U.S. v. Craig
| Decision Date | 21 March 1978 |
| Docket Number | 76-2092 and 76-2093,76-2090,Nos. 76-2089,s. 76-2089 |
| Citation | 573 F.2d 455 |
| Parties | UNITED STATES of America, Plaintiff-Appellee, v. Robert CRAIG, Frank P. North, Jr., Peter V. Pappas and Jack E. Walker, Defendants-Appellants. |
| Court | U.S. Court of Appeals — Seventh Circuit |
William A. Barnett, Charles R. Purcell, Peter V. Pappas, William J. Nellis, Anna R. Lavin, Chicago, Ill., for defendants-appellants.
Samuel K. Skinner, U. S. Atty., James F. Holderman, John S. Gleason, III, Asst. U. S. Attys., Chicago, Ill., for plaintiff-appellee.
Before SWYGERT and CUMMINGS, Circuit Judges, and CAMPBELL, Senior District Judge. *
In December, 1974, fifteen persons were charged in various counts of a fourteen count indictment. Count One charged the defendants with conspiracy to commit mail fraud in violation of 18 U.S.C. § 371. Counts Two through Twelve charged the substantive crime of mail fraud in violation of 18 U.S.C. § 1341, alleging that the defendants and unindicted co-conspirators devised a scheme and artifice to "defraud the citizens of the State of Illinois of their right to the loyal, faithful, and honest services of those defendants and co-conspirators . . . who were public officers and members of the Illinois General Assembly . . . in the performance of acts related to their official duties and functions." Counts Two through Twelve also alleged that the defendants devised a scheme to "defraud the State of Illinois, its citizens, its public officers, its public employees and the loyal, faithful and honest members of the Illinois General Assembly of their right to have the State's legislative business conducted honestly and impartially, and in accordance with the laws of Illinois, free from deceit, corruption, misconduct, conflict of interest, bribery and fraud, and willful concealment thereof." Each of Counts Two through Twelve alleged that the various defendants and co-schemers caused a specific mailing to be made for the purposes of executing the scheme. Each of Counts Two through Twelve are also alleged to be overt acts of the conspiracy charged in Count One. Counts Thirteen and Fourteen charged a violation of 18 U.S.C. § 1951, alleging that the various defendants caused an individual to travel in interstate commerce with intent to promote an unlawful activity, namely bribery in violation of Illinois Revised Statutes, Chapter 38, § 33-1.
Prior to trial seven defendants entered pleas of guilty to Count One, and the other charges against them were dismissed. Eight defendants stood trial. Following a jury trial that lasted over two months, six defendants were found guilty, and two were acquitted. The proceedings and disposition as to each defendant are set forth in the margin. 1
In the six county metropolitan Chicago area, a trade association known as the Northern Illinois Ready-Mix and Materials Association (NIRMMA) represented the interest of the ready-mix cement industry. For many years prior to the events which formed the basis of this prosecution, NIRMMA, through its Transportation Committee, was desirous of increasing by one cubic yard 3 per truck the amount of ready-mix cement which industry trucks could legitimately haul on Illinois roads.
The Board of Directors of NIRMMA held a meeting in Chicago on October 20, 1971. At this meeting, James McBride, 4 an employee of Material Service Corporation and an unindicted co-conspirator, informed the NIRMMA Board that the Illinois garbage hauling industry had just obtained weight relief for garbage trucks through the passage of legislation in the Illinois General Assembly, and that the time was right for the ready-mix cement industry to do likewise. McBride indicated that he knew an attorney, defendant Peter V. Pappas, who could assist the ready-mix industry in drafting their legislation for a $5,000.00 fee. McBride also stated at the meeting that Peter V. Pappas was very close to the Illinois Motor Vehicle Laws Commission an important Commission in obtaining the passage of weight relief legislation and that any such legislation would cost a considerable amount of money. Two NIRMMA Board members, Arnold Moeller of Meyer Material Company and Bernard Arquilla of Accurate Ready-Mix, estimated that the weight relief legislation could run as high as $100,000.00.
About one week after this meeting, McBride met with members of NIRMMA's Transportation Committee at the NIRMMA offices in Chicago. McBride informed the members that the assistance of Peter V. Pappas was necessary in procuring the desired weight relief legislation, and that an undisclosed amount of money would be required. Morris A. Lauwereins, an unindicted co-conspirator and co-chairman of the NIRMMA Transportation Committee, participated with other committee members in drawing up an agenda specifying what relief the industry desired, and instructed McBride to meet with Peter V. Pappas. In order to assure a state-wide effort for ready-mix truck weight relief, Lauwereins told other committee members to contact the downstate ready-mix association, known as the Illinois Division Midwest Ready-Mix Concrete Association.
McBride, Merlin Wille, Lauwereins, and Tom Connolly, the Executive Secretary of NIRMMA all of whom were associated with the ready-mix industry met with Peter V. Pappas several days later in a private room at a Chicago hotel. Peter V. Pappas outlined the procedures to be followed in seeking weight relief legislation. After Lauwereins gave him the agenda specifying the relief sought by the industry, Peter V. Pappas stated that an unspecified amount of money would be required at a later time, and that his fee for drafting the proposed bill was $5,000.00.
The record demonstrates that sometime during the period from mid-October, 1971, to the early part of November, 1971, Peter V. Pappas spoke with Representative Pete Pappas, 5 a Republican member of the Illinois House of Representatives and a member of the Illinois Motor Vehicle Laws Commission. Peter V. Pappas informed Pete Pappas of his meeting with the ready-mix industry people and stated "he thought he could get us some money for the passage of weight relief legislation." In answer to Peter V. Pappas' question as to how much it would take, Pete Pappas answered that he did not know, but would check and get back to Peter V. Pappas.
Pete Pappas testified that he then spoke with defendant Donald Carpentier, a Republican member of the Illinois Senate, and also a member of the Motor Vehicle Laws Commission. Pete Pappas testified that he told Carpentier that Peter V. Pappas had said "that there was a chance that we could get some money on weight relief from the ready-mix people," and had inquired of him as to how much it would take.
Pete Pappas further testified that later that same day he talked with defendant Robert Craig, a Democratic member of the Illinois House of Representatives. Pete Pappas told Craig that Peter V. Pappas had said "that there was a chance that we could get some money on the weight relief for the ready-mix industry." After reiterating to Craig that Peter V. Pappas had asked him how much it would take and that he answered him that he did not know, and that he had asked the same question of Carpentier and had received the same answer, Pete Pappas testified that he asked Craig: "Bob, if you have any idea as to how much money it would take to get it through?" Craig answered that he wasn't sure but would get back to him.
Pete Pappas further testified that Craig contacted him within a few days. A conversation ensued among Craig, Pete Pappas and Carpentier. Pete Pappas asked Craig if he had any figures or any idea how much it would take. Craig responded that he thought he could get it through for "ten". Following Craig's lead, Pete Pappas and Carpentier each indicated that it would take "ten" to get the legislation through his side. 6 During this conversation, Craig indicated that the money would have to be paid as the bill passed each House. Carpentier was to handle the Republican side of the Senate; Craig, the Democratic side of the House; and Pete Pappas, the Republican side of the House. The three then discussed the need for a Democratic Senator to handle the bill on that side, and Pete Pappas indicated that he would talk with Senator Kenneth Course.
A few hours later, Pete Pappas spoke with Senator Course at Course's desk on the floor of the Illinois Senate. Pappas said, "Kenny, there is going to be some money on the cement bill and I just finished talking with Bob (Craig) and Don (Carpentier) and we are going to try and get ten for each side to get the bill through and I want to know if you would be willing to handle the Democratic side of the Senate." Course responded: "It is whatever you guys decide is fine with me." Pete Pappas advised Course that the money would be paid as the bill passed each House.
While these events took place in Springfield, Wille and Lauwereins met with representatives of the downstate ready-mix trade association, the Illinois Division Midwest Ready-Mix Concrete Association (ID-MRCA), on October 30, 1971, at a restaurant in Bloomington, Illinois. Defendants Jack Chalden and Herbert Craig, 7 both associated with ID-MRCA, and Lou Marcy and Ed Sembel of other downstate concerns were told by Lauwereins that the time was right for ready-mix truck weight relief and that ID-MRCA and NIRMMA should join together in the effort because it would be expensive. Lauwereins also told the group that it would be wise for a downstate spokesman to promote and carry through the bill. He indicated to the downstaters that there would be a $5,000.00 fee for drafting the bill, as well as other unidentified expenses.
On November 5, 1971, a luncheon meeting was held at a Chicago hotel. Present at this meeting were downstaters Chalden and Sembel and NIRMMA members Wille,...
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