Pimps, prostitutes, and drug users feature in this section of the court records, where we found evidence that Bill Scott, who runs Intercasino for Cryptologic, was heavily involved in heroin trafficking.
A Porsche arrives from Germany with "dope" hidden in the trunk. Not surprisingly, the judge decided the conclusion was easily reached "that the corporation was a front for the criminal syndicate, through which ill-gotten money could be channeled and under which criminal activity could be hidden."
Read the court extracts here ……………….
Below are extracts from the court records, 100% original, not edited
SECTION E - CASE 8891
(RARE ELEMENTS, INC.)
ASSIGNMENTS OF ERROR TWO AND THREE
"2. The trial court committed prejudicial error in failing to grant the defendant Rare Element's motion for judgment of acquittal as to counts I and II o 5b4 f the indictment.
"3. The jury's verdict of guilty against Rare Elements, Inc. on counts I and II of the indictment was unsupported by the weight and sufficiency of the evidence."
R.C. 2901.23 defines the parameters of organizational criminal liability. That statute provides in part:
"(A) An organization may be convicted of an offense under any of the following circumstances:
"***
"(2) A purpose to impose organizational liability plainly appears in the section defining the offense, and the offense is committed by an officer, agent, or employee of the organization acting in its behalf and within the scope of his office or employment, except that if the section defining the offenses designates the officers, agents, or employees for whose conduct the organization is accountable [*69] or the circumstances under which it is accountable, such provisions shall apply.
"***
"(4) If, acting with the kind of culpability otherwise required for the commission of the offense, its commission was authorized, requested, commanded, tolerated, or performed by the board of directors, trustees, partners, or by a high managerial officer, agent, or employee acting in behalf of the organization and within the scope of his office or employment.
"* * *."
R.C. 2923.04 clearly contemplates that an organization may be held liable thereunder.
Rare Elements, Inc. was incorporated under th 5b4 e law of Delaware in 1974 and did business at 135 South Main Street in Akron, Ohio, through 1975, and later operated from the Rolling Acres Mall. It sold women's wearing apparel at retail. David Burch was the president, vice president, treasurer and secretary of the corporation.
The evidence shows that, from 1975 through the first quarter of 1977, Rare Elements, Inc. never showed a profit and showed total losses of $ 34,856.30. From 1975 through the last quarter of 1976, the corporation received $ 22,351.34 as "loans from officers." These "loans," however, were not deposited with either [*70] of the banks where the corporation maintained accounts. From August of 1976, through October of 1977, the corporation received $ 16,150.78 from several persons, including $ 10,000 from James Williams and $ 2,950.78 from "Dan." This money went into the corporation's bank accounts, but was not recorded by the corporation as loans. James Williams reported income of $ 10,248.35 in the year the corporation received the $ 10,000 from him. In 1975, the corporation recorded stock sales in the amount of $ 32,000, but the identity of the stockholders is unknown. In 1976, the corporation recorded stock sales in the amount of $ 13,500 and again the identity of the stockholders is unknown.
There is evidence that, in 1974, Daniel Burch and James Williams brought in a Porsche automobile from overseas with "dope" in it. In 1975, a Porsche automobil 5b4 e, purchased in West Germany was titled to the corporation. The application for the certificate of title is signed by Daniel Burch as the corporation's general manager. This automobile was ordered in 1974 by James Williams for a "Mr. Roberts" of 82 Menlo Park Drive in Akron, who acted on behalf of the corporation. David Burch had a telephone listing [*71] at the Menlo Park Drive address. The sale of the automobile was handled in West Germany by James Bailey. There is evidence that Sylvia Bailey shipped bogus military identifications from West Germany to Daniel Burch in 1966 and that she was married to a James Bailey, who sold automobiles to military personnel. Rare Elements, Inc. obtained a bank loan against the automobile and apparently carried the automobile as an asset.
Carol Brantley and Donna Laramore worked for the corporation at the Rolling Acres Mall store in 1976. Brantley had a long history of involvement with Daniel Burch's heroin dealings. There is evidence that Laramore shared a similar involvement.
Two telephone calls were placed from the corporation's address at 135 South Main Street to Booker Henderson shortly before Henderson was visited by Daniel Burch and shortly before heroin was discovered in Henderson's apartment.
We find this evidence is sufficient to take count one to the jury and to support the verdict of guilty. When viewed against the backdrop provided by the evidence of the other activ 5b4 ities of Daniel Burch, James Williams and David Burch, the conclusion is easily reached that the corporation was [*72] a front for the criminal syndicate, through which ill-gotten money could be channeled and under which criminal activity could be hidden. A loss of some money is worth the gain of much more.
SECTION F - CASE 8892
DAVID BURCH
ASSIGNMENT OF ERROR TWO
"The trial court erred in failing to grant the defendant David Burch's motion to sever him from a joint trial and to grant a separate trial. This error was prejudicial to the defendant."
The trial court did not abuse its discretion in overruling the motion for a separate trial. State v. Perod, supra. The record shows counsel's diligence in guarding against possible jury confusion between David Burch and his brother, Daniel.
We would be troubled by the joinder of count fourteen, charging Daniel Burch and Rose Love with assault with intent to kill Alma Jones, were it not for the testimony indicating that the assault may have been prompted by Jones' threat to talk to the police concerning Daniel Burch's activities.
ASSIGNMENT OF ERROR THREE
"The trial court erred in failing to grant the defendant's motion in limine to strike the uncorroborated testimony of Alma Jean Jones as to the defendant's participation [*73] in the conspiracy."
David Burch says Alma Jones' testimony concerning his delivery 5b4 to her of several bags of heroin in Thailand is uncorroborated and, thus, insufficient to prove his participation in the conspiracy. Irrespective of the veracity of this claim, the trial court did not err by overruling Burch's motion to exclude the testimony until corroborating evidence had been introduced. The method whereby the sufficiency of Jones' testimony could be tested would be by a motion for judgment of acquittal or a motion for new trial. The ruling on Burch's motion for judgment of acquittal is examined under the next assignment of error.
ASSIGNMENT OF ERROR FOUR
"The trial court erred in failing to grant the defendant's motion for judgment of acquittal as to counts 1, 4, 5, 6, 7 and 12. This error was prejudicial to the defendant."
We find that a judgment of acquittal should have been entered at the end of the state's case on count five. This conviction rests upon the testimony of Alma Jones that David Burch supplied heroin to Linda Kirby and Jones in Bangkok, Thailand, in the summer of 1972. There is other evidence, both testimonial and exhibits, corroborating Jones' testimony [*74] that she went to Okinawa and Thailand for heroin at the request of, and accompanied by, Daniel Burch. No other evidence, however, corroborates Jones' testimony that Burch actually transferred heroin to herself and Kirby. Unquestionably, some exhibits serve to place David Burch in Bangkok around the pertinent time 5b4 and corroborate some collateral facts testified to by Jones, e.g. David Burch's purchase of a Lincoln automobile in Bangkok; but, this is not real corroboration. State v. Myers, supra, at 75.
Discounting Alma Jones' testimony, there is insufficient evidence to take count five to the jury. State v. Bridgeman, supra.
From 1974 onward, the evidence tends to show that David and Daniel Burch operated as a team. Their addresses during various periods of time coincided, but 811 Easter Avenue remained a constant (David Burch obtained a quitclaim deed to this property from his parents in November of 1975). In form, Rare Elements, Inc. was David Burch's corporation, yet the evidence suggests Daniel Burch's participation in the business, e.g. state exhibit 190. The Burch brothers agreed to purchase property together and apparently traveled to Europe together.
There is ample [*75] evidence that Daniel Burch was engaging in organized crime. The evidence pertaining to David Burch puts the question of his guilt in the hands of the jury.
During February and March of 1975, there were six telephone calls placed from David Burch's telephone at 82 Menlo Park Drive in Akron to the number of Booker Henderson in Flint, Michigan. There were also eleven calls from 811 Easter Avenue and two calls from Rare Elements, Inc. at 135 South Main Street to Henderson's number. The latest of the calls occurred one day before Daniel Burch wa 5b4 s observed at Henderson's apartment driving an automobile which, in reality, belonged to James Williams, although it was titled to James Scott. ther evidence indicates an early and continuing relationship between Henderson and Daniel Burch. Shortly after Burch was seen in Flint, Henderson's apartment was searched and heroin and quinine, a common heroin additive, were seized.
In 1976 and 1977, David Burch purchased automobiles from the Chrysler Military Sales Corp. in Switzerland. Also, in 1977, a "Sgt. Kenneth Miles" of 811 Easter Avenue ordered an automobile in West Germany. One of the automobiles purchased by David Burch, a Dodge van, [*76] was seen on several occasions at 986 Peckham Street, driven by Daniel Burch. James Williams was also present. On one occasion in 1977, Daniel Burch was seen to take an object from the van, place it under his jacket, and enter 986 Peckham Street. Burch and James Williams then left in the van and were met by a man who was given an object from inside the van.
During the summer of 1977, David Burch purchased the "La Pad Bar" in Akron and joined with Daniel Burch in an agreement to purchase the property comprising the bar's parking lot. Daniel Burch had visited the bar when it was set up for, and patronized by, "*** the pimps, the prostitutes, the drug users * * *," and when heroin was sold from the bar. Heroin was again sold from the bar in December of 1977, after the bar was leased to 2f6 the Comdom Corporation. David Burch also obtained loans or signed agreements for the purchase of two other properties in Akron in 1974 and 1975. From 1974 through 1977, David Burch alone spent, or incurred indebtedness of over $ 67,000 on automobiles and real properties. From 1974 through 1976, he reported some $ 37,100 in income. A proportionate increase in his wages from the Akron Savings & [*77] Loan Co. would give him about $ 15,000 income for 1977. There is also the Porsche automobile titled to Rare Elements, Inc. in 1975 (see discussion under the second and third assignments of error in Section E).
As a result of the searches of January 19, 1978, an addressograph multigraph printing press and a balance scale identified as a type used 5b4 in heroin distribution were found at 811 Easter Avenue and alpha lactose, another commonly used heroin additive, was found in Daniel Burch's bedroom in the Fir Hill apartment.
While we do not doubt that much of the activity detailed here is attributable to Daniel Burch, we believe the evidence tending to show David Burch's close association with his brother is irreconcilable with any reasonable theory of innocence on the part of David Burch. State v. Sorgee, 54 Ohio St. 2d 464 (1978); State v. Graven, 54 Ohio St. 2d 114, 118 (1978). From all the evidence, including that pertaining to count five, the conclusion emerges that David Burch, while perhaps not dirtying his hands by actual receipt for distribution of heroin, was fully aware, and a member of the syndicate, who added a sheen of legitimacy to its operations by either investing its [*78] income and/or providing places to operate from.
Count twelve of the indictment charges the Burch brothers with violation of R.C. 2925.13(B):
"No person, being the owner, *** or having custody, control, or supervision of premises, or real estate, *** shall knowingly permit premises, or real estate, *** to be used for commission of a felony drug abuse offense by another person."
R.C. 2901.22(B) defines "knowingly" as:
"A person acts knowingly, regardless of his purpose, when he is aware that his conduct will probably cause a certain result or will probably be o 5b4 f a certain nature. A person has knowledge of circumstances when he is aware that such circumstances probably exist."
"Cadillac Sam" Wilkerson, after a career of selling heroin and women in New York, moved to Akron in September of 1974, where he put up the money for the purchase of a club to be known as "Helena's Haven." This club was located at 349-351 West Market Street and was titled in the name of one Johnny Tucker. Wilkerson soon began selling heroin from "Helena's Haven." Wilkerson saw Daniel Burch in the club. In 1975, Wilkerson was convicted of federal drug law violations. David Burch purchased [*79] the "La Pad Bar," formerly "Helena's Haven," in the summer of 1977, and he and Daniel Burch agreed to purchase the bar's parking lot. In September, the bar was leased to the Comdom Corporation. The president of the corporation is John Tucker. The lease requires David Burch to maintain and repair the premises. On November 6, the Porsche automobile bought in West Germany and titled to Rare Elements, Inc. was seen parked in the bar's lot at 1:00 A.M. In December, a Drug Enforcement Administration agent purchased heroin in the bar from the bartender and arranged to purchase heroin from Richard Powers. Powers was identified as the uncle of Rose Love and one of Daniel Burch's heroin sellers in 1972. Powers lived at 899 Baird Street when Andrew Meddley was selling heroin there in 1974.
This evidence is sufficient to allow t 498 he charge to go to the jury. This is another example of the close association between David and Daniel Burch. It can be inferred that Daniel Burch knew the character of the bar during Wilkerson's time, and passed this information to David Burch, which led to a decision to purchase the bar to use as another distribution point.
