Court: Court of Appeals for the Seventh Circuit; August 17, 2016; Federal Appellate Court
Steven Mandell was convicted of conspiracy to kidnap and extort a wealthy businessman, leading to additional convictions for gun possession related to a crime of violence and as a convicted felon. The FBI had installed hidden cameras at the planned extortion site, and a federal court authorized this action. Mandell sought to suppress the video evidence, claiming the FBI's application was misleading due to omissions; however, the district judge denied this motion, and the appellate court affirmed it, determining the omissions were not material.
Mandell also requested a new trial, alleging the government withheld exculpatory evidence regarding the gun's source. This request was denied, with the court agreeing that the information was irrelevant and that the evidence against Mandell was overwhelming. Mandell's background reveals a history of legal issues, including a 1990 kidnapping charge in Missouri linked to FBI informants, a 1993 murder charge in Illinois, and a civil suit against the government for malicious prosecution, which resulted in a jury award of $6.5 million, later negated by a judge's finding of probable cause for prosecution.
In summer 2012, Mandell met George Michael, a real estate businessman with a problematic reputation, who was secretly an FBI informant. Michael recorded their conversations, which included two criminal plots.
The first plot involved Mandell conspiring to kidnap, torture, extort, and kill Steven Campbell, a wealthy businessman. Michael assisted Mandell in renting a location for the crime, referred to as 'Club Med.' The FBI sought a wiretap to install hidden cameras at this site to identify Mandell's unnamed accomplice and collect evidence. The surveillance revealed that the accomplice was Gary Engel, who had a prior criminal history with Mandell. The recordings showed Mandell and Engel discussing their plans in graphic detail.
The second plot focused on Mandell agreeing to murder Anthony Quaranta, a strip club co-owner, to increase Michael's ownership stake. Mandell attempted to locate Quaranta through a tracking service.
Mandell and Engel were arrested while en route to kidnap Campbell, and a loaded gun was found in Club Med. While in custody, Mandell instructed his wife to destroy evidence related to the Campbell plot. He faced multiple charges, including conspiracy to kidnap and murder, possession of a firearm in relation to a violent crime, and obstruction of justice.
Mandell sought to suppress the wiretap evidence, claiming it was unnecessary since the FBI already identified Engel as his accomplice, but the motion was denied. At trial, Mandell admitted to discussing the plots but claimed he never intended to execute them, asserting he went along for financial gain. He was acquitted of conspiracy to murder Quaranta but convicted on all other charges related to the Campbell plot, resulting in a life sentence. He later reasserted his wiretap argument in a motion for a new trial, which was also denied, and this argument is now part of his appeal.
Mandell sought a new trial based on newly discovered evidence regarding the source of a gun found at Club Med and appealed the district judge’s denial of this motion. Additionally, he appealed the partial denial of his post-trial motion for the return of property, but did not address this issue in his briefs, leading to a summary affirmation of that aspect of the appeal.
In analyzing the denial of the motion to suppress evidence obtained via wiretap, it was clarified that the government must obtain court authorization before using a wiretap, adhering to statutory requirements outlined in 18 U.S.C. §§ 2516 and 2518. This includes a necessity requirement, whereby the application must demonstrate that other investigative methods have been tried and failed, or would likely fail or pose danger. The district judge found that the wiretap application met these requirements, and this determination is reviewed for abuse of discretion.
The FBI's application, supported by Special Agent Tipton’s affidavit, detailed previous investigative efforts and justified the wiretap as necessary for identifying Mandell’s accomplice in the Campbell plot. The necessity requirement, while not intended to restrict wiretaps strictly to last-resort scenarios, mandates that they should not be the first step in investigations. The judge's findings regarding both the identity requirement and the necessity requirement were upheld upon review.
Mandell contends that the FBI's wiretap application was invalid because it did not identify Engel as a co-conspirator and failed to meet the necessity requirement. He asserts that prior to the application, the FBI was aware of significant connections between him and Engel, including a meeting shortly before the application and shared use of a Covert Track account. Mandell argues that these connections implied Engel's involvement in the kidnapping plot against Steven Campbell. However, the court finds that Mandell's claims rely on hindsight and that the connections he cites were not evidently linked to the Campbell plot at the time of the FBI's surveillance. The court highlights that Engel’s inspection of a car used in the plot was also related to unrelated surveillance activities and did not conclusively indicate his involvement in the Campbell plot. The jury had previously acquitted Mandell of related charges, suggesting that the connection between Engel and the Campbell plot was tenuous. The court concludes that the FBI did not have sufficient knowledge to identify Engel as an accomplice during the application process, and even if it did, the wiretap was justified for determining defendants' roles and gathering evidence for prosecution.
Mandell contends that the government did not require video evidence since it possessed audio recordings of his conversations with George Michael, which he claimed were role-playing to satisfy Michael's fantasies for financial gain. However, the recorded discussions between Mandell and Engel at Club Med contradict this narrative, as they delve into detailed planning without Michael's presence, suggesting a more sinister context.
Regarding Mandell's request for an evidentiary hearing, the court affirmed the denial, citing Franks v. Delaware, which stipulates that a wiretap order can be invalidated if obtained through the government's intentional or reckless omission of significant information. A defendant must provide a substantial preliminary showing to warrant such a hearing. Mandell failed to demonstrate that the government's application would have been denied had it included the alleged connections between him and Engel. The court found no clear error in the district judge's decision to deny the hearing.
Additionally, Mandell's motion for a new trial based on evidence of a loaded gun found at Club Med was also denied. Although he claimed the gun was planted by George Michael, the jury did not accept this defense, convicting him of gun possession in relation to violent crime and as a felon. Mandell's argument for a new trial, linking 'Individual A'—who purchased the gun—to a Chicago crime leader based solely on a similar last name, was deemed insufficient, especially as the government found no evidence connecting the gun to either George Michael or the crime leader. Redacted IRS interview reports concerning 'Individual A' were also provided by the government, but they did not support Mandell's claims.
Mandell's motion for a new trial was based on the government's failure to disclose exculpatory evidence, which he argued violated his rights under Brady v. Maryland and Giglio v. United States. The district court denied the motion, and the decision was reviewed for abuse of discretion. A Brady violation occurs when the prosecution suppresses favorable evidence material to the trial. A new trial is warranted only if the undisclosed evidence would likely have changed the trial's outcome. Mandell's connection theory regarding a Ruger firearm and its link to George Michael was deemed implausible by the district court, failing to meet the necessary standard. Despite the claimed evidence from IRS reports, Mandell was aware of the gun's use in a violent crime and discussed its loading on video with Engel. The court found no reasonable probability that the trial's outcome would have differed had the reports been disclosed. Consequently, the district court's judgment was affirmed. Additionally, Engel's estate settled a civil suit for $3 million after his death in jail. Mandell's argument that the videos supported his narrative about being watched was rejected by the jury due to the detailed evidence presented.
