United States v. Nutall

                  UNITED STATES COURT OF APPEALS

                          FOR THE FIFTH CIRCUIT



                              No. 97-51050


                     UNITED STATES OF AMERICA,

                          Plaintiff-Appellee,


                                 VERSUS


          GARY PATRICK NUTALL and RAYMOND ANDRE NUTALL,

                      Defendants-Appellants.




          Appeals from the United States District Court
                For the Western District of Texas
                              June 25, 1999
Before EMILIO M. GARZA, DeMOSS, and PARKER, Circuit Judges.
PARKER, Circuit Judge:

     Brothers Raymond Andre Nutall and Gary Patrick Nutall were

convicted of conspiracy to interfere with commerce by robbery,

interfering with commerce by robbery, and using and carrying a

weapon during a crime of violence.        Gary Patrick Nutall appeals,

contending that the district court, in denying his motion to sever

the trial, violated his right to a fair trial and his right to

confrontation.   Raymond Andre Nutall also appeals, contending that

the Government failed to produce sufficient evidence of an effect

on interstate commerce.     We AFFIRM.

                     I.    FACTS AND PROCEEDINGS

                                    1
     On December 29, 1995, a robbery occurred at the Ace America

Cash Express store on Fredericksburg Road in San Antonio, Texas

just after closing.    One man, armed with a gun, demanded money from

the Ace America manager Charles Milburn.         The man ordered Milburn

to enter the store and open the safe.       Milburn opened the door to

the store and disarmed the alarm.        As the men entered the store,

the robber placed a mask over his face.     After receiving money, the

man ordered Milburn to sit down, tied Milburn's hands together, and

took Milburn's wallet.

     On February 2, 1996, a man attempted to commit a robbery at

the Ace America store on Cross Creek Road in San Antonio.          A man

with a gun approached Lenny Alcorta as she exited the store.           The

man pointed a gun at Alcorta's head and ordered her to re-enter the

store and disarm the alarm.    Upon disarming the alarm, Alcorta was

ordered to open the safe.     She attempted to open the safe but was

unsuccessful.    The   man   stole   Alcorta's    purse,   including   her

identification and approximately $500 in cash.

     Following the robbery and the attempted robbery at the Ace

America stores, San Antonio police detective William Biesenbach

conducted surveillance of two men in March and early April, 1996.

Biesenbach later identified these men as Gary Nutall and Raymond

Nutall.   Detective Biesenbach followed the two men as they stopped

at, and drove by approximately 10 offices of four different check

cashing businesses in San Antonio, Texas.          Detective Biesenbach

estimated that the two men drove by the businesses approximately 25

times.


                                     2
     Biesenbach identified two vehicles that the men used in

driving by the businesses: a black Nissan 200SX and a white Nissan

Altima.    Raymond Nutall owned the 200SX and Gary Nutall owned the

Altima.    During the drive-bys, Gary Nutall drove the vehicle while

Raymond    Nutall   sat   in   the   passenger          seat.   On    a   number   of

occasions, Biesenbach observed Gary Nutall cover the license plate

on his Altima with the license plate from another vehicle or switch

plates before driving by businesses.                    Biesenbach also observed

Raymond Nutall place a gym bag in Gary Nutall's car on two

occasions.

     On April 1, 1996, Biesenbach stopped the Altima and arrested

Gary and Raymond Nutall.          Biesenbach testified that he located a

gym bag in the back seat of the car that contained a revolver, a

ski mask, a rubber mask, gloves, pillow cases, a knife, binoculars,

and duct tape.      Biesenbach further testified that when he stopped

the Appellants, the license plate on the Altima belonged to another

vehicle and that the Altima's plates were in the trunk.                   An officer

assisting in the arrest testified that he found gloves in Gary

Nutall's    front    pants     pocket.       In    written      statements,    both

Appellants    confessed      to   “casing”        the    various     check   cashing

businesses.

     At trial, the Government presented evidence of Gary Nutall and

Raymond Nutall’s involvement in the December, 1995 robbery at the

Fredericksburg Road Ace America store.              Milburn identified various

items that belonged to the Appellants that were similar to items

used by the robber, including a mask and a flowered pillow case.


                                         3
Milburn also identified a purple strap found at Raymond Nutall's

apartment.       These straps are used by Ace America to bind money.

Milburn also said that the Government's exhibit, a semi-automatic

pistol belonging to Robert Taylor, was similar to the firearm used

by the robber. In written statements, both Appellants confessed to

participating in the Fredericksburg Road Ace America robbery.

     The Government also produced evidence of Gary Nutall and

Raymond    Nutall’s   involvement     in    the   February,    1996    attempted

robbery at the Cross Creek Ace America store.              At trial, Alcorta

identified a black jacket found in Raymond Nutall's car as the

jacket that the robber       wore.    She also testified that a ski mask

found in a gym bag in Gary Nutall's car was the same color as the

one worn by the robber. The Government introduced evidence located

by the San Antonio police at Raymond Nutall’s apartment, including

Alcorta's driver's license, manager's card, address book, and other

personal    belongings.      In   written    statements,      both    Appellants

confessed to the February, 1996 attempted robbery of the Cross

Creek Ace America store.

     The Government also offered evidence that the Appellants

exhibited    a    sudden   increase   in   available   cash    following    the

December, 1995 robbery.        On December 30, 1995, Gary Nutall paid

$5,460 toward the purchase of a white Nissan Altima.                 In January,

1996, he returned to the Nissan dealership to install a CD player,

an alarm, and tinting and while there, he showed one of the

salespeople clothes in the trunk that he recently had purchased.

In February, 1996, Raymond Nutall purchased a Nissan 200SX, and


                                       4
also made cash purchases of clothing and jewelry.

     Appellants were charged in a five count indictment with

conspiracy to interfere with commerce by robbery, 18 U.S.C. § 1951,

two counts of interference with commerce by robbery, 18 U.S.C. §§

2, 1951 (Counts Two and Four), and with two counts of using and

carrying a firearm during and in relation to a crime of violence,

18 U.S.C. §§ 2, 924(c)(1) (Counts Three and Five).

     Despite his confession and the evidence against him, Gary

Nutall later denied robbing the Ace America store in December,

attempting to rob the Ace America store in January, and casing

check cashing businesses and making plans to rob them.                    With

respect to the written confession, Gary Nutall explained that he

could not read nor write very well,            and when he signed the

confession written by FBI Agent Henry, he did not know what the

statement said.   He also claims that he only admitted his role in

the alleged crimes because Agent Henry continued to question and

threaten him with an extensive prison sentence.           In addition, Gary

Nutall explained that his other brother, Paul Nutall, gave him the

money to purchase the white Nissan and took him to a clothing store

to purchase some new clothes.           Finally, he presented two alibi

witnesses, his brother-in-law and his nephew, who testified that

Gary Nutall was at home with his family on the night the store was

robbed.

     A jury convicted Appellants on all counts.

                            II.    ANALYSIS

     Raymond   Nutall   raises    two    arguments   on   appeal:   (1)   the


                                    5
Government failed to show the requisite effect on interstate

commerce; and (2) the district court erred when it gave jury

instructions relating to the effect on interstate commerce.           Gary

Nutall raises three issues on appeal: (1) the district court abused

its discretion in denying his motion to sever; (2) the district

court committed Bruton error in admitting the confession of Raymond

Nutall which included a clear reference to Gary Nutall; and (3) the

trial court erred when it erroneously admitted irrelevant evidence.

We AFFIRM.

     A.   Raymond Andre Nutall

            1.    Effect on Interstate Commerce

     Raymond Nutall claims that the evidence is insufficient to

support a finding that his robbery obstructed interstate commerce,

an essential element of federal criminal jurisdiction.        This Court

reviews such challenges to evidentiary sufficiency in the light

most favorable to the verdict, inquiring only whether a rational

juror could have found each element of the crime proven beyond a

reasonable doubt.       See United States v. Collins, 40 F.3d 95, 99

(5th Cir. 1994) (citing Jackson v. Virginia, 443 U.S. 307 (1979)).

     Initially, we must address the amount of effect required on

interstate commerce under the Hobbs Act. The evidence in this case

satisfies     the   impact   on   commerce   required   for   Hobbs   Act

jurisdiction under United States v. Robinson, 119 F.3d 1205 (5th

Cir. 1997).      Ace America Cash Express is a nationwide company that

cashes checks and sells money orders.        Ace cashes checks from in-

state and out-of-state banks. Before checks are cashed, Ace places


                                     6
phone calls to verify the legitimacy of the checks and whether

there is sufficient funds to cover the checks.                    Ace sells money

orders which are drawn from out-of-state banks and Ace sends and

receives wire-transferred money to and from points outside of Texas

and outside of the United States.             In addition, Ace electronically

files tax returns for its customers.                 Tax returns are transferred

to Seattle, Washington.           Ace stores typically maintain large

amounts of cash at their stores.

       The Government, relying on a depletion of assets theory,

offered evidence that the Appellants received more than $27,000

from the Ace America robbery.           The theft of this money prevented

Ace    America    from   conducting     its     business       which   operated   in

interstate commerce.         It is clear that this Court has approved the

depletion of assets theory as a method for showing an effect on

interstate commerce. See United States v. Collins, 40 F.3d 95, 99-

100 (5th Cir. 1994). Further, the Government offered evidence that

the robbery prevented Ace America from being able to cash one check

on    the   day   of   the   robbery.     The    Government       established     the

requisite effect on interstate commerce.

             2.    Instruction on Effect on Interstate Commerce

       Raymond Nutall contends that the district court erred in

submitting the interstate commerce instruction to the jury because

there was insufficient evidence to prove the required effect.                      In

particular, Raymond Nutall argues that the trial court should have

required     a    substantial    rather       than    a   de   minimis   effect    on

interstate commerce.         The district court's instruction requiring a


                                          7
de minimis effect was not an abuse of discretion.   The Appellant's

argument is foreclosed by Robinson, 119 F.3d at 1215 (holding that,

in light of the aggregation principle, “the particular conduct at

issue in any given case need not have a substantial effect upon

interstate commerce.”).

     B.   Gary Patrick Nutall

           1.   Severance and Fair Trial

     Gary Nutall contends that the district court erred in refusing

to sever the trial.     Specifically, he argues that the district

court's denial of severance compromised his rights under the Sixth

Amendment to call witnesses in his defense. We review the district

court's denial of a motion for severance for abuse of discretion.

See Zafiro v. United States, 506 U.S. 534, 539 (1993).          The

Appellant must demonstrate specific compelling prejudice.       See

United States v. Capote-Capote, 946 F.2d 1100, 1104 (5th Cir.

1991).    A showing of prejudice must be balanced against the

public's interest in efficient judicial administration. See United

States v. Lindell, 881 F.2d 1313, 1319 (5th Cir. 1989).

     In order to establish a prima facie case warranting severance

for the purpose of introducing exculpatory evidence of a co-

defendant, the defendant must show:    (1) a bona fide need for the

testimony; (2) the substance of the testimony; (3) its exculpatory

nature and effect; and (4) that the co-defendant would in fact

testify if the severance were granted.       See United States v.

Broussard, 80 F.3d 1025, 1037 (5th Cir. 1996).

     After a careful review of Gary Nutall's motion to sever and


                                  8
Raymond Nutall's affidavit stating that he would testify, we do not

find that the district court abused its discretion in denying

severance.      Raymond Nutall's proposed testimony stated:

       If called, I would testify that my brother Gary had
       nothing to do with the robberies in this case. I know
       this because another person told me that he had committed
       those robberies and also told me that Gary was not
       involved. If called to testify, I will name that person.

The substance of Raymond Nutall's proposed testimony provided, at

best,    “unsupported,       self-serving      statements     that     were     only

tangentially exculpatory.”            United States v. Daly, 756 F.2d 1076,

1080 (5th Cir. 1985).         We find no abuse of discretion in denying

Gary Nutall's severance motion.

              2.   Right to Confrontation

       Gary   Nutall      contends    that   his   Sixth   Amendment      Right   to

Confrontation       was    violated    when    the   confession      of   his     co-

defendant's brother was introduced at their joint trial.                   Raymond

Nutall, in a written statement, confessed to robbery and conspiracy

and incriminated his brother, Gary Nutall.             Because the confession

was inadmissible against Gary Nutall, the Government blacked out

Gary Nutall’s name with a dark marker.                At trial, however, the

Government introduced Raymond Nutall’s confession which included a

reference to Gary Nutall’s home address.             Gary Nutall contends the

reference to his address was “the functional equivalent of naming”

him.    This Court reviews a constitutional challenge de novo.                    See

United States v. Asibor, 109 F.3d 1023, 1037 (5th Cir.), cert.

denied, 118 S.Ct. 254 (1997).            Bruton issues, failures to remove

references to co-defendants, are reviewed for abuse of discretion.


                                         9
See United States v. Fletcher, 121 F.3d 187, 197 (5th Cir. 1997).

     The Confrontation Clause of the Sixth Amendment guarantees the

right of a criminal defendant “to be confronted with the witnesses

against him.”      In United States v. Bruton, 391 U.S. 123 (1968),

the Supreme Court held that a defendant is deprived of his rights

under   the    Confrontation   Clause   when    his   non-testifying   co-

defendant’s confession naming him as a participant in the crime is

introduced at their joint trial, even if the jury is instructed to

consider that confession only against the co-defendant.                In

Richardson v. Marsh, 481 U.S. 200, 211 (1987), the Court considered

the application of Bruton to a redacted confession, holding that a

redacted confession of a non-testifying co-defendant is admissible

when the confession omits the defendant’s name and any other

“reference to his or her existence.”           Bruton’s protective rule,

however, applies to a non-testifying co-defendant’s confession when

the redacted confession replaces the defendant’s name with an

obvious deletion.     See Gray v. Maryland, 118 S.Ct. 1151 (1998).

     The Government acknowledges, and we agree, that the confession

admitted in this case, having been redacted by blacking out Gary

Nutall’s name with a marker but leaving the reference to the

address, is exactly the type of evidence found unconstitutional by

Gray.   The admission of the confession was error.

     Gray, however, did not undercut this Circuit’s holding that

Bruton error may be considered harmless when, disregarding the co-

defendant’s confession, there is otherwise ample evidence against

a defendant.    See United States v. Kelly, 973 F.2d 1145, 1150 (5th


                                   10
Cir. 1992) (recognizing harmless error standard).                        “[B]efore a

federal constitutional error can be held harmless, the court must

be   able   to   declare      a   belief      that    it   was   harmless    beyond   a

reasonable doubt.”       Chapman v. California, 386 U.S. 18, 24 (1967).

We therefore must determine whether, absent the Bruton-tainted

confessions, there was a reasonable probability that the defendant

would have been acquitted.              See United States v. Lewis, 786 F.2d

1278, 1286 n.11 (5th Cir. 1986).

       After our review of the record, we find, beyond a reasonable

doubt, that the evidence was harmless; that is, that it did not

prejudicially contribute to the convictions. See Chapman, 386 U.S.

at 24.      Gary Nutall provided his own confession in which he

confessed to committing the December robbery and serving as the

getaway driver in the February robbery.                      Further, he admitted

casing various check cashing businesses in San Antonio.                             The

Government showed that, in the days following the December robbery,

Gary   Nutall     went   on       a   large    spending     spree,     purchasing     an

automobile       and   clothing.           The       admission    of   the   redacted

confessions, while error, was harmless error.

            3.    Admissibility of Evidence and Testimony

       Gary Nutall contends that the district court erroneously

admitted    irrelevant evidence of a pistol that unfairly linked him

to the December robbery.                In addition, he contends that the

district court allowed inadmissible hearsay evidence and asserts

that the admission of the irrelevant and hearsay evidence was

prejudicial and requires reversal.


                                              11
                a.    The Pistol

       Gary Nutall argues that the pistol was not relevant and the

trial court should have excluded it under Fed. R. Evid. 401.            All

evidence offered at trial is subject to a threshold test of

“relevancy.”     “‘Relevant   evidence’     means   evidence   having   any

tendency to make the existence of any fact that is of consequence

to the determination of the action more probable or less probable

than it would be without the evidence.”        Fed. R. Evid. 401.       “All

relevant evidence is admissible...[e]vidence which is not relevant

is not admissible.” Fed. R. Evid. 402.

       In reviewing the district court’s rulings on matters of

relevancy, this Court is guided by the principle that district

courts have wide discretion in determining relevancy under Rule

401.   The district court’s decision will not be disturbed absent a

substantial abuse of discretion.         See United States v. Hays, 872

F.2d 582, 587 (5th Cir. 1989). The review of erroneous evidentiary

rulings in criminal trials is necessarily heightened.          Ultimately,

we examine “what effect the error had or reasonably may be taken to

have had upon the jury’s decision.”       Hays, 872 F.2d at 587 (citing

Kotteakos v. United States, 328 U.S. 750, 764 (1946)).

       After reviewing the relevance of the evidence, we conclude

that the district court did not abuse its discretion.          Gary Nutall

Nutall was charged, inter alia, with two counts of using and

carrying a firearm during and in relation to a crime of violence,

18 U.S.C. § 924(c).    In Gary Nutall’s confession, he stated that he

used a    semi-automatic   weapon   in   the   robbery   at   Ace   America.


                                    12
Raymond Nutall’s confession also referenced that a weapon was used

in the robbery.        At trial, the Government introduced a semi-

automatic weapon.      This weapon fit the description of the weapon

described in Gary Nutall’s confession.          Further, Charles Milburn,

the manager of the Ace store robbed in December, testified that the

weapon admitted at trial resembled the weapon used in the robbery.

The weapon introduced at trial was relevant to the crimes at issue

and was properly admitted.

                  b.   Hearsay Testimony

       Gary Nutall contends that the district court erroneously

admitted hearsay testimony.           The Government concedes that the

particular testimony was hearsay, but contends that its admission

was harmless and does not require reversal.             The Government bears

the burden of showing that the error was not prejudicial.                See

United States v. Olano, 507 U.S. 725, 734 (1993).

       Gary Nutall’s confession stated that he borrowed a semi-

automatic   pistol     from   an   individual   named    “Bobby.”   Raymond

Nutall's confession stated that the pistol used in the robbery had

been obtained from an individual named “Bobby Sanders” or “Bobby

Jr.”   At trial, the Government introduced what it claimed was the

pistol mentioned in the confessions.            FBI Agent Henry testified

that he received the gun from a man named “Robert Taylor.”               The

Government then elicited testimony that Robert Taylor’s nickname

was “Bobby Jr.”    It is undisputed that this testimony was hearsay.

       Gary Nutall argues that Agent Henry’s hearsay testimony was

the only evidence that Robert Taylor, the owner of the pistol


                                      13
introduced at trial, was also “Bobby Jr.,” the owner of the pistol

used in the robberies.       Thus, he argues, this evidence had the

effect of corroborating his confession.

     We conclude that the hearsay evidence, while erroneously

admitted, considered in light of the other overwhelming evidence of

guilt, did not have a prejudicial effect.

                             III.    CONCLUSION

     For    the   above   reasons,   the   Appellants’   convictions   are

AFFIRMED.



ENDRECORD




                                      14
DeMOSS, Circuit Judge, specially concurring:


       Because our Court divided evenly in its en banc reconsidera-

tion   of    whether     the     Hobbs        Act,       18    U.S.C.    §   1951,      can    be

constitutionally applied to the robbery of a local retail store in

United    States    v.   Hickman,           ___    F.3d       ____    (5th   Cir.    1999),     I

recognize that the holding of a panel of this Court in United

States v. Robinson, 119 F.3d 1205 (5th Cir. 1997), is still binding

precedent and I concur in the judgment of affirmance in this case.

       However, for the reasons stated by Judge Higginbotham in his

dissent     in   Hickman     and      for     the    reasons         which   I   have   stated

previously, see United States v. Hebert, 131 F.3d 514 (5th Cir.

1997) (DeMoss, J., dissenting in part); United States v. Miles, 122

F.3d 235 (5th Cir. 1997) (DeMoss, J., specially concurring), I

remain    convinced      that      by   prosecuting            local    robberies       on    the

theories that (1) the effect of local robberies can be aggregated

for purposes of determining an effect on interstate commerce; (2)

the taking of cash from a local retail store causes a "depletion of

assets" which reduces the ability of that store to participate in

interstate       commerce;      and     (3)       only    a    "de    minimis    effect"       on

interstate commerce is needed to sustain the applicability of the

Hobbs Act to these local robberies, the Department of Justice is

stretching the plain language of the Hobbs Act well beyond the

bounds contemplated by Congress.

       The defendants in this case were put under surveillance by the

San Antonio Police Department, were investigated and arrested by

the San Antonio Police Department, were charged with violations

under Texas law, and had their residence searched with a warrant
issued by a state judge.           In statements given to San Antonio Police

Department detectives, the defendants essentially confessed to

committing robberies under Texas law. But for the interposition of

the federal prosecutions in this case, these individuals would have

been charged, tried, and convicted of violations of the Texas

robbery statute.

        By its express language, the Hobbs Act makes criminal the

conduct of "obstructing, delaying, or affecting commerce between a

point in one state and a point in another state by robbery."          There

is nothing in the language of the Hobbs Act nor its legislative

history that supports a contention that it was intended to make a

federal crime out of local robberies that in no way affect that

intercourse.

        Under the Supreme Court’s decision in United States v. Lopez,

514 U.S. 549, 566-68 (1995), the federal courts are charged with

the task of drawing a line between criminal conduct which is "truly

local" and criminal conduct which is "truly national" in effect.

In my view, it is impossible to reconcile the theories upon which

the Department of Justice contends that the Hobbs Act should be

applied to local robberies with the teaching and analysis set forth

by the Supreme Court in Lopez.            Sooner or later the Supreme Court

must either back down from the principles enunciated in Lopez or

rule that the Hobbs Act cannot be constitutionally applied to local

robberies.             I urge the defendants in this case to seek a writ of

certiorari on this point.




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