149 A.D.2d 941, 540 N.Y.S.2d 74
PEOPLE of the State of New York,
Appellant,
v.
Robert RICCELLI, Respondent.
Supreme Court, Appellate Division,
Fourth Department.
April 14, 1989.
State appealed from order of the
Onondaga County Court, Mulroy, J.,
dismissing indictment charging defendant
with promoting and profiting from pyramid
scheme. The Supreme Court, Appellate
Division, held that trial court abused its
discretion as matter of law in dismissing
indictment.
Reversed.
INDICTMENT AND INFORMATION
k144.1(1)
210k144.1(1)
Trial court abused its discretion as matter
of law in dismissing, on furtherance of
justice grounds, indictment charging
defendant with promoting and profiting
from pyramid scheme, notwithstanding
defendant's argument that he believed
scheme to be lawful and trial court's belief
that victims took their chances and that
publicity associated with case alerted
public to illegal nature of scheme and
effectively terminated it; defendant could
not be relieved of criminal liability because
he mistakenly believed that scheme was
legal, and promotion of scheme was
public act against all of society rather than
private wrong directed at supposedly
willing victims. McKinney's CPL 210.40;
McKinney's General Business Law 352-c, subd. 6; McKinney's Penal Law
190.65, subd. 1(b).
**74 Robert Abrams, State Atty. Gen. by
Joseph Di Palma, Syracuse, for appellant.
James R. McGraw, Syracuse, for
respondent.
*941 Before DILLON, P.J., and
CALLAHAN, DENMAN, GREEN and
DAVIS, JJ.
MEMORANDUM:
Defendant was charged with violations of
Penal Law 190.65(1)(b) (scheme to
defraud in the first degree), General
Business Law 352-c(6) (fraud in the sale
of securities), and General Business Law
359-fff (promoting a chain distributor
scheme). County Court granted
defendant's motion to dismiss the
indictment in furtherance of justice (see,
CPL 210.40). We reverse and reinstate
the indictment.
Defendant allegedly promoted and
profited from a pyramid scheme known as
the "airplane game". As the scheme
operates, each "plane" has eight
"passengers", four "flight attendants", two
"copilots" and one "pilot". Each new
participant joins the game by paying
$2,200 to become a "passenger". The
successful recruitment by each
"passenger" of two additional
"passengers" results in the creation of an
ever-expanding number of additional
"planes" and permits "passengers" to
move progressively in rank to "flight
attendant", "copilot" and finally to "pilot", at
which stage the "pilot" receives a payoff
*942 of $17,600, representing the
"investments" of eight newly-recruited
"passengers".
An indictment may be dismissed in
furtherance of justice when there exists
"some compelling factor, consideration or
circumstance clearly demonstrating that
conviction or prosecution of the defendant
upon such indictment * * * would
constitute or result in injustice" (CPL
210.40[1] ). Before granting the relief, the
court must, to the extent applicable,
examine and consider, individually and
collectively, the factors set forth in the
statute (see, CPL 210.40[1][a]-[j] ). We
have independently reviewed those
factors and we conclude that a dismissal
in furtherance of justice is not warranted.
This case does not present **75 "that rare
or unusual circumstance which cries out
for fundamental justice" (People v. Litman,
99 A.D.2d 573, 470 N.Y.S.2d 940).
Two of the crimes charged in the
indictment are felonies, punishable by a
term of imprisonment in excess of one
year; they are serious offenses (see,
Blanton v. City of North Las Vegas, 489
U.S. ----, 109 S.Ct. 1289, 103 L.Ed.2d
550). Defendant's argument that he
believed that the scheme was lawful is
unpersuasive, even if true. "A person is
not relieved of criminal liability for conduct
because he engages in such conduct
under a mistaken belief that it does not,
as a matter of law, constitute an offense,
unless such mistaken belief is founded
upon an official statement of the law * * *
" (Penal Law 15.20[2]; see, People v.
Marrero, 69 N.Y.2d 382, 515 N.Y.S.2d
212, 507 N.E.2d 1068). Defendant makes
no claim that he was victimized by "an
official statement of the law".
County Court considered the extent of
harm resulting from defendant's unlawful
conduct only in terms of loss of money by
one "victim" who was solicited by
defendant to participate in the scheme.
The court reasoned that the "victim" like
"one who places a bet with a bookmaker"
should not be heard to complain "that he
has been financially diminished." Without
commenting on the more obvious flaw in
that reasoning, we find that promotion of
this pyramid scheme is not a private
wrong; it is a public act against all of
society (see, People v. Litman, 99 A.D.2d
573, 470 N.Y.S.2d 940, supra ). The
Legislature, fully aware that one buying
into a scheme of this nature may be
motivated by greed, nevertheless
determined that its promotion should be
criminal. Defendant admits his
participation, and although he has no prior
criminal record, an unblemished or even
an exemplary background is not a
compelling reason for dismissal (see,
People v. Surprenant, 91 A.D.2d 1111,
458 N.Y.S.2d 363; People v. Andrew, 78
A.D.2d 683, 432 N.Y.S.2d 252).
There is nothing in the record to
demonstrate selective *943 prosecution or
other misconduct by law enforcement
personnel. The Attorney General avers,
without contradiction, that many
participants in the scheme have been, are
being, or will be prosecuted. We find no
merit to the argument that defendant has
been discriminatorily singled out for
prosecution (see, Matter of 303 West
42nd St. Corp. v. Klein, 46 N.Y.2d 686,
693, 416 N.Y.S.2d 219, 389 N.E.2d 815).
County Court also reasoned that the
publicity associated with the case alerted
the public to the illegal nature of the
scheme and effectively "grounded" it, thus
serving the purpose of prosecution. We
reject that rationale. A criminal indictment
should not be dismissed as having served
its purpose merely because it has been
publicized.
In sum, we find that in dismissing the
indictment, County Court abused its
discretion as a matter of law.
Order unanimously reversed on the law,
motion denied and indictment reinstated.
END OF DOCUMENT
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