The opinion of the court was delivered by: Mukasey, District Judge.
Guariglia has moved on various grounds to dismiss each of
these counts. For the reasons set forth below, the motion is
denied in its entirety. The facts set forth below were
established in submissions by the parties and at a hearing on
January 28 and 29, 1991.
Guariglia was an officer of Wedtech Corporation who agreed in
January 1987 to plead guilty to two federally charged counts of
conspiracy and two state counts of grand larceny, and to
cooperate with prosecutors in their investigation of multiple
crimes committed by him and other Wedtech executives, and by
the public officials who accepted bribes in return for using
their influence to help the company win government contracts.
The criminality that pervaded Wedtech was the subject of at
least three trials in this District, United States v. Biaggi,
87 Cr. 265 (CBM); United States v. Stolfi, 88 Cr. 53 (MBM);
United States v. Wallach, supra, and has already been set forth
in numerous opinions of this Court and the Court of Appeals,
see, e.g., United States v. Biaggi, 909 F.2d 662 (2d Cir.
1990); United States v. Stolfi, 889 F.2d 378 (2d Cir. 1989),
and need not be described here. It is sufficient to note that
Guariglia testified as a government witness at all three trials
and has cooperated with government counsel both here and in
other jurisdictions, in both criminal and civil cases.
Guariglia's cooperation agreement with the government obligated
him to refrain from committing "any further crimes whatsoever."
(GX 1, p. 4)
Wedtech was adjudicated a bankrupt in the Bankruptcy Court
for this District. In aid of protecting assets for the benefit
of Wedtech's creditors, a June 30, 1988 order of that Court
restrained Guariglia from gambling with any of his assets.
Guariglia testified extensively in the Wallach trial in the
spring and summer of 1989, and was examined and cross-examined
at length on the crimes and other bad acts he had committed at
Wedtech and after he left, including his gambling. As set forth
in the indictment in this case, that testimony included the
"Q. Did there come a time when your gambling
A. Last summer, the summer of 1988."
"Q. Now, the fact of the matter is that you
continued to gamble after the summer of 1988;
In December 1989 prosecutors received allegations that
Guariglia had perjured himself in several respects. These
allegations included a claim that, contrary to the quoted
testimony, Guariglia had gambled at a casino in Puerto Rico in
November 1988. They were also informed that Guariglia had told
a prospective investor in A and H Toys & Hobbies, Inc., a
corporation he owned with his wife, and that ...