United States v. Kevin Laney

881 F.3d 1100
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 5, 2018
Docket15-10563, 15-10605
StatusPublished
Cited by22 cases

This text of 881 F.3d 1100 (United States v. Kevin Laney) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth 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. Kevin Laney, 881 F.3d 1100 (9th Cir. 2018).

Opinion

OPINION

HAWKINS, Circuit Judge

In these consolidated appeals, we must determine whether a presumption of validity attaches to a stipulation 1 by defense counsel that their clients waive their right to a jury trial on their criminal charges. Defendants Kevin Laney and Brian Federico contend that: (1) the stipulations submitted by'their respective trial counsel did not effectively waive their Sixth Amendment rights and (2) their convictions on several counts of conspiracy and mail fraud are not supported by sufficient evidence. We ' conclude that counsel’s stipulations in this case did not raise a presumption of validity, and the record is insufficient to show that the jury trial waivers were voluntary, knowing, and intelligent. Therefore, although we conclude that the convictions are supported by sufficient evidence, we reverse and remand based on the ineffective jury trial waivers.

I. BACKGROUND

The scheme giving rise to the convictions below arose out of Laney and Federico’s work in the construction and concrete industries. Laney worked as a project manager for Matrix Services, Inc. (“Matrix”), an industrial construction company specializing in construction and repair work in the energy. industry. Federico worked as a manager of the concrete company Imperial Shotcrete (“Imperial”), which served as a subcontractor on several Matrix projects.

The state presented evidence that, in .approximately 2005, Federico approached Imperial’s owner, Miguel Ibarria, with an arrangement that would allow Ibarria, Federico, Laney, and other Matrix project managers to make additional money from Matrix projects. Under the arrangement, Federico would provide Ibarria with the specifications for a job, and Ibarria would provide a quote consisting of the project expenses and Imperial’s standard markup. Federico would then talk to the assigned Matrix project' manager, who would inform Federico when there was “more room” in the budget for concrete work. Federico would then come back to Ibarria with another, higher bid . suggestion that Imperial would in turn submit to Matrix- as its bid on the project. That new inflated bid generally corresponded to Matrix’s internal budget ceiling for concrete work. The Matrix project manager would approve the bid and award the job to Imperial, Imperial would complete the concrete work and bill Matrix “for whatever number they ... told [Ibarria] to make the proposal for.” Federico would provide Ibarria with “some extra wording” to include on the invoices to Matrix. The Matrix project manager involved would approve the invoice, and Matrix would pay Imperial.

After Matrix paid Imperial, Imperial would receive an invoice from a fictitious company, in fact fabricated by the involved Matrix project managers, purporting to charge for work associated with the project. These invpices were entirely false and described materials not used or services not performed. Federico would supply the project manager -with the amount to include on the false invoice, and the project manager would submit that invoice to Imperial, Once the project manager received a check from Imperial, he would deposit the money in his own account and write a cheek back to Federico for his agreed-upon share of the money. ¡

The scheme continued for several years, involved several projects, and ultimately resulted in Laney and Federico receiving hundreds of thousands of dollars through these fictitious entities. In 2010, Matrix, suspecting a potential financial fraud within the company, launched an internal investigation and vendor audit of Imperial. The amount of the fraud ultimately uncovered was approximately $1.6 million.

II. PROCEDURAL HISTORY

An investigation by the Federal Bureau of Investigation (“FBI”) soon followed Matrix’s internal- investigation. The FBI .-investigation led to the indictment of Lahey, Federico, Ibarria, and two other Matrix project managers, Brandon Hourmouzus and Charles Burnette, on multiple counts of mail fraud and conspiracy to commit mdil fraud.

A. The Indictment

The Grand Jury charged Ibarria, Federico, Laney, Hourmouzus, and Burnette with “defraud[ing] Matrix by knowingly submitting or causing to be submitted, false and inflated invoices to Matrix that exceeded the actual work performed and the materials used.” It charged that La-ney, Federico, Hourmouzus, and Burnette “submitted false invoices in the names of legitimate existing businesses ■ and in the names of businesses created specifically for the purpose of-perpetuating the fraud on Matrix.” Additionally, “Ibarria marked up the false invoices received by Imperial from the co-defendants for the businesses and passed the inflated invoices onto Matrix knowing that they were fraudulent. Matrix paid the invoices submitted by Imperial and Ibarria in turn paid the appropriate co-defendants after taking Ibarria’s mark-up as personal profit.” '

In relevant part, Count One charged Ibarria, Federico, Laney, Hourmouzus, 'and Burnette with “knowingly con'spir[ing] to defraud Matrix by submitting fraudulent invoices for materials used and work performed by the businesses knowing that the materials had not been used and the work had not been performed.” Count Two charged Ibarria, Federico, and Laney with mail fraud in connection with a $90,000 check from -Matrix made payable and mailed to Imperial related to a project to repair two tanks in McKittrick, California for Plains All-American (the “McKittrick Project”). Count Three charged Ibarria, Federico, and Hourmouzus with mail fraud •in connection with a $46,645 check.from Matrix made payable and mailed to Imperial related to a project in Eureka, California (the “Eureka Project”).

Ibarria, Hourmouzus, and Burnette pled guilty to Count One, and the government agreed to dismiss the individual mail fraud counts charged against them. Laney and Federico entered pleas of not guilty and proceeded to trial.

B. Jury Trial Waivers

On March 25, 2015, the court accepted a stipulation waiving Laney’s right to a jury trial. The stipulation stated that “[t]he parties [had] held a conference call with the Court” several days earlier and “informed the Court that [] the defendant and the government waive their right.to a jury trial and jointly request to proceed with trial before the Court.” The stipulation also addressed counsel’s scheduling conflict and an agreement as to the admissibility of the government’s business records, bank records, public records, and evidence summaries. The stipulation contained only counsel’s electronic signature, and the docket indicates that it was filed by the government. The record does not indicate that Laney was present at the telephonic hearing preceding this stipulation.

Several days later, the court held another telephonic conference. Federico and La-ney were represented by counsel at the conference but did not personally appear. The court minutes state: “A stipulation as to Defendant Federico waiving Jury Trial to be submitted.

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

Related

United States v. Littledog
Ninth Circuit, 2026
United States v. Easton
Ninth Circuit, 2025
United States v. Sullivan
131 F.4th 776 (Ninth Circuit, 2025)
United States v. Villegas
Ninth Circuit, 2025
United States v. Angelo Stackhouse
105 F.4th 1193 (Ninth Circuit, 2024)
Pope v. County of San Diego
S.D. California, 2024
United States v. Alan Safahi
Ninth Circuit, 2024
United States v. Edward Knight
56 F.4th 1231 (Ninth Circuit, 2023)
United States v. Luis Ceja
23 F.4th 1218 (Ninth Circuit, 2022)
United States v. Scott Laney
Ninth Circuit, 2021
Murray v. Williams
D. Nevada, 2020

Cite This Page — Counsel Stack

Bluebook (online)
881 F.3d 1100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-kevin-laney-ca9-2018.