240 Pa. Super. 139 | Pa. Super. Ct. | 1976
Opinion by
Appellant herein, Frank M. Steinberg, was brought to trial
The four indictments which are the subject of this
I. FACTUAL BACKGROUND
A. FAVORITISM
Incident to proving the charges relating to favoritism of the firm of appellant’s brother, Herman Steinberg, the Commonwealth established that when Frank Steinberg became a member of the Board of the Philadelphia Housing Authority, the major project in which the Authority was involved was the Used House Program. Under this program, developers, approved by the Authority, would locate houses in the City of Philadelphia suitable for the purposes of the Authority and restore them according to specified guidelines. In order to become an approved developer under the program, it was necessary for a prospective developer to make an application to the Authority. A questionnaire was filled out by the applicant which was circulated through the staff. The staff would determine the acceptability of the applicant and make its recommendation to the Board. The Board, relying on the advice of the staff, would then approve or disapprove the developer for work within the program.
When Mr. Steinberg became a member of the Board there were approximately 25 approved developers not all of which were active in the program. A much larger number of developers had applied for, but been denied, approval. One such applicant was Paul Cotier. Mr. Cotier had made at least two applications to the Authority prior
At a meeting of the Board on August 2, 1967, the matter of the appointment of new developers, a recurring theme at Board meetings, was raised. Appellant asked that Cotier Associates be appointed and produced the application of that company from his briefcase. The standard practice for handling applications by developers had been to attach a cover sheet to the questionnaire that the applicant had completed and circulate it to members of the staff who could properly evaluate it.
When Cotier Associates’s application was presented, no cover sheet was attached, indicating that it had not been circulated through the customary channels. The Director of Development, Mr. Emerson, who was present at the meeting, was asked for his comments on the proposed developer by Mr. Brown, the Authority Chairman at that time. Although he had not seen the application before, Emerson was familiar with Paul
At the time Cotier Associates was approved as a developer in the Used House Program, each developer located its own properties to be rehabilitated on authority approval. This system was changed at the end of 1967, shortly after Frank Steinberg was elected Chairman,
In the spring of 1969 Cotier Associates was suspended from the program for doing inadequate wall work following an inspection by an engineering firm. Despite Cotier’s failure to produce acceptable work, the firm continued to be assigned a substantial amount of repair and maintenance jobs within the program.
B. TRANSFER OF FUNDS TO CITIZENS BANK
The Commonwealth presented additional evidence to support its allegation that appellant had misused his position to benefit Citizens Bank in which he had an interest. It was shown that on May 9, 1968, Frank Steinberg was elected to the Board of Directors of Citizens Bank. He was at that time also the Chairman of the Board of the Philadelphia Housing Authority. On July 19, 1968, he became a shareholder in that bank with the purchase of 100 shares. He continued to purchase additional shares in the bank until May 14, 1969, when he began to sell his holdings. By May 22, 1969, he had divested himself of all his stock in Citizens Bank.
At a meeting of the Board of the Philadelphia Housing Authority on January 16, 1969, it was resolved
Following a review of these incidents by the April, 1969 Investigating Grand Jury, appellant was indicted and eventually tried in May, 1972. In defense to all the charges against him, appellant presented a series of character witnesses who all testified to his good reputation as a law abiding citizen. He was found guilty on six indictments, four of which are the subject of this appeal. Indictments numbered 879 and 880 charge malfeasance, misfeasance and nonfeasance in office for showing favoritism to Cotier Associates in the allocation of repair and maintenance work (Indictment No. 879) and in the allocation of properties to be rehabilitated (Indictment No. 880). Indictment No. 881 charges conspiracy to procure favored treatment for Cotier Associates between appellant, his brother, and Paul Cotier. The fourth bill, Indictment No. 883, charges malfeasance, misfeasance and nonfeasance in office in causing the deposit of Philadelphia Housing Authority funds in Citizens Bank. The appellant was sentenced to
II. SUFFICIENCY OF THE EVIDENCE
A. FAVORITISM OF COTLER ASSOCIATES.
Appellant first attacks the sufficiency of the evidence to sustain his conviction on any of the above indictments. The legal principle is well established that when the sufficiency of the evidence to support a conviction is attacked, the evidence as it was presented at trial, and all reasonable inferences drawn therefrom, must be read in the light most favorable to the verdict winner, in this case the Commonwealth, and all evidence which, if believed, would support the jury’s verdict must be accepted as true. Commonwealth v. Blatstein, 231 Pa. Superior Ct. 306, 332 A.2d 510 (1974). With this principle in mind, we will consider the charges against appellant of malfeasance, misfeasance and nonfeasance in office, and conspiracy together with the evidence that supports them, relating, first, to the favoritism of Cotier Associates and, second, to the deposit of funds in Citizens Bank.
The offense of malfeasance, misfeasance or nonfeasance in office, more commonly called misbehavior in office, is a common law misdemeanor. Commonwealth v. Evans, 190 Pa. Superior Ct. 179, 154 A.2d 57 (1959), aff'd mem., 399 Pa. 387, 160 A.2d 407, cert. denied, 364 U.S. 899 (1960); Commonwealth v. Mecleary, 147 Pa. Superior Ct. 9, 23 A.2d 224 (1941). The offense has been carefully defined by the courts of this Commonwealth and by legal scholars. 1 N. Kessler, The Law of Criminal Procedure in Pennsylvania 177 (1961); 2 id. 504; R. Perkins, Criminal Law 482-90 (2d ed. 1969). It has been reiterated that “[t]he offense occurs when there is a breach of a positive statutory duty or the performance by a public official of a discretionary act with an improper or corrupt motive.
In regard to the two indictments, Nos. 879 and 880, charging appellant with granting preferential treatment to Cotier Associates in the allocation of repair work and rehabilitation jobs, the Commonwealth showed that Frank Steinberg used his position on the Board of the Housing Authority to obtain work for the newly formed company. To this end, he bypassed the normal channels for approval of developers, introducing the application of Cotier Associates and urging its approval without the benefit of the protective screening procedures. Once having obtained for his brother a place in the Authority’s development program, appellant blatantly demanded, from his position of Chairman of the Board, that the Director of Development, a staff member, make sure appellant’s brother was granted the maximum allocation of properties to rehabilitate. After Cotier Associates was suspended as a developer in the program due to inadequate construction of walls, no effort was made by the Board, or appellant as its Chairman, to exclude the firm from further assignments, and as a result it was continually assigned repair jobs.
These facts evidence that a particular firm was selected for significant support and assistance. However, it is not necessary to evaluate appellant’s conduct in terms of its wisdom or practicality. A showing of poor judgment or even lack of care in handling the Authority’s affairs is neither necessary nor sufficient to make out the common law offense of misbehavior in office. The element which distinguishes the negligent mishandling of the public’s business from unlawful conduct by a public officer in handling a discretionary matter is the existence of a corrupt motive. Com
“Criminal intent may be inferred by the jury from facts and circumstances which are of such a nature as to prove defendant’s guilt beyond a reaonable doubt. Commonwealth v. Kloiber, 378 Pa. 412, 106 A.2d 820 [(1954)]; Commonwealth v. Homeyer, 373 Pa. 150, 94 A.2d 743 [(1953)].” Commonwealth v. McSorley, supra at 229, 150 A.2d at 573.
That the appellant’s motive was to benefit his brother is abundantly evident from the testimony. A jury would be justified in drawing the conclusion from Paul Cotier’s testimony that when Cotier approached appellant for assistance in his ambition to become an approved developer, Frank Steinberg conditioned his support on Cotier’s “getting together” with Herman Steinberg. This having been accomplished, and a company formed, appellant obtained Authority approval of the new developer and specifically required that his brother’s firm receive privileged status.
Appellant maintains that because he derived no personal benefit from his activity on behalf of Cotier Associates his motives cannot be questioned.
To further discredit the Commonwealth’s evidence, appellant contends that he is shielded by two presumptions which must be overcome before he can be convicted for any of his activity while in public office. The first is the presumption of innocence to which no one would deny a defendant is entitled. In addition, appellant claims a second presumption exists which applies only to public
From this statement, the appellant would have us conclude that where public officials are defending criminal charges related to their conduct in office, they are presumed to have conducted themselves in good faith for the public interest, which presumption cannot be overcome merely by inferences capable of being drawn to the contrary. Such an interpretation, which would grant to public officers an additional criminal protection not shared by the common defendant, would put the fact
We cannot, therefore, accept appellant’s interpretation of Commonwealth v. McSorley, supra. We conclude that the presumptions discussed therein do not, in effect, produce any greater protection for the public official facing criminal charges than the presumption of in
B. CONSPIRACY
Appellant also contends that the evidence was not sufficient to prove the conspiracy charged in Indictment No. 881. Appellant was accused of conspiring with his brother, Herman Steinberg, and Paul Cotier to procure favored treatment for Cotier Associates to the prejudice of the Philadelphia Housing Authority. The Penal Code, which was in effect when appellant’s alleged unlawful conduct took place, proscribes conspiracy to do an unlawful act as follows: “Any two or more persons who falsely and maliciously conspire and agree to cheat and defraud any person of his moneys, goods, chattels, or other property, or do any other dishonest, malicious, or unlawful act to the prejudice of another, are guilty of conspiracy, a misdemeanor ....” Act of June 24, 1939, P.L. 872, §302, 18 P.S. §4302, repealed, Act of December 6, 1972, P.L. 1482, No. 334, §5.
The heart of the offense of conspiracy is the common understanding, no matter how it comes into being, that the participants are joined together to perpetrate an
We conclude that the jury was justified in inferring from the evidence presented at trial that the named individuals did conspire to prefer Cotier Associates above the best interests of the Housing Authority. Appellant’s initial conversation with Cotier suggested the basis for the combination: Cotier was to join forces with appellant’s brother before resubmitting his application. When this arrangement was accomplished, appellant obtained and cooperatively advanced the application directly into the Board meeting, thus avoiding the perils of the initial screening procedures and backing it with his own strong support. Considering the similarity of purpose, the close relationship existing between the appellant, his brother, and the brother’s partner, as well as the evidence of cooperation, it is impossible to imagine that there was no understanding between the three that appellant was expected to and did improperly use his office to benefit the firm and would continue to do so in the future. That no monetary loss was specifically shown to accrue to the Authority does not detract from this finding. It is true that section 302 of the Penal Code provides that the agreement to engage in unlawful activity be to the prejudice of another; however the fact that the Authority was deprived of the impartial advice and guidance it had a right to expect from its member and Chairman is prejudice enough. Commonwealth v. Hall, 173 Pa. Superior Ct. 285, 98 A.2d 386 (1953).
Appellant finally challenges the sufficiency of the evidence to convict him on the charge of misbehavior in office for causing the deposit of Housing Authority funds in Citizens Bank. Once again we must examine the facts of record to determine if the appellant performed a discretionary act in his official capacity with an improper or corrupt motive.
III. COMMON LAW OFFENSE
Appellant attacks the common law offense of which he was convicted for being too vague and imprecise to give an individual adequate notice of the behavior proscribed as criminal. Common law offenses have evolved over the long history of the law to control conduct, not already proscribed by statute, thought to “injuriously affect public morality, or obstruct, or pervert public justice, or the administration of government.” Commonwealth v. Miller, 94 Pa. Superior Ct. 499, 507 (1928). The Penal Code, which was iji effect at the time of the incidents at issue herein, specifically preserved common law crimes as punishable offenses.
We might be inclined to agree with appellant that this language is indeed broad and if the courts actually failed to rely on precedent there would be little notice to an individual what conduct was proscribed as affecting the public peace, morals and economy. However, it happens that the particular common law offense with which the appellant herein is charged, misbehavior in
IV. CONSIDERATION BY JURY
Appellant was found guilty by a jury on six indictments. On two of these, Indictment Nos. 882 and 885, both dealing with the Citizens Bank incidents, the court en banc arrested judgment. Indictment No. 882 charged appellant with a violation of the Act of June 24, 1939, P.L. 872, §680, 18 P.S. §4680, repealed, Act of December 6, 1972, P.L. 1482, No. 334, §5, deposit of public money for gain. The court en banc found that there was no evidence of an agreement between the appellant and the bank as required by the statute, and therefore that a conviction on that charge could not stand. On Indictment No. 885, which charged misconduct in office due to a violation of the Housing Authorities Law, Act of May 28, 1937, P.L. 955, §8, as amended, 35
Where it is contended by an appellant that the erroneous submission of charges to a jury prejudiced the fact finders’ consideration of properly submitted charges, this court has devised a pragmatic test to determine whether the error was harmless. In Commonwealth v. Wadley, 169 Pa. Superior Ct. 490, 495, 83 A.2d 417, 419 (1951) the issue was posed: “What effect did the error have upon the jury?” In response, a passage from Kotteakos v. United States, 328 U.S. 750, 764-65 (1946) was quoted: “ ‘If, when all is said and done, the
Commonwealth v. Wadley, supra, and its progeny
In the present case judgment was arrested on two statutory violations not because the Commonwealth failed to prove the appellant acted improperly with respect to the Housing Authority, but because the court en banc did not find that an agreement existed between the appellant and his bank in one instance, and that a checking account did not constitute a contract for services in the other. These distinctions are fairly technical and depend upon a close reading and interpretation of the statutes in question. They do not weigh upon appellant’s constitutional rights. That the jury was permitted to form a conclusion that appellant was guilty of these charges was not an error which was likely to significantly influence the jury to find a corrupt motive behind appellant’s actions in the absence of other convincing evidence. Nor is this a case where a quantity of evidence in support of numerous unjustified charges confuses and overwhelms a jury so that its verdict on a few remaining valid charges is suspect, as in Commonwealth v. Nichols, 206 Pa. Superior Ct. 352, 213 A.2d 105, allocatur refused, 207 Pa. Superior Ct. l (1965). Although the evidence here may not have made out every fine element of the specific statutory offenses, it was all relevant to prove the offense of misbehavior in office and supported a finding that the actions of this public official were motivated by improper purposes.
Appellant also attacks the remaining charge concern
Appellant now argues that because there are three theories in the single indictment upon which the jury
Finally, we would be remiss if we did not note the excellence of the briefs submitted in this case. It has particularly been our pleasure to consider the clear and perceptive arguments advanced by the attorney for the Commonwealth in the present case.
Judgment affirmed.
. Initially the indictments against appellant were quashed by order of Spaeth, J., then of the Philadelphia Court of Common Pleas on July 27, 1970. On appeal by the Commonwealth, this Court, being equally divided, affirmed the order of the lower court. The Supreme Court in Commonwealth v. McCloskey, 443 Pa. 117, 277 A.2d 764, cert. denied, 404 U.S. 1000 (1971) reversed the orders of the lower court and the Superior Court in respect to this appellant, Frank Steinberg, reinstated the indictments, and remanded for further proceedings.
. The charges against Mr. Steinberg were specified in seven indictments numbered 879 to 885. A demurrer to indictment number 884 was sustained following the Commonwealth’s case upon the agreement of both the prosecution and defense that that charge was merely an alternative to number 883. The jury found appellant guilty of the remaining six indictments. However, the lower court en banc granted a motion for arrest of judgment on indictment 882, which charged deposit of public money for gain. The defendant’s motion for arrest of judgment was also granted by the court en banc on indictment number 885 charging malfeasance, misfeasance and nonfeasance in office due to failure to record and disclose on the minutes of the Philadelphia Housing Authority the defendant’s position and interest as a director and shareholder in Citizens Bank. None of these decisions was appealed.
. These staff members included the Director of Development, the general counsel, the legal representative of the Authority, and the controller, who was familiar with financing.
. Frank Steinberg was elected Chairman of the Authority on December 18, 1967. He served until July, 1969, when he resigned.
. With the large number of developers in the Used House Program and the relative scarcity of suitable properties available for rehabilitation, developers were, as it was stated by one witness, “clamoring for houses” to restore. This situation made the assignment of units obtained by the Philadelphia Housing Development Corporation a sensitive issue.
. Cotier Associates did, in fact, receive the fourth largest share of repair work out of a field of 17 general contractors who were assigned repair work and many other contractors in specific trades.
. The Housing Authority invests its money in banks throughout Philadelphia. However, a “lead bank” is required through which disbursements can be made to vendors and contractors and through which federal money can be cleared for payment and distribution to other banks.
. Compare Commonwealth v. Brown, 116 Pa. Superior Ct. 1, 175 A. 748, allocatur refused, 116 Pa. Superior Ct. xxv (1934), where misbehavior in office was found when public officials willfully breached their statutory duty, with Commonwealth v. Peoples, 345 Pa. 576, 28 A.2d 792 (1942) and Commonwealth v. Bready, 220 Pa. Superior Ct. 157, 286 A.2d 654, allocatur refused, 220 Pa. Superior Ct. xxxvii (1971) where the common law offense is distinguished from statutory offenses.
. Appellant also asserts that there was no evidence that the City
. In Commonwealth v. Evans, 190 Pa. Superior Ct. 179, 154
. To define the presumption the Court in Commonwealth v. McSorley, 189 Pa. Superior Ct. 223, 150 A.2d 570 (1959) cites three civil cases: Matson v. Margiotti, 371 Pa. 188, 88 A.2d 892 (1952) (a libel case): Hill v. Alexander, 338 Pa. 26, 11 A.2d 884 (1940) (a case involving dismissal of a public employee); and Barnes and Armbruster v. Scranton Poor Dist., 105 Pa. Superior Ct. 149, 160 A. 241 (1932) (an equity case to enjoin awarding a contract). Our research reveals no criminal case, with the exception of McSorley, where this presumption was applied. But see Commonwealth v. Nichols, 206 Pa. Superior Ct. 352, 213 A.2d 105, allocatur refused, 207 Pa. Superior Ct. l (1965).
. This conflict is illustrated in Judge Woodside’s concurring and dissenting opinion to Commonwealth v. Evans, 190 Pa. Superior Ct. 179, 154 A.2d 57 (1959), aff’d mem., 399 Pa. 387, 160 A.2d 407, cert. denied, 364 U.S. 899 (1960), in which it is stated “[a]n official act of a public official is presumed to have been performed in accordance with the law and in good faith and with the proper motive. [Citations omitted.] How can an act itself presumed to have been done in good faith, be the basis of an inference that it was done with corrupt motive?” Id. at 274, 154 A.2d at 105.
. Although appellant was also charged in Indictment Nos. 882 and 885 with having breached a positive statutory duty, the other prong of the offense of misbehavior in office, Commonwealth v. Evans, 190 Pa. Superior Ct. 179, 154 A.2d 57 (1959), aff'd mem., 399 Pa. 387, 160 A.2d 407, cert. denied, 364 U.S. 899 (1960), judgment on these charges was arrested by the lower court en banc. See note 2, supra. Therefore, only proof that appellant performed a discretionary duty with an improper motive will uphold his conviction. Commonwealth v. Hubbs, 137 Pa. Superior Ct. 244, 8 A.2d 618 (1939).
. Act of June 24, 1939, P.L. 872, §1101, 18 P.S. §5101, repealed, Act of December 6, 1972, P.L. 1482, No. 334, §5. This section provides: “Every offense now punishable either by the statute or common law of this Commonwealth and not specifically provided for by this act, shall continue to be an offense punishable as heretofore.” The new Crimes
. The Commonwealth has not appealed either of these decisions.
. Act of June 24, 1939, P.L. 872, §680, 18 P.S. §4680, repealed, Act of December 6, 1972, P.L. 1482, No. 334, §5.
. Act of May 28, 1937, P.L. 955, §8, as amended, 35 P.S. §1548.
. Commonwealth v. Hoffman, 230 Pa. Superior Ct. 444, 331 A.2d 805 (1974); Commonwealth v. Charen, 177 Pa. Superior Ct. 522, 111 A.2d 155 (1955); Commonwealth v. Graham, 170 Pa. Superior Ct. 343, 85 A.2d 632 (1952).
. The only charge that was .really duplicated in Indictment No. 883 was that of deposit of public money for gain (18 P.S. §4680). That crime was specifically charged in Indictment No. 882 and also represented one of the statutory violations which could support a finding of misconduct in office in No. 883. Indictment No. 885 charged a violation of the Housing Authorities Law which carried its own penalty. Act of May 28, 1937, P.L. 955, §8, as amended, 35 P.S. §1548. When the trial judge instructed the jury on No. 883, however, he made clear that the appellant could be found guilty of misconduct in office due to the violation of another section of the Housing Authorities Law which did not carry its own penalty and was distinct from that portion charged in No. 885.
. Because no appeal was taken from this decision, we will not consider whether the lower court en banc acted correctly in arresting judgment on these charges.