Citations
- 616 F.2d 1103
Full opinion text
MERRILL, Circuit Judge:
Appellant was convicted, following jury trial, of 64 counts of extortion, in violation of the Hobbs Act, Title 18 U.S.C. § 1951; of obstruction of justice; and of giving false testimony before a grand jury.
At the time of the charged offenses, appellant was director of the Clark County, Nevada, Business License Bureau and, as such, was an officer of the Clark County Sheriff’s Department. It was the function of the Bureau to issue business licenses to those seeking to do business in the unincorporated areas of Clark County. Appellant, as director, was required to review all license applications for final approval, and had the authority himself to issue “non-privileged” licenses — those not requiring approval of the county commissioners.
The companies from which he was charged with extorting funds were Motel Development, Inc. (MDI), and Royal Reservations, Inc. (Royal). Both companies were operated by David Bliss, the government’s principal witness.
MDI was in the business of soliciting prospective customers to attend sales presentations in Las Vegas, Nevada, put on by other companies, for which service MDI received commissions. Prior to the offenses here charged, MDI had solicited attendance at sales presentations for a land sales company, Cavanaugh Communities (Cavanaugh), which had been forced to discontinue business in Las Vegas. The company had been subjected to a county tax of 1 percent of gross sales, plus $3 for each couple attending its sales presentations. Bliss believed that it was this tax burden that had caused Cavanaugh’s failure. The offenses here charged with reference to MDI related to its solicitations on behalf of Caribbean International Corporation (CIC), which sold vacation plans — one or two weeks a year in one of its Nevada resorts for a period of 40 years. MDI conducted its solicitations from booths set up in hotels, motels and casinos within the greater Las Vegas area. At the time of the charged offenses, CIC was not subject to the county tax that had been imposed on Cavanaugh.
Royal was engaged in the business of selling show tickets to live stage productions held in Las Vegas. It also conducted its business from booths set up in various locations.
MDI and Royal were required by law to obtain a business license (non-privileged) for each one of their booths. Zoning ordinances required that the show-ticket sales booths be located in hotels or motels of 50 or more rooms, and that a conditional use permit be obtained for any booth where couples would be solicited to attend sales presentations.
Bliss believed that appellant, as director of the Licensing Bureau, and through his connections with the county commissioners, could control whether or not a tax similar to the one imposed on Cavanaugh would be imposed on CIC. Bliss believed that such a tax would probably close the business down. “I felt that he [appellant] had the powers of life or death over this type of operation.”
Bliss and appellant were friends of long standing and often had lunch together. From the time CIC started its vacation plan business in Nevada, Bliss and appellant apparently discussed at several of the lunches the fact that CIC would prove very profitable if no tax were imposed. Bliss testified:
“A. Well, I had discussions with Mr. Gates that if there were no law imposed this company [CIC] would make a lot of money. I know I had that type of discussion with Mr. Gates.
Q. When?
A. It would have been right from the beginning, you know.”
In the course of one of these discussions Bliss told appellant he would give him $1 on every couple Bliss referred to CIC. When Royal commenced its business in 1976, Bliss told appellant that Royal would give him 25