United States v. Gajo

After Bogdan Gajo's (defendant's) specialty food store burned down in a gasoline-fueled arson, Gajo filed an insurance claim about a week later. Investigators learned Gajo had approached Jay Smith and Edward Baumgart, offering Smith $4,000 to set the fire (which Smith declined). Nearly ten months after the fire, federal agents had Smith call Baumgart, and in the recorded conversations, Baumgart told Smith not to discuss the fire with law enforcement and mentioned that the investigation was still open. Gajo's insurance claim was eventually denied, and he was charged with conspiracy to commit arson. At trial, the recorded Baumgart-Smith calls were admitted, and Gajo appealed, arguing they were inadmissible hearsay.