United States v. Paul Deluca, Robert Kaye, James Danno, and John Lee

Kaye and three codefendants were tried on a 20-count indictment arising from Kaye’s attempt to dominate the rebuilt foreign auto parts industry in southern California. He owned Universal Auto Electric company, which manufactured rebuilt electrical foreign auto parts. He did not like competition, and from 1974 to early 1980 eight competing California companies were struck by arson.

The jury reached guilty verdicts on all 20 counts, finding all defendants guilty of conspiracy and racketeering. Defendants Lee and DeLuca were convicted of additional counts of extortion based on threats to Kaye’s competitors. The jury found Danno guilty also of several explosives counts and several corresponding counts of extortion by physical violence based on the same incidents. Kaye was guilty on all counts.

I. The Grand Jury

Kaye contends the indictment should be dismissed and argues that much of the evidence before the indicting grand jury was hearsay or incomplete. He sought access to grand jury records, which he thought would support his claim. After examining the material in camera, the judge denied the motion.

We do not dismiss an indictment valid on its face absent a showing that the…