Smith v. United States

District Court, M.D. Florida·Decided August 27, 2025·No. 8:22-cv-02251·Unknown

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION

GARY TODD SMITH,

Petitioner,

v. Case No.: 8:22-cv-2251-CEH-TGW Crim. Case No. 8:16-cr-120-CEH-TGW

UNITED STATES OF AMERICA,

Respondent. /

ORDER Before the Court is Gary Todd Smith’s motion to vacate, set aside, or correct his sentence under 28 U.S.C. § 2255 (Doc. 1) and corrected memorandum in support (Doc. 5). The United States filed a response in opposition with an affidavit and exhibits. (Doc. 12). Smith filed a reply. (Doc. 15). At this Court’s direction, the United States filed a supplemental response, an affidavit, and exhibits. (Doc. 17). With leave of Court, Smith filed a supplemental reply with exhibits. (Doc. 18). Smith is not entitled to relief because his claims lack merit.1

1 The motion can be denied without need for an evidentiary hearing, as no hearing is required when the record establishes that a Section 2255 claim lacks merit. See United States v. Lagrone, 727 F.2d 1037, 1038 (11th Cir. 1984). I. Background On June 7, 2017, Smith pleaded guilty—without a written plea agreement—to

conspiring to commit mail and wire fraud, in violation of 18 U.S.C. § 1349; and wire fraud affecting a financial institution, in violation of 18 U.S.C. § 1343. (Cr-Doc. 18).2 II. Statement of Facts and Procedural History From 2005 to 2012, Smith was the Chief Operating Officer of Smith Advertising and Associates, Inc. See United States v. Smith, 853 F. App’x 589, 590 (11th Cir. 2021).

To cover up the corporation’s losses, Smith orchestrated a complicated loan-fraud scheme involving invoice-factoring fraud and bridge-loan fraud that caused tens of millions in losses to the victim lenders. Id. When Smith became the subject of a federal investigation in April 2012, he hired attorney James E. Felman (“Felman”) to represent him. (See Doc. 12, Attachment 1 (Felman Affidavit), at 2).

On May 5, 2012, Smith was arrested on a criminal complaint for wire fraud affecting a financial institution (Cr-Doc. 1). Because of prolonged negotiations, the parties filed three joint motions to extend the United States’ deadline to indict Smith (Cr-Docs. 11, 14, 16). On August 20, 2014, Felman emailed Smith a proposed plea agreement from the United States.

2 References to filings in criminal case number 8:16-cr-120-CEH-TGW are cited as “Cr-Doc. [document number].” On Aug 20, 2014 3:25 PM, "Jim Felman" wrote: Hi Todd -- please find attached the proposed plea agreement I recetved today from Tom Palermo. Please give me a call once you have had an opportunity to review it. Thanks, Jim. James E. Felman

(Doc. 12, Attachment 2 at 27); Attachment 1 at 2). Felman states in an affidavit that he “spoke to Mr. Smith on the telephone the same day that [he] sent him the plea agreement” and “explained the proposed agreement to Mr. Smith, and particularly that it contained a 20-year ‘cap’ on any sentence of imprisonment even if the range of imprisonment under the Sentencing Guidelines range exceeded 20 years.” (Doc. 17, Attachment 1 7; see also Attachment 3 (billing for “Telephone conference with client”)). Smith responded to Felman’s email the next day: I realize you have a busy day, so please do not feel that you need to respond. I am struggling with where we landed on the plea deal. I gave all that I could to include doing the work for the Government and paying for it on the forensic accounting. I think you did everything humanly possible. In return, we receive a plea deal that offers very little. Although Tom and Bob may consider this, I doubt it will be much, as they have all the leverage. If I go with the court appointed attorney or public defender and force them to indict me, can I pursue a trial? Would the track of going to trial give me discovery which buys more time, allows us to see exactly what they have, and actually makes them have to work. Does it offer more time. I assume I can always still plea at the end[,] and could it get worse than where we are now? Does the prospect of having to go to trial motivate them for a better deal? If not, do we have much to lose? (Doc. 12, Attachment 2 at 27). Felman replied, “I will give you a call re this sometime this Afternoon .. ..” (/d.).

Felman states in his affidavit that he spoke with Smith on the telephone, again, on August 21, 2014. (Doc. 17, Attachment 1 ¶ 9; see also Attachment 3 (billing for “Telephone conference with client”). Felman states that during this conversation, he

“again discussed the terms of the proposed plea agreement with Mr. Smith, and answered any questions he had for me about it.” (Doc. 17, Attachment 1 ¶ 9.) According to Felman, Smith “ultimately decided not to accept the plea offer.” (Id.) Along with his affidavit, in which he describes his conversations with Smith about the plea agreement, Felman also provided an invoice that memorializes that he reviewed

and analyzed the plea agreement, had a telephone conference with the Assistant United States Attorney, and one with Smith. (Doc. 17, Attachment 3 at 1). There was no activity in the criminal case from August 7, 2014, until March 16, 2016, when a grand jury indicted Smith on the charges of conspiring to commit mail

and wire fraud, in violation of 18 U.S.C. § 1349, and wire fraud affecting a financial institution, in violation of 18 U.S.C. § 1343. (Cr-Doc. 18). After these charges were filed, Felman stopped representing Smith. (Doc. 12, Attachment 1 at 2). Smith asserts that this was due to his exhaustion of available funds to pay for his services. (Doc. 15 at 3–4, 6). Smith then emailed Felman, stating, in part: Jim, first, thank you for all that you did to defend me. You are a good man. Obviously, not having the funds to pay you, moving forward, has been a tough blow to me. Friday was a horrible day receiving the news. I am thankful for all of your hard work. If nothing else[,] I have had time with my family and two boys. . . . I can only pray that my boys can get further into high school before my situation comes to a head.

(Doc. 12, Attachment 2 at 30). Smith appeared pro se at his arraignment on April 19, 2016, and the magistrate judge appointed attorney Robert Tager (“Tager”) to represent him. (Cr-Docs. 27, 29). Smith pleaded not guilty. (Cr-Doc. 29). But on June 6, 2017—two weeks before trial—

Smith entered an open guilty plea on both counts of the indictment. (Cr-Docs. 49, 50). At the open guilty plea hearing, the magistrate judge asked the parties whether there had been a plea agreement: THE COURT: Was there a plea agreement proffered in this case?

[AUSA]: No. We had discussed many years ago with his original – first counsel representing Mr. Smith the potential of a plea agreement, but I don’t believe we ever formally tendered one. We could not come to terms in terms of what offer might be made by the government.

THE COURT: Okay. Mr. Tager, is that correct?

THE DEFENDANT: I don’t think there’s ever been a plea agreement, Your Honor.

THE COURT: Okay. So typically if one was offered, I’d want to know whether the Defendant was aware of it and why he didn’t want it, but if there wasn’t even one.

[AUSA]: We discussed it.

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