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United States v. Edward L. Schutte, 610 F.2d 698, 10th Cir. (1979)

This document is a court case from the United States Court of Appeals for the Tenth Circuit regarding Edward L. Schutte's appeal of his conviction for issuing false and fraudulent warehouse certificates in violation of 7 U.S.C. § 270. Schutte argued that the statute did not clearly advise him if the crime was a misdemeanor or felony since it described the act as a misdemeanor but provided a potential punishment of up to 10 years in prison. The court affirmed the conviction, finding that under 18 U.S.C. § 1, any offense punishable by over 1 year in prison is a felony regardless of how the statute labels the crime.

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44 views3 pages

United States v. Edward L. Schutte, 610 F.2d 698, 10th Cir. (1979)

This document is a court case from the United States Court of Appeals for the Tenth Circuit regarding Edward L. Schutte's appeal of his conviction for issuing false and fraudulent warehouse certificates in violation of 7 U.S.C. § 270. Schutte argued that the statute did not clearly advise him if the crime was a misdemeanor or felony since it described the act as a misdemeanor but provided a potential punishment of up to 10 years in prison. The court affirmed the conviction, finding that under 18 U.S.C. § 1, any offense punishable by over 1 year in prison is a felony regardless of how the statute labels the crime.

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610 F.

2d 698

UNITED STATES of America, Plaintiff-Appellee,


v.
Edward L. SCHUTTE, Defendant-Appellant.
No. 79-1485.

United States Court of Appeals,


Tenth Circuit.
Submitted Oct. 10, 1979.
Decided Nov. 20, 1979.

James P. Buchele, U. S. Atty., and Douglas B. Comer, Asst. U. S. Atty.,


Topeka, Kan., for plaintiff-appellee.
J. Steven Schweiker and David R. Gilman & Associates, Overland Park,
Kan., for defendant-appellant.
Before McWILLIAMS, LEWIS and LOGAN, Circuit Judges.
McWILLIAMS, Circuit Judge.

By indictment Edward L. Schutte was charged in two counts with wilfully,


knowingly and unlawfully issuing a false and fraudulent warehouse certificate
in violation of 7 U.S.C. 270. Each count related to a different warehouse
certificate. To each count Schutte filed a motion to dismiss, alleging that the
provisions of 7 U.S.C. 270 did not sufficiently advise him of the crime
charged. This motion was denied.

By superseding indictment Schutte was charged with conspiring to violate the


provisions of 7 U.S.C. 270, in violation of 18 U.S.C 371, and in a second
count with the violation of 7 U.S.C 270. Trial of the case was to the court on
stipulated facts which were tantamount to a plea of guilty. The trial court
adjudged Schutte guilty on both counts, and sentenced him to two years
imprisonment on each count, the sentences to be served concurrently.

The only matter raised on appeal concerns the propriety of the trial court's

denial of Schutte's motion to dismiss. 7 U.S.C. 270 describes various


proscribed acts and then declares that any person who commits any of the acts
thus described "shall be deemed guilty of a misdemeanor, and upon conviction
shall be fined not more than $10,000 or double the value of the products
involved if such double value exceeds $10,000, or imprisoned not more than
ten years, or both, in the discretion of the court . . . ." The patent inconsistency
in the statute, i. e., denominating the crime as a misdemeanor and then in the
next breath providing for imprisonment for up to ten years, was the basis for
Schutte's motion to dismiss. Schutte argued, in effect, that he didn't know
whether he was charged with a misdemeanor or a felony.
4

Prior to 1931 the predecessor statute to 7 U.S.C. 270 denominated the


proscribed acts as misdemeanors and provided as a penalty, Inter alia,
imprisonment for not more than one year. In 1931 Congress amended the
statute so as to provide for imprisonment of not more than ten years. In thus
amending, Congress was presumably of the view that a one-year sentence did
not have a sufficiently deterring effect. However, in the amended statute the
misdemeanor designation remained unchanged.

Prior to 1948, a felony was defined by statute as any offense punishable by


death or imprisonment for a term of more than one year, with all other offenses
being deemed misdemeanors. In 1948 there was a re-enactment of the
foregoing statutory definition, but with some additional language which we
deem significant. 18 U.S.C. 1. The re-enacted statute, with the additional
language being underlined, provides as follows:

6Notwithstanding any Act of Congress to the contrary.


7 Any offense punishable by death or imprisonment for a term exceeding one year
(1)
is a felony.
8(2) Any other offense is a misdemeanor.
9

In our view 18 U.S.C. 1 is the complete answer to Schutte's argument in this


Court. That statute provides that any offense punishable by a term of
imprisonment exceeding one year is a felony, Notwithstanding any act of
Congress to the contrary. So, notwithstanding the fact that 7 U.S.C. 270
denominates the proscribed acts as misdemeanors, such acts are nonetheless a
felony, since the acts subject the offender to a possible term of imprisonment of
up to ten years. In support of our position, see Loos v. Hardwick, 224 F.2d 442
(5th Cir. 1955). See also Hoss v. United States, 232 F. 328, 335 (8th Cir. 1916).

10

Judgment affirmed.

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