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United States v. Welch

United States Court of Appeals for the Tenth Circuit

April 22, 2003, Filed

Nos. 01-4170, 01-4241

Opinion

 [*1084]  BALDOCK, Circuit Judge.

Defendants Thomas K. Welch and David R. Johnson were the President and Senior Vice President, respectively, of the Salt Lake City Bid Committee for the 2002 Olympic Winter Games (SLBC). Community [**2]  leaders organized the SLBC in the late 1980's as an I.R.C. § 501(c)(3) not-for-profit corporation under the direction of a board of trustees. The SLBC's primary purpose was to secure, in cooperation with the United States Olympic Committee (USOC), the right from the International Olympic Committee (IOC) to host the quadrennial Winter Games in Utah. 1 [**3]  The IOC is an "international non-governmental non-profit organization" based in Lausanne, Switzerland. One of the primary duties of individual IOC members from participating countries is to cast votes to elect the host city for the Olympic Games. 2 In June 1995, the IOC awarded the 2002 Olympic Winter Games to Salt Lake City, Utah. 3 

In July 2000, a federal grand jury indicted Defendants Welch and Johnson on fifteen bribery-related counts of criminal misconduct in connection with the SLBC's activities in procuring the 2002 Games. Count I of the indictment charged Defendants with [**4]  conspiracy to defraud the United States by committing numerous bribery-related offenses in violation of 18 U.S.C. § 371. [*1085]  Counts II through V charged Defendants with use of communications in interstate and foreign commerce to facilitate unlawful activity in violation of 18 U.S.C. § 1952(a)(3). Counts VI through X charged Defendants with mail fraud in violation of 18 U.S.C. § 1341. Lastly, Counts XI through XV charged Defendants with wire fraud in violation of 18 U.S.C. § 1343. Upon Defendants' motion and over a magistrate judge's contrary recommendations, the district court dismissed the indictment in its entirety. The Government appeals. We exercise jurisdiction pursuant to 18 U.S.C. § 3731. We reverse and remand.

 [*1086]  According to the indictment, Salt Lake City began competing for the Olympic Winter Games around 1988. In 1994, the SLBC and USOC jointly executed and filed with the IOC an "Undertaking" in which they agreed to abide by the provisions of the International Olympic Charter and to act in accord with the IOC's instructions to candidate cities bidding on the [**5]  2002 Winter Games. As part of the 2002 bidding process, the IOC distributed a series of instructions to candidate cities and IOC members. IOC members similarly are bound by the Charter and take an oath to remain free from commercial influence. As stated in the indictment, the instructions "limited certain expenditures by candidate cities, created rules concerning visits by IOC members to candidate cities, and placed limitations on the value of gifts and other benefits which could be given to IOC members by and on behalf of candidate cities."

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327 F.3d 1081 *; 2003 U.S. App. LEXIS 7622 **

UNITED STATES OF AMERICA, Plaintiff-Appellant, v. THOMAS K. WELCH and DAVID R. JOHNSON, Defendants-Appellees.

Prior History:  [**1]  APPEALS FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH. (D.C. No. 2:00-CR-324-S).

United States v. Welch, 248 F. Supp. 2d 1061, 2001 U.S. Dist. LEXIS 25086 (D. Utah, Nov. 15, 2001)

Disposition: Judgment of the district court dismissing the indictment REVERSED; REMANDED

CORE TERMS

Travel, indictment, counts, mail, wire fraud, Defendants', district court, bribery, unlawful activity, fiduciary, interstate, honest, deprive, allegations, commercial bribery, defraud, host, intent to defraud, gifts, vague, proscribed, quotations, promotion, benefits, confer, alleged conduct, mail fraud, fraudulent, requisite, offenses

Criminal Law & Procedure, Racketeering, Travel Act, General Overview, Elements, Crimes Against Persons, Bribery, Banking Law, Criminal Offenses, Bank Fraud, Fraud Against the Government, Mail Fraud, Fraud, Wire Fraud, Accusatory Instruments, Indictments, Appellate Review, Contents, Challenges, Sufficiency of Contents, Appeals, Standards of Review, De Novo Review, International Trade Law, Commercial Bribery, Governments, State & Territorial Governments, Boundaries, Penalties, Business & Corporate Compliance, Governments, Gaming & Lotteries, Controlled Substances, Public Officials, Arson, Simple Arson, Sex Crimes, Tax Law, Federal Tax Administration & Procedures, Criminal Offenses & Penalties, Racketeer Influenced & Corrupt Organizations Act, Legislation, Interpretation, Types of Statutes, Constitutional Law, Supremacy Clause, Federal Government, US Congress, Congressional Duties & Powers, Commerce Clause, Transportation Law, Interstate Commerce, Federal Powers, Overbreadth, Fundamental Freedoms, Judicial & Legislative Restraints, Overbreadth & Vagueness of Legislation, Vagueness, Business & Corporate Law, Agency Relationships, Fiduciaries, Acts & Mental States, Mens Rea, Specific Intent, Purpose, Defenses, Ignorance & Mistake of Law, Standing, Fiduciaries, Duties & Liabilities, Care, Good Faith & Reasonable Skill, Duty of Good Faith, Unlawful Acts of Agents, Intentional & Willful Injuries, Causes of Action & Remedies, Burdens of Proof, Agents Distinguished, Establishment, Elements, Right to Control by Principal, Courts, Judicial Precedent, Authorized Acts of Agents, Burden of Inquiry, Fiduciary Duties, Breach of Fiduciary Duty, Disclosure Requirements, Duty to Inquire, Contracts Law, Contract Interpretation, Fiduciary Responsibilities, Torts, Fraud & Misrepresentation, Actual Fraud, Statute of Frauds, Requirements, Extortion, Hobbs Act, Education Law, Faculty & Staff, Compensation, Payment, Labor & Employment Law, Employment Relationships, Employment Contracts, Breaches