United States v. Cory George

573 F. App'x 465
CourtCourt of Appeals for the Sixth Circuit
DecidedJuly 22, 2014
Docket12-6329
StatusUnpublished
Cited by3 cases

This text of 573 F. App'x 465 (United States v. Cory George) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth 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. Cory George, 573 F. App'x 465 (6th Cir. 2014).

Opinion

HELENE N. WHITE, Circuit Judge.

Defendant Cory George pled guilty to eleven counts of investment fraud in violation of 18 U.S.C. § 1341. He appeals, arguing that this court should set aside his guilty plea because the United States Magistrate Judge improperly participated in plea discussions in violation of Federal Rule of Criminal Procedure 11(c)(1), rendering his plea involuntary. The Government responds that George’s appeal is barred by the waiver of appeal in his plea agreement and because he did not object to the magistrate judge’s determination that the plea was voluntary, and further asserts that the magistrate judge’s comments at the motion hearing did not affect George’s substantial rights. We AFFIRM.

I.

The indictment charges George with devising a scheme to defraud investors by selling them “Certificates of Deposit” advertised and marketed by George through his company, GB Capital Management. As part of the alleged scheme, George ran advertisements in local newspapers in Kentucky, Florida, and Texas, offering short-term certificates of deposit paying from three- to five-percent interest. George represented to investors that their funds would be placed in segregated, insured accounts and that their deposits were guaranteed and their money not at risk, but George actually commingled the funds and used them to invest in the commodities market, pay personal expenses, and make small interest payments to some investors.

George retained defense counsel, B.J. Early, who represented him in the district court proceedings. On March 20, 2012, just six days before the scheduled start of trial, Early filed a motion to withdraw as counsel, citing “[a] breakdown ... in the attorney-client relationship,” and “irreconcilable differences,” but providing no details. The Government filed a response in opposition the same day, arguing that the local criminal court rules prohibit the withdrawal of counsel within twenty-one days of trial absent a “compelling reason,” see W.D. Ky L.R. 57.6, and contending that “George’s request to sever the relationship with his counsel less than a week before trial suggests that the desire for a delay in trial, and a dissatisfaction with plea negotiations, is the primary factor motivating his eleventh hour request for new counsel.” The district court referred the motion to a magistrate judge and set the matter for hearing before the magistrate judge the next day.

The parties began the hearing by arguing the merits of Early’s motion to withdraw, but the hearing culminated in George’s change of plea. At the outset, the magistrate judge advised George and Early that he would need more information regarding the purported breakdown in their relationship to grant the motion to withdraw so soon before trial. Recognizing that the information might “very well invade the attorney-client privilege,” the magistrate judge offered the Assistant United States Attorney (AUSA) representing the Government an opportunity to be heard before excusing her to hear from George and Early outside her presence.

The AUSA recounted the parties’ plea discussions during the week leading up to *467 the motion to withdraw. She stated that she had met with George and Early on Thursday, March 15, 2012, to discuss a non-plea-related matter. During the meeting, she asked George his position on the plea offer then on the table, and “spent probably an hour discussing with him concerns or questions he had about certain enhancements.” The conversation convinced her “there might be some potential to resolve th[e] case” by plea. The following Monday, the AUSA and Early continued discussions regarding the plea offer. They spoke several times by phone, with Early relaying their conversation to George. As a result, the AUSA agreed that she would not recommend certain sentencing enhancements that could have added four levels to George’s total offense level, that she would recommend a three-point downward adjustment for acceptance of responsibility, and that she would agree that George could argue at sentencing regarding his criminal history. George rejected the proposed agreement, stating that he believed “a sentence of 63 months or somewhere around five years would be an appropriate sentence in this case.” The AUSA refused to accommodate that request. The next day, Early filed the motion to withdraw.

After recounting these events to the magistrate judge, the AUSA concluded that she believed that George sought Early’s withdrawal because

[he] believes that a more experienced attorney would get a different or better plea offer from the United States. And it’s for that reason, Judge, that I’ve gone into so much detail about the course of plea negotiations over the last few days in this case, because my comments here are really directed towards the defendant in this case, because Mr. Early has negotiated the best possible plea offer that he can get for this defendant and there will not be another plea offer.

The magistrate judge excused the AUSA and conferred with George and Early. Both parties quote the following exchange in full in their briefs:

THE COURT: It just occurs to me before we get started here, Mr. George and Mr. Early, that, Mr. George, I really think what you need to do right now is stop and reconsider the government’s offer that has been made to you in this case. I certainly can’t force you take it, but I have heard what has been said here in this situation, and I think before we go any further and before I question you and before I question your attorney about this business of there being some sort of a breakdown in the attorney-client relationship that you and your attorney should have yet another conversation about this plea offer.
I think you need to reconsider. I think it’s in your best interest to reconsider. Like I say, I can’t force you to do anything at all in this situation except rethink your position on this, because it’s a big decision for you to make in this capacity, I understand, but the government is frankly making some sense when talking about in terms of what they have said. Not in terms of whether or not you and your attorney have some kind of breakdown going on here but frankly about their plea offer and whether or not their plea offer is offering you the best deal you can get.
We have a place back here where these two gentlemen can have some privacy and do a little talking. Please have that conversation, and once you tell me that you’re ready to go forward with the hearing—
MR. EARLY: Your Honor, may I say something first to give you an overall picture?
*468 THE DEFENDANT: Before we go in the back, can I just have 30 seconds?
MR. EARLY: Your Honor, I have spoken with Mr. George, and he would like to address the court before we go in back Your Honor.
THE COURT: You may address the court.
THE DEFENDANT: Your Honor, I actually contacted Ms. Ford [the AUSA] and left her a voicemail at her office over the telephone approximately a week before we entered into the plea negotiations.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. Daniel Ushery, Jr.
785 F.3d 210 (Sixth Circuit, 2015)
United States v. Christopher Kelley
774 F.3d 434 (Eighth Circuit, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
573 F. App'x 465, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-cory-george-ca6-2014.