Opinion ID: 1435062
Heading Depth: 3
Heading Rank: 3

Heading: Proper Evidentiary Standard

Text: In order for the co-conspirator exception to apply, the three elements under 801(d)(2)(E) must be proven by a preponderance of the evidence. See Maliszewski, 161 F.3d at 1007. In overruling Betty's objection to Maness's testimony regarding Seay's out-of-court statement, the district court stated that the government has clearly shown a prima facie case of a conspiracy, and admitted the evidence under the co-conspirator's exception to the hearsay rule. JA 178. The district court did not find that the government had proven the three requisite elements by a preponderance of the evidence, but rather made the generalized finding that a prima facie case of conspiracy had been presented. The district court never returned to this issue to determine if the government's prima facie showing had risen to the level of a preponderance of the evidence on each of the requisite elements. Accordingly, we find the district court erred in not applying the preponderance of the evidence standard in determining whether the government had met the requirements for the co-conspirator exception under 801(d)(2)(E). The government concedes that the district court applied the wrong evidentiary standard, but it maintains that this error was harmless. We disagree. The government relies on this Court's statement in United States v. Rogers, 118 F.3d 466, 478 (6th Cir.1997), that [t]he erroneous admission of a statement by an unindicted co-conspirator constitutes harmless error when sufficient other evidence demonstrates a defendant's active involvement in the conspiracy. In order for this Court to hold that the district court's use of the wrong evidentiary standard was harmless error, it must find that there was sufficient evidence of Betty's involvement in the conspiracy. Id. In Rogers, the Court found the evidence was overwhelming that Rogers was involved in the alleged conspiracy. Here, the evidence that Betty was involved in the alleged conspiracy is not nearly so overwhelming. No evidence was presented that showed Betty ever handled any drugs. There was no evidence that she was ever present during a drug transaction. In fact, all of the testimony indicated that the transactions occurred in the basement and that she was never present. The testimony also revealed that Seay and Jason were the individuals who arranged for the delivery of the methamphetamine with Stefan and distributed it from the basement. Agent Woodham's testimony and his own report state that Betty told him she had never actually observed any illegal activity or drugs. The only evidence outside of the hearsay tying Betty to the conspiracy to distribute methamphetamine was Woodham's testimony that she had told him that she had agreed to let her house be used in exchange for some benefit, and according to Woodham, that benefit was the prospect of treatment for her husband in Mexico. No other witnesses or evidence was proffered showing that Betty had knowingly agreed to let her house be used. Maness's hearsay testimony was the only independent corroborating evidence of any such agreement. Accordingly, we hold the district court committed reversible error when it admitted Seay's out-of-court statement under the co-conspirator's exception to the hearsay rule using the wrong legal standard and without finding that the elements of that exception had been proven by a preponderance of the evidence. As a result, reversal is necessary because we lack[ ] a `fair assurance' that the outcome of [the] trial was not affected by evidentiary error. Beck, 377 F.3d at 635. B. Was the evidence sufficient to sustain Betty's convictions for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. While the district court's evidentiary error requires remand, we must still independently address Betty's argument that the evidence presented at trial was insufficient to sustain her conviction. Patterson v. Haskins, 470 F.3d 645, 651 (6th Cir. 2006), recently reaffirmed that the general practice in this circuit is to consider an insufficiency claim even if a remand is necessary because of trial error. Betty argues on appeal that the evidence was insufficient to support her convictions. When considering such an argument we do not weigh the evidence presented, consider the credibility of witnesses, or substitute [its] judgment for that of the jury. United States v. M/G Transport Services, Inc., 173 F.3d 584, 588-89 (6th Cir.1999). Our task is to determine whether, after viewing the evidence in the light most favorable to the prosecution, and after giving the government the benefit of all inferences that could reasonably be drawn from the testimony, any rational trier of fact could find the elements of the crime beyond a reasonable doubt. Id. at 589 (citing Jackson v. Virginia, 443 U.S. 307, 319, 99 S.Ct. 2781, 61 L.Ed.2d 560 (1979)). Thus, she bears a very heavy burden in her sufficiency of the evidence challenge. United States v. Davis, 397 F.3d 340, 344 (6th Cir.2005) (internal citations omitted). Betty was convicted on the following three counts: (1) conspiracy to distribute and/or possess with intent to distribute methamphetamine, (2) possession of methamphetamine with intent to distribute on March 6, 2003, and (3) possession of methamphetamine with intent to distribute on May 10, 2003. We analyze each count in turn. i. Conspiracy to Distribute Methamphetamine To sustain a conviction under 21 U.S.C. § 846, the government must prove the existence of an agreement to violate the drug laws and that each conspirator knew of, intended to join, and participated in the conspiracy. Although the connection between the defendant and the conspiracy need only be slight, an agreement must be shown beyond a reasonable doubt. A tacit or material understanding among the parties to a conspiracy is sufficient to establish the agreement. A conspiracy may be inferred from circumstantial evidence which may reasonably be interpreted as participation in a common plan. United States v. Walls, 293 F.3d 959, 967 (6th Cir.2002) (internal citations and quotation marks omitted). Betty argues that there was no evidence that she was a knowing participant in a conspiracy to distribute methamphetamine  rather, she submits that she was an uninformed, concerned mother who got caught up in the illicit dealings of her adopted son and a family friend. The following evidence was presented by the government in support of Betty's conviction:  On March 6, 2003, the police found methamphetamine residue in plastic bags in the basement bathroom of Betty's house. Officers also found in the basement a police scanner, a ten-code, a night-vision lens, two television monitors, two surveillance cameras (one in the basement and one mounted outside the house), a rifle and a shotgun.  On May 10, 2003, the police found approximately 1.5 kilograms of pure methamphetamine in a dog food bag in Betty's garage. During the same search police also found in the hall closet a loaded handgun and a metal cookie tin containing $14,000 cash. Police also discovered a digital scale in her former bedroom, a police scanner, a surveillance camera, and a monitor in Jason's bedroom, and a laptop computer, police scanner and digital scales in the basement.  On May 29, 2003, Betty was interviewed by Agent Woodham. His testimony regarding that interview states that she gave details about the drug conspiracy between Seay, Jason, and Stefan. In the interview, according to Woodham, she allegedly indicated that in exchange for use of her basement for drug transactions, Stefan would arrange for a doctor in Guadalajara, Mexico, to examine her paraplegic husband.  Maness testified that Seay had told him he paid Betty $1,000 each time they used her basement for drug transactions. While this evidence appears to strongly implicate Betty in the conspiracy, it does not paint the whole picture. Betty and her husband were both disabled. They slept in the living room on the main floor. During the March 6 search, all of the evidence seized came from the basement, where Jason, her 25-year-old adopted son (biological grandson) spent most of his time. During the May 10 search, the drugs were found outside the house, and most of the other seized items came from Jason's bedroom or the basement. According to police, a digital scale was found in Betty's former bedroom, but the scale was alongside a duffel bag full of clothes belonging to Seay who had been staying in that bedroom. In fact, the police evidence identification tag stated the scale was found in Seay's bedroom. No evidence was presented that connected Betty to any drug transaction or any of the other items found at the house, and Maness actually testified that he had no reason to believe Betty knew what was going on except for what Seay had told him regarding the $1,000 payments. It is true that without Maness's testimony regarding Seay's out-of-court statement, the jury could well have refused to conclude that Betty was involved in a conspiracy. That is why we concluded above that the error regarding the Maness testimony was not harmless. The evidence merely shows Betty was present at the house when the drugs were there, but nothing else. Woodham's testimony that Betty told him that she agreed to let her house be used in exchange for possible treatment for her husband by a Guadalajaran doctor is weak at best, and certainly does not overcome the beyond a reasonable doubt standard. However, if Maness's statement is deemed admissible, then it is possible that a rational trier of fact could have concluded Betty was part of the conspiracy and her conviction should stand. ii. Possession of Methamphetamine on March 6, 2003 and May 10, 2003 As discussed above, on March 6, 2003, methamphetamine residue was found in plastic baggies behind the tank of a toilet in the basement bathroom. This area of the house was used exclusively by Jason. In fact because of Betty's and her husband's disabilities they had difficulty navigating stairs. The government did not present any evidence that Betty used the basement or the basement bathroom. Nor did it present any evidence that she had actually handled the drugs or baggies found in the basement. In fact, all of the evidence relating to the March 6 possession points to Jason, not Betty. On May 10, 2003, the drugs were found in a dog food bag in the carport. Betty testified she fed the dog on a regular basis. She had access to the carport and presumably used the carport daily. No other evidence was presented that showed she knew the drugs were there or intended to possess or distribute them. On both counts, the government has failed to present any evidence that Betty knew the drugs were there or in any way assisted in the possession or distribution of the drugs. In fact, both the report authored by Agent Woodham and his testimony at trial state that she did not observe any drugs or any illegal activity. The mere fact that drugs were found outside of her home and in her basement is not sufficient to sustain a conviction for aiding in abetting in the possession with intent to distribute these drugs. The government must provide some evidence of Betty's participation in these crimes. In United States v. Pena, 983 F.2d 71 (6th Cir.1993), and United States v. Craig, 522 F.2d 29 (6th Cir.1975), this Court held that mere presence in a place where drugs were discovered is not enough to sustain a conviction for aiding and abetting in possession with intent to distribute illegal drugs. In fact, in Pena, the Court stated that even if the defendant had known illegal drugs were present, it still was not enough to sustain a conviction. 983 F.2d at 73. In Craig, the Court found that even where the defendant fled from police officers and possessed a shotgun, without evidence of his knowledge of and willing participation in the possession of the illegal drugs, a conviction could not be sustained. 522 F.2d at 31-32. Here, apart from the inadmissible hearsay evidence, the government presented no evidence of Betty's participation in the crime other than her presence at her house where drugs were found. A jury could therefore well refuse to convict. Again, that is why we found above that the error was not harmless. The web of inference is too weak on these facts to permit any rational trier of fact, absent sheer speculation, to find beyond a reasonable doubt that [Betty] had knowledge of the hidden drugs.  United States v. Morrison, 220 Fed.Appx. 389, 396 (6th Cir. 2007) (internal quotation marks omitted). It appears that she was improperly lumped together with others who were more culpable. See United States v. Pena, 983 F.2d 71, 73 (6th Cir.1993) (guilt by association not sufficient to sustain a conviction for possession). But with the the improperly admitted hearsay evidence, there was sufficient evidence to sustain her conviction on these two counts. Under the principle reemphasized in Patterson, therefore, we are not required on double-jeopardy grounds to preclude a retrial because of insufficient evidence.