United States v. Joe Harry Pegg

CourtCourt of Appeals for the Eleventh Circuit
DecidedApril 29, 2020
Docket18-11573
StatusUnpublished

This text of United States v. Joe Harry Pegg (United States v. Joe Harry Pegg) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh 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. Joe Harry Pegg, (11th Cir. 2020).

Opinion

Case: 18-11573 Date Filed: 04/29/2020 Page: 1 of 19

[DO NOT PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT ________________________

No. 18-11573 ________________________

D. C. Docket No. 8:16-cr-00484-SCB-TGW-1

UNITED STATES OF AMERICA,

Plaintiff-Appellee,

versus

JOE HARRY PEGG,

Defendant-Appellant.

________________________

Appeal from the United States District Court for the Middle District of Florida _________________________

(April 29, 2020)

Before JILL PRYOR and GRANT, Circuit Judges, and ROYAL, * District Judge.

* Honorable C. Ashley Royal, United States District Judge for the Middle District of Georgia, sitting by designation. Case: 18-11573 Date Filed: 04/29/2020 Page: 2 of 19

PER CURIAM:

After Appellant Joe Harry Pegg began serving a 30-year sentence in federal

prison, he aimed to reduce his sentence through a Rule 35 motion. To that end, Pegg

paid a third-party cooperator to assist the government on his behalf, orchestrating

the payments from prison through coded phone calls with his friends and family.

Although such payments were not illegal, it was the policy of the United States

Attorney’s Office for the Middle District of Florida not to file a Rule 35 motion

when a defendant had paid a cooperator. After the government discovered Pegg’s

scheme, Pegg lied during an interview with Assistant United States Attorneys and

denied making any payments. As a result, the government indicted Pegg for

conspiracy to obstruct justice, obstruction of justice, and making a false statement to

federal law enforcement. After an eight-day trial, the jury found him guilty on all

three counts, and the district court sentenced him to an additional 71 months. He

now appeals his convictions and sentence.

On appeal, Pegg argues that the district court erred when it (1) denied his

motion to suppress certain statements he made during an interview conducted

without the warnings required by Miranda v. Arizona, 384 U.S. 436, 86 S.Ct. 1602,

16 L.Ed.2d 694 (1966), (2) refused to adopt three of Pegg’s proposed jury

instructions, (3) overruled his objections to the government’s improper comments

throughout trial and denied his motions for mistrial based on those comments, (4)

2 Case: 18-11573 Date Filed: 04/29/2020 Page: 3 of 19

denied his motion for judgment of acquittal, (5) applied a three-level sentencing

enhancement for interfering with the administration of justice, and (6) applied a two-

level sentencing enhancement for an offense extensive in scope, planning, or

preparation. After careful review and with the benefit of oral argument, we

AFFIRM.

I. BACKGROUND

While Pegg was in prison serving a 30-year sentence for conspiracy to import

marijuana, 1 Pegg’s cellmate obtained a Rule 35 motion and a reduction of his

sentence.2 Seeing his cellmate’s success, Pegg also wanted to reduce his sentence

through Rule 35, and the two discussed the possibility of his cellmate acting as a

third-party cooperator on Pegg’s behalf after his cellmate’s release. After Pegg’s

cellmate was released, however, his probation officer would not allow him to act as

a third-party cooperator for Pegg. Thus, Pegg’s cellmate enlisted Fernando Morales

to serve as a third-party cooperator on Pegg’s behalf in exchange for $60,000. Pegg

eagerly agreed and hired Morales with Pegg’s cellmate fostering all communication

between Pegg and Morales.

1 See United States v. Pegg, No. 94-38-cr-FtM-17(D) (M.D. Fla.). 2 Rule 35 of the Federal Rules of Criminal Procedure sets forth the procedure by which a United States District Court, upon the government’s motion, can reduce a defendant’s sentence for providing substantial assistance to the government in the investigation or prosecution of another person. Fed. R. Crim. P. 35(b)(2). 3 Case: 18-11573 Date Filed: 04/29/2020 Page: 4 of 19

Working undercover with DEA agents, Morales began setting up drug deals

as a part of his third-party cooperation, but the deals kept falling apart. One

promising target of the DEA investigation, Maikel Murais, became interested in

buying cocaine from Morales. Murais, however, wanted to buy a small sample from

Morales first, which violated DEA investigation policies and procedures. Murais

refused to buy the drugs without a sample, and the agents stopped pursuing him.

About four months later, to the agents’ surprise, Morales informed the agents that

Murais was ready to purchase cocaine from them. The agents met Murais for the

drug deal, arrested him, and charged him with attempt to possess with intent to

distribute cocaine.

After Pegg heard the good news about the arrest, he instructed his attorney to

pressure the United States Attorney’s Office for the Middle District of Florida

(USAO) to file his Rule 35 motion. Pegg had also hired DEA agent Bob Quinn and

former DEA agent Samuel Murad to ensure the Rule 35 effort ran smoothly from

inside the DEA. 3 Agent Quinn set up a meeting with the USAO and Agent Gary

Corbett, the DEA agent in charge of the Murais arrest, to ensure that Pegg would

receive credit. Some concerns surfaced at the meeting based on Murais’s sudden

willingness to purchase drugs without sampling first, and Agent Corbett ultimately

found evidence that Morales had, in fact, violated the DEA investigation policy and

3 Quinn and Murad ultimately pleaded guilty for their role in the case. 4 Case: 18-11573 Date Filed: 04/29/2020 Page: 5 of 19

provided Murais a sample of the cocaine. Although a grand jury indicted Murais, the

USAO eventually abandoned the case because of Pegg and Morales’s scheme.

Because Morales was a third-party cooperator for Pegg, the investigators also

became suspicious of Pegg. Agent Corbett listened to Pegg’s telephone calls from

jail and found that Pegg had paid Morales $60,000 for his third-party cooperation,

orchestrating the payments through coded phone calls to friends and family. Because

Pegg paid Morales for third-party cooperation, USAO policy dictated that it would

not file a Rule 35 motion to reduce his sentence.

Agent Corbett informed the USAO of his finding, and the USAO requested

an interview with Pegg through his attorney. Pegg gladly consented, fully expecting

that the interview would concern the Rule 35 motion the Assistant United States

Attorneys (AUSA) would file on his behalf. Pegg, his attorney, AUSA Steven

Muldrow, AUSA Anita Cream, and FBI Agent Lynn Billings, who posed as a

paralegal, were present at the interview. With his attorney beside him, Pegg

voluntarily answered questions concerning the third-party cooperation, but he

ultimately lied about paying for it. The government later indicted Pegg and several

co-conspirators.

After an eight-day trial, a jury convicted Pegg of conspiracy to obstruct

justice, in violation of 18 U.S.C. § 371 (count one); obstruction of justice, in

violation of 18 U.S.C.

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