United States v. Paulette Lynne McCarter

219 F. App'x 921
CourtCourt of Appeals for the Eleventh Circuit
DecidedMarch 9, 2007
Docket05-11121
StatusUnpublished

This text of 219 F. App'x 921 (United States v. Paulette Lynne McCarter) 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. Paulette Lynne McCarter, 219 F. App'x 921 (11th Cir. 2007).

Opinion

STROM, District Judge:

Defendants appeal their convictions for charges relating to a scheme to defraud the United States, bribery and receipt of gratuities. Defendants assert the district court erred: (1) in declining to dismiss the indictment against them for failure to provide an adequate description of the scheme to defraud; (2) in denying the defendants’ motions for judgment of acquittal based on insufficiency of evidence; (3) in declining to sever Counts 59 and 60 of the sixty-count indictment; and (4) in enhancing defendant Steven LaBrake’s offense level based on the court’s findings at sentencing.

I. BACKGROUND

A. Defendants

Defendant Steven LaBrake (“LaBrake”) headed the Community Redevelopment Agency (“CRA”) of Tampa, Florida (“the City”). The CRA receives money from the United States Department of Housing and Urban Development (“HUD”) and administers funding for the City’s housing program. The City partners with and guarantees lines of credit for various not-for-profit entities to rehabilitate existing houses and construct new moderate and low-income housing. The not-for-profit entities hire contractors chosen by the City to perform the construction work.

Paulette Lynne McCarter (“McCarter”), 1 LaBrake’s then-girlfriend and now wife, also worked for the CRA, eventually taking the position of senior redevelopment counselor, the equivalent of a loan processor. She helped first-time homeowners obtain loans under the City’s housing program.

Chester Luney (“Luney”), a friend of LaBrake, was the chief executive officer of Tampa Hillsborough Action Plan (“THAP”), a group of not-for-profit entities that both built houses and coordinated *924 the construction of houses by private contractors. THAP received contracts from the City for low-income housing projects. During the period that LaBrake headed the CRA, THAP began to receive a greater number of projects from the City. At the same time, Luney also worked as a full-time staff psychologist for the United States Department for Veterans Affairs (“VA”). His supervisor at the VA testified that Luney repeatedly denied having a relationship with THAP during his employment with the VA.

Dean Ryan (“Ryan”) was a contractor who worked for not-for-profit entities, such as THAP, and received many contracts from the City. Ryan also performed various work at McCarter’s property, including carpet and fence installation. Ryan pled guilty before the trial and testified as a government witness at trial. He testified that “[Mr. LaBrake] was the boss and you did what he said or you just didn’t do anything” (Doc. 344 at 180).

Lori Roberts, also known as Lori Horne, was a loan officer at the University of South Florida Federal Credit Union. The jury found Roberts not guilty of both charges against her.

B. Factual Background

■ In January 1999, LaBrake bought property to build a house on Chippewa Avenue in Tampa, Florida (“Chippewa property”). In February 2000, Luney hired Albert Carswell to install pavers at LaBrake’s Chippewa property and directed THAP to pay $1,275 for the installation. Carswell prepared an invoice for the work at LaB-rake’s property, but the invoice was altered to describe the work as “concrete work @ Enterprise Center.” Luney’s subordinate, Lynn Knox, testified that Lu-ney told her he had gotten “too close to the line” in reference to this incident.

In November 2000, McCarter and LaB-rake, who were dating at the time, decided to build a house together on Corona Street in Tampa, Florida (“Corona property”). The contract and loan application were solely in McCarter’s name. On November 1, 2000, in an effort to help McCarter improve her financial situation and eliminate debt, Luney directed THAP to buy out McCarter’s lease of a Toyota 4Runner and then on November 9, 2000, separately paid McCarter’s company, “So What’s the Occasion?,” $576.34 for the tires on the Toyota 4Runner. In the fall of 2000, Lu-ney’s organization, THAP, contracted with McCarter’s company to purchase 250 gift baskets at $125 each to give to new homeowners. The evidence established that nearly all of the goods in these gift baskets were provided by THAP and other not-for-profit organizations, and not McCarter’s company. For these baskets, THAP paid McCarter’s company a total of $32,475 between November 2000 and July 2001. Out of these funds, McCarter wrote checks to LaBrake totalling over $5,000. On January 3, 2001, Luney executed a lease agreement with McCarter for her house in Riv-erview, Florida, which enabled McCarter to list rental income on her loan application for the Corona property. Under the lease agreement, Luney’s daughter was to live in the Riverview house for $1,400 per month. However, Luney’s daughter never moved into the Riverview house, and the house was not leased to another person until October 2001. The tenant executed a lease for $1,050 per month.

At the time McCarter purchased the Corona property, there was an old, small house on the property. LaBrake, through THAP, paid more than $29,000 to move the house from the Corona property when THAP did not yet have a lot on which to place the house. THAP also paid to remove debris from the property, paid to repair a neighbor’s fence that had been *925 damaged during the move, and purchased palm trees for the property.

In December 2000, McCarter hired Ryan to build the shell of the house for $105,000, and Ryan personally incurred many expenses during the construction. Early in 2001, when Ryan could no longer afford to work on the house, LaBrake promised to award fifteen contracts to Ryan at $8,000 more than the standard contract. Beginning in February 2001, THAP awarded Ryan fourteen contracts at the higher price, which were approved by Luney. Ryan requested a similar higher price from Tampa United Methodist Centers (“TUMC”), another not-for-profit entity involved in low-income housing. The director of TUMC contacted LaBrake’s office to inquire about Ryan’s request. McCarter spoke with him and told him she would speak to LaBrake about Ryan’s contracts. LaBrake then notified TUMC that he wanted Ryan to get fourteen or fifteen more contracts at the higher price. In addition, THAP issued a $80,000 check to Ryan in March 2001. Ryan testified that he performed no work for THAP in exchange for this check. Soon after, LaB-rake requested Ryan to pay two of McCar-ter’s credit card bills. According to the evidence, Ryan paid $13,379 on one of the bills for charges unrelated to the Corona property. In 2003, McCarter and LaB-rake sold the Corona property for $480,000.

CRA employee, David Snyder, testified that at a meeting to discuss the best use of CRA funds, LaBrake stated that they needed to take care of their friends first, mentioning Luney and Ryan. It was standard policy for not-for-profit entities to receive a ten percent development fee for each property on which they built and sold a house. In March 2001, THAP received $5,000 per property in addition to the development fee. Invoices including this additional fee were to be sent to the CRA.

In March 2001, LaBrake asked Luney to complete construction on a house on Josie Drive in Seffner, Florida, owned by Lori Roberts, a friend of McCarter and LaB-rake.

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Bluebook (online)
219 F. App'x 921, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-paulette-lynne-mccarter-ca11-2007.