(HC) Russell v. Borders

District Court, E.D. California·Decided February 17, 2021·No. 2:17-cv-02487·Unknown

Opinion

RONALD RUSSELL, No. 2:17-CV-02487-DMC Petitioner, v. MEMORANDUM OPINION AND ORDER Respondent. Petitioner, a former state prisoner proceeding pro se, brings this petition for a writ of habeas corpus under 28 U.S.C. § 2254. The parties have consented to the jurisdiction of the undersigned United States Magistrate Judge. ECF Nos. 12, 14. The case is thus before the Court for all purposes, including entry of final judgment. Pending before the Court are Petitioner’s petition for a writ of habeas corpus and Respondent’s answer. ECF Nos. 1, 31. The Court denies the petition for a writ of habeas corpus. /// /// /// /// /// /// A. State Criminal Proceedings:1 A jury convicted Petitioner in the Superior Court of Sacramento of forty-nine counts of grand theft and two counts of petty theft. See ECF No. 33-9; see also ECF Nos. 32-5, 32-6. The jury found in favor of several enhancements. See ECF No. 33-9 at 1. The trial court sentenced Petitioner to thirteen years and four months in state prison. Id. Petitioner was a licensed real estate broker. Id. at 2. In the wake of the 2008 financial crisis, he initiated a “rent to own” program. Id.; see ECF No. 1 at 22. Petitioner required clients to pay an up-front fee of $2,900. ECF No. 33-9 at 2. In exchange, Petitioner provided clients with a list of foreclosed homes from which clients would select a home they wished to eventually own through the program. Id. Petitioner would purchase the selected home on behalf of a client and lease the home to the client. Id. Petitioner would eventually allow the client to transition from renter to homeowner and purchase the home from him. Id. Petitioner required clients to sign a contract stating that the $2,900 fee would pay for moving costs, first month’s rent, and security deposit, and would be applied to the down payment and costs when a client elected to purchase the property. Id. The contract also provided that the $2,900 fee was the total fee required to join the program and to transition from renter to homeowner. Id. at 2–3. The entire up-front fee was refundable upon written request at any time before the client moved into the property. Id. at 3. Clients’ eventual purchase price of a home would be the same price defendant initially paid for the property. Id. Eventually, more than eighty clients signed up for Petitioner’s program. Id. None of them moved into a house. Id. None of them became homeowners. Id. Several of Petitioner’s clients selected homes from the list that Petitioner provided. Id. They were subsequently told, however, that the offers were not accepted or that someone else had “beat them to it.” Id. Some clients ultimately contacted sellers of the homes directly and learned that Petitioner either did not have funds to make the purchase or had never submitted an offer at all. Id.

1The last state court to issue an opinion on Petitioner’s habeas claims is the Superior Court that denied his state petition. ECF No. 33-11. That court did not include a recitation of facts. See id. The facts here are from the California Court of Appeal’s decision in Petitioner’s direct appeal, which was part of the record before the Superior Court. The opinion relevant to federal habeas relief, however, is the reasoned opinion from the Superior Court addressing Petitioner’s claims. See Wilson v. Sellers, 138 S.Ct. 1188, 1191–92 (2018); Kipp v. Davis, 971 F.3d 939, 948 (9th Cir. 2020). Petitioner told clients that investors backed his rent to own program. Id. Petitioner stated that the investors had money for the purchase of homes. Id. Petitioner later told the California Bureau of Real Estate that investor funding fell through. Id. Evidence at trial later revealed, however, that Petitioner never purchased any home for any of his clients. Id. Instead, he deposited clients’ fees into his personal bank account and used the money for personal expenses. Id. Petitioner had initially promised clients that he would maintain client funds in a separate escrow account Id. All but one of Petitioner’s clients sought refunds of their up-front payments. Id. Some 30 clients received a refund. Id. More than 50 clients did not. Id. Petitioner’s bank accounts indicated that he used fees from clients who joined later to refund clients who joined earlier. Id. Petitioner appealed to the California Court of Appeal on one ground. Id. at 2, 4. He contended that the trial court incorrectly calculated his pretrial custody credits. Id. at 2. The Court of Appeal corrected the award of credits and affirmed Petitioner’s conviction in all other respects. Id. at 2, 7. Petitioner did not further appeal to the Supreme Court of California. ECF No. 1 at 2. Petitioner was released from prison in December 2017. ECF No. 16-2 at 3. The State placed him on post-release supervision. Id. Six months later, the State released Petitioner from post- release supervision. Id. at 1. Respondent no longer has any custody of Petitioner. See id. B. State Habeas Corpus Proceedings: Petitioner filed a first state habeas corpus petition in the Superior Court of Sacramento while his appeal was pending in the California Court of Appeal. ECF No. 32-1. The Superior Court denied the petition as a second or substitute appeal under California law, reasoning that grounds he alleged in his petition could be raised on appeal. Id. The Superior Court also reviewed Petitioner’s claim of ineffective assistance of counsel and denied it on the merits. Id. Petitioner filed a second petition in the Superior Court after the Court of Appeal rendered its opinion. See ECF Nos. 33-9 at 1, 33-10 at 1, 107. The court denied the petition. ECF No. 33-11. Citing In re Clark, 5 Cal.4th 750 (1993), the court denied the petition as successive and for piecemeal presentation of claims. Id. at 1. The court also denied Petitioner’s ineffective assistance of appellate counsel claim. Id. at 2–3. /// Petitioner claimed that appellate counsel should have raised numerous issues on appeal, including: (1) that the underlying case was a contractual dispute between Petitioner and clients, not a criminal case; (2) that Petitioner’s speedy trial rights had been violated; (3) that the evidence was insufficient to show Petitioner knowingly violated the law or intended to defraud clients; (4) that trial counsel was ineffective; (5) that the prosecutor engaged in misconduct by making impermissible comments to the jury; (6) that the prosecutor committed Brady violations; (7) that the prosecutor withheld complete witness statements; and (8) that Petitioner was prejudiced by cumulative error. Id. at 2–4. The Superior Court examined each of Petitioner’s alleged errors. Id. In pertinent summary, the Superior Court concluded that none of Petitioner’s alleged errors at trial existed; for example, no Brady violations and no cumulative error. Id. Appellate counsel had a duty to raise all arguable issues, but Petitioner’s counsel was not ineffective for not raising meritless issues. See id. The court also concluded that Petitioner failed to show any right to a more prompt procedure or decision on appeal. Id. at 4. Appellate counsel’s performance did not fall below an objective standard of reasonableness. See id. at 1–4. Petitioner filed a third state habeas petition in the Court of Appeal. ECF No. 33-12. The court denied the petition without comment. ECF No. 33-13. Petitioner then filed a fourth habeas petition in the Supreme Court of California. ECF No. 33-14. The Supreme Court denied the fourth petition without comment.2 See ECF No. 33-15. C. Current Federal Habeas Corpus Petition: 1. Petitioner’s Claims: Petitioner filed this federal petition on November 27, 2017. ECF No. 1 at 1. He raises eight claims, which are the same as those that were before the Superior Court. ECF No. 1 at 22–127; 33-10 at 15–106. He asserts (1) actual innocence, (2) a speedy trial violation, (3) that the State failed

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