United States v. Feldma

761 F.2d 380 (7th Cir. 1985)

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Nature of the Case

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Facts

Feldman and Martenson, (Ds) were engaged in the futures trading of precious metals under the corporation name of First Guaranty Metals (FGM). Sanburg was also involved in the same firm with Ds but left the firm in August of 1979. The company eventually filed for bankruptcy. Allegations were made that Ds defrauded customers by misrepresenting hedging and pricing information. The Commodity Futures Trading Commission instituted civil actions against all three parties, and they were deposed. D did not attend the deposition of Sanburg. Sanburg had made a deal with the government to turn evidence against Ds for immunity. This was kept a secret until after the trial with Ds was commenced. At Sanburg's deposition, Ds were not as of yet indicted. Sanburg gave substantial incriminating evidence against Ds and then died one month after the deposition. Ds were subsequently indicted ten months later, and the Government sought the admission of Sanburg's deposition. The trial court admitted the deposition because Ds had notice and opportunity to attend that deposition, were represented by counsel, and were parties to the civil litigation. Ds were convicted and appealed.