United States v. Channon (Matthew)

CourtCourt of Appeals for the Tenth Circuit
DecidedOctober 12, 2022
Docket21-2027
StatusUnpublished

This text of United States v. Channon (Matthew) (United States v. Channon (Matthew)) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Channon (Matthew), (10th Cir. 2022).

Opinion

Appellate Case: 21-2027 Document: 010110752152 Date Filed: 10/12/2022 Page: 1 FILED United States Court of Appeals Tenth Circuit UNITED STATES COURT OF APPEALS October 12, 2022 FOR THE TENTH CIRCUIT _________________________________ Christopher M. Wolpert Clerk of Court UNITED STATES OF AMERICA,

Plaintiff - Appellee,

v. No. 21-2027 (D.C. Nos. 1:19-CV-00200-TMT & MATTHEW CHANNON, 1:13-CR-00966-JCH-SMV-1) (D. N.M.) Defendant - Appellant.

–––––––––––––––––––––––––––––––––––

UNITED STATES OF AMERICA,

v. No. 21-2028 (D.C. Nos. 1:19-CV-00201-TMT & BRANDI CHANNON, 1:13-CR-00966-JCH-SMV-2) (D. N.M.) Defendant - Appellant. _________________________________

ORDER DENYING CERTIFICATE OF APPEALABILITY * _________________________________

Before HARTZ, BACHARACH, and CARSON, Circuit Judges. _________________________________

We have consolidated these appeals for purposes of disposition. Brandi and

Matthew Channon, proceeding pro se, each petition this court for a certificate of

* This order is not binding precedent except under the doctrines of law of the case, res judicata, and collateral estoppel. It may be cited, however, for its persuasive value consistent with Fed. R. App. P. 32.1 and 10th Cir. R. 32.1. Appellate Case: 21-2027 Document: 010110752152 Date Filed: 10/12/2022 Page: 2

appealability (“COA”) so they may appeal the district court’s denial of their

28 U.S.C. § 2255 motions. We hold that the district court lacked jurisdiction over

Brandi’s motion and that Matthew does not qualify for a COA. We therefore deny

their petitions and dismiss these matters.

I. BACKGROUND & PROCEDURAL HISTORY

The events leading to the Channons’ federal prosecution took place in 2009

and 2010, when the Channons exploited weaknesses in OfficeMax’s “MaxPerks”

customer loyalty program to obtain OfficeMax products and prepaid gift cards worth

more than $100,000. One part of the scheme took advantage of OfficeMax’s process

for allowing MaxPerks members to claim rewards when they forgot to present their

MaxPerks cards at the register. OfficeMax’s website allowed a customer to enter

certain information from the receipt after the fact, thus crediting those purchases to

the customer’s MaxPerks account. Assuming most MaxPerks members would not go

through that trouble and using educated guesses based on information gleaned from

real OfficeMax receipts, the Channons claimed many other customers’ purchases as

their own.

MaxPerks members could also earn $3 in rewards for every used inkjet

cartridge returned to an OfficeMax store, up to twenty per customer per month. The

Channons purchased thousands of used cartridges on eBay for about $0.32 each.

They then traveled to OfficeMax stores throughout the country and used their many

fake MaxPerks accounts to turn in about 27,000 ink cartridges.

OfficeMax eventually discovered the Channons’ scheme and demanded they

2 Appellate Case: 21-2027 Document: 010110752152 Date Filed: 10/12/2022 Page: 3

repay about $81,000, or else OfficeMax would take its information to the FBI. The

Channons refused and OfficeMax contacted the FBI. The FBI searched the

Channons’ home. Matthew was not there at the time, but Brandi was, and she

confessed. Later, a grand jury indicted the Channons on wire fraud and conspiracy

charges.

Two federal public defenders represented Matthew at trial, and a CJA attorney

separately represented Brandi. Matthew’s attorneys decided the evidence against

their client was too strong to meaningfully rebut, so they chose not to contest the

facts underlying the government’s case. They instead focused on persuading the jury

that Matthew genuinely believed he was working within the MaxPerks terms and

conditions, so he did not have the necessary intent to defraud. Brandi’s attorney, for

his part, moved (unsuccessfully) to suppress her confession. At trial, he attempted to

minimize the confession but otherwise draw as little attention as possible to his

client, hoping the jury would acquit her when it realized that most of the

government’s evidence focused on Matthew. Brandi’s attorney also hoped to

position his client for a non-custodial sentence (assuming conviction).

The jury convicted the Channons on all counts. The district court sentenced

Matthew to one year plus one day in prison and two years’ supervised release. The

court sentenced Brandi to three years’ probation. This court affirmed their

convictions. See United States v. Channon, 881 F.3d 806, 809–11 (10th Cir. 2018).

Following our affirmance, the Channons filed timely § 2255 motions.

Matthew’s motion (not counting exhibits) spanned three docket entries and totaled

3 Appellate Case: 21-2027 Document: 010110752152 Date Filed: 10/12/2022 Page: 4

280 pages. Brandi’s original motion ran to 293 pages (again, not counting exhibits).

The district court struck these filings as overlong and needlessly verbose but granted

leave to file amended motions of no more than forty pages each. The Channons

complied. The amended motions asserted numerous grounds for relief, mostly based

on ineffective assistance of counsel. Twenty of those grounds were identical as

between the two motions. The government responded, attaching declarations from

the Channons’ attorneys explaining their actions and motives.

While these motions were pending, the District of New Mexico appointed one

of Matthew’s defense attorneys to be a magistrate judge. The district court then

deemed it appropriate for all the district’s judicial officers to recuse themselves. The

Channons’ cases were reassigned to Circuit Judge Timothy M. Tymkovich, sitting by

designation. Judge Tymkovich denied the Channons’ motions, finding they had not

met their burden on the ineffective-assistance-of-counsel elements, and they had

forfeited any grounds for relief not tied to ineffective assistance. He also denied a

COA. The Channons then timely moved for a COA from this court.

II. JURISDICTION

The district court’s jurisdiction turned on the Channons being “in custody

under sentence of a court established by Act of Congress.” 28 U.S.C. § 2255(a).

“[A] habeas petitioner [must] be ‘in custody’ under the conviction or sentence under

attack at the time his petition is filed.” Maleng v. Cook, 490 U.S. 488, 490–91 (1989)

(per curiam) (emphasis added) (interpreting § 2254); see also United States v.

Bustillos, 31 F.3d 931, 933 (10th Cir. 1994) (applying this rule to § 2255). If this

4 Appellate Case: 21-2027 Document: 010110752152 Date Filed: 10/12/2022 Page: 5

condition is met, then the petitioner’s release from custody before the court

adjudicates his petition does not divest the court of jurisdiction to consider challenges

to the conviction. See Carafas v. LaVallee, 391 U.S. 234, 238–39 (1968).

These principles create a potential jurisdictional problem for the Channons.

The relevant timeline is as follows:

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Related

Carafas v. LaVallee
391 U.S. 234 (Supreme Court, 1968)
Hamling v. United States
418 U.S. 87 (Supreme Court, 1974)
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Maleng v. Cook
490 U.S. 488 (Supreme Court, 1989)
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United States v. Fernando Bustillos
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State v. Gould
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Eizember v. Trammell
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