United States v. Mandel, Crim. No. HM75-0822.

CourtUnited States District Courts. 4th Circuit. United States District Court (Maryland)
Writing for the CourtWilliam G. Hundley, Washington, D. C., for W. Dale Hess
Citation408 F. Supp. 679
Docket NumberCrim. No. HM75-0822.
Decision Date30 January 1976
PartiesUNITED STATES of America, v. Marvin MANDEL et al.

408 F. Supp. 679

UNITED STATES of America,
v.
Marvin MANDEL et al.

Crim. No. HM75-0822.

United States District Court, D. Maryland.

January 30, 1976.


408 F. Supp. 680

Jervis S. Finney, U. S. Atty., D. Md., Asst. U. S. Attys. Barnet D. Skolnik, Ronald S. Liebman and Daniel J. Hurson, for United States.

Arnold M. Weiner, Baltimore, Md., for Marvin Mandel.

William G. Hundley, Washington, D. C., for W. Dale Hess.

Thomas C. Green, Washington, D. C., for Harry W. Rodgers, III.

Michael E. Marr, Baltimore, Md., for William A. Rodgers.

Norman P. Ramsey, Baltimore, Md., for Irvin Kovens.

Joseph A. DePaul, College Park, Md., for Ernest N. Cory, Jr.

MEMORANDUM

HERBERT F. MURRAY, District Judge.

On November 24, 1975, the Grand Jury for the District of Maryland returned a 24-count indictment against the defendants herein, four of those counts charging them with engaging in patterns of racketeering activity prohibited by 18 U.S.C. §§ 1961, 1962 and 1963. Pursuant to the provisions in 18 U.S.C. § 1963(b), counsel for the government have petitioned the Court to enter an order to restrain, pending final disposition of this case, the transfer or other disposition by the defendants of any property or other interests which would be subject to forfeiture upon conviction of the defendants under 18 U.S.C. § 1963(a). Each defendant has filed a brief answer which opposes the entry of such an Order. The sole question before the Court is whether the imposition of such an Order in this case, and at this time, would be appropriate. For the reasons stated below, the Court concludes that it would not.

Counts 21 and 23 of the indictment in substance allege that defendants Marvin Mandel, W. Dale Hess, Harry W. Rodgers, III and William A. Rodgers either acquired and maintained an interest in or conducted the affairs of the Security Investment Company through a pattern of racketeering activity in violation of 18 U.S.C. § 1962. Count 24 in substance charges that defendants W. Dale Hess, Harry W. Rodgers, III, William A. Rodgers, Irvin Kovens and Ernest N. Cory, Jr., conducted the affairs of the Marlboro Race Track (Southern Maryland Agricultural Association, Inc.) through a pattern of racketeering activity in violation

408 F. Supp. 681
of 18 U.S.C. § 1962. Section 1963(a) establishes criminal penalties for the violation of § 1962 which include a mandatory forfeiture provision
Whoever violates any provision of section 1962 . . . shall forfeit to the United States (1) any interest he has acquired or maintained in violation of section 1962, and (2) any interest in, security of, claim against, or property or contractual right of any kind affording a source of influence over, any enterprise which he has established, operated, controlled, conducted, or participated in the conduct of, in violation of section 1962. 18 U.S.C. § 1963(a)

Section 1963(b), under which the government moves for the present Order, provides:

In any action brought by the United States under this section, the district courts of the United States shall have jurisdiction to enter such restraining orders or prohibitions, or to take such other actions, including, but not limited to, the acceptance of satisfactory performance bonds, in connection with any property or other interest subject to forfeiture under this section, as it shall deem proper.

Pursuant to § 1963(b), counsel for the government have filed a petition seeking an order

restraining any and all defendants in this case, and their agents, attorneys, or those persons in active concert or participation with them, from, directly or indirectly, transferring, selling, distributing, or otherwise disposing or changing the present status of, any property or other interest held by any such defendant in any enterprise listed in paragraphs 2 through 4 above.

The enterprises referred to are the Security Investment Company and the Marlboro Race Track (Southern Maryland Agricultural Association, Inc.). The property or other interests referred to are not otherwise identified in the petition. Nor is the indictment much more specific. Defendant Mandel's alleged interest in the Security Investment Company is described in Count 21 only as a "financial interest of substantial value". Count 23 describes the property allegedly subject to forfeitures as the respective "partnership interests" in the Security Investment Company of W. Dale Hess (9%), Harry W. Rodgers, III (16%), and William A. Rodgers (16%). Count 24 refers to the "stock interests" in the Southern Maryland Agricultural Association, Inc., allegedly held by defendants W. Dale Hess, Harry W. Rodgers, III, William A. Rodgers, Irvin Kovens and Ernest N. Cory, Jr.

Defendants Mandel and Kovens expressly deny owning any of the interests described above; defendants Hess and Harry W. Rodgers, III do not concede that they own any of the interests described above; and defendants Cory and William A. Rodgers deny that they have any interest "subject to forfeiture".

The defendants have urged on a number of grounds that the imposition of the order the government seeks would be prejudicial and in violation of their constitutional rights. First, they argue that the entry of such an order without a prior hearing would constitute a deprivation of their property without due process in contravention of the Fifth Amendment. Defendants also argue that even if a hearing were had, the entry of such an...

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19 practice notes
  • United States v. Veon, No. CR. S-81-172A-LKK.
    • United States
    • United States District Courts. 9th Circuit. United States District Courts. 9th Circuit. Eastern District of California
    • April 29, 1982
    ...hearing as an order akin to a preliminary injunction 538 F. Supp. 241 under the same rule. See, in general, United States v. Mandel, 408 F.Supp. 679, 682 (D.C.Md.1976) (In considering whether a restraining order should issue pursuant to the provisions of 18 U.S.C. § 1963(b), the rules devel......
  • U.S. v. Rubin, No. 76-1143
    • United States
    • United States Courts of Appeals. United States Court of Appeals (5th Circuit)
    • September 22, 1977
    ...that: "No conviction or judgment shall work corruption of blood or forfeiture of estate." 18 U.S.C. § 3563. See United States v. Mandel, 408 F.Supp. 679 (D.Md.1976); S.Rep. 91-617, 91st Cong., 1st Sess. 79-80 (1969), hereinafter S.Rep.); 116 Cong.Rec. 35205, 35208 (remarks of Rep. Mirka, Re......
  • U.S. v. Nichols, Nos. 87-1459
    • United States
    • United States Courts of Appeals. United States Court of Appeals (10th Circuit)
    • March 10, 1988
    ...Phillips, 664 F.2d 971 (5th Cir.1981), cert. denied, 457 U.S. 1136 [102 S.Ct. 2965, 73 L.Ed.2d 1354] (1982) ]; United States v. Mandel, 408 F.Supp. 679, 682-84 (D.Md.1976) (court denies order restraining transfer of assets), With United States v. Bello, 470 F.Supp. 723 (S.D.Cal.1979) (court......
  • U.S. v. Monsanto, No. 436
    • United States
    • U.S. Court of Appeals — Second Circuit
    • June 22, 1989
    ...States v. Meinster, supra (court approved post-indictment transfer of assets to defendant's retained counsel); United States v. Mandel, 408 F.Supp. 679, 682-84 (D.Md.1976) (court denies order restraining transfer of assets), [w]ith United States v. Bello, 470 F.Supp. 723 (S.D.Cal.1979) (cou......
  • Request a trial to view additional results
19 cases
  • United States v. Veon, No. CR. S-81-172A-LKK.
    • United States
    • United States District Courts. 9th Circuit. United States District Courts. 9th Circuit. Eastern District of California
    • April 29, 1982
    ...hearing as an order akin to a preliminary injunction 538 F. Supp. 241 under the same rule. See, in general, United States v. Mandel, 408 F.Supp. 679, 682 (D.C.Md.1976) (In considering whether a restraining order should issue pursuant to the provisions of 18 U.S.C. § 1963(b), the rules devel......
  • U.S. v. Rubin, No. 76-1143
    • United States
    • United States Courts of Appeals. United States Court of Appeals (5th Circuit)
    • September 22, 1977
    ...that: "No conviction or judgment shall work corruption of blood or forfeiture of estate." 18 U.S.C. § 3563. See United States v. Mandel, 408 F.Supp. 679 (D.Md.1976); S.Rep. 91-617, 91st Cong., 1st Sess. 79-80 (1969), hereinafter S.Rep.); 116 Cong.Rec. 35205, 35208 (remarks of Rep. Mirka, Re......
  • U.S. v. Nichols, Nos. 87-1459
    • United States
    • United States Courts of Appeals. United States Court of Appeals (10th Circuit)
    • March 10, 1988
    ...Phillips, 664 F.2d 971 (5th Cir.1981), cert. denied, 457 U.S. 1136 [102 S.Ct. 2965, 73 L.Ed.2d 1354] (1982) ]; United States v. Mandel, 408 F.Supp. 679, 682-84 (D.Md.1976) (court denies order restraining transfer of assets), With United States v. Bello, 470 F.Supp. 723 (S.D.Cal.1979) (court......
  • U.S. v. Monsanto, No. 436
    • United States
    • U.S. Court of Appeals — Second Circuit
    • June 22, 1989
    ...States v. Meinster, supra (court approved post-indictment transfer of assets to defendant's retained counsel); United States v. Mandel, 408 F.Supp. 679, 682-84 (D.Md.1976) (court denies order restraining transfer of assets), [w]ith United States v. Bello, 470 F.Supp. 723 (S.D.Cal.1979) (cou......
  • Request a trial to view additional results

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