United States v. Victor Cowley and Michael St. Clair

Appellants St. Clair and Cowley were convicted of violating 18 U.S.C. § 1623 for willfully and knowingly making material false declarations before a grand jury (perjury). St. Clair was convicted under counts 2 and 3; Cowley was convicted under count 4. Both appeal their convictions. St. Clair’s conviction is affirmed as to count 2 and reversed as to count 3. Cowley’s conviction is reversed.

FACTS

St. Clair conducted business in the field of international finance as Channel Associates, located in Santa Barbara. Cowley was employed in that business. In late 1979 or early 1980, James Paige, controller of Holland Oil Company, telephoned St. Clair and explained that he wanted two cashier’s checks to be cashed abroad. St. Clair agreed to cash the checks for a $25,000 fee. On February 11, 1980, Paige purchased two cashier’s checks from a San Francisco bank, one for $432,946.44 and another for $670,051.00 and, at St. Clair’s suggestion, designated “Templeton Company” as payee. On the same day, Paige flew to Santa Barbara and delivered the checks to St. Clair. On February 27, 1980, St. Clair and Cowley flew to Anguilla in the British West Indies, where St. Clair made an initial $50…