13432. Alleged conspiracy to violate the Federal Food, Drug, and Cosmetic Act
with respect to shipment and delivery of dried -whole eggs. U. S. v. 
Joseph J. Giordano, Horace A. Gioia, Benjamin Schleifer, Jacob J. Sheve- 
love, John W. Coyne, Gioia Macaroni Co., and Cocar, Inc. Pleas of not 
guilty. Trial of defendants John W. Coyne and Cocar, Inc., before a jury. 
Verdict of not guilty. Conspiracy indictment against other defendants 
dismissed.    (F. D. C. No. 15571.    Sample Nos. 82871-F, et al.)
INDICTMENT RETURNED: May 29, 1945, District of New Jersey, against Joseph 
J. Giordano, Horace A. Gioia, Benjamin Schleifer, and John W. Coyne, all of 
Rochester, N. Y., Jacob J. Shevelove, Newark, N. J., and the Gioia Macaroni Co. 
and Cocar, Inc., corporations located at Rochester, N. Y.
NATURE OF CHARGE : The indictment alleged that the defendants, in January 1944, 
and continuously thereafter to August 31, 1944, at Jersey City, N. J., willfully, 
knowingly, and unlawfully conspired and agreed together to commit offenses
in violation of Sections 301 (a) and 301 (c) of the Federal Food, Drug, and 
Cosmetic Act, with the purpose and object of introducing into interstate 
commerce, delivering for shipment, shipping between the States of New Jersey 
and New York, and after receipt in interstate commerce, delivering and proffer- 
ing for delivery for pay, a quantity of spray dried whole eggs which were 
adulterated under Section 402 (a) (3), in that they consisted in whole or in 
part of decomposed eggs. It was alleged also that in pursuance of the unlawful 
conspiracy and for the purpose of effecting its object, the defendants did 
commit the following overt acts:
I. During the month of January 1944-, but prior to January 26, 1944, in 
Rochester, N. Y., the defendants Coyne, Giordano, and Gioia entered into an 
arrangement to purchase approximately 96,000 pounds of adulterated spray 
dried whole eggs, being offered for sale by the War Food Administration, 
whereby the defendants Giordano and Gioia would advance the necessary funds 
for the purchase of the adulterated eggs by the defendant, Cocar, Inc.
Z On January 26, 1944, Cocar, Inc., submitted offers to the War Food 
Administration for the purchase of various lots of dried whole eggs, comprising 
approximately 96,000 pounds.
3. Within the period commencing January 1, 1944, and ending February 9, 
1944, the Gioia Macaroni Co. loaned to Horace Gioia a sum of money to enable 
the latter to advance funds for the purchase of the dried whole eggs. '
4. On February 9, 1944, John Coyne and Joseph Giordano procured the 
issuance of two certified checks payable to John Coyne.
5. On February 9, 1944, Joseph Giordano and John Coyne made payment for 
the eggs to the War Food Administration, at which time John Coyne endorsed 
and delivered the checks to the War Food Administration.
6. On February 10,1944, John Coyne and Joseph Giordano called at the offices 
of a warehouse at Jersey City, N. J., and effected a transfer of storage of that 
portion of the eggs which was stored at the warehouse, from the account of the 
War Food Administration to the account of Giordano and Gioia.
7. On February 11, 1944, John Coyne, Joseph Giordano, Horace Gioia, and 
Cocar, Inc., entered into a written agreement at Rochester, N. Y., which pro- 
vided, among other things, for the division of the profits to be derived from the 
sale of the eggs.
8. On or about March 22, 1944, Joseph Giordano accompanied by Benjamin 
Schleifer-went to a warehouse at Jersey City, N. J., and inspected a number of 
barrels of the eggs stored there.
9. On or about March 22 and 24, 1944, Joseph Giordano and Horace Gioia, 
trading Giordano and Gioia, shipped a number of barrels of the eggs from the 
Jersey City warehouse to Lyons, N. Y.
10. Sometime within the period commencing April 1 and ending May 31, 
1944, at Rochester, N. Y., Benjamin Schleifer approached Horace Gioia and 
offered to sell the eggs which had been shipped from Jersey City, N. J., to 
Lyons, N. Y.
II. Within the period of April 1 to May 31, 1944, Benjamin Schleifer pro- 
posed to Horace Gioia that the latter negotiate with Jacob Shevelove for the 
sale and disposition of a portion of the eggs which had been shipped to Lyons, 
N. Y.
12. Sometime in the month of June 1944, Jacob Shevelove negotiated with 
Horace Gioia by long distance telephone relative to the purchase of a quan- 
tity of the eggs which had been shipped to Lyons, N. Y.
13. Between July 1 and August 15, 1944, Benjamin Schleifer caused the 
eggs which had been shipped to Lyons, N. Y., to be examined by an expert.
14. Between July 1 and August 15, 1944, Jacob Shevelove was instrumental 
in securing a purchaser for 42 barrels of the eggs.
15. On July 28, 1944, Horace Gioia sold 49 barrels of the eggs which had 
been shipped to Lyons, N. Y.
16. On or about August 25, 1944, the Gioia Macaroni Co. accepted the sum 
of $3,000 paid for the balance of the purchase price of the 49 barrels of eggs.
17. On or about May 3,1944, Jacob Shevelove shipped 20 barrels of the dried 
whole eggs from Jersey City, N. J., to Bronx, N. Y.
18. On or about May 4,1944, Jacob Shevelove shipped one barrel of the eggs 
from Jersey City, N. J., to Brooklyn, N. Y.
825989—49 4
19. On August 16, 1944, Cocar, Inc., acting by its president, John Coyne, 
directed the transfer of storage of 47 barrels of the eggs which were stored 
on the warehouse premises in Jersey City, N. J., to the account of Jacob J. 
Shevelove.
20. On or about August 31, 1944, Jacob Shevelove caused the shipment of 25 
barrels of the eggs from Jersey City, N. J., to Bronx, N. Y.
21. On or about August 9, 1944, Jacob Shevelove offered to sell nine barrels 
of the eggs shipped from Jersey City, N. J., to Lyons, N. Y.
22. On or about August 9,1944, Jacob Shevelove caused 9 barrels of the eggs 
to be shipped from Rochester, N. Y.,' to Brooklyn, N. Y.
23. Sometime in the month of May 1944, John Coyne, in the presence of 
Joseph Giordano, offered at New York, N. Y., to sell a number of barrels of the 
eggs.
DISPOSITION : Pleas of not guilty were entered on behalf of the defendants. For 
purposes of trial, the Government's attorney made a motion that the case be 
confined to John W. Coyne and Cocar, Inc.; the motion was granted. On or 
about September 17, 1947, the case came on for trial before the court and 
jury, and at the conclusion of the trial on October 1, 1947, the jury returned a 
verdict of not guilty with respect to defendants John W. Coyne and Cocar, 
Inc. «On December 12, 1947, the conspiracy indictment was dismissed with 
respect to the other defendants.