United States v. Phinazee

NOT RECOMMENDED FOR FULL-TEXT PUBLICATION
File Name: 06a0018n.06
Filed: January 6, 2006
Nos. 04-6060; 04-6098
UNITED STATES COURT OF APPEALS
FOR THE SIXTH CIRCUIT
UNITED STATES OF AMERICA, )
)
Plaintiff-Appellee, )
)
v. ) ON APPEAL FROM THE UNITED
) STATES DISTRICT COURT FOR THE
JOHN E. HEREFORD, ) EASTERN DISTRICT OF TENNESSEE
RAFAEL L. PHINAZEE, )
)
Defendants-Appellants. )
Before: NELSON, DAUGHTREY and SUTTON, Circuit Judges.
SUTTON, Circuit Judge. John Hereford and Rafael Phinazee appeal their convictions for
conspiring to distribute crack and powder cocaine. Among other arguments, they contend that their
involvement in the conspiracy was so limited in participation and time that insufficient evidence
supports their convictions and that the statute of limitations bars prosecution of the charges against
them. We reject both arguments (as well as the defendants’ other contentions) and therefore affirm
the convictions, although we vacate each of the defendant’s sentences and remand for resentencing
consistent with United States v. Booker, 543 U.S. 220 (2005).
Nos. 04-6060; 04-6098
United States v. Hereford
I.
In 1997, a joint federal and local drug investigation identified Lindsey Morris as a major drug
distributor in Chattanooga, Tennessee. From October 28, 1997 to May 21, 1998, authorities placed
a pen register telephone tap on Morris’s phone, tracing his incoming and outgoing calls. From April
22 to May 21, 1998, authorities placed a wire tap on the same phone, recording conversations
between Morris and others in his drug-distribution operation.
On July 1, 1998, federal agents executed a warrant to search Morris’s residence, where they
found 29 individually wrapped plastic bags that each contained a quarter ounce of crack cocaine.
Morris agreed to testify against his co-conspirators up and down the chain of distribution.
On June 24, 2003, a grand jury indicted John Hereford, Rafael Phinazee and eight others for
conspiracy to distribute cocaine base (crack) and cocaine hydrochloride (powder).
At trial, Morris testified that for much of 1997 and until his arrest in 1998 co-conspirator
Stacy Anderson supplied him with between a quarter kilogram and a half kilogram of crack cocaine
every week. In the summer of 1997, Morris began distributing the drugs to Hereford, selling him
between a quarter ounce and an ounce of crack cocaine once or twice a week. Morris further
testified that, to his knowledge, Hereford did not use the drugs personally, but rather sold them in
conjunction with operating a “good-time house,” otherwise known as a house of prostitution.
Hereford typically would sell the crack cocaine to men who used the drug as payment to prostitutes
who lived at Hereford’s house or spent time there. The pen tap logged 236 calls between phones
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United States v. Hereford
associated with Hereford and the phone Morris used to conduct his drug business. At trial, the jury
heard conversations recorded by the wiretap in which Morris and Hereford discussed their
distribution relationship, including plans to sell drugs on credit.
Morris began selling crack cocaine to Phinazee in the spring of 1998 and eventually provided
him with four ounces of crack every one or two weeks. Through the wiretap recordings, the jury
heard more than 20 phone conversations between Morris and Phinazee in which the two discussed
the details of their drug distribution arrangement, including Phinazee’s use of lower-level dealers,
the sale of drugs on credit and details of the larger distribution network.
The jury found Hereford and Phinazee guilty of conspiring to distribute 50 grams or more
of cocaine base and 5000 grams or more of cocaine hydrochloride. On August 20, 2004, the district
court sentenced Hereford to 235 months and sentenced Phinazee to 360 months in accordance with
the Sentencing Guidelines.
II.
A.
Both defendants claim that they were not involved in a drug-distribution conspiracy because
they had only a buyer-seller relationship with Morris. While the legal premise of the defendants’
argument is accurate, the factual premise is not.
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United States v. Hereford
The Sixth Circuit has held that “a buyer-seller relationship is not alone sufficient to tie a
buyer to a conspiracy, for mere sales do not prove the existence of the agreement that must exist for
there to be a conspiracy.” United States v. Anderson, 89 F.3d 1306, 1310 (6th Cir. 1996) (internal
quotation and citation omitted). At the same time, however, we have held that “where there is
additional evidence beyond the mere purchase or sale, from which knowledge of the conspiracy may
be inferred,” the conviction for conspiracy should be upheld. Id. at 1311 (internal quotation
omitted). We have found evidence of a conspiracy in the extension of credit, see United States v.
Grunsfeld, 558 F.2d 1231, 1235 (6th Cir. 1977), repeated purchases from a single source, see United
States v. Brown, 332 F.3d 363, 378 (6th Cir. 2003), and the sheer quantity of drugs transacted, see
United States v. Bourjaily, 781 F.2d 539, 545 (6th Cir. 1986). The district court gave a jury
instruction on this defense and neither defendant challenges that instruction, leaving us to decide
whether sufficient evidence supports the conspiracy conviction.
“[V]iewing the evidence in the light most favorable to the prosecution,” we believe that a
“rational trier of fact could have found the essential elements of the crime beyond a reasonable
doubt.” United States v. Copeland, 321 F.3d 582, 600 (6th Cir. 2003) (internal quotation omitted).
Both Hereford and Phinazee obtained crack cocaine on credit and later paid Morris with the profits
they made from selling the drug. Hereford bought crack cocaine from Morris once or twice a week
for almost a year. Phinazee purchased crack cocaine less often, once every week or two, but he
bought larger quantities, sometimes four ounces (over 100 grams) at a time. In addition, for the
seven months of the pen trace, Morris spoke on the telephone with Hereford 236 times and with
Phinazee 97 times. In the recorded phone conversations, Hereford agreed to pay Morris early so that
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United States v. Hereford
Morris could make a “power move” and acquire more crack cocaine from his supplier. Morris
loaned him money indicating that he was a loyal customer. Morris also discussed the conspiracy
with Phinazee, indicating several times that he was meeting with the boss (Anderson) and even with
Anderson’s boss. Phinazee indicated in the phone conversations that he understood that Morris
needed to collect his money, just like Phinazee needed to collect from the distributors working for
him. All of this evidence considered, a rational jury could find that Hereford and Phinazee were
participants in this conspiracy.
B.
Defendants next argue that even if they were involved in a conspiracy, the statute of
limitations bars the claim. Whether an indicted crime falls within the statute of limitations, both
parties agree, is a fact question for the jury. See Brown, 332 F.3d at 372–374
“[A]s long as at least one act in furtherance of the conspiracy was committed within the
limitations period, the statute of limitations is not violated.” United States v. Tsang, No. 02-1776,
2004 U.S. App. LEXIS 8111, at *9 (6th Cir. Apr. 21, 2004); see also United States v. Lash, 937 F.2d
1077, 1081 (6th Cir. 1991) (“The government must show that the conspiracy continued and that at
least one overt act in furtherance of the conspiracy occurred [within five years of the date of
indictment].”). “Where a conspiracy contemplates a continuity of purpose and a continued
performance of acts, it is presumed to exist until there has been an affirmative showing that it has
terminated; and its members continue to be conspirators until there has been an affirmative showing
that they have withdrawn.” United States v. Rios, 842 F.2d 868, 873 (6th Cir. 1988) (internal
quotation omitted). Withdrawal is difficult to prove: “A defendant is found to have withdrawn from
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United States v. Hereford
a conspiracy where he or she made a full confession to authorities or communicated to his co-
conspirators that he has abandoned the enterprise and its goals. Merely ceasing activities on behalf
of the conspiracy does not constitute withdrawal.” United States v. Fantroy, Nos. 03-2264, 03-2290,
2005 U.S. App. LEXIS 19105 (6th Cir. Aug. 30, 2005) (internal quotation and citation omitted); see
also Brown, 332 F.3d at 374 (“Mere cessation of activity is not sufficient” to “show affirmative
action” to “defeat or disavow the conspiracy” which is necessary in “proving withdrawal.”). Not
even an arrest, we have held, necessarily constitutes withdrawal from a conspiracy. See United
States v. Robinson, 390 F.3d 853, 882 (6th Cir. 2004).
In this case, prosecutors filed the indictment on June 24, 2003, alleging a conspiracy that ran
from 1997 through August 2002. The statute of limitations for conspiracy is five years, making June
24, 1998, the relevant date for identifying an overt act in furtherance of the conspiracy and for
determining whether the defendants had withdrawn from the conspiracy. The government
demonstrated that there was not a limitations bar in two ways. First, the government presented
specific overt-acts evidence linking Hereford and Phinazee to the conspiracy within the limitations
period. Morris and Rhonda Shrum, Hereford’s former girlfriend, testified that Hereford received
drugs from Morris on June 30, 1998, and Morris testified that he continued to distribute drugs to
Phinazee up until Morris’s arrest on July 1, 1998. While the period between the start of the
limitations period, June 24, 1998, and Morris’ arrest, July 1, 1998, was admittedly short, a rational
trier of fact could have concluded beyond a reasonable doubt that Hereford and Phinazee committed
overt acts in furtherance of the conspiracy after June 24, 1998.
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United States v. Hereford
Second, neither Hereford nor Phinazee has presented any affirmative evidence of withdrawal.
In other words, even if Hereford and Phinazee had not taken affirmative acts during the limitations
period, the presumption of continuity implicates them for the continuing acts of their co-conspirators
within the limitations period. Notably, neither defendant has argued that no overt act occurred after
June 24, 1998, most probably because the seizure of 29 quarter ounce bags of crack cocaine from
Morris on July 1, 1998, would itself provide sufficient evidence of an overt act in furtherance of the
conspiracy within the limitations period.
Attempting to rebut this conclusion, both defendants argue that no evidence connects them
to the conspiracy during the limitations period save the testimony of an untrustworthy co-conspirator,
Morris. But that credibility determination is one that generally is reserved for the jury, not an
appellate court. See United States v. Henley, 360 F.3d 509, 514 (6th Cir. 2004) (noting that while
the defendant challenged the credibility of the co-conspirators, who had received lesser sentences
in exchange for their testimony, it was not up to the court to “second-guess the jury’s
determinations”). While Morris admitted to lying in previous interactions with the police and before
the grand jury, the jury nonetheless could have found his testimony at trial credible, especially given
its consistency with other testimony in the trial. Phinazee separately notes that when agents
recovered Morris’s address book, his name was crossed out. As an initial matter, the evidence shows
that his name was “partially scribbled out.” And no evidence, to our knowledge, explains what the
“partial[]” crossing out of Phinazee’s name meant. What the evidence does show is that Morris
testified that he continued to distribute drugs to Phinazee up until Morris’s arrest on July 1, 1998.
Nor, at any rate, does Phinazee meaningfully address the presumption that a conspiracy, once
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United States v. Hereford
established, continues absent an affirmative act of withdrawal. Phinazee’s claim that he was such
a minor member of the conspiracy that inaction should be sufficient evidence of withdrawal cannot
be reconciled with the evidence that he was distributing drugs to others and buying up to four ounces
every week or two from Morris.
C.
Hereford separately argues that his trial should have been severed from his co-conspirators’
trial because there were multiple conspiracies, not a single conspiracy. This contention receives
abuse-of-discretion review. United States v. Williams, 711 F.2d 748, 750 (6th Cir. 1983).
As a general rule, individuals indicted together in a conspiracy charge should be tried
together. See, e.g., United States v. Dempsey, 733 F.2d 392, 398 (6th Cir. 1984). “In order to escape
the general rule, the defendant must carry the heavy burden of showing specific and compelling
prejudice resulting from a joint trial which can be rectified only by separate trials.” United States
v. Davis, 809 F.2d 1194, 1207 (6th Cir. 1987) (internal quotation omitted). Hereford argues that he
was prejudiced by the admission of evidence against some of his co-defendants (prior convictions)
and by the defense offered by one of his co-defendants (withdrawal from the conspiracy). As to the
evidentiary point, we have held that a limiting instruction generally suffices to protect co-defendants
from the potential prejudice arising from evidence admitted against another defendant. See United
States v. Warner, 690 F.2d 545, 553 (6th Cir. 1982). The court gave such an instruction and
Hereford at all events never explains how he was prejudiced by the admission of this evidence. As
to the withdrawal defense, the alleged prejudice to Hereford is equally unapparent. Hereford never
explains how that defense was inconsistent with the defenses that Hereford presented at trial, cf.
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United States v. Hereford
Zafro v. United States, 506 U.S. 534 (1993) (holding that even mutually antagonistic defenses are
not a per se reason to sever), and indeed evidence that certain members of the conspiracy had
withdrawn from it might tend to show the tenuous nature of the overall conspiracy. In view of the
presumption in favor of trying co-conspirators together and in view of the considerable evidence
against Hereford, the district court did not abuse its discretion in refusing to sever Hereford’s trial.
D.
Phinazee separately argues that the admission of evidence about his two prior drug-related
convictions was not probative and unfairly prejudiced the outcome of his trial. We review this
contention for abuse of discretion. See United States v. Jones, 403 F.3d 817, 820 (6th Cir. 2005)
The court admitted testimony by a Chattanooga police officer that Phinazee (1) had been
arrested in 1997 for distributing drugs and (2) had been arrested in 1997 for possessing a significant
quantity of crack cocaine in a location where police eventually arrested 30 people who had come to
buy crack cocaine. In both instances, the court admitted the testimony to demonstrate Phinazee’s
intent to join the conspiracy.
Under Rule 404(b) of the Federal Rules of Evidence, “[e]vidence of other crimes, wrongs,
or acts is not admissible to prove the character of a person in order to show action in conformity
therewith. It may, however, be admissible for other purposes, such as proof of motive, opportunity
[or] intent.” We have frequently upheld the admission of such evidence to demonstrate intent in
drug-distribution conspiracies. See, e.g., United States v. Harris, 293 F.3d 970, 976 (6th Cir. 2002)
(noting “defendant’s past involvement in the sale and distribution of crack cocaine was relevant to
show his intent to distribute cocaine”); United States v. Hofstatter, 8 F.3d 316, 323 (6th Cir. 1993).
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United States v. Hereford
The district court did not abuse its discretion in admitting this evidence. In defense of the
charge against him, Phinazee argued that he was a mere buyer of crack cocaine for personal
consumption, and the evidence of these recent charges helped to rebut this intent-based defense and
show that Phinazee indeed planned to sell the drugs that Morris had distributed to him. Given the
considerable other evidence in this case that Phinazee was buying drugs from Morris and selling
them to users and other dealers, moreover, it is difficult to grasp how this Rule 404(b)
evidence—that Phinazee was selling drugs to others—could have unfairly prejudiced him. The
judge, it bears adding, provided a limiting instruction to the jury indicating that this evidence could
be considered only for the purpose of evaluating Phinazee’s intent and not for purposes of showing
any criminal propensity. No abuse of discretion occurred.
Phinazee next argues that the limiting instruction itself “was insufficient to mitigate the
unfair prejudice because it is confusing at best and self-contradictory at worst.” Phinazee Br. at 42.
Because the instruction demanded that the jury not consider the testimony as evidence of the
propensity of the defendant to have committed the crime, but did instruct them to use it to consider
if he had the intent to enter the conspiracy, he contends that the instruction was misleading.
Phinazee, however, did not object to this instruction, and so his challenge to it receives plain-error
review. Fed. R. Crim. P. 52(b). No such error occurred. The court explained to the jury that this
evidence could not be used to demonstrate a general propensity to join conspiracies to distribute
crack cocaine and that the defendants were on trial only for what was specified in the indictment, not
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United States v. Hereford
for other wrongs. That instruction is consistent with our case law. See, e.g., United States v.
Gaitlan-Acevedo, 148 F.3d 577, 592 (6th Cir. 1998).
The government concedes that Hereford and Phinazee are entitled to resentencing consistent
with United States v. Booker, 543 U.S. 220 (2005). Accordingly, we will vacate their sentences and
remand for resentencing under Booker.
III.
For these reasons, we affirm the convictions of Hereford and Phinazee and remand for
resentencing consistent with Booker.
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