United States v. Susan Pioch
United States v. Susan Pioch
Opinion
A jury convicted Kurt Mallory, Margaret McKnight, and Susan Pioch on various charges arising from a scheme to pilfer Martin Fewlas's sizeable estate. The Defendants appeal their convictions, and Mallory and Pioch further challenge their sentences. We AFFIRM in part, REVERSE in part, VACATE Mallory's and Pioch's sentences in part, and REMAND for further proceedings consistent with this opinion.
I.
Martin Fewlas looked the part of a bar-dweller. Most days, he frequented various neighborhood establishments, drinking beer. At one such locale, he befriended Margaret McKnight. McKnight's mother worked as a bartender, and McKnight often came by after school. Eventually, McKnight became a bartender too. She developed a close friendship with Fewlas-so much so that Fewlas invited McKnight to rent the upstairs apartment in his duplex.
For seventeen years, McKnight lived in this upstairs apartment with her boyfriend, Kurt Mallory. Kurt's estranged father, Gary, later joined the couple during the summers in an attempt to reconcile with his son. Over the years, Margaret fed and cleaned Fewlas when he came home from the bars. Perhaps Fewlas saw McKnight as the daughter he never had. But, as any family knows, sometimes familiarity breeds contempt, and Fewlas and *589 McKnight did not always get along. In particular, Fewlas disliked and distrusted Kurt. And at one point, Fewlas wanted to evict the couple because they had fallen behind on rent.
Eventually, Fewlas passed away. But as it turns out, there was more to him than met the eye. Fewlas had amassed a fortune of over $2.2 million. And in his will, he left it all to McKnight.
McKnight immediately went on a spending spree. She withdrew over $600,000 and made numerous purchases, including a new duplex and a used car dealership. To make these purchases, McKnight took out the money in 171 different transactions-all in amounts less than $10,000. Unsurprisingly, this suspicious conduct got the Internal Revenue Service's attention. And when the IRS delved into the case, they started to suspect that Fewlas had not left his estate to McKnight after all.
The plot soon unraveled. The IRS interviewed Gary Mallory, and he confessed that he had forged Fewlas's signature on the will. According to Gary, attorney Susan Pioch had prepared the fake will, and Kurt asked him to sign Fewlas's name, offering him a cut in return. Gary agreed. But when Gary asked for more money, his co-conspirators spurned his request. So Gary, aggrieved that no honor exists among thieves, tried contacting the probate court to alert them about the fraud and stop McKnight from getting Fewlas's money. For whatever reason, the court brushed off his phone call. When the IRS later got involved, however, Gary cooperated and pled guilty to his involvement in the scheme. His confession set off a chain reaction that resulted in a fifty-nine-count indictment and subsequent convictions across the board.
Kurt Mallory, McKnight, and Pioch now appeal.
II.
Kurt Mallory first claims the district court erred by allowing the government to play the videotaped deposition of Gary Mallory. About six months after the defendants were indicted, the government deposed Gary. At the time, Gary was seventy-six years old and in poor health. He was suffering from a number of debilitating conditions, including lumbar disc disease, diabetes, and recurring bladder cancer. The pain in his back-where two vertebrae were "disintegrating"-was severe. R. 307, Pg. ID 3773-74. So the government, concerned that Gary might not live until trial, sought to preserve his testimony by deposing him. Kurt objected to the deposition, claiming an insufficient time to prepare. But the district court let it go forward anyway. Since Gary could not travel, the deposition took place at a federal courthouse in Arizona, where Gary resided.
After the deposition, Gary's health further deteriorated. He was admitted to the hospital twice-first for hematuria (blood in his urine), and second when he experienced "[a]cute renal failure" (serious kidney malfunction). R. 102-7, Pg. ID 679. He was also diagnosed with dementia. These and his other "chronic" conditions rendered him "homebound" and "unable to safely travel." R. 171-1, Pg. ID 1312; R. 102-5, Pg. ID 668. So when the time for trial approached, the government sought to play the videotape of Gary's deposition in lieu of having him testify at trial. Kurt opposed the government's request, arguing that Gary should have to testify by live video feed from the federal courthouse in Arizona. In light of Gary's condition, however, the district court granted the government's request to play the videotape of the deposition.
On appeal, Kurt contends that the playing of Gary's deposition violated his right *590 under the Sixth Amendment's Confrontation Clause. See U.S. Const. amend. VI ("In all criminal prosecutions, the accused shall enjoy the right ... to be confronted with the witnesses against him ...."). Specifically, Kurt argues (1) that the district court erred in deeming Gary "unavailable" to testify, and (2) that he did not have a meaningful opportunity to cross-examine Gary at his deposition. We address each argument in turn.
Unavailability.
Kurt maintains that Gary was not "unavailable" to testify at trial. In order for Gary's deposition to be played at trial without running afoul of the Confrontation Clause, the government needed to show that he was unavailable.
Crawford v. Washington
,
Kurt argues that the district court abused its discretion in two principal respects. First, he maintains that the government provided stale medical records that failed to establish that Gary's condition was "significantly different" than it was at the time of his deposition. But if anything, Gary's condition
worsened
after his deposition, particularly in light of his hospitalizations and dementia diagnosis. And while the government did not provide records detailing Gary's condition for several months leading up to trial, the records it did provide characterized Gary's condition as "chronic" and gave no indication that his condition would improve. R. 171-1, Pg. ID 1312. Our circuit does not require the government to disprove the possibility of "miraculous rejuvenation" in order to establish an elderly witness's unavailability on account of illness.
Campbell
,
Second, Kurt maintains that the district court should have required Gary to testify by live video feed from the Arizona courthouse. Kurt points out that, in the months leading up to trial, Gary attended his own sentencing hearing at that very courthouse. But Gary's presence at his sentencing hearing did not compel the district court to mandate his live testimony at Kurt's trial. As the district court noted, Gary was so ill that he could not leave his home-not even to see his doctor. So whatever the circumstances that permitted Gary to attend his sentencing hearing, the
*591
district court was not obligated to ignore Gary's homebound status. This is especially true given that Gary's sentencing hearing was fourteen minutes-hardly the pressure-filled hours Gary would likely endure in giving trial testimony.
McGowan
,
Meaningful Opportunity
. Kurt also argues that he did not have a meaningful opportunity to cross-examine Gary at his deposition. The Confrontation Clause mandates such an opportunity, but not one that is "effective in whatever way, and to whatever extent, the defense may wish."
United States v. Owens
,
Kurt cites four reasons why he could not meaningfully cross-examine Gary at the deposition. First, he maintains that the two-month period that counsel had to prepare for the deposition was insufficient in light of voluminous discovery. But he fails to identify what he wishes counsel could have reviewed but did not. This indicates that counsel's preparation, even if hurried, was not so rushed as to significantly limit his ability to cross-examine Gary, let alone compel a new trial.
See
Green
,
Second, Mallory asserts that he received discovery
after
the deposition that he could have used to impeach Gary's testimony. The only discovery he points to, however, is forensic testing of the forged will. And while Kurt claims he was not privy to the results of the forensic tests before the deposition, he does not explain what additional cross-examination he would have performed with the results of those tests.
See
Mechler v. Procunier
,
Third, Kurt notes that he did not know of Gary's dementia diagnosis at the time of the deposition, and he would have liked to cross-examine Gary with that information. Yet Gary's medical records from before his deposition indicate that he suffered from "weakness and episodes of confusion." R. 102-2, Pg. ID 640. In fact, Pioch's counsel asked Gary at his deposition whether he had been tested for Alzheimer's, a line of questioning Kurt's counsel evidently chose not to pursue.
See
United States v. Richardson
,
Fourth, Kurt claims that he learned of conflicting stories about the will signing from Gary's daughters only after the deposition, and thus did not have the information to impeach Gary's account of what went on. But Kurt interviewed the daughters before the deposition and even asked Gary about the "several different versions" of the will signing that he had told one of his daughters. R. 307, Pg. ID 3828-29. This indicates that Kurt had a meaningful opportunity to cross-examine Gary about the conflicting stories.
Kurt thus fails to identify a basis for concluding that his opportunity to confront Gary was not meaningful-much less one that would compel the district court to grant a new trial. Therefore, his Confrontation Clause claim falls short.
III.
Next, we turn to McKnight's and Pioch's objections to the court's admission of testimony by a government handwriting expert. The expert, Larry Olson, testified that the signature on the forged will was "probably" not Fewlas's, but instead a "simulation" performed by someone else. R. 308, Pg. ID 4052. McKnight and Pioch concede that Olson was qualified to offer this opinion, but dispute its reliability.
District courts are the "gatekeep[ers]" of expert testimony.
Daubert v. Merrell Dow Pharm., Inc.
,
*593
Daubert
,
The reliability of expert handwriting analysis has come before our court before. In
United States v. Jones
, our court upheld the admissibility of such testimony.
Our court decided
Jones
without the benefit of
Kumho Tire
. In
Kumho Tire
, the Supreme Court clarified that the
Daubert
factors may also be useful in scrutinizing non-scientific expertise.
Here, the district court faithfully applied
Daubert
,
Jones
, and
Kumho Tire
in deeming Olson's handwriting analysis admissible. The court conducted thorough
voir dire
to ascertain Olson's experience and methodology. Olson testified to his thirty-one years' experience as an ink chemist and forensic document examiner at the IRS National Forensic Laboratory, during which he has performed countless handwriting analyses and testified in court on multiple occasions.
See
Jones
,
McKnight and Pioch make two primary arguments otherwise. First, they take issue with the district court's characterization of handwriting analysis as a "science," pointing to certain studies and district court decisions that have questioned its scientific underpinnings.
See, e.g.
,
United States v. Saelee
,
Moreover, while McKnight and Pioch are correct to point out that some have called handwriting analysis's scientific underpinnings into question, that debate does not mean the district court abused its discretion here. For one thing, McKnight and Pioch did little to impugn the studies and experiments validating handwriting analysis on which Olson relied, offering no argument about testing, peer review, or error rate after
voir dire
. For another, focusing exclusively on the scientific shortcomings of handwriting analysis-a nonscientific area of expertise-ignores its foundations in "personal knowledge [and] experience."
See
Kumho Tire
,
Second, McKnight and Pioch argue that Olson failed to properly account for Fewlas's alcohol use and other factors that might impact his handwriting. But in both
voir dire
and before the jury, Olson testified that he considered whether these factors might have impacted Fewlas's writing and concluded that any impact did not change his opinion. McKnight and Pioch provide no support for the notion that this aspect of Olson's opinion, even if flawed, rendered his testimony so unreliable as to be inadmissible. Rather, their argument bears on the proper
weight
to give his testimony.
See
Accordingly, the district court did not abuse its discretion in admitting Olson's handwriting analysis in this case.
IV.
The Defendants raise two additional challenges to their convictions. Neither has merit.
Exhibit
. Pioch and Kurt Mallory call into question one of the government's exhibits at trial: an unexecuted power of attorney that Pioch allegedly fabricated. In their view, the government failed to authenticate the document as Pioch's work. To authenticate a document, the proponent must provide evidence sufficient for the factfinder to conclude that the document is what it is claimed to be. Fed. R. Evid. 901(a) ;
United States v. Farrad
,
Kurt further objects that the exhibit inflicted unfair prejudice that substantially outweighed its probative value, thus violating Federal Rule of Evidence 403. But the prejudice Kurt claims is simply the possibility that the jury believed the exhibit was in fact Pioch's work. That "prejudice" is not what Rule 403 envisions.
Old Chief v. United States
,
Reid Technique
. McKnight argues that a government investigator made improper use of the so-called Reid Technique, an interrogation method used to elicit a confession. But despite the investigator's purported use of the technique, McKnight never confessed, and she does not bring an involuntary-confession claim. Instead, she complains of "false investigation," charging that the investigator unfairly assumed her guilt and marshaled evidence to support his assumption. McKnight Opening Br. 13. But McKnight fails to identify any constitutional provision that bars an investigator from assuming guilt and trying to prove it.
See
Garner v. Harrod
,
V.
After the jury handed down its verdict, Kurt Mallory sought a new trial under Federal Rule of Criminal Procedure 33, arguing in part that the verdict was against the manifest weight of the evidence. The district court rejected his request. Kurt argues that the district court applied the incorrect legal standard in denying his motion.
Rule 33 permits a new trial if a verdict is against the "manifest weight" of the evidence.
United States v. Hughes
,
Here, Kurt claims the district court conflated these rules. And he is right. The court repeatedly characterized its task as evaluating the sufficiency of the evidence, rather than weighing the evidence for itself.
See, e.g.
, R. 369, Pg. ID 6053 (characterizing issue as "insufficiency of the evidence");
In the end, the manifest weight of the evidence may support the verdict. But as an appellate court, this is not for us to say. The judge that saw the witnesses and sat with the evidence at trial must make that call.
United States v. Ashworth
,
VI.
At sentencing, the district court enhanced Kurt Mallory's and Pioch's sentencing ranges after concluding that they caused financial hardship to the putative beneficiary of Fewlas's estate.
See
U.S. Sentencing Guidelines Manual § 2B1.1(b)(2)(A)(iii) (U.S. Sentencing Comm'n 2016). But the Sentencing Guidelines did not contain the financial-hardship enhancement at the time of Kurt's and Pioch's misconduct.
See
U.S. Sentencing Guidelines Manual § 2B1.1(b)(2)(A) (U.S. Sentencing Comm'n 2014). Thus, to apply it in their case violates the Ex Post Facto Clause. U.S. Const. art. I, § 9, cl. 3 ;
Peugh v. United States
,
* * *
We AFFIRM McKnight's and Pioch's convictions, as well as Kurt Mallory's conviction to the extent expressed in this opinion, REVERSE the district court's denial of Kurt's motion for a new trial, VACATE Kurt's and Pioch's sentences to the extent impacted by the financial-hardship enhancement, and REMAND for further proceedings consistent with this opinion.
There is tension in our case law as to the proper standard of review for this type of Confrontation Clause claim where defendants object at trial. Some of our cases, including the earliest of which we are aware, hold that any such claim is reviewed for abuse of discretion.
Dorsey v. Parke
,
Mallory and Pioch each received a mandatory minimum consecutive sentence of twenty-four months based on their convictions for aggravated identity theft. See 18 U.S.C. § 1028A(a)(1), (b)(2). Since the district court issued those sentences independent of the financial-hardship enhancement, we affirm the district court's sentences on those convictions.
Reference
- Full Case Name
- UNITED STATES of America, Plaintiff-Appellee, v. Kurt L. MALLORY (17-3500); Margaret L. McKnight (17-3537); Susan M. Pioch (17-3538), Defendants-Appellants.
- Cited By
- 28 cases
- Status
- Published