United States v. Evans Landscaping, Inc.

CourtCourt of Appeals for the Sixth Circuit
DecidedMarch 18, 2021
Docket20-3089
StatusUnpublished

This text of United States v. Evans Landscaping, Inc. (United States v. Evans Landscaping, Inc.) 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. Evans Landscaping, Inc., (6th Cir. 2021).

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 21a0144n.06

Nos. 20-3089/3093

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT FILED Mar 18, 2021 UNITED STATES OF AMERICA, ) ) DEBORAH S. HUNT, Clerk Plaintiff–Appellee, ) ) ON APPEAL FROM THE v. ) UNITED STATES DISTRICT ) COURT FOR THE EVANS LANDSCAPING INC. (20-3089); DOUG ) SOUTHERN DISTRICT OF EVANS (20-3093), ) OHIO ) Defendants–Appellants. )

BEFORE: BATCHELDER, GRIFFIN, and STRANCH, Circuit Judges.

GRIFFIN, Circuit Judge.

Defendants Doug Evans and Evans Landscaping Inc. were tried and convicted of two

counts of conspiracy to commit wire fraud and three counts of wire fraud arising out of their

scheme to secure government contracts through a shell company. Now on appeal, defendants raise

for review the denial of their motion to suppress, various evidentiary rulings made at trial, and a

jury instruction given by the district court.

We find no merit in the first two issues. Regarding the jury instruction, we conclude that

the district court erred by instructing the jury that it could find that a defendant knowingly and

voluntarily joined the conspiracy through deliberate ignorance. However, defendants did not Nos. 20-3089/3093, United States v. Evans Landscaping, Inc.

preserve this issue for review below and cannot satisfy the demanding plain-error standard on

appeal. Accordingly, we affirm the judgment of the district court.

I.

A.

Defendant Evans Landscaping Incorporated is an Ohio corporation engaged in

transportation, demolition, and excavation services. The company is controlled by its president,

defendant Doug Evans. It is also wholly owned by a trust to which Doug Evans is the sole

beneficiary.

Around 2006, Evans Landscaping began bidding on contracts for demolition work that

were offered by government entities including the State of Ohio and the City of Cincinnati. The

company found success in this niche and was awarded several contracts. However, government

entities began to include goals for “minority participation” as one criterion for evaluating bids for

public works, and those goals later became mandatory bid components. In state contracts, minority

inclusion was generally expressed as a percentage of the work that would be performed by a

certified “EDGE” subcontractor that met Ohio’s definition of a Minority Business Entity (MBE).

And the City of Cincinnati similarly considered whether a bid was made by a business designated

as a Small Business Enterprise (SBE) when administering municipal contracts.

Evans Landscaping could not qualify for EDGE or SBE status. Therefore, to skirt local

and state inclusion requirements, Evans Landscaping employees sought a “go-to” minority

contractor to work with on public contracts. To that end, Doug Evans, Evans Landscaping’s Chief

Financial Officer Maurice Patterson, and other Evans Landscaping managers held a meeting to

discuss setting up a new company, which they called Ergon Site Construction. At that meeting,

Doug Evans told Patterson to “go ahead and set [Ergon] up” because “Evans Landscaping needed

-2- Nos. 20-3089/3093, United States v. Evans Landscaping, Inc.

whatever help [it] could get in securing contracts.” Accordingly, Patterson, in coordination with

Evans Landscaping’s in-house counsel, filed the necessary paperwork to bring Ergon Site

Construction into being in 2008.

Ergon’s organizing documents established that it was ostensibly owned by an African

American IT consultant named Korey Jordan who had done work for Evans Landscaping. But

Jordan had no experience running a construction company and invested no funds of his own into

Ergon’s operations. Jordan understood that Ergon “was set up between [him]self and Evans to go

after government contracts” and that his role was to “handle all the paperwork” for Ergon. In

exchange for his work, Jordan received $1,000 a month (later increased to $2,000), and Evans

Landscaping “received basically the profits from the contracts that were secured with the

participation of Ergon.”

Evans Landscaping and Jordan spent the next two years building up Ergon’s resume with

a few small jobs that were completed using Evans Landscaping resources. But in 2010, Jordan

was informed that “for Ergon to exist,” he had to secure EDGE certification from the State and

SBE certification from the City of Cincinnati. He applied first for SBE status from the City and

falsely represented that he wholly owned Ergon and personally handled the company’s finances.

The City approved Ergon’s application in 2011, and it began bidding as an SBE for contracts

offered by the City at Evans Landscaping’s direction. By 2014, the City had awarded

approximately 170 contracts to Ergon with a value of around $2,000,000. Ergon also applied for

and received EDGE certification from the State of Ohio. Thereafter, Evans Landscaping began

including Ergon as an EDGE subcontractor on its bids, but Ergon rarely, if ever, performed the

work Evans Landscaping represented it to be doing.

-3- Nos. 20-3089/3093, United States v. Evans Landscaping, Inc.

The respective schemes began breaking down between 2013 and 2014 when local officials

grew suspicious of the relationship between Evans Landscaping and Ergon. In truth, it did not

require Holmesian sleuthing to deduce the relationship between the companies. For instance,

Ergon sometimes used heavy machinery that bore the Evans Landscaping logo. Ergon also stored

and dispatched its two work trucks from an Evans Landscaping facility—even after Patterson

suggested to Doug Evans that doing so was inconsistent with making Ergon an “independent”

operation. Thus, it was only a matter of time before public officials became suspicious of the cozy

relationship between the companies, and they acted on their suspicion by auditing Ergon several

times. The increased scrutiny, in turn, drew the attention of the FBI, which opened its own

investigation in 2013. As part of that investigation, FBI Special Agent Matthew DeBlauw

executed search warrants for several Evans Landscaping properties and additional search warrants

for email accounts associated with Doug Evans and Korey Jordan.

B.

In 2017, the FBI’s investigation bore fruit when a grand jury returned an indictment

charging Evans Landscaping Inc., Doug Evans, and Jim Bailey (the Vice President of Evans

Landscaping) with two counts of conspiracy to commit wire fraud in violation of 18 U.S.C. § 1349

(one each for the Cincinnati SBE and State of Ohio EDGE schemes), and three counts of wire

fraud in violation of 18 U.S.C. § 1343. The government also obtained pre-indictment plea

agreements from Jordan, Patterson, and two other Evans Landscaping executives for their role in

the Ergon schemes.

During extensive pretrial motion practice, defendants moved to suppress the evidence

obtained pursuant to the search warrants. They argued that the search warrants violated the Fourth

Amendment by failing to specify with particularity the places to be searched and the things to be

-4- Nos. 20-3089/3093, United States v. Evans Landscaping, Inc.

seized. The district court disagreed, reasoning that the search warrants had validly incorporated

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