United States v. Ricardo R. Garcia, United States of America v. Antonio G. Cardenas, Jr.

The district court dismissed an indictment for “willfully misapplying]” funds obtained under the Comprehensive Employment and Training Act [CETA], 29 U.S.C. § 801-999 (1976 & Supp. IV 1980), in violation of 18 U.S.C. § 665 (1976), because the government conceded it could not prove intent to injure or defraud the United States. We affirm.

I.

Appellees are directors of Northwest Rural Opportunities [NRO], a private, nonprofit organization. NRO is a grantee under Title III of CETA providing social services under contract with the Department of Labor. In late 1980 the owner of the building NRO rented as a site for training migrant and seasonal farmworkers informed appellees the building could no longer be rented and offered NRO an option to purchase. The contract between the Department and NRO required NRO to obtain the Department’s approval before acquiring property for more than $300.00. Appellees used $32,000 of CETA funds, earmarked for “space,” to place a down payment on the building without obtaining prior approval.

Appellees were indicted for “willfully misapplying” the $32,000 in violation of 18 U.S.C. § 665 (a). Appellees moved to dismiss because the indictment did not…