State v. Pierce

2019 WI App 15, 927 N.W.2d 156, 386 Wis. 2d 351
CourtCourt of Appeals of Wisconsin
DecidedFebruary 13, 2019
DocketAppeal No. 2017AP2420-CR
StatusPublished

This text of 2019 WI App 15 (State v. Pierce) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Pierce, 2019 WI App 15, 927 N.W.2d 156, 386 Wis. 2d 351 (Wis. Ct. App. 2019).

Opinion

PER CURIAM.

¶1 David A. Pierce appeals from a judgment entered on jury verdicts convicting him of five counts of theft by fraud and one count of theft by contractor. We reject his contentions that the evidence was not sufficient to convict him, that his trial counsel was ineffective, and that he merits a new trial in the interest of justice. We affirm the judgment of conviction and the order denying his motion for postconviction relief.1

¶2 Pierce was sole owner and operator of a small construction company, Pierce Builders, Inc. Pierce had done small jobs for Homeowners over the years.2 In October 2006, Homeowners entered into a contract with Pierce to act as general contractor to construct their "dream home" on Geneva Lake in Walworth County. Eric Culp was hired as project coordinator. Homeowners told Pierce they wanted to keep the project at or below $ 5 million. Pierce estimated it would cost $ 4,997,680 and take eighteen months to complete.

¶3 Pierce gave Homeowners periodic software-generated project accounting sheets called "UDAs" that detailed cost estimates for each aspect of the work, such as masonry, landscaping, and cabinetry. As the project got underway, Homeowners and Pierce and/or Culp met regularly to discuss completed work, work still to be done, the status of bids, and the money needed to keep the project on track. The corresponding UDA then would be updated.

¶4 The UDA estimates began approaching the $ 5 million mark. Then, specialty windows integral to the design of the house ordered from a company in Philadelphia did not arrive in May 2007 as expected. Homeowner Husband and Pierce went to Philadelphia to meet with the dealer, to no avail.

¶5 Problems and costs escalated in 2008. In January, still windowless, Pierce traveled to Costa Rica where the windows were produced. A February UDA projected a total project cost exceeding $ 5.78 million, due to accounting changes, Pierce said. Pierce then had to return to Costa Rica because he learned the ordered windows had been pulled off the production line.

¶6 Pierce e-mailed Homeowners from Costa Rica that he would be opening his own window factory there in March, but would be "completely tapped within 2 months" if he did not "pull off some sale to fund this thing." He said he and his attorney were going to a dinner at the United States Embassy to meet with the "sub chairman of the U S commerce," and that he had been introduced to a contractor "to discuss the possibility of the use of our products for a contract he was awarded," the construction of Trump Towers in Panama. The e-mail ended with, "That would be one way to jump start a small window company."

¶7 In March, Pierce-still in Costa Rica-e-mailed Homeowners asking for a $ 500,000 loan and for their help in securing investors. He also said he had been charged with grand theft in his efforts to get their windows out of Costa Rica, but assured them that he was not in jail and that their windows were "safe."

¶8 In late April, Pierce met with Homeowners on site. He asked them to reimburse him for $ 285,000 in costs he incurred in Costa Rica. Some were for materials, transportation, and shipping of the windows. Homeowners balked at others: his legal fees, resort expenses incurred when he "needed a break," $ 1622 for beer, a $ 1000 watch, Armani suits, and others for remaining in Costa Rica after their windows had shipped. About to leave for Costa Rica once again, he asked to revisit the reimbursement matter when he returned in May.

¶9 In June, Pierce presented Homeowners with a UDA and a large number of "change orders." The change orders stated the original contract price to be over $ 5.78 million; the UDA increased the project's estimated cost to over $ 5.8 million. Pierce also gave them a tally of his debts, over $ 800,000, which he asked them to pay to keep him in business, although he conceded the list included expenses outside the scope of their project. They refused.

¶10 In July, Pierce gave Homeowners a payment schedule showing they already had paid more than $ 5.7 million but also asked them to cover his payroll for that week. Worried that the still-incomplete project might shut down, Homeowners gave him a check for $ 5290.01. Pierce returned to Costa Rica. The installed windows already leaking, Homeowners wired Pierce almost $ 30,000 to produce new windows.

¶11 That same month, Homeowners had their last contact with Pierce: a letter he had his father deliver to them. He wrote that they had been like his "adopted parents," that he had overestimated his company's ability to manage the scope of their project, that he was dissolving Pierce Builders as he was "officially broken," and that his Costa Rica window company could not produce their new windows, so he would wire the money back to them. Homeowners' attorney sent Pierce a letter stating that, by his letter, he had abandoned performance of the contract. Homeowners hired project manager Culp to finish the home.

¶12 Subcontractors began contacting Homeowners seeking payment for money Pierce still owed them. Homeowners retained accountant Michael Benes to try to track the money they paid to Pierce. Benes established that tens of thousands of dollars they had paid had not been turned over to the subs.

¶13 Homeowners contacted the police. In 2011, the State issued a warrant for Pierce's arrest. He returned to the United States in 2014 and, in February 2015, went to trial on five counts of theft by fraud and one count of theft by contractor, all in amounts over $ 10,000.

¶14 Homeowner Wife testified about the contract, the delays, the overruns, Pierce's abandonment of the project, and complaints from ten or fifteen subcontractors about not being fully paid. Five of them-representatives of Lyle's TV, which installed the central vacuum system and A/V equipment; Jeff's Masonry; Prate Roofing and Installations; Cabinet Studios, Inc.; and Genesis II Landscaping-testified that Pierce still owed each of them over $ 10,000.

¶15 Project coordinator Culp testified that, although regularly paid while Pierce was still on the project, Pierce had confided that he was "running low on funds." Culp also testified that Pierce had "padded" UDA estimates.

¶16 Both parties' accountants testified. Benes detailed how his investigation of the financial records led him to conclude that Homeowners had paid Pierce $ 5,769,498.44 for all completed work, but that Pierce did not pay the subs what he owed them. Pierce's accountant, Michael Roberts, testified that the cost of the project ranged from approximately $ 6,020,892.56 to $ 6,271,468.27, depending on how overhead costs were interpreted. Neither of Roberts' calculations included the cost of the windows due to the ongoing problems. Even using the lower calculation and without accounting for the windows, Roberts concluded that Homeowners still owed Pierce $ 251,394.12.

¶17 The jury found Pierce guilty on all six counts. Postconviction, he moved for relief alleging insufficient evidence, multiplicity in regard to the theft-by-fraud counts, ineffective assistance of trial counsel, and entitlement to a new trial in the interest of justice. The court denied those requests.3 Pierce appeals.

I. Sufficiency of the Evidence

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Cite This Page — Counsel Stack

Bluebook (online)
2019 WI App 15, 927 N.W.2d 156, 386 Wis. 2d 351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-pierce-wisctapp-2019.