United States v. Payner

Facts

The IRS launched an investigation into the financial activities of American citizens in the Bahamas.  Special Agent Richard Jaffe asked Norman Casper, a private investigator, and occasional informant, to learn what he could about the Bank and its depositors. Casper cultivated his friendship with the Bank vice president.  Casper introduced the VP to  Sybol Kennedy, a private investigator, and former employee. The VP was going to spend a few days in Miami and Casper simply stole the documents needed. Agent Jaffe approved the basic outline of the plan. Casper removed a briefcase and delivered it to Jaffe. While the agent supervised the copying of approximately 400 documents taken from the briefcase, a 'lookout' observed Kennedy and the VP at dinner. The briefcase was replaced. The documents photographed that evening included papers evidencing a close working relationship between the Bank and the Bank of Perrine, Fla. Subpoenas issued to the Bank of Perrine ultimately uncovered the loan guarantee agreement at issue in this case. D was indicted on a charge of falsifying his 1972 federal income tax return. The indictment alleged that D denied maintaining a foreign bank account at a time when he knew that he had such an account in the Bahama Islands. P's case rested on a loan guarantee agreement dated April 28, 1972, in which D pledged the funds in his Bahama Island Bank account as security for a $100,000 loan. D moved to suppress the guarantee agreement. The court found D guilty as charged. It also found that P conducted an illegal search on January 15, 1973. The court suppressed 'all evidence introduced in the case by the Government with the exception of D's 1972 tax return . . . and the related testimony.' The conviction was set aside. The Court of Appeals affirmed in a brief order endorsing the District Court's use of its supervisory power. P appealed. 

Issues

Rule of Law

Holding and Decision

Legal Analysis

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