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United States v. Wally Holly
Citations: 167 F.3d 393; 51 Fed. R. Serv. 3d 12; 1999 U.S. App. LEXIS 2192; 1999 WL 62485Docket: 98-1248
Court: Court of Appeals for the Seventh Circuit; February 11, 1999; Federal Appellate Court
Wally Holly orchestrated a scheme to kill a show horse named Arlene for insurance fraud, in collaboration with Freddy Vasquez, Jr. Charged under the federal mail fraud statute (18 U.S.C. § 1341), Holly was convicted after a jury trial, while Vasquez pleaded guilty. Holly appeals his conviction, citing two evidentiary issues: the admission of testimony about his prior abuse and threats against witnesses, and the inclusion of an out-of-court statement from a witness. Holly, a horse trainer who co-owned Tuckaway Farm with his ex-wife Kay Feldmar from 1987 to 1989, sold Arlene to Vasquez, who trained horses for competitions. Following his separation from Feldmar in 1989, Holly moved to Perfecta Farms, where Vasquez also trained and kept Arlene. Frustrated by Arlene's poor performance and recognizing her $15,000 insurance value, Holly plotted her death to claim the insurance money. In January 1991, Holly instructed Vasquez to break Arlene's leg with a crowbar, ensuring it appeared accidental. After the injury, Holly coerced farm manager Kim Gardiner into lying about the incident to both the veterinarian and the insurance company, threatening her safety if she revealed the truth. Other employees, Bonny Alexander and Ginger Jensen, were also aware of the intentional injury but remained silent due to fear of Holly. Alexander was directed to fabricate alibis concerning Holly's presence during the incident. Jensen responded to Arlene's cries after she was injured and observed Holly carrying a metal bar. Shortly after the incident, Holly instructed Jensen to lie to the FBI about his presence on the farm, which she did out of fear. Both Jensen and Alexander testified at trial, along with Vasquez, who had pleaded guilty and testified about Holly's involvement in the crime. Holly sought to use the witnesses' prior statements that he was not involved but was denied this advantage when the district judge allowed the government to present evidence of witness intimidation. The judge's decision was not deemed an abuse of discretion, as the defense had indicated an intention to use the prior statements and the evidence explained the witnesses' false testimonies. Holly also contended that if impeachment evidence was to be presented, it should have been limited to general testimony. However, he did not request this limitation, and some details arose during his own questioning of witnesses. Because the evidence was properly admitted, the court saw no need for a harmless error analysis. The overwhelming evidence against Holly included Vasquez’s testimony about the insurance fraud scheme, recorded conversations between Holly and Vasquez, and testimonies from others detailing Holly’s directives regarding the incident. Additionally, Gardiner's testimony about Jensen returning upset was admitted to show her state of mind and later deemed admissible as a coconspirator statement under Rule 801(d)(2)(E) of the Federal Rules of Evidence. The government did not argue that the statement proved Holly’s direct involvement in the crime. The district court's judgment was affirmed.