanded
6
from both waterfront businesses and unions, payments that Barone testified generated
“millions†of dollars in income for the enterprise. Id. at 1103. Officer Delaney testified
that Coppola and Fiumara had required him to pay a percentage of his trucking profits to
them in return for getting business on the waterfront and operating without labor
disturbances: “We made percentage and cut payments based on the earnings that the
company made . . . . to Mr. Fiumara’s group.†Id. at 143. D’Urso, who acknowledged
collecting tribute payments for the Genovese family, explained that monies extorted from
businesses were sometimes channeled to the enterprise through the unions: “[V]endors
who have businesses on the docks†would pay “handouts[,] . . . contributions,
shakedowns, whatever. . . . They want to get something done they pay off maybe one of
the [union] presidents or somebody close to him, find a way to get this stuff down and
expedite it quickly.†Id. at 884. Barone confirmed the practice, testifying that Burt
Guido, whose business operated on the waterfront, made regular tribute payments to
Local 1804-1 officials, who would pass the payments on to Barone.
In addition to monthly tribute payments, the Genovese family demanded
“Christmases,†special year-end payments from waterfront businesses and unions.
D’Urso stated, “during Christmas, people show their appreciation . . . . [L]egitimate
businesses that you help, they usually put together a Christmas package for you . . . . It’s a
tribute payment.†Id. at 882. The practice was evidenced, inter alia, by a December 12,
1978 recorded conversation between Local 1804-1 vice president Buzzanca and William
7
Montella, the owner of a waterfront business called Quinn Marine, in which Montella told
Buzzanca that he had a $2,000 tribute payment and a $5,000 “Christmas†payment for
Fiumara. Also, a March 14, 2001 videotape of a meeting between Genovese confederates
D’Urso and Cafaro shows the two men discussing Barone’s demand for a
$90,000–$100,000 “Christmas†payment from Andrew Gigante, another waterfront
business owner.
With respect to the Genovese family’s extortion of labor unions under their
control, a recorded September 14, 1998 conversation shows enterprise confederate
Stephen DePiro telling Fiumara, “Christmas time I want double. . . . I don’t want [union
official] Brief saying, like no 2%, this, this is the way it’s going to be. . . . [H]e’s got all
his guys that he works there. Bring us double and that’s that.†Gov’t Ex. TR-CD-6b at
17.3 Further, Officer Delaney testified that Genovese family member Larry Ricci told
him that he collected regular $15 payments from waterfront union members for the
enterprise under the guise of a dental plan. When one union member indicated an
expectation that his dental bills would therefore be covered, Ricci employed classic
extortion techniques to set the member straight: he “hit the guy in the chest†and told him
“the dental plan is there to keep your own f---ing teeth.†Id. at 152. Lucchese member
3
Based on other recorded conversations in which Fiumara stated that he wanted
“Brief†to obtain a “C-card†for someone—a type of seniority card held by ILA union
members—the jury reasonably could have concluded that Brief was a union official and that
DePiro’s demand for a larger “Christmas†from Brief and “all his guys that he works there,â€
referred to a demand for tribute money from union members.
8
Ricciardi testified that his brother-in-law, William Bell, a New Jersey longshoreman, was
required to pay $500 to the Genovese family in order to be called for work on the docks.
With particular reference to Local 1235, the evidence showed Genovese family
control of that union for more than thirty years through three successive local presidents:
Vincent Colucci, also known as “Cong†(1975–80); Albert Cernadas, also known as
“Bull†(1981–2006); and Vincent Aulisi, also known as “Vet†or “Pop†(2006–09).
Barone testified that Colucci was the first to “gang[] up his association with us, the
Mafia.†Trial Tr. at 1144. Thereafter, Barone himself put Cernadas “‘on record’ with the
Genovese family,†id. at 1145, whereupon Cernadas “[a]lways, always†went along with
Genovese demands, id. at 1270. Barone stated that he advised Cernadas “to be associated
with Tino [Fiumara] and Michael [Coppola]†because “there was the power in that area of
the Mafia.†Id. at 1145. That Cernadas paid tribute over the years to these members of
the Genovese family is evidenced by a recorded March 6, 2007 conversation between
Coppola and Edward Aulisi, whose father Vincent Aulisi had succeeded Cernadas as
Local 1235 president the previous year. At the time of this conversation, Coppola was
subject to a 1991 court order prohibiting him from having any dealings “whatsoeverâ€
with any officer, member, or employee of the ILA or a related labor organization such as
Local 1235. See Default Judgment, United States v. Local 1804-1, Int’l Longshoremen’s
Ass’n, AFL-CIO, 90-cv-963 (S.D.N.Y. Sept. 5, 1991). Nevertheless, Coppola received
the younger Aulisi’s assurances, on behalf of his father, that Local 1235 would continue
9
to pay monthly tribute and “Christmases†to the Genovese family despite seemingly
contrary statements by Cernadas as he was leaving office:
Aulisi:
Ohh, and the Vet [i.e., Vincent Aulisi] told me to pass it on.
Umm. What the hell did he say to me? Ohh, that, ah, he was
glad that, ah, the other, the Cuban, that Ricky Ricardo, was
there when this guy [i.e., Cernadas] made mention hey, once
I’m outta, once I’m gone from here, this thing stops. So
Mike, [laughs] the Vet said, this thing stops? The beat goes
on, whether you’re here or not. But, Ricky Ricardo was there
when he said, he said it.
Coppola:
Who, who?
Aulisi:
He said I, want you to relay that.
Coppola:
Which guy? Who said that?
Aulisi:
The Bull [i.e., Cernadas]. You know when this is gone, when
I’m gone, he says this thing is gonna end. Meaning, meaning
ahh, the month, you know, the the Christmases, and
everything else, he [i.e., Vincent Aulisi] says what you talking
about?
Coppola:
Yeah, yeah.
Aulisi:
This gonna, things gonna go on.
Gov’t Ex. TR-CD-7 (T6) at 6. Then, still with reference to tribute payments, the younger
Aulisi stated that his father wanted him to tell Coppola that “this thing almost, almost
doubled.†Id.
Another recorded conversation between Edward Aulisi and Coppola the same day
showed Coppola asking about the amounts collected and Aulisi acknowledging Coppola’s
10
control over their disposition. Aulisi reported receiving “another chunk,†and stated that
he knew Coppola was “directing that to the other half.†Gov’t Ex. TR-CD-7 (T7) at 1. In
response to Coppola’s query as to “how many months†of payment Aulisi had obtained,
Aulisi replied “we’re gonna have three.†Id. at 2. He stated that one person had given
him “sixty something and then he just gave me . . . twenty-eight hundred,†but “there ain’t
gonna be nothing [more] there.†Id. Coppola stated that he was “not worried about that
because I told him to take whatever he had to take for the other, ah, for the other situation.
So I knew it was gonna be down to nothin’.†Id. at 3.
Evidence also showed that the Genovese family exploited its control over
waterfront unions to make union employment decisions.
Barone testified that the
Genovese family “sen[t] word†to ILA president John Bowers to put Harold Daggett into
a senior position with the union. Trial Tr. at 1119. The Genovese family then “told
[Daggett] what we wanted him to do. . . . If he didn’t do it, we take him out.†Id. at 1117.
Barone testified that he personally secured union employment for numerous Genovese
associates, including positions at an ILA health care clinic for Coppola’s brother and
Cernadas’ wife. Officer Delaney testified that Genovese member Ricci told him that he
held a union job that paid him “$45,000 a year . . . and all he had to do was put his feet on
the desk, the only time he worked [was] if the other guy [i.e., Fiumara] called him for
something.†Trial Tr. at 150.
11
In the first of their March 6, 2007 conversations, Coppola and Edward Aulisi
discussed past and future placement of friends and family in Local 1235 positions, with
Coppola making clear his ability to exercise a final say. Referencing a time when Colucci
“wanted to leave his wife†in a union position, Coppola stated, “we were right next to him
all the time during this whole thing,†and “[w]e said under no circumstances.†Gov’t Ex.
TR-CD-7 (T6) at 7–8. As to another placement of someone’s daughter, Coppola told
Aulisi, “I sent . . . word back, under no circumstance.†Id. at 8. And as to a placement
then under consideration, Coppola instructed the younger Aulisi to tell his father, “[i]t’s,
it’s, not gonna happen to, you relay that to, to, Pop that’s all.†Id. at 9. Moments after
concluding this call, Coppola again spoke with Edward Aulisi, reiterating, “you let him be
aware of that, that’s not gonna happen.†Gov’t Ex. TR-CR-7 (T7) at 1.
Evidence showed that Coppola’s racketeering activities persisted through March
2007, not only despite the 1991 court order, but also despite his status as a fugitive from
an August 8, 1996 subpoena ordering him to provide a DNA sample to New Jersey
authorities investigating the Lardiere murder. Coppola was able to avoid apprehension
and continue overseeing enterprise activities because organized crime confederates
provided him with both money and false identification documents. D’Urso testified that
while Coppola was “on the lam, on the run,†Trial Tr. at 860, the Genovese family had
money delivered to him by Thomas Cafaro and Chuck Tuzzo. Meanwhile, in recorded
February 2007 conversations, Coppola’s son-in-law Louis Rizzo reported that he had
12
secured “the BC [i.e., birth certificate] and the SS [i.e., Social Security card]†for
Coppola, Gov’t Ex. TR-CD-7 (T1) at 1, as well as a credit card, but needed more time to
obtain a fraudulent driver’s license. A month later, at the time of Coppola’s March 9,
2007 arrest, he was in possession of a New York identification card, a Blue Cross
insurance card, as well as various credit and debit cards in the name “José Quinones.â€
Meanwhile, a search of Coppola’s New York apartment yielded credit cards and
identification documents bearing the names Michael Rizzoli, Joseph Rizzoli, Joseph
Carro, Hector Carro, and Olga Quinones, and thousands of dollars in cash.4 A search of
Coppola’s San Francisco apartment yielded bank records in the names Joe Quinones and
José Quinones and thousands of dollars in cash.
C.
Verdict and Sentence
In finding Coppola guilty of both racketeering and racketeering conspiracy, the
jury indicated with specific reference to Racketeering Act One that it found extortion,
extortion conspiracy, and wire fraud proved. The jury further indicated that it found the
wire fraud subpredicate proved under both theories charged, i.e., a scheme to defraud
Local 1235 members of tangible property and a scheme to defraud Local 1235 members
of the honest services of their union’s presidents. The district court rejected pre- and
post-verdict challenges to Racketeering Act One, as well as to the sufficiency of the
evidence to prove the pattern element of racketeering.
4
Because Coppola’s wife joined him after he became a fugitive, she too was in need
of fraudulent identification to avoid providing leads to her husband’s whereabouts.
13
In calculating Coppola’s Guidelines range at sentencing, the district court
determined that the total offense level for the extortion subpredicates was 29, while the
total offense level for the wire fraud subpredicate was 30,5 grouping the offenses to yield
a total offense level of 30.6 The district court declined to apply an obstruction of justice
enhancement, see U.S.S.G. § 3C1.1, to its calculation of either the extortion or fraud
offense levels, invoking United States v. Agudelo, 414 F.3d 345, 350 (2d Cir. 2005)
(cautioning against assumption that defendant who submits affidavit to justify
suppression hearing is automatically subject to obstruction enhancement if suppression
5
The curious result of fraud having a higher total offense level than extortion arises
from the following Guidelines calculation. With respect to the extortion crimes, the
Guidelines provided for a base offense level of eighteen, see U.S.S.G. § 2B3.2(a); a two-level
enhancement for the implied threat of bodily injury, see id. § 2B3.2(b)(1); a six-level
enhancement for a total loss of more than $2.5 million, see id. § 2B3.2(b)(2) (crossreferencing § 2B3.1(b)(7)(G)); and a three-level enhancement for role in the offense, see id.
§ 3B1.1(b). With respect to the fraud crimes, the Guidelines provided for a base offense
level of seven, see id. § 2B1.1(a)(1); an eighteen-level enhancement for a total loss of more
than $2.5 million, see id. § 2B1.1(b)(1)(J); and a three-level enhancement for role in the
offense, see id. § 3B1.1(b). What afforded fraud a higher Guidelines range than extortion
in this case was a further two-level enhancement for commission of the crime in violation
of a court order. See id. § 2B1.1(b)(8)(C) (renumbered in 2011 to § 2B1.1(b)(9)(C)). While
the record suggests that the district court reasonably thought that this fact should also raise
Coppola’s extortion offense level, see Sentencing Tr. at 13, the extortion Guideline contains
no parallel provision to § 2B1.1(b)(8)(C), and the total offense level of 29 employed for
extortion does not reflect any court-order-violation enhancement. We have no occasion here
to discuss whether the factor might support a Guidelines departure or the imposition of a
non-Guidelines sentence, as the district court did not so support the challenged sentence.
6
In grouping the offenses pursuant to U.S.S.G. § 3D1.2, the district court persuaded
the government to abandon its argument that grouping analysis did not apply to extortion
offenses, previewing its intent to impose a non-Guidelines sentence in stating, “[n]othing
hinges on this particular ruling.†Sentencing Tr. at 15.
14
motion is denied). It also declined to apply the higher offense level of 43 that would
derive from treating the Lardiere murder as relevant conduct, explaining that, while there
was probable cause to think Coppola had committed the murder, it did not find the crime
proved by a preponderance of the evidence.7 Cf. United States v. Vaughn, 430 F.3d 518,
526 (2d Cir. 2005) (Sotomayor, J.) (recognizing that court may use acquitted conduct to
calculate Guidelines range when found by preponderance of evidence).
In explaining its application of a loss amount of at least $2.5 million to calculate
the extortion and fraud offense levels, the district court specifically declined to aggregate
the salaries paid to Local 1235 presidents from 1975 to 2007, as urged by the prosecution
and recommended by the Probation Department. See Sentencing Tr. at 7–8 (rejecting
salary aggregation as “very clumsy way to estimate loss†in Coppola’s case). Instead, it
assessed loss by reference to the revenues realized by the Genovese family as a result of
its corrupt control of Local 1235. See id. at 8 (observing that for the 33 years at issue in
the case “[t]his union local and the members it was supposed to represent was a cash
generating machine for the Genovese familyâ€). Without attempting to calculate these
revenues precisely, the district court noted that they allowed the defendant “to maintain
an apartment in San Francisco and an apartment in New York’s West Side for the 11
7
The district court stated, “[i]t is hard to fathom why [Coppola] would choose to
become a fugitive back in 1996 or so, when he fled, unless he thought the DNA evidence
would implicate him [in the Lardiere murder] . . . . It is hard to fathom why he would think
his own DNA would implicate him unless he was there, but I don’t think that’s enough to
prove the murder by a preponderance of the evidence.†Sentencing Tr. at 5–6.
15
years he was a fugitive.†Id. at 9.8 Further, Coppola “was hardly the only person the
evidence showed that benefitted from the cash cow that Local 1235 was to the Genovese
family.†Id. Thus, the court concluded that it did not even need to consider Coppola’s
involvement in the broader conspiracy, which extorted still other waterfront unions and
businesses. “It is sufficient for me to say that even focusing only on Local 1235, the 2.5
million amount is, to put it mildly, an extremely conservative estimate.†Id.
Relying on a total offense level of 30 and a criminal history category of IV, the
district court determined that Coppola’s advisory Guidelines range provided for a 135-to168-month term of incarceration. The district court nevertheless invoked its discretion to
impose a more severe non-Guidelines sentence, explaining that the racketeering
Guidelines failed to “capture the significance of the crime,†particularly Coppola’s
racketeering crime, which “was committed by the defendant as a member of the Genovese
family, an organized crime family.†Id. at 31–32. The district court specifically faulted
the racketeering Guidelines for not doing “anything but funnel[ing]†a sentencing court
into the Guidelines applicable to the predicates, which could be committed in “any number
of ways, . . . some of which have nothing to do with sustained criminal activity.†Id. at 32.
The district court emphasized that Coppola’s racketeering crime spanned “more than 30
years†and that “criminal conduct was Mr. Coppola’s livelihood. It is what he did.†Id.
Further, Coppola chose to pursue his “lifetime occupation†of crime “as part of an
8
At the time of his arrest, Coppola and his wife were living in an eleventh floor
apartment of a sixteen-story pre-war building located at 74th Street and Amsterdam Avenue.
16
organization that gave him enormous additional power . . . derive[d] from a well grounded
fear that if you cross a member of that organization you will be killed.†Id. at 32–33. This
was why the Genovese family in general, and “Mr. Fiumara, this defendant, the others
associated with him†in particular, “were so successful.†Id. at 33.
Finding the Guidelines “woefully insufficient . . . to capture the essence†of the
racketeering crimes of conviction, id. at 34, the district court sentenced Coppola to
concurrent prison terms of 192 months, i.e., sixteen years, to run consecutive to an
undischarged 42-month prison term imposed on a related conspiracy charge of harboring a
fugitive (himself), see 18 U.S.C. §§ 371, 1071, to which Coppola had earlier pleaded
guilty, see Judgment, United States v. Coppola, 07-cr-225 (DLI) (E.D.N.Y. May 14,
2008), ECF No. 77.
This timely appeal followed.
II.
Discussion
A.
Racketeering Act One
Coppola contends that his conviction must be reversed because the alleged
subpredicate acts comprising Racketeering Act One (1) fail to state extortion or mail fraud
offenses, particularly after Skilling v. United States, 130 S. Ct. 2896; and (2) were not
proved by sufficient evidence.
We review Coppola’s first challenge de novo. See, e.g., United States v. Gotti, 459
F.3d 296, 320 (2d Cir. 2006). Because the jury returned findings of guilt on each of the
17
identified subpredicate acts, we will uphold the jury’s finding that Racketeering Act One
was proved if any one of the identified subpredicate acts—extortion conspiracy, extortion,
or wire fraud (whether to obtain tangible property or intangible property in the form of
honest services)—states an offense. See United States v. Ruggiero, 726 F.2d 913, 922–23
(2d Cir. 1984), abrogated on other grounds by Salinas v. United States, 522 U.S. 52, 61–62
(1997); see also id. at 925–28 (Newman, J., concurring in part and dissenting in part).9
Where, however, the jury returned a general verdict as to any subpredicate act charged
under multiple theories, we can uphold the jury’s finding as to that subpredicate act only if
every charged theory states an offense, see Yates v. United States, 354 U.S. 298, 312
(1957), overruled on other grounds by Burks v. United States, 437 U.S. 1, 8–10 (1978);
United States v. Salmonese, 352 F.3d 608, 624 (2d Cir. 2003), unless the pleading error
was harmless, see Hedgpeth v. Pulido, 555 U.S. 57, 58 (2008); accord Skilling v. United
States, 130 S. Ct. at 2934 n.46 (extending Hedgpeth harmlessness principle beyond habeas
review).
As to Coppola’s sufficiency challenge, we will uphold the jury’s finding as to
Racketeering Act One if the evidence was sufficient to prove any one of the subpredicate
acts on any legally valid theory charged. See, e.g., Griffin v. United States, 502 U.S. 46,
56–57 (1991); United States v. Salmonese, 352 F.3d at 624.
9
While we make this
In fact, the government does not defend the honest services theory of the wire fraud
subpredicate, which was not charged to require proof of the bribe-kickback element
identified in Skilling, 130 S. Ct. at 2907.
18
determination de novo, we view the evidence in the light most favorable to the verdict, and
we will reverse only if we conclude that no reasonable jury could have found guilt beyond
a reasonable doubt. See, e.g., United States v. Heras, 609 F.3d 101, 105–06 (2d Cir.
2010).
Applying these principles to this case, our analysis can begin and end with the
extortion subpredicates, which state a viable offense and are supported by sufficient
evidence.
1.
Validity of Extortion Subpredicates
To charge extortion under the Hobbs Act, an indictment must allege that a
defendant obtained (or in the case of conspiracy, schemed with others to obtain) property
from another with his consent induced by the wrongful use of actual or threatened force,
violence, or fear, or under color of official right. See 18 U.S.C. § 1951(a), (b)(2).10 In this
case, the indictment charged Coppola with obtaining and conspiring to obtain both
intangible and tangible property from Local 1235 union members, with the consent of
union officials induced by the wrongful use of threats and fear.
a.
The Intangible Property Theory
The government’s intangible property theory was based on a provision of the
Labor-Management Reporting and Disclosure Act of 1959 (“LMRDAâ€), Pub. L. No. 86257, 73 Stat. 519, stating that the officials of a labor organization “occupy positions of
10
Because “color of official right†was not at issue in this case, we do not reference
that means of extortion further.
19
trust in relation to such organization and its members as a group.†29 U.S.C. § 501(a).
That provision specifies particular duties owed by officials to the union and membership
they serve:
It is, therefore, the duty of each such person, taking into account the special
problems and functions of a labor organization, to hold its money and
property solely for the benefit of the organization and its members and to
manage, invest, and expend the same in accordance with its constitution and
bylaws and any resolutions of the governing bodies adopted thereunder, to
refrain from dealing with such organization as an adverse party or in behalf
of an adverse party in any matter connected with his duties and from holding
or acquiring any pecuniary or personal interest which conflicts with the
interests of such organization, and to account to the organization for any
profit received by him in whatever capacity in connection with transactions
conducted by him or under his direction on behalf of the organization.
Id. Explaining this provision to the jury in this case, the district court charged that “union
members have a right to the loyal service of union officials; and this right constitutes a
form of property.†Trial Tr. at 1816.
This instruction conforms to our precedent, which recognizes that the concept of
property under the Hobbs Act reaches beyond tangible property to include union
members’ “LMRDA rights to loyal representation by their officers, agents, and other
representatives.†United States v. Gotti, 459 F.3d at 325; see also United States v.
Tropiano, 418 F.2d 1069, 1075–76 (2d Cir. 1969) (holding that “concept of property under
the Hobbs Act . . . is not limited to physical or tangible property or things, but includes . . .
any valuable right considered as a source or element of wealth†(citations omitted)).
20
Coppola does not contend that the district court misconstrued Gotti. Rather, he asserts that
we must revisit Gotti’s holding in light of the Supreme Court’s recent decision in Skilling
v. United States, 130 S. Ct. 2896.
Skilling was not a Hobbs Act case. It considered a conviction under the “honest
services†provision of the wire fraud statute.
See 18 U.S.C. § 1346 (defining term
“‘scheme or artifice to defraud’†to include “scheme or artifice to deprive another of the
intangible right of honest servicesâ€). To avoid “due process concerns underlying the
vagueness doctrine†in the undefined phrase “right of honest services,†Skilling v. United
States, 130 S. Ct. at 2931; see id. at 2935 (Scalia, J., concurring in part and concurring in
judgment), the Supreme Court construed the statutory provision as limited to “fraudulent
schemes to deprive another of honest services through bribes or kickbacks supplied by a
third party who had not been deceived,†id. at 2928 (identifying bribe and kickback
schemes as “core†of honest services fraud recognized by appellate courts before McNally
v. United States, 483 U.S. 350 (1987)). Coppola argues that there is little difference
between the LMRDA rights alleged in this case and the right to honest services at issue in
Skilling. He maintains that both are too vague to state a criminal charge consistent with
due process. See Appellant Br. at 67 (stating “it makes no sense to posit that the same
‘honest services’ that are too vague to be defrauded nonetheless can be extortedâ€). We
disagree.
21
First, to the extent Coppola asserts that Skilling identifies vagueness concerns with
intangible rights generally, he is mistaken. Skilling addressed a particular intangible
right—to honest services—identified, but not defined, by § 1346. It did not identify
vagueness concerns with all intangible rights. To the contrary, Skilling held that even the
intangible right of honest services can constitutionally be the basis of a wire fraud
prosecution when that intangible right is deprived through a bribe or kickback. See 130 S.
Ct. at 2928. Thus, nothing in Skilling warrants a conclusion that intangible property rights
can no longer support a Hobbs Act extortion or extortion conspiracy charge. See United
States v. Cain, --- F.3d ----, 2012 WL 265882, at *5–6 (2d Cir. 2012) (affirming
conviction for extortion under Hobbs Act of intangible right to solicit business).
Second, the vagueness concerns identified in Skilling with respect to the § 1346
right to honest services do not translate to the LMRDA rights derived from § 501(a). A
statute is not void for vagueness if it “define[s] the criminal offense with sufficient
definiteness that ordinary people can understand what conduct is prohibited and in a
manner that does not encourage arbitrary and discriminatory enforcement.†Kolender v.
Lawson, 461 U.S. 352, 357 (1983); accord Arriaga v. Mukasey, 521 F.3d 219, 224 (2d Cir.
2008).
“This test does not demand meticulous specificity in the identification of
proscribed conduct.
Rather, it requires only that the statutory language conveys
sufficiently definite warning as to the proscribed conduct when measured by common
understanding and practices.†United States v. Farhane, 634 F.3d 127, 139 (2d Cir.)
22
(internal quotation marks and citations omitted), cert. denied sub nom. Sabir v. United
States, 132 S. Ct. 833 (2011).
Additionally, “[v]agueness challenges to statutes not
threatening First Amendment interests are examined in light of the facts of the case at
hand; the statute is judged on an as-applied basis.†Maynard v. Cartwright, 486 U.S. 356,
361 (1988); accord Arriaga v. Mukasey, 521 F.3d at 223.
In challenging § 501(a) as vague, Coppola notably avoids discussion of the
statutory language, a failure that obscures critical textual distinctions between § 501(a) and
§ 1346. Whereas § 1346 provides no textual guidance about the duties whose violation
will amount to a deprivation of “honest services,†see, e.g., Sorich v. United States, 129 S.
Ct. 1308, 1310 (2009) (Scalia, J., dissenting from denial of certiorari) (discerning no
“coherent limiting principle†defining what “honest services†is, “whence it derives, and
how it is violatedâ€), § 501(a) specifically enumerates the duties that labor representatives
owe to their union and its members: (1) to hold union money and property solely for the
benefit of the union and its members; (2) to manage, invest, and expend union money in
accordance with the union’s constitution and bylaws and any applicable resolutions; (3) to
refrain from dealing with the union as an adverse party or on behalf of an adverse party in
any matter connected with the representative’s union duties; (4) to refrain from holding or
acquiring any pecuniary or personal interest which conflicts with the interests of the union;
and (5) to account to the union for any profit received by the representative in whatever
capacity in connection with transactions conducted by him or under his direction on behalf
23
of the union. See 29 U.S.C. § 501(a). Thus, in contrast to § 1346, which references, at
best, only a general and undefined fiduciary standard, see Skilling v. United States, 130 S.
Ct. at 2936 (Scalia, J., concurring in part and concurring in judgment), § 501(a) avoids
unconstitutional ambiguity by detailing the duties owed and the persons from and to whom
they are owed, see Gurton v. Arons, 339 F.2d 371, 375 (2d Cir. 1964) (“A simple reading
of [§ 501(a)] shows that it applies to fiduciary responsibility with respect to the money and
property of the union and that it is not a catch-all provision under which union officials
can be sued on any ground of misconduct with which the plaintiffs choose to charge
them.â€).
Third, while § 501(a) creates the intangible right here at issue, it does not define the
predicate crime. That task is performed by the Hobbs Act, which identifies a crime only
when property—including the intangible rights specified in § 501(a)—is obtained by
extortion. The Hobbs Act, unlike § 1346, cannot be construed to proscribe mere selfdealing, that potentially “staggeringly broad swath of behavior,†Sorich v. United States,
129 S. Ct. at 1309 (Scalia, J., dissenting from denial of certiorari), that had raised
particular vagueness concerns regarding honest services fraud before Skilling, 130 S. Ct.
at 2932–33 & n.44 (noting that if Congress wished to criminalize self-dealing, it would
have to speak “more clearly than it has,†and further noting various concerns with limiting
standard proposed by government). To eliminate that vagueness concern, Skilling cabined
honest services fraud to cases in which the breach of duty was procured by the corrupt
24
participation of a “third party†who paid either “bribes or kickbacks†for the breach. See
id. at 2928. By contrast, because the principal in a Hobbs Act violation is not the party
committing the fiduciary breach, but the person who procures the breach by statutorily
specified wrongful means—extortion—the ambiguity concerns with § 1346 are simply not
present in the Hobbs Act. The extortion element of the Hobbs Act serves the same
limiting function as the bribe-kickback element of § 1346, serving notice that a crime
depends on a third party obtaining property through the wrongful use of threats or fear to
achieve the property’s surrender. Indeed, such extortion with respect to § 501(a) rights fits
within the core misconduct that is labor racketeering. See Evans v. United States, 504
U.S. 255, 262–63 (1992) (noting Congress passed Hobbs Act to prohibit labor
racketeering).
In sum, we identify nothing in Skilling that warrants a deviation from our holding
in Gotti that intangible property, specifically, the LMRDA rights derived from the
enumerated duties in § 501(a), can support a valid Hobbs Act extortion charge.
b.
The Tangible Property Theories
The indictment alleged that Coppola obtained and conspired to obtain tangible
property from union members in the form of “labor union positions, money paid as wages
and employee benefits and other economic benefits†that the union members would have
obtained but for the conspirators’ “corrupt influence over [the] union.†Indictment ¶¶ 16,
19.
Through trial and on appeal, the government focused on two tangible property
25
theories: (1) “tribute payments†from membership funds, and (2) “the salary and benefits
paid to [Local 1235] presidents who were not living up to their obligations to have the
membership in their best interest.†Trial Tr. at 1544.
Coppola does not—and cannot—contend that the extortion of tribute payments
from a union by an organized crime family fails to state a viable Hobbs Act offense.
Rather, he challenges the viability of the government’s “salary theory,†i.e., that Coppola
obtained tangible property from Local 1235 union members in the form of the salaries they
paid to corrupt union presidents. See Trial Tr. at 1644 (government summation: “When
the Mob threatens a union leader to get a union leader to do what it wants, the Mob
deprives the union membership [of] the benefit of the salary that they paid that official.
The Mob deprives the membership of a union leader who will exercise his rights solely in
the interest of the membership of the union.â€).11
In support, Coppola relies on Scheidler v. National Organization for Women, Inc.,
537 U.S. 393 (2003), which holds that the use of threats or fear to interfere with or disrupt
a person’s exercise of property rights is not enough to establish a Hobbs Act violation. A
11
We note that this salary theory is somewhat distinct from the variant upheld by a
number of courts in the fraud context, where a defendant fraudulently obtains a position and
therefore also receives the salary and benefits that come with that position. See, e.g., United
States v. Granberry, 908 F.2d 278, 280 (8th Cir. 1990); United States v. Doherty, 867 F.2d
47, 60 (1st Cir. 1989) (Breyer, J.); but see United States v. Ratcliff, 488 F.3d 639, 645 (5th
Cir. 2007) (rejecting that theory in election fraud context); United States v. Turner, 465 F.3d
667, 681 (6th Cir. 2006) (same). We have no occasion to determine whether, as the
government urges, this court has implicitly accepted that variant of the “salary theory.†See
United States v. Schermerhorn, 906 F.2d 66, 69 (2d Cir. 1990); Ingber v. Enzor, 841 F.2d
450, 456 (2d Cir. 1988).
26
defendant must “obtain†the property for himself. Id. at 405. The government has never
claimed that the Genovese family obtained the actual dollars that were supposed to be paid
as salary to Local 1235 presidents. Rather, it contends that the enterprise received the
loyalty of these presidents without having to pay for it because the presidents were
compensated by the union membership.
This, Coppola submits, at most alleges the
procurement of members’ intangible right to their presidents’ honest services, a claim that
cannot be maintained under either the Hobbs Act or § 1346 after Skilling. Cf. United
States v. Goodrich, 871 F.2d 1011, 1013–14 (11th Cir. 1989) (concluding, in fraud
context, that similar theory could be maintained only as fraudulent deprivation of
intangible rights, not property).
The point merits little discussion because even if we were to agree with Coppola
and, further, conclude that Yates v. United States, 354 U.S. at 312, applied to these
circumstances, any error would be harmless. See Hedgpeth v. Pulido, 555 U.S. at 58;
accord Skilling v. United States, 130 S. Ct. at 2934 n.46. If the jury found that Coppola
conspired to extort the salaries of Local 1235 presidents by corrupting them to act in the
interests of the Genovese family rather than their membership, then the jury necessarily
would have had to conclude that Coppola conspired to extort the union membership of its
intangible LMRDA rights under § 501(a).12
12
For the reasons stated in the preceding
The Supreme Court in Skilling did not specify the standard applicable to harmless
error review in this context. See United States v. Skilling, 638 F.3d 480, 481–82 (5th Cir.
2011) (noting uncertainty and determining whether, on review of record, appellate court
could determine beyond reasonable doubt that jury would have convicted on valid ground,
27
section, we conclude that the alleged extortion of such LMRDA rights is validly
proscribed by the Hobbs Act even after Skilling. Moreover, as discussed below, the
government adduced sufficient evidence to support the jury’s finding that Coppola
extorted the LMRDA rights of Local 1235 members.
We thus reject Coppola’s challenge to the validity of Racketeering Act One.
2.
Sufficiency of Evidence To Prove Extortion Subpredicates
Coppola challenges the sufficiency of the evidence to support the jury’s conclusion
that (a) he obtained and conspired to obtain tangible or intangible property from Local
1235 members; (b) with consent; (c) through the wrongful use of actual or threatened fear
or violence. The record defeats his arguments.
a.
Property Obtained from Local 1235 Members
The recorded March 6, 2007 conversations between Coppola and Edward Aulisi
provide direct evidence that Coppola obtained and conspired to obtain property belonging
to the members of Local 1235 for the benefit of the Genovese family. The conversations
indicate that the property at issue was both tangible, insofar as Coppola received monies
belonging to the union membership, and intangible, insofar as he deprived members of
their § 501(a) right to have union presidents hold union “money and property solely for the
citing Neder v. United States, 527 U.S. 1, 19 (1999)); United States v. Black, 625 F.3d 386,
392 (7th Cir. 2010) (asking whether reasonable jury might have convicted on invalid theory
but acquitted on valid theory). We need not decide this question, because the error here
would be harmless under any conceivable standard. Proof of extortion under the salary
theory necessarily establishes the facts required to show extortion of LMRDA rights.
28
benefit of the organization and its members†and obtained for himself the right to dispose
of such money and property for the benefit of the Genovese family.
In reaching this conclusion, we assume that the jury interpreted certain coded terms
to reference three Local 1235 presidents: (1) “the Vet†referenced then-Local 1235
president, Vincent Aulisi, based on the context of the conversation as well as the fact that
Vincent Aulisi’s initials, “VA,†are an acronym for the Veterans Administration;
(2) “Cong†referenced Vincent Colucci, based on Coppola’s statements that Cong had “the
same name†as the younger Aulisi’s “Pop,†i.e., “Vincent,†and “was the first one,†i.e.,
the first Local 1235 president to align the union with the Genovese family, as testified to
by Barone, Gov’t Ex. TR-CD-7 (T6) at 7;13 and (3) “Bull†referenced outgoing Local 1235
president Albert Cernadas, based on Coppola’s statement that a party was being thrown for
him, which was corroborated by agent testimony.
With this understanding, a reasonable jury could have found that, in the March 6
conversations, the younger Aulisi was conveying to Coppola his father’s assurances that
Local 1235 would continue to make tribute payments to the Genovese family. Edward
Aulisi reported to Coppola that outgoing Local 1235 president Cernadas had made
statements suggesting that “month[ly]†payments and “Christmases†were “gonna endâ€
when he stepped down as president. Gov’t Ex. TR-CD-7 (T6) at 6. By themselves, such
13
As the government argued, the inference was reinforced by the fact that Colucci’s
initials, “VC,†were a common acronym for the Viet Cong, sometimes called simply “the
Cong.†The Vietnam War ended in 1975, the first year of Colucci’s presidency.
29
statements confirmed that Coppola and the Genovese family had obtained membership
money in the past. The younger Aulisi, however, went further, stating that his father had
told Cernadas that he was wrong about the payments ending: “[T]he beat goes on, whether
you’re here or not.†Id. Indeed, Edward Aulisi told Coppola that payments not only
would continue, but also that amounts collected had “almost doubled,†id., and that he had
“another chunk†for Coppola, representing approximately three months’ payments, Gov’t
Ex. TR-CD-7 (T7) at 1–2. These statements permitted the jury to find that Coppola was
involved in a continuing scheme to obtain union members’ tangible and intangible
property.
In urging a different view of the March 6 conversations, Coppola submits that the
government’s interpretation of coded references and its assertion that the conversations
concerned money payments were uncorroborated. In any event, Coppola asserts that, even
if the conversations did reference money payments, the source was not necessarily Local
1235 membership funds. The payments could as easily have come from Edward Aulisi’s
trucking business or from Vincent Aulisi’s personal funds.
The argument is not convincing. As our discussion of code names in the March 6,
2007 conversations demonstrates, the references are not as obscure as Coppola urges. Nor
are the interpretations and inferences urged by the government so speculative as to
preclude adoption by a reasonable jury familiar with the totality of the evidence. Indeed,
the inferences are entirely consistent with the totality of the evidence, which established
30
the common scheme or plan employed by the Genovese family to control substantial parts
of the New York–New Jersey waterfront and to extort millions of dollars from businesses
and unions alike through fear. Insofar as Coppola hypothesizes alternative sources for the
monies paid, we are “mindful that the task of choosing among permissible competing
inferences is for the jury, not a reviewing court.†United States v. Florez, 447 F.3d 145,
154–55 (2d Cir. 2006). Coppola was free to argue—and in fact did argue—alternative
inferences in urging the jury to interpret the March 6 conversations narrowly in his favor,
but we cannot conclude that a reasonable jury was compelled as a matter of law to adopt
Coppola’s arguments.
Assuming, as we must, that the jury drew the inferences permissibly urged by the
government, we conclude that the March 6 conversations provide direct evidence that
Coppola had obtained and conspired to obtain tangible property in the form of Local 1235
membership monies and intangible property in the form of the members’ § 501(a) right to
have union presidents dispose of that money for the sole benefit of members and the
union, not for the benefit of the Genovese family. This part of Coppola’s sufficiency
challenge, therefore, fails on the merits.14
14
We note that, as further evidence that Coppola extorted union members’ § 501(a)
rights to have Local 1235 presidents dispose of union property for their benefit rather than
that of the Genovese family, the government points to parts of the March 6, 2007
conversations indicating that Coppola had made and was continuing to make final decisions
regarding certain union job placements. Coppola counters that the statements show that he
prevented Local 1235 presidents from engaging in nepotism, conduct that did not violate
union members’ rights but rather protected them. This misses the point. A jury could
reasonably conclude that if Coppola exercised control over union presidents’ job decisions
31
b.
Consent
Coppola contends that the evidence was insufficient to satisfy the Hobbs Act’s
consent element because the victims of the charged extortion were the Local 1235
members whose property was obtained, not the union presidents, and no union member
“testified to consenting to any property transfer.†Appellant Br. at 54.15 Indeed, in its bill
of particulars, the government maintained that Local 1235 members were unaware that
“their leadership was beholden to organized crime . . . [or] that tribute payments were
being made to members of organized crime.†Gov’t Letter at 2, United States v. Coppola,
08-cr-763 (JG) (E.D.N.Y. May 22, 2009), ECF No. 33.
While styled as a sufficiency challenge, Coppola’s argument appears to question
the legal validity of the indictment, which specifically charged Coppola with conspiring to
obtain the property of “Local 1235 union members . . . with the consent of such union
members’ officers, agents, delegates, employees and other representatives, which consent
was to be induced by wrongful use of actual and threatened force, violence and fear.â€
Indictment ¶¶ 16, 19. Coppola appears to be arguing that only a property owner, and not
despite having no position in the union and, in fact, being legally barred from having any
dealings with union members, such control did not operate to the benefit of members. We
need not pursue the matter further because, even without this evidence, the record of money
payments to Coppola is sufficient to support a jury finding that he deprived Local 1235
members of the § 501(a) right to have union monies disposed of for their benefit and had
obtained for himself the right to have such monies disposed of for the benefit of the
Genovese family.
15
The government does not argue, and we therefore do not consider, whether the
union presidents were also members of the union.
32
an agent in possession, can provide the consent necessary to establish an extortion. We
are not persuaded.
In Gotti, the district court similarly charged the jury that the members’ agents,
representatives, or trustees could provide the necessary consent. See United States v.
Gotti, 459 F.3d at 329. While we had no occasion in Gotti to discuss the consent element
of extortion, upon review of the language of the statute, we now clarify that there is no
requirement that the property owner provide the necessary consent.
See generally
Connecticut Nat’l Bank v. Germain, 503 U.S. 249, 253–54 (1992) (“[C]ourts must
presume that a legislature says in a statute what it means and means in a statute what it
says there. When the words of a statute are unambiguous, then this first canon is also the
last: judicial inquiry is complete.†(internal quotation marks and citations omitted)); accord
United States v. Salim, 549 F.3d 67, 78 (2d Cir. 2008).
Title 18 U.S.C. § 1951(b)(2) defines extortion as “the obtaining of property from
another, with his consent, induced by wrongful use of actual or threatened force, violence,
or fear, or under color of official right.†The statute does not use the word “owner†to
limit the class capable of giving the requisite consent. Nor would such a limitation make
sense given that the consent element serves not to distinguish illegal from legal obtaining
of property by the wrongful use of threats or fear, but rather to distinguish between two
illegal means of so obtaining property: extortion (with consent) and robbery (without
consent). See United States v. Zhou, 428 F.3d 361, 371–72 (2d Cir. 2005) (noting that
33
“victim’s consent†is essential element of crime of extortion and “razor’s edge that
distinguishes extortion from robberyâ€).
A predecessor statute employed somewhat different language with respect to the
consent element: “[o]btains the property of another, with his consent.†Anti-Racketeering
Act of 1934, ch. 569, 48 Stat. 979, § 2(b) (emphasis added). Even if the quoted language
from this earlier statute might be construed to require the consent of the person who owns
the property obtained—a question we need not decide—the language of the phrase
“obtaining of property from another, with his consent†in the current statute reaches more
broadly. 18 U.S.C. § 1951(b)(2) (emphasis added). It references any circumstance in
which property is obtained from a person with that person’s consent.
This plainly
encompasses persons holding property in a fiduciary capacity for an owner, such as the
union officials referenced in the indictment. Indeed, this court has upheld Hobbs Act
convictions involving extortions of individuals not in lawful possession of the property
obtained. See, e.g., United States v. Gotti, 459 F.3d at 325–26 (deeming “untenableâ€
proposition that “one can never ‘extort,’ under the Hobbs Act, illegal property (such as
narcotics)â€); United States v. Scarpa, 913 F.2d 993, 999 (2d Cir. 1990) (affirming
conviction for extorting rival drug dealers); see also United States v. Box, 50 F.3d 345,
353 (5th Cir. 1995) (affirming conviction for extorting forfeited drug proceeds); cf. United
States v. Celaj, 649 F.3d 162, 168–69 (2d Cir. 2011) (affirming conviction for Hobbs Act
robbery of marijuana). Moreover, we have recognized that businesses may be extorted
34
under the Hobbs Act by using threats or fear to induce certain employees’ consent to part
with company property. See United States v. Daley, 564 F.2d 645, 649 (2d Cir. 1977).
Thus, while we have described the consent element by reference to “victim’s
consent,†United States v. Zhou, 428 F.3d at 372, the requirement can be satisfied, as in
this case, by showing that union officials were wrongfully induced to consent to surrender
property that they held in trust for the union membership. Indeed, while Local 1235
members were undoubtedly the primary victims of the charged extortion in that they lost
both tangible and intangible property, their union presidents might also be deemed
victims—albeit less sympathetic ones—insofar as they were forced to choose between
“relinquishing some property [belonging to the membership] immediately or risking
unlawful violence.†United States v. Arena, 180 F.3d 380, 395 (2d Cir. 1999). The Hobbs
Act “prohibits the extortionist from forcing a victim to make such a choice.†Id.; see
United States v. Cain, 2012 WL 265882, at *6 (noting that extortion victim is presented
with “Hobson’s choice†(internal quotation marks omitted)). Because there is no question
as to the sufficiency of the evidence to permit a reasonable jury to find that Local 1235
presidents consented to surrender to the Genovese family property that the presidents held
for the union membership, this part of Coppola’s sufficiency challenge also fails.
c.
Use of Fear
Similarly meritless is Coppola’s sufficiency challenge to that element of extortion
requiring that consent be induced by the “wrongful use of actual or threatened force,
35
violence, or fear.â€
18 U.S.C. § 1
