United States v. Fredrico Pacheo-Romero

995 F.3d 948
Court of Appeals for the Eleventh Circuit·Decided April 28, 2021·No. 19-14446·Published·Cited by 1 cases

Opinion

[PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT

No. 19-14446

D.C. Docket No. 1:19-cr-00077-LMM-RGV-1

UNITED STATES OF AMERICA, Plaintiff-Appellee,

versus

FREDRICO PACHECO-ROMERO, Defendant,

JEROME D. LEE, STEPHEN ELIJAH BROWN-BENNETT, TAYLOR, LEE & ASSOCIATES,

Interested Parties-Appellants.

Appeal from the United States District Court for the Northern District of Georgia

(April 28, 2021)

Before WILLIAM PRYOR, Chief Judge, JILL PRYOR, Circuit Judge, and SELF,∗ District Judge.

JILL PRYOR, Circuit Judge:

Attorneys Jerome Lee and Stephen Elijah Brown-Bennett of the law firm Taylor, Lee & Associates were retained to represent six defendants who were charged in federal district court with conspiring to possess with intent to distribute methamphetamine. Shortly after the defendants were arraigned, the district court disqualified the attorneys and the law firm from representing any of the defendants based upon an actual or potential conflict of interest.

Before the district court entered the disqualification order, the law firm had collected a total of $21,000 from the defendants. Because the attorneys and the law firm were disqualified so early in the case, questions arose about whether the law firm had earned the entire fee it collected and, if it had not, whether the portion of the fee that did not belong to the law firm should be refunded to the defendants or used to reimburse the fees and expenses of the defendants’ appointed

∗Honorable Tilman Eugene Self III, United States District Judge for the Middle District of Georgia, sitting by designation.

replacement counsel pursuant to the Criminal Justice Act (“CJA”), 18 U.S.C. § 3006A(f). The attorneys refused to comply with court orders directing them to turn over information the court needed to determine what portion of the fee, if any, the law firm had not earned. Because of their non-compliance, the district court ordered the law firm to pay $15,000 of the $21,000 fee into the court’s registry. Eventually, the law firm paid the money into the court’s registry and the attorneys provided the requested information. The court then determined that $8,000 of the funds in the registry had been earned by and thus belonged to the law firm. Exercising its authority under the CJA, the court directed that the remaining $7,000 be paid to the CJA fund as reimbursement for the fees and expenses incurred by defendants’ counsel who were appointed by the court after the disqualification.

In this appeal, appellants Lee, Bennett, and the law firm challenge the district court orders requiring the firm to pay $15,000 into the court’s registry and directing that $7,000 of those funds be paid to the CJA fund to cover the fees and expenses of the defendants’ court-appointed counsel. After careful consideration and with the benefit of oral argument, we affirm in part and dismiss in part.

I. FACTUAL BACKGROUND In the underlying criminal case, six individuals were charged in the United States District Court for the Northern District of Georgia with conspiring to possess with intent to distribute methamphetamine. After their arrests, all six

defendants retained the law firm of Taylor, Lee & Associates to represent them. The attorneys who represented the defendants were Lee, one of the firm’s named partners, and Bennett, an associate of the firm. Under the terms of their engagement letters with the firm, each defendant agreed to pay a flat fee of $7,500 for representation throughout his criminal case. The flat fee was to be paid by each defendant as follows: $3,500 up front and the remaining $4,000 in monthly installment payments.

As it turns out, Lee and Bennett represented the defendants only briefly.

They appeared as counsel for most of the defendants at their initial appearances and for all the defendants at their detention hearings and arraignments. Each defendant purported to waive any conflict of interest arising from the joint representation. But the magistrate judge, who was presiding over proceedings related to disqualification,1 expressed concern about the conflict-of-interest issues that might arise from joint representation in a drug conspiracy case. See Fed. R. Crim. P. 44(c)(2); United States v. Wheat, 486 U.S. 153, 163–64 (1988) (discussing conflict-of-interest issues that may arise when an attorney “propose[s] to defend [multiple] conspirators of varying stature in a complex drug distribution scheme”).

1 See Fed. R. Crim. P. 59(a) (permitting a district court judge to “refer to a magistrate judge for determination any matter that does not dispose of a charge or defense”).

On March 14, 2019, the magistrate judge held a hearing on disqualification.

At the hearing, each defendant indicated that he wanted to continue with the joint representation. The magistrate judge raised the question of whether the law firm was being paid by the defendants or some other third party. Each defendant stated that he, or his family, had paid the law firm. And Lee indicated that the firm could provide records confirming that the payments to the firm came from each defendant or his family, not a third party.

After the hearing, the magistrate judge disqualified the appellants from representing any of the defendants. Noting the government’s allegations that the defendants had played differing roles in the drug-distribution organization, the magistrate judge found that joint representation by a single law firm of the six defendants charged in the conspiracy gave rise to “serious potential, if not actual, conflict of interest” issues. Doc. 76 at 4.2 After disqualifying the appellants, the magistrate judge determined that each defendant was financially unable to obtain counsel and appointed counsel for each one pursuant to the CJA. 3 See 18 U.S.C. § 3006A(c).

2 “Doc.” numbers refer to the district court’s docket entries.

3 Although some defendants replaced their appointed counsel with retained counsel, each defendant was represented by court-appointed counsel for at least some portion of his criminal case.

After the disqualification, the magistrate judge raised the issue of whether, given the limited course of the representation, the law firm was entitled to keep its entire fee. 4 At a hearing on March 26, the magistrate judge explained that the law firm was entitled to keep at least a portion of the fee, for work that was performed before disqualification, but that it would owe a partial refund if the total amount collected from the defendants exceeded the fee that was earned prior to disqualification. Because the law firm had received at least one payment from each defendant, the magistrate judge explained, it appeared that the firm had collected at least $21,000.5 In order to determine whether the defendants were entitled to a refund, the magistrate judge ordered Lee and Bennett, by March 29, to provide the court with an accounting showing the fees each defendant paid to the law firm and the services provided to each defendant. Lee and Bennett agreed to provide the information by the deadline.

4 Georgia law permits an attorney to charge a client a flat fee for representation in a criminal case. See Fogarty v. State, 513 S.E.2d 493, 497 (Ga. 1999). The attorney may not be entitled to keep the entire flat fee, however, if the representation is terminated before the case ends. See In re Polk, 814 S.E.2d 327, 328–29 (Ga. 2018); see also Nash v. Studdard, 670 S.E.2d 508, 514 (Ga. Ct. App. 2008) (recognizing that an attorney who had charged a client a flat fee for representation in a criminal case had an obligation to return any “unearned portion” of the flat fee when the representation was terminated while the criminal case remained pending).

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United States v. Fredrico Pacheo-Romero, 995 F.3d 948 (11th Cir. 2021).

995 F.3d 948 (United States v. Fredrico Pacheo-Romero) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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