Michael James Brown v. State of Mississippi

178 So. 3d 1234, 2015 Miss. LEXIS 558, 2015 WL 7074576
CourtMississippi Supreme Court
DecidedNovember 12, 2015
Docket2013-KA-02080-SCT
StatusPublished
Cited by1 cases

This text of 178 So. 3d 1234 (Michael James Brown v. State of Mississippi) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michael James Brown v. State of Mississippi, 178 So. 3d 1234, 2015 Miss. LEXIS 558, 2015 WL 7074576 (Mich. 2015).

Opinion

KING, Justice,

for the Court:

¶ 1. Michael J. Brown was the attorney for the guardianship of DeMon McClinton, during which time he embezzled and/or mismanaged more than, $1.2 million, much of it in Hinds County, where the guardianship and ward were located. He gave $550,000 of that guardianship money to Linus Shackelford as “loans” from the guardianship, the transactions for said loans culminating in Rankin County. Brown was convicted on two counts of embezzlement in Rankin County for making those “loans” with guardianship funds. Becatlse the trial court did not commit reversible error during the trial in this case, this Court affirms Brown’s convictions and his sentence to a term of years. However, the trial court exceeded its statutory authority with its sentence of restitution; therefore, this Court vacates the restitution portion of -Brown’s sentence and remands the case for resentencing.

FACTS AND PROCEDURAL HISTORY

¶2. DeMon McClinton (DeMon), the son of Thomas McClinton (Thomas) and Rebecca Henry (Rebecca), and the grandson of Dr. Aaron Henry (Dr. Henry), was born on November 30, 1983. In May of 1997, Dr. Henry passed away, leaving his estate, including partial ownership in several television stations, to his daughter, Rebecca. On December 17, 1999, when DeMon was sixteen years old, Rebecca died intestate. At the time of Rebecca’s death, a sale of her interest in Civic Communications Corporation was pending. The two beneficiaries of Rebecca’s estate were her two sons, DeMon and his brother, Aaron McClinton (Aaron), who was of the age of majority when his mother passed away. Around December 1, 2000, the proceeds of the stock sale, totaling more than $8,000,000, were received by Rebecca’s Estate.. They were subsequently distributed evenly between DeMon and Aaron.

¶3. On June 16, 2000, Thomas was appointed as DeMon’s guardian by Judge Stuart Robinson of the Hinds County Chancery Court. The order did not require that Thomas post a bond. Conse *1238 quently, the order thus required that “any guardianship funds obtained will be deposited in. a fully insured-account at a banking .corporation-in this.state, there .to remain until further-order of this- Court.” The court also ordered that a copy, of the order “will be -provided to the specified banking corporation and its receipt, will be filed in this cause and acknowledged in said receipt that said monies are to be withdrawn only upon order from the Court and that said bank agrees .to comply with, this requirement.” .

¶ 4. On February 11, 2001, -Linus Shackelford,- individually and as president of Lakeland Place, LLC, his cemetery business, and Thomas, as Guardian, executed ⅜ promissory note indicating that Shackelford “borrowed $300,000.00 from the Guardianship of Demon B. McClinton at a rate of-ben percent (10%), payable three (8) years from the date of this note.” The promissory note stated that Shackel-ford “will- give as security 20 acres of developed property and buildings located in Section .15, Township 6 North, Range 8 .East, Rankin- County, Mississippi, owned by the Borrower as the owner of Lakeland Place, LLC. A deed of trust will be recorded on these 20 acres at a later date.” No deed of trust was ever recorded.

II5. On February 20, 2001, the Estate of Rebecca Henry issued a $1,000,000 check to “Thomas- McClinton,- Guardian of Demon McClinton, a Minor, and Michael Brown, his attorney” as a partial disbursement of Rebecca’s estate for DeMon. It is undisputed that Michael Brown deposited this-check into his attorney escrow account, and that the funds never managed to find their way into a guardianship account. 1 The State offered no direct forensic proof of the date on which the check was deposited or the date on which the check cleared, and Brown claims that the check was deposited in late February or early March, and that the bank then placed a multi-day hold on the check because- it was so large. The State’s position is that the check was likely deposited shortly after February 20. On February 21, Brown began writing checks off his escrow account for items for Thomas. On that date, he wrote three checks to Blackwell Imports totaling more than $140,000 for luxury cars for Thomas and DeMon, • and perhaps for Thomas’s fiancé, Lottie Campbell. He also wrote checks for car insurance and car tags. On February 22, 2001, Brown wrote a check from his attorney escrow account to Shackelford for $300,000. The “For” line stated that the check was a “Loan From DBM LLC @ 10% For 3 years,” DBM LLC was not actually an LLC, but stood for “DeMon B. McClinton” and was purportedly a “business" that Thomas and Brown allegedly planned would engage in business transactions for the benefit of DeMon.

¶ 6. On September 7, 2001, Judge Robinson signed an order regarding the guardianship. The order authorized payment of attorneys’ fees to Michael Brown in the amount of $898,000. It also ordered payment of a guardian fee and for the guardian’s costs in the amount of $79,298.18. It allowed a monthly allowance of $8,000 to be paid out of the guardianship to Thomas for the benefit of DeMon. The checks to Brown and-Thomas were cut on the same day. Also on September 7, 2001, Brown wrote Shackelford a check for $250,000 out of his attorney escrow account. An unsigned, promissory *1239 note, dated September 7, 2001, stated that Shackelford borrowed $250,000 from Thomas and would repay him at a rate of ten percent in three years. 2 , Like. the promissory note for the $30.0,0Q0 loan, it pledged land as security and that a deed of trust would be recorded. Ño such deed of trust was ever recorded.

¶7. On December 23, 2002, Rebecca’s, estate cut a cheek for $205,000 to “Thomas McOlinton, Guardian of Demon McOlinton, a Minor.” Brown apparently signed the check for Thomas, as the endorsement says “Thomas McOlinton by ..Michael Brown, Attorney for Guardianship,” and then he deposited the check into his attorney escrow account. 3

¶8. On November 21, 2005, attorney Russ Russell filed a “Petition to Compel Accounting by Next Friend” in the Hinds County Chancery Court. The petition noted that Russell had formerly served as counsel for DeMon, but that DeMon had terminated the engagement. The petition stated that a sum of $300,000 was withdrawn from the guardianship in exchange for a loan without order of the court and that the loan remained unpaid. The petition further alleged that $1,000,000 in guardianship funds was never deposited into the guardianship éstate, but was deposited into Brown’s account and spent by Brown, The petition requested an accounting for the $300,000 and $1,000,000, respectively.

¶ 9. On August 11, 2006, Judge Robinson signed an order dosing the guardianship. No accountings from that time are in the record, nor are any documents regarding the resolution of Russell’s petition for an accounting. 4

¶10. In 2009, an attorney petitioned the chancery court to reopen the guardianship. • Judge Robinson had retired, ■ and Judge .Dewayne Thomas was the Hinds County chancellor to whom the case was assigned. " Then again, sometime in 2010 or 2011, attorney Brent Hazzard filed a motion to reopen the guardianship. Haz-zard' petitioned for an accounting of the guardianship funds.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
178 So. 3d 1234, 2015 Miss. LEXIS 558, 2015 WL 7074576, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michael-james-brown-v-state-of-mississippi-miss-2015.