ILNews

Conspiracy, false statements convictions stand

Jennifer Nelson
January 1, 2008
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The 7th Circuit Court of Appeals has affirmed the convictions of participating in a price-fixing conspiracy and making false statements to federal law enforcement of an Indianapolis man involved in a concrete price-fixing scheme.

In United States of America v. Christopher A. Beaver, No. 07-1381, Beaver appealed his convictions, arguing the government failed to prove at trial a price-fixing conspiracy existed, that he joined the conspiracy, or that he made false statements.

Beaver, as operations manager of Beaver Materials Corp., was one of several Indianapolis-area ready-made concrete producers who collaborated in the beginning of the decade to fix the prices of concrete. Representatives from the five concrete companies met several times over the course of a few years in a horse barn in Fishers to discuss the falling market value of concrete. No one ever voted on the prices to charge customers, objected to the price-fixing, nor did anyone refuse to impose the limit. In fact, some even stated they would confront a company involved in the scheme if they did not follow the prices.

Beaver began attending the meetings in the place of another Beaver Materials employee and never objected to the scheme.

The FBI received a tip about the scheme and executed search warrants on the five companies in 2004. All the companies and those involved with the scheme except for Beaver and Beaver Materials admitted their roles in the conspiracy and entered into plea agreements. Four representatives from those companies agreed to help the government investigate and said they would answer truthfully at trial if called.

Beaver told the FBI agent that he never attended any meetings in the horse barn, did not know of another employee who attended the meetings, never saw the other companies except at an annual meeting, and denied any price-fixing. Beaver chose to go to trial and was indicted by a federal grand jury of participating in a price-fixing conspiracy and making false statements to a federal law enforcement agent. At trial, Beaver filed a motion for judgment of acquittal, challenging the evidence supporting his price-fixing conspiracy conviction; the District Court denied the motion.

Beaver appealed, arguing that the District Court erred by denying his motion for judgment of acquittal because the government failed to prove a conspiracy existed or that he participated. He also challenged his false-statements conviction by asserting the government failed to prove the lies he told the FBI agent were material as "a matter of law."

To be convicted of conspiracy under the Sherman Antitrust Act, the government only had to establish the concrete producers had a "tacit understanding based upon a long course of conduct" to limit their discounts and fix prices, wrote Judge Michael Kanne. The concrete makers held meetings to discuss fixing prices and discounts and no one disagreed with the proposals. The concrete producers also would enforce the agreement against those they believed were deviating from it. At trial, several concrete-makers involved in the conspiracy testified Beaver attended the meetings, participated in discussions to limit prices, and agreed to confront other members if they failed to conform. Even his own father, who was president of the company, testified he knew Beaver attended the meetings.

Beaver mischaracterized the issue of his false statements as "a matter of law," wrote Judge Kanne, and the materiality of false statements is a factual determination made by a jury. The federal appellate court rejected Beaver's assertion his false statements couldn't influence the FBI's investigation because his attorney sent a letter to the Department of Justice several days later to inform them that one of the employees lied during the investigation. However, the letter doesn't give the name of the employee, so it is not know whom the letter is about. Also, Beaver is incorrect in thinking he can avoid a conviction by correcting a false statement days after making it. His false statements could have hindered the FBI's investigation, so the appellate court sees no fault with the jury convicting Beaver of providing false statements.
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  1. Indianapolis employers harassment among minorities AFRICAN Americans needs to be discussed the metro Indianapolis area is horrible when it comes to harassing African American employees especially in the local healthcare facilities. Racially profiling in the workplace is an major issue. Please make it better because I'm many civil rights leaders would come here and justify that Indiana is a state the WORKS only applies to Caucasian Americans especially in Hamilton county. Indiana targets African Americans in the workplace so when governor pence is trying to convince people to vote for him this would be awesome publicity for the Presidency Elections.

  2. Wishing Mary Willis only God's best, and superhuman strength, as she attempts to right a ship that too often strays far off course. May she never suffer this personal affect, as some do who attempt to change a broken system: https://www.youtube.com/watch?v=QojajMsd2nE

  3. Indiana's seatbelt law is not punishable as a crime. It is an infraction. Apparently some of our Circuit judges have deemed settled law inapplicable if it fails to fit their litmus test of political correctness. Extrapolating to redefine terms of behavior in a violation of immigration law to the entire body of criminal law leaves a smorgasbord of opportunity for judicial mischief.

  4. I wonder if $10 diversions for failure to wear seat belts are considered moral turpitude in federal immigration law like they are under Indiana law? Anyone know?

  5. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

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