United States v. Weinberg

• Decision Date: 29 June 1972
• Docket Number: Crim. No. 71-267.
• Citation: 345 F. Supp. 824
• Parties: UNITED STATES of America v. Alan WEINBERG et al.
• Court: U.S. District Court — Eastern District of Pennsylvania

345 F. Supp. 824

UNITED STATES of America v. Alan WEINBERG et al.

Crim. No. 71-267.

United States District Court, E. D. Pennsylvania.

June 29, 1972.

COPYRIGHT MATERIAL OMITTED

Joel Slomsky, Stephen Stein, Strike Force, U. S. Dept. of Justice, Philadelphia, Pa., for plaintiff.

Malcolm H. Waldron, Jr., Joseph A. Torregrossa, Harry S. Tischler, Defender Association of Philadelphia, Mitchell S. Lipschutz, Anthony J. Caiazzo, Jr., Donald C. Marino, Philadelphia, Pa., for defendants.

MEMORANDUM OPINION AND ORDER

VANARTSDALEN, District Judge.

Defendants were charged under Title 18 U.S.C.A. § 371 (1966) (Conspiracy) with conspiring to violate Title 18 U.S. C.A. § 2315 (1970) (Receipt and Pledge of Stolen Securities—Interstate). The government contended that two certificates representing 3745 shares of Common Stock of Chrysler Motors were stolen from a brokerage firm's New York vaults, transported to Pennsylvania, where the defendants, knowing that the securities were stolen, attempted to pledge them with a Philadelphia bank for a large cash loan. Four of the six defendants were charged with the substantive violation of 18 U.S.C.A. § 2315 in addition to the conspiracy count.

Defendant Chilengarian¹ entered a plea of guilty to the conspiracy charge and testified as a government witness at the trial. At the conclusion of the government's case, all defendants moved for judgments of acquittal pursuant to Rule 29(a) of Federal Rules of Criminal Procedure. The motion was granted as to Grasso and denied as to all other defendants. The jury convicted the four remaining defendants; namely, Weinberg, Gornish, Kasparian and Blank on the conspiracy count. The defendants charged with the substantive offense of violation of 18 U.S.C. § 2315 were acquitted on that count.²

The testimony indicated that government agents were told by a "confidential informant" that Weinberg had access to One Million Dollars ($1,000,000) in stolen securities (3-52).³ The confidential informant was identified as Charles Cardonick who was an acquaintance of some, if not all, of the defendants. The informer indicated that the stolen securities were believed to be United States Treasury notes. As a result, a special agent of the Secret Service of the United States Treasury Department was assigned to be in charge of the investigation. He posed in an undercover capacity as a bank loan officer for a Philadelphia bank, using the assumed name of John Campbell. The agent, with the aid of the informer, conducted a series of clandestine meetings separately with Weinberg, Chilengarian and Gornish. In the best "cloak and dagger" tradition, complicated arrangements were negotiated whereby the suspected stolen securities were to be turned over to the agent in his undercover capacity in return for a large cash loan.

The transaction culminated on December 14, 1970, when Chilengarian and the informer entered the bank and Chilengarian delivered to the agent the two certificates for 3745 shares of Chrysler Motors stock. Chilengarian was immediately arrested. Blank and Kasparian, who had brought Chilengarian and the informer to the bank and were waiting outside in a car for their return with the money, were likewise arrested. Grasso and Gornish, also waiting outside the bank in another car were arrested. Weinberg was arrested about one hour later at his Philadelphia office.

MOTIONS FOR JUDGMENT OF ACQUITTAL

A careful review of the evidence indicates that there was sufficient evidence upon which the defendants could be found guilty of conspiracy. The motions for judgment of acquittal will be denied.

The evidence of the conspiracy consisted of testimony of the agent as to the various meetings he had with Weinberg, Gornish and Chilengarian; the testimony of Chilengarian that clearly and directly implicated Weinberg, Gornish and Blank and was sufficient to implicate Kasparian. Several items which tended circumstantially to corroborate the relationship between the various defendants were seized from some of the defendants at the time of their arrests and received in evidence.

The following is a brief summary of the meetings held between the agent and the various defendants:

1. On November 24, 1970, the informer introduced the agent to Weinberg at the Walnut Grill in Philadelphia. The agent posed at that time and all subsequent times as a branch bank loan officer named John Campbell. The discussion concerned delivery of the securities in return for a large bank loan. Weinberg indicated that the securities would be treasury notes in $25,000 denominations—the serial numbers of which he would shortly supply. He further indicated that in a "package type deal" other types of securities might be included and that a deal might be able to be consummated in the near future for a large amount of securities. Weinberg stated that a "loan on a million dollars worth of securities should be about $400,000". (3-34, 36).⁴

2. On December 1, 1970, at a mid-city restaurant, Weinberg and the agent again met and discussed the matter. The agent, who had not indicated in which bank he was employed, was questioned by Weinberg who expressed skepticism as to the agent's identity. Weinberg told the agent he knew the agent worked at The First Pennsylvania Bank & Trust Company because he, Weinberg, had already received a blank checking account card from that bank (3-124). Weinberg also asked how payment would be made to which the agent indicated that $50,000 would be paid in cash and $350,000 placed in a checking account where it could be easily withdrawn.

3. On December 3, 1970, Weinberg met the agent at The First Pennsylvania Bank & Trust Company, where Weinberg produced a list of securities, consisting mostly of corporate stock certificates— none of which were Chrysler Motors or government securities. When the agent questioned Weinberg as to the absence of government securities, Weinberg replied that it was only a partial list. Weinberg said that one of his "associates" would come to the bank to complete the preliminary paper work (3-124, 126).

4. Chilengarian came to the bank with the informer on December 8, 1970, where the informer introduced Chilengarian to the agent. Chilengarian, using the name Morris Abel,⁵ told the agent he was prepared to complete the "loan application and fill out the checking account card to facilitate the loan." (3-127). Account cards under the name Penn Chevrolet Company were signed. Chilengarian said the securities were ready and that the transaction would probably occur the next day. The agent told him the funds would be available and could be taken from the bank on the delivery of the securities. (3-131).

5. On December 9, 1970, the informer introduced the agent to Gornish at a pre-arranged street corner, where they conversed in a parked car. Gornish said the securities were not then in Philadelphia but were en route. Gornish said the deal would take "a little while" and that "the stuff" was in New York. He told the agent to be patient. There was a discussion as to the amount of money to be paid and Gornish said there should be a larger amount of cash. The agent told Gornish that as soon as he obtained information as to "what was going to be coming", he could tell how much cash could be paid. Gornish then went into a nearby office building. He returned a few minutes later and said he had been unable to reach his "contact" by telephone. They then moved the car to another location where Gornish showed the agent the same list of securities that Weinberg had shown him. Gornish told the agent he had given the list to Weinberg and that he, Gornish, "was the top man" and he was "taking care of everything" and that the agent should "listen to him." (3-132 to 142).

6. Gornish telephoned the agent at the bank on three occasions on December 10, 1970, and assured him that the securities would be coming and that "the deal could go through". Gornish said the securities were still not in Philadelphia, but that a man named John, from South Philadelphia, was getting them. (3-145, 148).

7. On December 11, 1970, the agent met with Gornish and Weinberg and the informer in a car in Philadelphia. Gornish said that "the people from New York were very cautious", but that the securities would come from New York possibly on Sunday, December 13, 1970. Gornish also indicated that he was afraid to hold the securities until the deal was ready to be concluded. An argument then ensued between Gornish and Weinberg as to when the securities would be coming and when the deal could be closed. Weinberg said that he had been "fooling around with the deal long enough and that the securities should be taken into their possession as soon as they arrived." (3-148, 151).

8. On December 14, 1970, Chilengarian came into the bank with the informer. The agent asked if he was ready to complete the transaction and he said he was. Chilengarian then handed the two stock certificates to the agent and immediately thereafter Chilengarian was arrested and the other arrests promptly followed.

In addition to the testimony of the agent, the defendant, Chilengarian, who had pleaded guilty, testified. Chilengarian said that Kasparian called him in early December and told him of the possibility of Chilengarian going into a new car agency through a contact of Kasparian's. The following day Chilengarian was introduced to Blank by Kasparian. A discussion took place as to going into business through money that would be obtained through a bank loan. Blank then took Chilengarian to meet the informer. The informer indicated he was familiar with a bank loan officer. It was also indicated that the person who would go into business with Chilengarian had "access to" certain securities of his grandfather which would be pledged for the loan. Chilengarian was informed that the securities were not owned by the person who would deliver them and that the owner had not given permission for their use but that the grandfather...