United States v. Leche, Cr. No. 9430.

• Citation: 34 F. Supp. 982
• Decision Date: 15 March 1940
• Docket Number: Cr. No. 9430.
• Parties: UNITED STATES v. LECHE et al.
• Court: U.S. District Court — Western District of Louisiana

34 F. Supp. 982

UNITED STATES v. LECHE et al.

Cr. No. 9430.

District Court, W. D. Louisiana, Alexandria Division.

March 15, 1940.

Harvey G. Fields, U. S. Atty., and Malcolm E. Lafargue, Asst. U. S. Atty., both of Shreveport, La., for plaintiff.

St. Clair Adams & Son, of New Orleans, La., John R. Hunter, Sr., of Alexandria, La., and J. B. Thornhill, of Monroe, La., for defendants.

DAWKINS, District Judge.

The defendants, Richard W. Leche, L. P. Abernathy and George B. Younger were indicted for using the mails in furtherance of a scheme to defraud. All defendants demurred to the indictment on the ground that it failed to charge a crime against them and was duplicitous. They also asked for a bill of particulars as to certain matters charged.

The bill charges that "before the dates of committing of the offenses hereinafter mentioned" the defendants had formed a scheme to defraud the Louisiana Highway Commission, the State of Louisiana, and its citizens and taxpayers; that at the time of the formation of the said scheme, the defendant, Leche, was Governor of the State, Abernathy was Chairman of the State Highway Commission, and Younger was in charge of or connected with the Younger Motor Truck Company, Inc. of Alexandria, Louisiana; that the scheme was that "the defendants would and did sell to and purchase through the Younger Motor Truck Company, Inc. * * * for the * * * Highway Commission and State * * * motor trucks manufactured by the International Harvester Company, and equipment for said trucks at prices which the defendants then and there well knew were approximately 10% above and greater than the prevailing list or retail market prices * * * so as to realize from said sales and purchases for said defendants unusually large and unearned profits from the said Highway Commission and the State of Louisiana * * *." That the defendants knew said International Harvester Company had, in its contracts with dealers, reserved to itself the right exclusively "to make sales * * * to States and departments thereof * * *", and on which no dealers' commissions would be charged and in addition such purchasers would be allowed further discounts from lists or retail market prices; that the defendants "would and did thus cause the said Louisiana Highway Commission and the State of Louisiana to send and pay to the Younger Motor Truck Company, Inc. * * * in October, 1937 and September, 1938, for two purchases of a total of two hundred and thirty-three (233) * * * trucks and equipment therefor, a total of three hundred and ninety-seven thousand, three hundred and thirty-two and fifty-nine one hundreds ($397,332.59) dollars, of which sum approximately two hundred and sixty-eight thousand, sixty-nine and fifty-nine one hundreds ($268,069.59) dollars was the cost of said two hundred and thirty-three (233) trucks and equipment * * * seventeen thousand, eight hundred and ninety-one and ninety one hundreds ($17,891.90) dollars was for freight and taxes charged on the purchases, and approximately one hundred and eleven thousand, three hundred and seventy and fifty-six hundreds ($111,370.56) dollars, which was about forty-one per cent (41%) of the cost of the trucks and equipment, was also distributed by the Younger Motor Truck Company, Inc., George Younger and one James Thomas, as profits on the two sales made to the Louisiana Highway Commission and the State of Louisiana for the use and benefits of the defendants; and that the said defendants would and thus did fraudulently obtain from the said Highway Commission, the State of Louisiana and the taxpayers" the said amount "above and over what the Louisiana Highway Commission and the State of Louisiana could have purchased the aforesaid motor trucks and equipment * * * from the manufacturers" or for "only approximately fifty-nine per cent (59%) of the money paid to the said defendants."

I quote from the indictment further as follows:

"A further part of the scheme was that said defendants would and did on or about August 1, 1937, enter into an agreement to sell to and purchase for the Louisiana Highway Commission and the State of Louisiana 138 motor trucks manufactured by the International Harvester Company, and equipment therefor manufactured by the International Harvester Company, Braden Winch Manufacturing Company, and Nabors Trailer Company, et al, all of which motor trucks and equipment were invoiced and billed to the Louisiana Highway Commission under date of October 5, 1937, at a price substantially in excess of the prevailing list or retail market price of said motor trucks and equipment, and for a total sum of Two Hundred Twenty-Seven Thousand, One Hundred Seventy-Three and 54/100 Dollars ($227,173.54), all of which was paid by checks of the Louisiana Highway Commission Nos. 4331, 4332, 4333, which were issued and caused to be issued by the said defendants on October 13, 1937, for the total sum of $227,173.54, of which sum $157,864.01 represented the actual cost to the said defendants of the said motor trucks and equipment, $11,378.47 represented the freight and tax on the said motor trucks and equipment, and $57,931.06 represented profit distributed through the Younger Motor Truck Company, George Younger and James Thomas for the use and benefit of said defendants; and that the Louisiana Highway Commission, the State of Louisiana, and its taxpayers would be and were defrauded out of the said profit of $57,931.06 to said defendants, because, as the said defendants well knew, the said Louisiana Highway Commission could and would have purchased the said motor trucks and equipment from the manufacturers thereof at approximately $57,931.06 less than paid by the Louisiana Highway Commission under date of October 13, 1937, to the Younger Motor Truck Company, Inc. at Alexandria, Louisiana, for the said defendants.

"A further part of the scheme was that the said defendants would and did on or about July 25, 1938, enter into an agreement to sell to and purchase for the Louisiana Highway Commission and the State of Louisiana 95 motor trucks manufactured by the International Harvester Company and equipment therefor manufactured by the Hercules Steel Products Company and the Nabors Trailer Company, all of which motor trucks and equipment were invoiced and billed to the Louisiana Highway Commission under date of September 15, 1938, at a price substantially in excess of the prevailing list or retail market price of said motor trucks and equipment, and for a total sum of $170,158.51, all of which was paid by warrant of the Louisiana Highway Commission No. 1529, which was issued and caused to be issued by the said defendants on September 16, 1938, for the total sum of $170,158.51, of which sum $110,205.58 represented the actual cost to the said defendants of the said motor trucks and equipment, $6,513.43 represented the freight and tax on the said motor trucks and equipment, and $53,439.50 represented profit distributed through the Younger Motor Truck Company, George Younger, and James Thomas for use and benefit of the said defendants; and that the Louisiana Highway Commission, the State of Louisiana, and its taxpayers would be and were defrauded out of the said profit of $53,439.50 to said defendants, because as the said defendants well knew, the said Louisiana Highway Commission could and would have purchased the said motor trucks and equipment from the manufacturers thereof at approximately the same price paid for them by the said defendants, and for approximately $53,439.50 less than paid by the Louisiana Highway Commission under date of September 16, 1938, to the Younger Motor Truck Company, at Alexandria, Louisiana, for the said defendants."

That as a further part of the said scheme, the defendants did fail and refuse to comply with the laws of the State which required the advertising for bids in all purchases in excess of $500 "to be paid out of public funds and to award the business to the lowest bidder, because they, the defendants, knew that bids would be submitted in response thereto, which would make it impossible for them to obtain the said profit of $111,370.56, which was distributed as follows, to-wit:

                "To Younger Motor Truck Company ....... $56,953.44
                To James Thomas .......................  54,417.12
                

The said James Thomas subsequently distributed the sum received by him, namely, $54,417.12 in part as follows, to-wit:

                To Richard W. Leche .............. $31,000.00."
                

Further, that "among the many material false and fraudulent pretenses, representations and promises made by the said defendants, for the purpose of inducing the said Commission and State, and persons to be defrauded to pay the funds amounting to $111,370.56 * * * and for defrauding the said Commission" were that "on or about October 5th, 1937" the Commission "was indebted to the Younger Motor Truck Company, Inc. * * * in the sum of $227,173.54 for one hundred and thirty-eight (138) motor trucks and equipment * * * delivered to the * * * Commission by the said defendants through the said Younger Motor Truck Company, Inc.; whereas, in truth and in fact, as the said defendants well knew" the said trucks and equipment had been purchased by the said defendants at approximately "$169,242.48, including freight and taxes, and which sum was all that was due by the Louisiana Highway Commission * * *."

Further, that on or about September 15th, 1938, they did represent that the Commission was indebted to said Younger Motor Truck Company, Inc., in the sum of $170,158.51 "for ninety-five (95) trucks * * * whereas in truth and in fact", they had cost only $116,719.01 "including freight and taxes" and was all that was due therefor by said Commission.

Further quotations from the indictment are as follows: "And your Grand Jurors, aforesaid, say present and find that each and every one of the pretenses, representations and claims made and intended to be made for the said defendants were false and untrue and...