Stewart Parnell v. United States

Court of Appeals for the Eleventh Circuit·Decided August 11, 2025·No. 22-13907·Published

Opinion

[PUBLISH]

In the

United States Court of Appeals For the Eleventh Circuit

No. 22-13907

STEWART PARNELL, Petitioner-Appellant,

versus UNITED STATES OF AMERICA,

Respondent-Appellee.

Appeals from the United States District Court for the Middle District of Georgia D.C. Docket Nos. 1:19-cv-00153-WLS, 1:13-cr-00012-WLS-TQL-1

2 Opinion of the Court 22-13907; 23-11786

No. 23-11786

MICHAEL PARNELL, Petitioner-Appellant,

versus UNITED STATES OF AMERICA,

Respondent-Appellee.

Appeals from the United States District Court for the Middle District of Georgia D.C. Docket Nos. 1:19-cv-00035-WLS, 1:13-cr-00012-WLS-TQL-2

Before WILLIAM PRYOR, Chief Judge, LUCK, and ED CARNES, Circuit Judges. CARNES, Circuit Judge:

This consolidated appeal is from the district court’s denial of the 28 U.S.C. § 2255 motions that Stewart and Michael Parnell each filed seeking relief from their convictions involving food

22-13907; 23-11786 Opinion of the Court 3

safety, or the lack thereof. We granted certificates of appealability (COAs) on issues involving their claims of ineffective assistance of counsel arising from the decision not to seek a change of venue based on a presumption of jury prejudice due to pretrial publicity and community hostility. Because the Parnell brothers have failed to establish that their counsel’s performance was deficient, we af- firm the denial of § 2255 relief.

I. BACKGROUND

Stewart Parnell is the former president and owner of Peanut Corporation of America (PCA). The company made peanut products at its plant in Blakeley, Georgia and sold them to food producers across the country. See United States v. Parnell, 723 F. App’x 745, 747 (11th Cir. 2018). Stewart’s brother Michael Parnell was a broker who managed the sales of peanut paste to one of PCA’s main

1

customers, the Kellogg Company. Id.

In 2009 federal authorities, including the Food and Drug Administration (FDA), identified PCA’s Blakely production plant as the source of a nationwide salmonella outbreak. Id. The company ’s professed practice was to test for bacteria using samples from each lot of peanut product before shipping it to a customer. Id. According to agreements with several customers, PCA was required to attach a “Certificate of Analysis” to each outgoing lot to certify that lot had tested negative for bacteria. Id.

1

Because they share the same last name, we will sometimes refer to Stewart and Michael Parnell by their first names.

4 Opinion of the Court 22-13907; 23-11786

There was enough evidence at their trial to prove beyond a reasonable doubt that Stewart and Michael Parnell knowingly distributed untested peanut products with fraudulent Certificates of Analysis and they failed to inform customers when they later discovered those lots had tested positive for bacteria. Id. at 747–48. There was also enough evidence to prove beyond a reasonable doubt that Stewart kept retesting product that had tested positive for bacteria until he got a negative result, and he knowingly shipped product that had tested positive. Id.

The results were dire. The infected peanut products resulted in a salmonella outbreak that caused more than 700 illnesses across the country and reportedly caused nine deaths. See id. There were also economic impacts, especially in southwest Georgia. The region around Albany, Georgia (including Blakeley) grows about 60% of the peanuts produced in the entire country, which is why the region is often called the “peanut capital of America.” A peanut broker from Albany testified at a hearing on Stewart’s § 2255 motion that the salmonella outbreak “devastated” the peanut industry there.

II. PROCEDURAL HISTORY

In connection with the salmonella outbreak at the plant, the Parnells were indicted on numerous counts. Their joint trial was held in the division and district where the crimes were alleged to have occurred: the Albany Division of the Middle District of Georgia . The trial lasted 34 days including deliberations.

22-13907; 23-11786 Opinion of the Court 5

The jury convicted Stewart on 67 of the counts that charged him with: introduction into interstate commerce of adulterated food in violation of 21 U.S.C §§ 331(a) and 333(a)(2); introduction into interstate commerce of misbranded food in violation of 21 U.S.C §§ 331(a) and 333(a)(2); conspiracy to introduce into interstate commerce adulterated and misbranded food in violation of 18 U.S.C. § 371; mail fraud in violation of 18 U.S.C. § 1341; wire fraud in violation of 18 U.S.C. § 1343; conspiracy to commit mail and wire fraud in violation of 18 U.S.C. § 1349; and obstruction of justice in violation of 18 U.S.C. § 1505. He was acquitted of one wire fraud count.

Michael was convicted of 31 counts that charged him with:

introduction into interstate commerce of misbranded food in violation of 21 U.S.C §§ 331(a) and 333(a)(2); conspiracy to introduce into interstate commerce misbranded food in violation of 18 U.S.C. § 371; mail fraud in violation of 18 U.S.C. § 1341; wire fraud in violation of 18 U.S.C. § 1343; and conspiracy to commit mail and wire fraud in violation of 18 U.S.C. § 1349. He was acquitted of 12 counts that charged him with introduction into interstate commerce of adulterated food in violation of 21 U.S.C §§ 331(a) and 333(a)(2).

The court sentenced Stewart to 336 months in prison and Michael to 240 months. Parnell, 723 F. App’x at 748. Both of them appealed, and in a joint opinion this Court affirmed every count of their convictions and each of their sentences. Id. at 747.

6 Opinion of the Court 22-13907; 23-11786

After their direct appeals were over, each of the Parnell brothers filed a 28 U.S.C. § 2255 motion. In their separate motions they each claimed, among other things, that they were entitled under Skilling to a trial in a different venue due to a presumption that the jurors in the venue where their crimes occurred were prejudiced against them. See Skilling v. United States, 561 U.S. 358 (2010). That decision sets forth factors relevant to determining whether a defendant has established a presumption of jury prejudice that entitles him to a change of venue. See id. at 382–84. But counsel for the Parnells made a strategic decision not to move for a change of venue under Skilling or otherwise. That decision, each of the Parnells claimed in his § 2255 motion, was outside “the wide range of reasonable professional assistance,” depriving him of effective assistance of counsel within the meaning of Strickland v. Washington, 466 U.S. 668, 689 (1984).

The magistrate judge assigned to the § 2255 motions held a two-day hearing on Stewart’s motion, and another two-day hearing on Michael’s. At his hearing Stewart called as witnesses all four of his trial attorneys. At his hearing Michael called as witnesses both of his trial attorneys and also called two of Stewart’s trial attorneys . Based in large part on the attorneys’ testimony, the magistrate judge issued a recommendation in each proceeding that the § 2255 motion be denied. Each recommendation included findings of fact and conclusions of law. Among other things, the magistrate judge concluded that neither defendant had “refuted the testimony from his counsel that the decision not to file a motion to change

22-13907; 23-11786 Opinion of the Court 7

venue was sound trial strategy.” The district court agreed and entered separate orders denying each of the § 2255 motions.

In its denial orders the district court found that the decision of the two teams of attorneys not to seek a change of venue was reasonable; there was no performance deficiency. The court also found that the brothers’ attempt to satisfy the Strickland prejudice requirement of their ineffectiveness claims by establishing presumed jury prejudice under Skilling failed. It entered judgment denying the § 2255 motions.

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