State of New Jersey v. Stephanie Hand

CourtNew Jersey Superior Court Appellate Division
DecidedNovember 8, 2024
DocketA-2580-22
StatusPublished

This text of State of New Jersey v. Stephanie Hand (State of New Jersey v. Stephanie Hand) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State of New Jersey v. Stephanie Hand, (N.J. Ct. App. 2024).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-2580-22

STATE OF NEW JERSEY,

Plaintiff-Respondent, APPROVED FOR PUBLICATION v. November 8, 2024 APPELLATE DIVISION STEPHANIE HAND,

Defendant-Appellant.

Submitted October 17, 2024 – Decided November 8, 2024

Before Judges Rose, DeAlmeida and Puglisi.

On appeal from the Superior Court of New Jersey, Law Division, Essex County, Indictment No. 14-02- 0007.

Jennifer Nicole Sellitti, Public Defender, attorney for appellant (Mark Zavotsky, Designated Counsel, on the brief).

Matthew J. Platkin, Attorney General, attorney for respondent (Deborah Bartolomey, Deputy Attorney General, of counsel and on the brief).

The opinion of the court was delivered by

DeALMEIDA, J.A.D. Defendant Stephanie Hand appeals from the March 27, 2023 Law

Division order denying her petition for post-conviction relief (PCR) without an

evidentiary hearing. At issue is whether the Supreme Court's holding in State

v. Jackson, 243 N.J. 52 (2020), should be given full retroactive application.

We conclude that the holding in Jackson does not apply to convictions, such as

defendant's, for which direct appellate review was complete when the opinion

in Jackson was issued. We therefore affirm the PCR court's order dismissing

defendant's petition.

I.

In 2014, a grand jury indicted defendant and two co-defendants, Thomas

D'Anna and Julio Concepcion, for their participation in a mortgage fraud

scheme involving two fraudulent real estate sales transactions. The indictment

charged the defendants with: (1) first-degree conspiracy to commit money

laundering and/or theft by deception, N.J.S.A. 2C:5-2, N.J.S.A. 2C:21-

25(b)(2)(a), and N.J.S.A. 2C:20-4(a) (count one); (2) first-degree money

laundering, N.J.S.A. 2C:21-25(b)(2)(a) (count two); and (3) second-degree

theft by deception, N.J.S.A. 2C:20-4(a) (count three).

The transactions concerned properties owned by D'Anna on which there

were outstanding mortgages. The sales prices exceeded the mortgage

balances. Defendant, then a licensed attorney, acted as the closing agent. She

A-2580-22 2 lied on Department of Housing and Urban Development (HUD) closing

statements by, among other things, falsely claiming to have received deposits

from the purchasers and to have placed those deposits in her escrow account.

In fact, the purchasers did not exist. Concepcion had obtained stolen identities

and created fraudulent financial documents to obtain loans to straw purchasers

to finance contracts to buy D'Anna's properties.

At the closings, a portion of the loan proceeds were used to satisfy the

existing mortgages on D'Anna's properties. The remainder of the loan

proceeds were distributed to D'Anna and Concepcion, who submitted fake

invoices for renovations he falsely claimed to have performed at the properties.

While defendant did not receive any of the loan proceeds, she was paid for

acting as counsel at the closings. After making a few payments on the loans in

the names of the straw purchasers, D'Anna and Concepcion abandoned the

loans, allowing them to default, which ultimately resulted in foreclosures.

Defendant was tried separately. She denied having engaged in a

conspiracy and testified she was hired to represent the purchasers in the two

transactions unaware of the underlying scheme, stolen identities, fraudulent

financial documents, or fraudulent renovation invoices. D'Anna entered a

guilty plea to second-degree conspiracy. In exchange for the State's

recommendation that he receive a probationary sentence, D'Anna agreed to

A-2580-22 3 testify at defendant's trial. At trial, D'Anna denied knowing Concepcion had

obtained stolen identities or created fraudulent financial documents. He

admitted, however, he and defendant entered into an agreement to lie on the

HUD statements in order to secure the two loans necessary to complete the

closings.

Defense counsel sought to cross-examine D'Anna about the sentencing

exposure he faced when he entered into his plea agreement. Specifically, he

attempted to question D'Anna about the potential twenty-year maximum prison

sentence he faced on the charges in the indictment, as well as a third fraudulent

transaction for which he, but not defendant, was indicted. The court, however,

limited cross-examination of D'Anna to the seven-year prison sentence

recommended by the State in its first plea offer. The court noted D'Anna, as a

first-time offender, was unlikely to receive the maximum sentence on all

charges if convicted at trial. Thus, the court concluded, reference to a

potential twenty-year maximum prison sentence would not reflect D'Anna's

actual sentencing exposure and could mislead the jury.

In addition, the court expressed concern that questions about D'Anna's

maximum sentencing exposure would inform the jury of defendant's maximum

sentencing exposure because the two were charged with the same crimes. The

court permitted defense counsel to explore all other aspects of D'Anna's plea

A-2580-22 4 agreement, including that his counsel negotiated the State's initial offer from a

seven-year prison term to a probationary sentence.

Concepcion also testified at trial. He admitted he was involved in the

mortgage fraud and said D'Anna was a full-fledged co-conspirator from the

formation of the scheme. Concepcion testified that he had never met

defendant and did not conspire with her.

The jury convicted defendant of lesser-included offenses charged in each

count of the indictment: second-degree conspiracy on count one; second-

degree money laundering on count two; and second-degree theft by deception

on count three. Defendant moved for a new trial, arguing, among other things,

that the court's limitation on her cross-examination of D'Anna resulted in a

miscarriage of justice. The trial court denied the motion and sentenced

defendant to an aggregate four-year term of imprisonment.

On direct appeal, defendant argued, in part, that her Sixth Amendment

rights were infringed when the trial court prohibited her counsel from

questioning D'Anna about his full sentencing exposure prior to accepting the

plea agreement. We rejected defendant's Sixth Amendment argument:

The court balanced defendant's right to confront the witness on his expectation of favorable treatment from the State in return for his testimony with the State's right to be free from prejudicial and potential[ly] confusing evidence regarding the maximum exposure on the charges D'Anna originally faced. As the court

A-2580-22 5 concluded, D'Anna did not realistically face a twenty- year sentence. The State initiated plea negotiations by offering him a recommended seven-year term. In addition, as a first-time offender [D'Anna] was unlikely to receive the maximum sentence on each of the counts were he to have been found guilty at trial. The limitation imposed by the court did not prevent defendant from using cross-examination for the desired purpose of questioning D'Anna's credibility by suggesting the State may have influenced his testimony through favorable resolution of his pending criminal charges.

[State v. Hand, No.

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State of New Jersey v. Stephanie Hand, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-of-new-jersey-v-stephanie-hand-njsuperctappdiv-2024.