Norman L. Vroman Lawyer c/o General Delivery Hopland, California IN PROPRIA PERSONA UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA UNITED STATES OF AMERICA ) No. CR 91 0213 EFL ) PLAINTIFF, ) POINTS & AUTHORITIES IN ) SUPPORT OF DISCOVERY ) MOTION v ) ) NORMAN LEON VROMAN ) ) DEFENDANT. ) ______________________________) DEFENDANT'S BRIEF IN SUPPORT OF DISCOVERY MOTION SEEKING COMPUTER EVIDENCE The Defendant, NORMAN LEON VROMAN, has sought the production of a selection of computer programs, manuals and other information relevant and material to the operation of I.R.S. computers from the prosecution by means of a discovery request. This brief is offered in support of such motion. USE OF COMPUTER DATA HEREIN The indictment herein charges the Defendant, with failure to file tax returns as required by law. Proof of the element of failure to file such tax returns will be established by a "tax examining assistant from the Criminal Investigation Branch" of an I.R.S. Service Center. The defense anticipates that this witness Points & Authorities in Support of Discovery: Page 1 of 13 will testify that the search for missing returns consisted entirely of making a request for computer data from the I.R.S. master (main frame) computer in Martinsburg, West Virginia, and that when the pertinent computer data was received from the master computer, it was displayed upon another computer screen. Because of the absence of certain transaction codes appearing within the field of the computer data so displayed upon the computer screen, the witness will assert that, properly so decoded, the computer data fails to reveal the filing of returns. Of course, such a conclusion or interpretation depends entirely upon the accuracy of the computer data, which in turn depends upon the accuracy of inputing and retrieval of the data and information. The processing, assimilation and retrieval of computer data is dependent upon human performance, training of personnel, computer programs, computer equipment and a variety of other factors. It is typical in tax prosecutions or tax related prosecutions for the government to attempt as best it can to conceal the computer based origin of this alleged proof. It is typical in tax cases for the Service Center witness to simply state the results of computer operations, but such statements are legally hearsay. To remedy this deficiency, it is common for the government to take the results of the computer operations and then prepare Certificates of Lack of Record, hoping that the same can achieve admission into evidence under Rule 803(10) and 902 of the Federal Rules of Evidence. However, such certificates are objectionable on the grounds that the custodian of the computer system used is not the party who executes the certificates. Points & Authorities in Support of Discovery: Page 2 of 13 Finally, the government sometimes attempts to simply get the computer printout admitted as a business or public record under Rules 803(6) or 803(8), but the objection here is that no foundation is ever laid to receive the results of computer operations into evidence pursuant to these two exceptions to the hearsay rule. Herein, the defense seeks discovery of all information relevant to the factual point of how the I.R.S. computers operate, and this request is based upon facts learned during the course of prior tax trials and information regarding I.R.S. computers openly discussed in media sources. For example, several years ago, a scandal within the I.R.S. involved the shredding of thousands of tax returns by personnel at the Philadelphia Service Center. Thereafter, a serious problem was noted regarding drug and alcohol abuse among the personnel at the Fresno Service Center. At least for several years now, many Service Centers have experienced serious problems with issuing tax refunds. Within the last five (5) months, the Wall Street Journal published an article regarding the antiquated I.R.S. computer system and a variety of serious computer data problems arising as a result. Finally, but not exclusively, a serious computer problem exists in the data error rates of the Service Centers, which range from 5% to 20%; information regarding this problem is concealed and known only "in-house". The defense is legally entitled to obtain through discovery all the information sought in this request. The prosecution obviously will strenuously oppose this request asserting that it has never been done before and tax litigants never question the Points & Authorities in Support of Discovery: Page 3 of 13 I.R.S. computer. However, such replies are merely excuses not constituting valid objections to production. LEGAL ENTITLEMENT TO COMPUTER DATA What the "computer says" is blatant hearsay. In Jeffries v. State, 640 S.W.2d 854 (Tenn.Crim.App., 1979), the prosecution in a drug case attempted to rebut the defendant's testimony about a certain fact by having an election commission employee testify about data displayed on a computer screen. In holding such testimony inadmissible, it was held: "Over objection, she was permitted to file a business record an abstract or summary of information which she said she obtained from viewing a computer screen in her office .... Her abstract of that entry was not made in the regular course of business at or near the time of the act, condition or event as is required by the act and itself does not qualify as a business record. Her testimony as to what she read on the computer was hearsay and was objectionable," 640 S.W.2d, at 857. In defining the circumstances under which computerized evidence is admissible, the Court said: "[P]rintout sheets of business records stored on computing equipment are admissible in evidence if relevant and material and if it is shown that (1) the particular electronic computing equipment is recognized as standard equipment; (2) entries are made in the regular course of business at or reasonably near the time of happening of the event recorded, and (3) foundation testimony satisfies the court that the source of information, method, and time of preparation were such as to indicate its trustworthiness and justify its admission," 640 S.W.2d, at 858. Points & Authorities in Support of Discovery: Page 4 of 13 In Railroad Comm. v. Southern Pacific Company, 468 S.W.2d 125 (Tex.Civ.App., 1971), the railroad used a "cartload" of computer records and summaries of those records to prove its case. The appellate court condemned the computer records and summaries because no foundation had been laid: "These records are hearsay and any testimony rooted therein is hearsay spawned in hearsay," 468 S.W.2d, at 128. A credit card theft prosecution was the subject of State v. Springer, 283 N.C. 627, 197 S.E.2d 530 (1973). In holding that the testimony of a witness regarding the contents of computer records was inadmissible, the court held: "[T]he computer printout referred to in the testimony of Fred Holt, the special investigator, was inadmissible since no foundation was laid for its admission. In fact, the printout itself was not offered in evidence. Instead, the witness Fred Holt was permitted to testify as to the contents of the printout, and this evidence was likewise inadmissible under the best evidence rule .... Admission of this testimony constitutes prejudicial error requiring a new trial," 197 S.E.2d, at 536, 537. Absent a foundation for the receipt of computer generated data, the results of computer operations are hearsay; see United States v. Johnson, 413 F.2d 1396 (5th Cir., 1969). Authority exists for the proposition that, whenever the government intends to offer computer generated data as evidence in a criminal prosecution, it must so inform the defense and make available pre-trial a variety of materials. See United States v. Kelly, 420 F.2d 26 (2nd Cir., 1970), and United States v. Stifel, 433 F.2d 431 (6th Cir., 1970). This was the conclusion in United States v. Dioguardi, 428 F.2d 1033 (2nd Cir., 1970), where it was held: Points & Authorities in Support of Discovery: Page 5 of 13 "It is quite incomprehensible that the prosecution should tender a witness to state the results of a computer's operations without having the program available for defense scrutiny and use on cross-examination if desired. We place the Government on the clearest possible notice of its obligation to do this and also of the great desirability of making the program and other materials needed for cross-examination of computer witnesses, such as flow charts used in the preparation of programs, available to the defense in a reasonable time before trial," 428 F.2d, at 1038. However, even if the prosecution complies with this requirement, certain computer generated data can still be held inadmissible. This proved to be true in United States v. Ruffin, 575 F.2d 346, 356 (2nd Cir., 1978), which held an "IRS printout" inadmissible evidence. See also United States v. Furst, 886 F.2d 558 (3rd Cir., 1989). The necessity for laying a foundation for the receipt of computer generated evidence was the subject of United States v. Russo, 480 F.2d 1228 (6th Cir., 1973), a case whereby the defendants were accused of mail fraud for defrauding an insurance company, Blue Shield of Michigan. The prosecution used extreme care in laying the proper foundation to receive into evidence the computer data necessary to prove the guilt of the accused. In commenting upon the necessity for laying a foundation, the court cited United States v. DeGeorgia, 420 F.2d 889 (9th Cir., 1969) and stated: Points & Authorities in Support of Discovery: Page 6 of 13 "As the opinion points out, the foundation for admission of such evidence consists of showing the input procedures used, the tests for accuracy and reliability and the fact that an established business relies on the computer records in the ordinary course of carrying on its activities. The defendant then has the opportunity to cross-examine concerning company practices with respect to the input and as to the accuracy of the computer as a memory bank and the retriever of information. The concurring opinion in DeGeorgia emphasized the necessity that the court 'be satisfied with all reasonable certainty that both the machine and those who supply its information has performed their functions with utmost accuracy' .... This opinion goes on to say that the trustworthiness of the particular records should be ascertained before they are admitted and that the burden of presenting an adequate foundation for receiving the evidence should be on the party seeking to introduce it rather than upon the party opposing its introduction," 480 F.2d, at 1241. The weight of authority in the federal appellate courts is that a foundation must be laid for the introduction of computer "business records"; see United States v. Dioguardi, 428 F.2d 1033 (2nd Cir., 1970); United States v. Ruffin, 575 F.2d 346 (2nd Cir., 1978); United States v. Alexander, 789 F. 2d 1046, 1049 (4th Cir.,1986); United States v. Fendley, 522 F.2d 181 (5th Cir., 1975); United States v. Hutson, 821 F.2d 1015 (5th Cir., 1987); United States v. Sanders, 749 F.2d 195 (5th Cir., 1984); Rosenberg v. Collins, 624 F.2d 659 (5th Cir., 1980); Capital Marine Supply, Inc. v. M/V Roland Thomas, II, 719 F.2d 104 (5th Cir., 1983); United States v. Young Bros., Inc., 728 Points & Authorities in Support of Discovery: Page 7 of 13 F.2d 682 (5th Cir., 1984); United States v. Russo, 480 F.2d 1228 (6th Cir., 1973); United States v. Weatherspoon, 581 F.2d 595 (7th Cir., 1978); United States v. Croft, 750 F.2d 1354 (7th Cir., 1984); United States v. Scholle, 553 F.2d 1109 (8th Cir., 1977); United States v. DeGeorgia, 429 F.2d 889 (9th Cir., 1969); United States v. Catabran, 836 F.2d 543 (9th Cir., 1988); Regents of University of Colorado v. K.D.I. Precision Products, Inc., 488 F.2d 261 (10th Cir., 1973); and United States v. Glasser, 773 F.2d 1553 (11th Cir., 1985). See also annotation at 7 A.L.R. 4th 8, entitled "Admissibility of computerized private business records." And the state courts likewise require that an evidentiary foundation be laid before computer data is received into evidence; see Schear v. Motel Management Corp. of America, 61 Md.App. 670, 487 A.2d 1240 (1985); Dept. of Mental Health v. Beil, 44 Ill.App.3d 402, 357 N.E.2d 875, 880 (1976); People v. Boyd, 66 Ill.App.3d 582, 384 N.Ed.2d 414, 420 (1978); Monarch Fed. Savings & Loan Assn. v. Genser, 156 N.J.Super. 107, 383 A.2d 475, 489 (1977); People v. Gauer, 7 Ill.App.3d 512, 288 N.Ed.2d 24 (1972); Estate of Buddeke, 49 Ill.App.3d 431, 364 N.E.2d 446 (1977); United States Fidelity & Guaranty Company v. Young Life Campaign, Inc., 600 P.2d 79 (Colo.App., 1979); Hamilton Music, Inc. v. York, 565 S.W.2d 838 (Mo.App., 1978); and Chrysler Credit Corp. v. Bank of Wiggins, 358 So.2d 714 (Miss., 1978). The above authority thus shows that to receive computer data into evidence, a very careful and thorough foundation must be laid. The same authority indicates that when the use of computer data as evidence is contemplated in any given case, broad Points & Authorities in Support of Discovery: Page 8 of 13 discovery is essential so that the party opposing admission thereof may properly challenge the same; see Chesapeake and Ohio Ry. Co. v. United States, 704 F.2d 373, 379 (7th Cir., 1983); Pearl Brewing Co. v. Jos. Schlitz Brewing Co., 415 F.Supp. 1122 (S.D.Tex., 1976); and City of Cleveland v. Cleveland Electric Illuminating Co., 538 F.Supp. 1257, 1266, 1267 (N.D.Oh., 1980). In this respect, the opponent is entitled to discovery of the computer hardware and software so used, programs, information relative to entry and retrieval of computer data (manuals included), results of accuracy tests and a variety of other data. Surely the defense herein is entitled to obtain from the prosecution and the appropriate federal agency all evidence necessary to prove the inadmissibility of the computer data the prosecution will obviously want to introduce herein. This same precise issue arose in United States v. Liebert, 519 F.2d 542 (3rd Cir., 1975). Here, Liebert's counsel had learned through some method that in other tax prosecutions the government was using a document named the "non-filing list" to establish the fact of the failure to file a return. Liebert then sought production of this document which the government openly used in other cases; but here, the prosecution strenuously fought producing the document which it intended to use at Liebert's trial. Because of the failure to permit discovery, the District Court dismissed the prosecution, thus causing the government to appeal. In addressing this issue, the Third Circuit held: Points & Authorities in Support of Discovery: Page 9 of 13 "A major 'witness' confronting Liebert will be computer printouts indicating that the IRS has no record of having received his returns .... The introduction of a computer printout is admissible in a criminal trial provided that the party offering the computer information lays a foundation sufficient to warrant a finding that such information is trustworthy and the opposing party is given the same opportunity to inquire into the accuracy of the computer and its input procedures as he has to inquire into the accuracy of written business records. "A party seeking to impeach the reliability of computer evidence should have sufficient opportunity to ascertain by pre-trial discovery whether both the machine and those who supply it with data input and information have performed their tasks accurately .... The nonfiling lists plainly are outputs of the computer system identifying individuals not filing returns. If an individual who in fact has filed is listed as a nonfiler due to computer error, such error casts doubt on the accuracy and reliability of the records identifying Liebert as a nonfiler. The lists, therefore, may be useful to Liebert in his efforts to impeach the reliability of the computer procedures indicating that he has not filed his returns," 519 F.2d, at 547, 548. Thus, it is quite clear from well established case authority that the mere contemplated use of computer evidence during a criminal trial opens the door to the defense to discover everything relevant to the operations of those computers. It cannot be denied that computer evidence will be used by the prosecution in this case, hence this request must be granted. Points & Authorities in Support of Discovery: Page 10 of 13 MATERIALITY OF REQUEST In order for the defense to obtain the requested computer evidence sought herein via this motion, it might also be essential to demonstrate the materiality of that evidence. This proposition is established by such cases as United States v. Ross, 511 F. 2d 757, 762 (5th Cir., 1975), United States v. Brown, 562 F. 2d 1144, 1152 (9th Cir., 1977), United States v. Johnson, 577 F. 2d 1304, 1309 (5th Cir., 1978), and United States v. Buckley, 586 F. 2d 498, 506 (5th Cir., 1978), all of which hold that "material" evidence is that which alters the quantum of proof on a factual and disputed issue in favor of the defendant. Herein, Vroman contends that IRS computers have error rates of 5% to 20%, as noted above. Published statements from the IRS indicate that a total of 1.7 billion returns and information items are filed at the 10 Service Centers annually, thus each Service Center handles on the average 170 million items and returns every year. If a particular Service Center has an error rate of only 5%, then it has errors in the approximate amount of 8.5 million. If its error rate however is 20%, then it has errors in the amount of 34 million. Just the simple demonstration of error rates alone offers the opportunity to Vroman to show that computer data generated by IRS computers is highly inaccurate and the jury in this case could therefore reject the credibility of any evidence offered by the prosecution which is computer generated. Since Vroman lacks such evidence and seeks the same through discovery, the production of this evidence would thus shift the quantum of proof in favor of Vroman when that evidence is produced by the prosecution. Points & Authorities in Support of Discovery: Page 11 of 13 Further, Vroman seeks a variety of evidence that relates to the process by which information is computerized by the IRS. To demonstrate inaccuracy, the evidence requested is needed to prove how the errors do occur.Vroman needs information about what types of computers are used by the IRS so that an expert can testify regarding the accuracy of those particular types of computers. Additionally, the information regarding the computer software is needed to demonstrate whether there be any errors in the same, all of which bears directly upon the same point. Evidence regarding changes or repairs to both hardware and software is equally important for showing where error generation potentials exist. Finally, information such as that contained in manuals regarding how to change or alter computer data relates to error rates and possibly more. Everyone who knows anything about computers fully realizes that a copy of a file may be changed without the change being reflected in the original file. One may copy a computer file and make alterations, deletions or changes without having any effect upon the original file. It must be remembered that a Service Center obtains computer data that is simply a copy of the data at Martinsburg. The copy of that data may be altered at the Service Center, yet no reflection of those changes will be recorded at Martinsburg. In summary, this computer evidence is very material to the defense of Vroman; that materiality being clearly shown, the same must be produced. CONCLUSION The relevant authority clearly establishes that the defense is entitled to production of the items so sought, thus the defense requests that this court order the prosecution, in the event of opposition to this motion, to produce the items and other information sought in the discovery motion. Points & Authorities in Support of Discovery: Page 12 of 13 Respectfully submitted this the ___ day of August, 1991. /s/ Norman Vroman _____________________________ NORMAN L. VROMAN In Propria Persona Points & Authorities in Support of Discovery: Page 13 of 13 # # #
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U.S.A. v. Vroman