United States v. Richard D. Fritz Leonard Levy and Robert L. Boynton

Richard D. Fritz, Leonard Levy and Robert L. Boynton moved to dismiss an indictment against them on the ground of misconduct by the prosecutor before the grand jury. The district court denied their motion. They appeal.

Proceedings. On August 5, 1986 the grand jury returned the indictment, which alleged the following: Boynton was Executive Vice President and Cashier of the Bank of Carmel (the Bank), a national bank insured by the Federal Deposit Insurance Company with a total capital of about $6 million. Boynton was also President and Chief Executive Officer of Carmel Bancor-poration, the owner of the Bank. Fritz was Senior Vice President and Loan Administrator of the Bank. Levy was a borrower from the Bank. The Bank had a legal lending limit for individual loans of $600,-000. The Board of Directors could approve loans up to that amount. The three defendants engaged in a scheme to defraud the Bank of money by lending Levy money without regard to the Bank’s policies and federal regulations. In return for Boyn-ton’s and Fritz’s cooperation, Levy was to help them gain control of Monterey County Bank.

The details of the scheme as set out in the indictment were these: Between January…