United States v. Petters

986 F. Supp. 2d 1077, 2013 WL 6328544, 2013 U.S. Dist. LEXIS 171543
CourtDistrict Court, D. Minnesota
DecidedDecember 5, 2013
DocketCrim. No. 08-364 (RHK); Civ. No. 13-1110 (RHK)
StatusPublished
Cited by4 cases

This text of 986 F. Supp. 2d 1077 (United States v. Petters) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Petters, 986 F. Supp. 2d 1077, 2013 WL 6328544, 2013 U.S. Dist. LEXIS 171543 (mnd 2013).

Opinion

memorandum: opinion AND ORDER

RICHARD H. KYLE, District Judge.

In 2009, following a four-week trial and a week of deliberations, a jury convicted Defendant Thomas Joseph Petters of 20 counts of fraud, conspiracy, and money laundering, concluding he had spearheaded a massive Ponzi scheme for nearly two decades. This Court later sentenced him to 50 years’ imprisonment. He appealed, and the Eighth Circuit affirmed both his conviction and sentence; his subsequent petition for a writ of certiorari was denied by the United States Supreme Court.

Staring into an abyss of nearly 15,000 days of incarceration, Petters has tried to pull off one final con. He now seeks relief from this Court under 28 U.S.C. § 2255, arguing that his trial lawyers — all three of them — failed to inform him of an alleged Government plea offer that would have capped his sentence at 30 years. His Motion has been fully briefed, the Court held an evidentiary hearing on October 23, 2013, at which Petters testified, and the parties have now submitted post-hearing memoranda. The following constitutes the Court’s findings of fact and conclusions of law and explains why the Motion will be denied.

BACKGROUND

The factual background underlying Petters’s crimes is only marginally relevant and need not be repeated in detail here. See United States v. Petters, 663 F.3d 375 (8th Cir.2011). Suffice it to say, law-enforcement officers executed search warrants at his businesses on September 24, 2008, after an insider went to the FBI to report that he was running a multi-billiondollar Ponzi scheme. Approximately one week later, Petters was charged by criminal complaint with fraud and related crimes and arrested. The complaint alleged that billions of dollars had been lost in the scheme; accordingly, the United States Sentencing Guidelines suggested a very substantial sentence, possibly including life imprisonment, if Petters were convicted of the crimes charged.

Petters retained counsel quickly following execution of the search warrants, employing the services of attorney Jon Hope-man, a seasoned criminal-defense lawyer who spent more than a decade as an Assistant United States Attorney in this District. Hopeman was assisted initially by a partner at his firm, Eric Riensche, and later by attorney Paul Engh, another highly experienced criminal defense lawyer in the Twin Cities.

On October 5, 2008, Assistant United States Attorney John Marti spoke with Hopeman by telephone to discuss the case. It is undisputed that during their conversation, Marti informed Hopeman the Government was willing to agree to a sentence capped at 30 years if Petters would plead guilty to some unspecified charges. This (so-called) offer was never reduced to writing, nor was there any discussion regarding the factual basis for a guilty plea. Marti later reiterated the proposed 30-year sentencing cap at a face-to-face meeting with Hopeman on December 17, 2008, approximately two weeks after Petters was indicted, and at other times before trial commenced in October 2009.

[1081]*1081It is this alleged “offer” that lies at the heart of the instant Motion. According to Petters, “[a]t no time during the pretrial, trial, presentencing or sentencing stages of my case did Mr. Hopeman communicate the Government’s offer to me.” (Petters Aff. (Doc. No. 579-6) ¶ 3.) And he contends that had he known of the offer, he would have accepted it and pleaded guilty. (Id. ¶ 4.) Of course, he did not do so, and he mounted a spirited defense at trial, including taking the witness stand and repeatedly denying he was aware of any fraud being committed. The jury ultimately did not agree and convicted him of all 20 counts with which he was charged.

Petters now contends that his lawyers’ failure to communicate the Government’s 30-year sentencing cap constituted ineffective assistance of counsel, entitling him to relief from the 50-year sentence imposed by the Court.1

STANDARD OF DECISION

In order to obtain relief under 28 U.S.C. § 2255, a federal prisoner must show that his “sentence was imposed in violation of the Constitution or laws of the United States, or that the court was without jurisdiction to impose such sentence, or that the sentence was in excess of the maximum authorized by law, or is otherwise subject to collateral attack.” A motion under § 2255 “may not do service for an appeal.” United States v. Frady, 456 U.S. 152, 165, 102 S.Ct. 1584, 71 L.Ed.2d 816 (1982). Rather, relief “is reserved for transgressions of constitutional rights and for a narrow range of injuries that could not have been raised on direct appeal and, if uncorrected, would result in a complete miscarriage of justice.” United States v. Apfel, 97 F.3d 1074, 1076 (8th Cir.1996).

The Sixth Amendment to the United States Constitution guarantees criminal defendants the right to effective assistance of counsel, e.g., Chesney v. United States, 367 F.3d 1055, 1058 (8th Cir.2004), and generally speaking, allegations that trial counsel were ineffective fall within the “narrow range” of matters that may be raised in a § 2255 proceeding. See, e.g., United States v. McAdory, 501 F.3d 868, 872 (8th Cir.2007). Such claims are governed by the two-part test enunciated in Strickland v. Washington, 466 U.S. 668, 104 S.Ct. 2052, 80 L.Ed.2d 674 (1984), under which a defendant must show (1) his attorney’s performance was deficient and (2) the deficiency prejudiced him. Id. at 687, 104 S.Ct. 2052. As for the first prong, a defendant can show deficient performance only if his counsel’s conduct “fell below an objective standard of reasonableness.” Id. at 688, 104 S.Ct. 2052. As for the second prong, a defendant must establish “a reasonable probability that, but for counsel’s unprofessional errors, the result of the proceeding would have been different.” Id. at 694, 104 S.Ct. 2052. The defendant bears the burden of proof on each issue. Id. at 687, 104 S.Ct. 2052.

The right to effective assistance of counsel extends to plea negotiations, see, e.g., Hill v. Lockhart, 474 U.S. 52, 57, 106 S.Ct. 366, 88 L.Ed.2d 203 (1985), and requires counsel “to communicate formal offers from the prosecution to accept a plea on terms and conditions that may be favorable to the accused.” Missouri v. Frye, — U.S.-, 132 S.Ct. 1399, 1408-09, 182 L.Ed.2d 379 (2012) (citations omitted). The failure to communicate a formal plea offer before it expires satisfies Strickland’s “deficient performance” prong. Id. at 1409. But Strickland also .requires prejudice, and “[t]o show prejudice from [1082]*1082ineffective assistance of counsel where a plea offer has lapsed ..., [a] defendant ] must demonstrate a reasonable probability [he] would have accepted the earlier plea offer.” Id.

ANALYSIS

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986 F. Supp. 2d 1077, 2013 WL 6328544, 2013 U.S. Dist. LEXIS 171543, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-petters-mnd-2013.