U.S. v. Wight

• Decision Date: 25 February 1988
• Docket Number: No. 86-3070,86-3070
• Citation: 839 F.2d 193
• Parties: UNITED STATES of America, Plaintiff-Appellee, v. Leon WIGHT, a/k/a Leon Wight Ramazanoff, Defendant-Appellant.
• Court: U.S. Court of Appeals — Fourth Circuit

Page 193

839 F.2d 193

UNITED STATES of America, Plaintiff-Appellee, v. Leon WIGHT, a/k/a Leon Wight Ramazanoff, Defendant-Appellant.

No. 86-3070.

United States Court of Appeals Fourth Circuit.

Argued March 5, 1987.

Decided May 29, 1987.

As Modified on Denial of Rehearing Feb. 25, 1988.

John J. Mullenholz (Neill, Mullenholz & Shaw, Washington, D.C., on brief), for defendant-appellant.

Theresa Barnes-Pirko, Civ. Div., Dept. of Justice (Richard K. Willard, Asst. Atty. Gen., Washington, D.C., Henry E. Hudson, U.S. Atty., Alexandria, Va., Michael F. Hertz, Director, Rita S. Geier, Asst. Director, Washington, D.C., on brief), for plaintiff-appellee.

Before PHILLIPS and ERVIN, Circuit Judges, and MOTZ, United States District Judge for the District of Maryland, Sitting by Designation.

ERVIN, Circuit Judge:

Leon Wight exceeded the scope of his duty by committing criminal acts while working for the United States Agency for International Development ("AID") in India. At the request of an Indian national, Wight acted as a courier, making purchases in Hong Kong and smuggling the purchased items into India. Wight's smuggling operations came to an abrupt end when he was detained at Indian customs, and a search of his baggage yielded undeclared items. After returning to the United States, Wight pleaded guilty to a criminal information charging him with accepting gratuities through his government post in violation of 18 U.S.C. Sec. 201(g) (1982). The government then filed this civil action, seeking to recover the payments Wight received from the Indian national and the proceeds of the goods Wight smuggled into India. Wight now challenges the $70,107 judgment entered against him in the civil suit, claiming that it is unsupported by the evidence. Because we agree, we reverse and remand this case for the entry of a judgment in favor of the government in accordance with this opinion.

I.

Leon Wight served the government for many years. Wight began working with AID in 1959. For the next twenty-two years he was assigned to various AID missions throughout the world. In June, 1980, Wight landed in New Delhi, India, where he served as the Controller/Management Officer of the AID mission.

While Wight was in New Delhi, an Indian national named Kumar contacted him, asking Wight to act as a courier to bring watches, vitamins, and other articles into India from other countries. Wight willingly participated in the scheme. From February, 1981 to November, 1982, Wight made several trips between New Delhi and Hong Kong. On these trips, most of which occurred during Wight's vacation time, Wight picked up items that Kumar had purchased in Hong Kong and brought them back into India. Kumar then took the items, reimbursed Wight for his travel expenses, and paid Wight a fee for each trip.

Indian authorities finally discovered Wight's activities, which violated Indian customs laws. On November 1, 1982, these authorities detained Wight as he was passing through Indian customs carrying articles for Kumar. Officials searched Wight's luggage and found undeclared articles. Indian authorities subsequently searched Wight's home and seized his accounting records.

Wight was reassigned to AID headquarters in Washington, D.C. The United States government filed a two-count criminal information against him. Count One alleged that Wight had been issued a diplomatic passport entitling him to diplomatic courtesies, including passage through Indian customs without having his luggage searched. Wight was charged with receiving over $70,107 from Kumar for acts performed other than those within the scope of his official duties, in violation of 18 U.S.C. Sec. 201(g). Count Two charged Wight with knowingly and wilfully submitting false tax returns, in violation of 26 U.S.C. Sec. 7206(1) (1982). Wight pleaded guilty to this criminal information. As a result of his plea, Wight was incarcerated, was fined $10,000, and was assessed federal income tax penalties of $22,820.

The government continued its pursuit of Wight by filing this civil action in October, 1985, seeking damages in the amount of the payments Wight received from Kumar and the profits from the sale of the smuggled goods. The government moved for summary judgment against Wight, asserting collateral estoppel on the basis of the criminal information and the plea agreement in the earlier criminal action. After a hearing on the government's motion, the district court granted partial summary judgment for $70,107, the amount appearing in the criminal information. ¹

At trial, the government sought additional damages beyond the $70,107 already awarded in partial summary judgment. The lower court, however, entered judgment against Wight for $70,107, based on the partial summary judgment. This appeal followed.

II.

On appeal, Wight first contends that the trial court erred in holding that he was an agent of the government for purposes of 18 U.S.C. Sec. 201(g), because his smuggling efforts did not occur within the scope of his employment. Section 201(g) prohibits a public official, other than as provided by law in the discharge of his duties, from seeking, accepting, or receiving anything of value "for or because of any official act performed or to be performed by him." See, e.g., United States v. Drumm, 329 F.2d 109 (1st Cir.1964) (Department of Agriculture poultry inspector who received money from company whose products he inspected was liable to government under Sec. 201(g) for payments received).

We see at least two problems with Wight's argument. First, as Wight himself admits, at least some of his smuggling activities took place during working hours. In his affidavit, Wight stated that he was on government business in October, 1980, when he brought goods into India for Kumar. Also, Wight testified that he took a family vacation trip to the Middle East at the government's expense and carried back items for Kumar.

Second, and more importantly, Wight specifically pleaded guilty to the criminal information charging him with using his official status to bring goods into India, in violation of Sec. 201(g). In making this plea, Wight clearly acknowledged his agency status for purposes of Sec. 201(g). Consequently, Wight is collaterally estopped from denying his liability in the government's civil suit. See United States v. DiBona, 614 F.Supp. 40 (E.D.Pa.1984) (where corporation's officers had pleaded guilty to violating False Claims Act in earlier criminal proceeding, corporation was collaterally estopped from denying liability in subsequent civil Federal Claims Act suit).

III.

In Wight's case, however, the application of collateral estoppel does not extend beyond the determination of liability. We reject the government's position, which the district court apparently adopted, that Wight is collaterally estopped from challenging the amount of the damage award because he pleaded guilty to the criminal information. We reach this conclusion because the specific damage award was not included as an essential part of Wight's plea agreement.

Collateral estoppel or issue preclusion is premised on the notion that a judgment in a prior suit "precludes relitigation of issues actually litigated and necessary to the outcome of the first action." Parklane Hosiery Co. v. Shore, 439 U.S. 322, 326 n. 5, 99 S.Ct. 645, 649 n. 5, 58 L.Ed.2d 552 (1979) (citing 1B J. Moore, Moore's Federal Practice p 0.405(1), at 622-24 (2d ed. 1974)). When determination of an issue in a prior action was necessary and essential to the judgment, the parties to a second action are precluded from later raising that issue. See, e.g., United States v. Colacurcio, 514 F.2d 1, 6 (9th Cir.1975). The doctrine of collateral estoppel may apply to issues litigated in a criminal case which a party seeks to relitigate in a subsequent civil proceeding. See Emich Motors Corp. v. General Motors Corp., 340 U.S. 558, 568, 71 S.Ct. 408, 413, 95 L.Ed. 534 (1951). In some instances, the criminal conviction may be a plea agreement: a defendant is precluded from retrying issues necessary to his plea agreement in a later civil suit. See, e.g., DiBona, 614 F.Supp. at 41-43.

The critical issue in this case, then, is whether or not the amount of damages was a necessary and essential element of the plea agreement that Wight entered. Wight's plea agreement reads, in pertinent part:

It is the government's understanding that the defendant, LEON WIGHT, will at this time waive indictment and plead to an Information previously filed with the Court. Count One of the Information charges the defendant, that in his position [sic] an employee of the USAID/India Mission, a public official, he accepted gratuities for himself from Y.M. Kumar in New Delhi, India, for or because of official acts to be performed by him, in violation of ...