Larry Maxwell Mortgage Fraud Case: Contempt Of Court For Defense Attorney's "Insolent" And "Disrespectful" Behavior

Photo By John Hoff 

Here is an update, posted from the Hennepin County Courthouse, using the law library server. Your tax dollars at work supporting the blogosphere.

Early this morning, prosecution and defense counsel met with Judge Chu outside of the jury. Judge Chu severely scolded Defense Attorney Larry Reed, found him in contempt of court, and fined him $100 which Reed...

...paid on the spot, approaching Judge Chu (without asking, "May I approach?") and quietly placing what appeared to be a $100 bill before the judge. Chu threatened to fine Reed $500 the next time, and then send Reed to jail if contempt of court took place a third time.

Typing rapidly on my laptop, I managed to capture most of Judge Chu's warning, which went a little somethin' like this:

First of all, here are the ground rules. If you have any objections to what I’m saying you put it in writing and provide it to me and I will put it in the record.

Your behavior yesterday was completely intolerable—you were warned before that you were not to interrupt me and last night you did and you started going on and on and screaming about how unfair everything is. You were warned, and you continued to do it, during the course of the trial you were insolent and disrespectful; when I was speaking and before I finished a sentence you would go to the next question and you made the comment or the question (when you were going through a document) and I sustained the state’s objection you turned to me and said, “Can’t I do anything with this document?”

That was incredibly inappropriate, disrespectful and insolent.

The statute (the judge cites the statute number) provides me with the authority to find you in contempt; and I do so find.

You’ve been warned, I’ve been lenient and patient. Your behavior is not helping your client’s case; the jury is not liking it either from my perspective. You are fined 100 dollars, the next time you interrupt me or act in a disrespectful manner or continue to ask questions where I have ruled the question is inappropriate, it’s going to be 500 hundred, and if you continue to do it I’m going to put you in jail and you will go after this case is completed.

(At this point Larry Reed tries to say something)

"No!" Chu says, loudly. "Put your objections in writing and give them to me and I’ll make them part of the record."

Somehow, shortly after that, Larry Reed managed to start talking about making a record of the proceedings, and from that he moved into what certainly seemed to be an objection, arguing about the trial record and how everything had to be properly recorded by a stenographer. The basis of his argument appeared to be that forcing him to put his objection in writing kept the objection from being properly recorded in the trial record.

Later in the day, it appeared the defense lawyer had obtained a defense lawyer of his own. A "Mr. Hassan" appeared and argued (effectively, respectfully) on behalf of Mr. Reed, who stood off to the side and said nothing. Reed argued to STOP THE PROCEEDINGS RIGHT NOW and allow the Court of Appeals to make a ruling. Chu said she wasn't going to stop the trial. The trial continued, with Reed much less heated in his arguments after the contempt of court ruling.

The majority of the morning was taken up by defense witness Belinda Coats, who had worked at title companies and handled some of the transactions at issue in the trial. Coats is a somewhat overweight black woman in her mid to late 30s. Though overweight, she wears clothes that fit her well; a sort of checked dress and matching coat with stiletto heel boots.

Though Coats came off as somewhat more creditable than Ricky "Mystery Bonus" Frey, and had a sympathetic and likable personality on the stand, her testimony was a mixed blessing at best for the defense. Presented with documents and a fake ID which had been used by Tyrone Williams (impersonating Donald Williams) Coats declared there had clearly been some illegal activity.

Her testimony might have been seen as pretty creditable, except Coats kept claiming no knowledge of some documents put in front of her-- and at one point there was an odd sort of negotiation with the prosecution, as Coats said she didn't know if prosecutor Brad Johnson would get the answer he was "looking for" and Brad Johnson answered he was looking for THE TRUTH. This exchange was repeated.

Coats then denied, again, having any recollection of Larry Maxwell acting in the capacity of a LOAN OFFICER and said the documents DID NOT refresh her memory.

On cross examination, Defense Attorney Larry Reed appeared to have some small success by eliciting testimony that individuals other than loan officers were known to fill out "1003 forms." He also got information about another person working in the office, who could have handled the forms. Reed seems to be using a two-pronged strategy: make the evidence so complicated (and incredibly boring) that it's overwhelming to the jury, plus keep pointing out all the other possible suspects and bad actors who are NOT his client to create "reasonable doubt."

The problem with the second strategy is that Larry Maxwell seems to be right smack in the middle of a bunch of bad characters--or at least characters who had opportunities to commit fraud--and it seems hard to believe that, mixed up in this bunch of baddies, Larry Maxwell's hands are the only clean hands.

Also, Judge Chu announced she had been unable to reschedule her surgery--unless she were willing to wait SIX MONTHS--and so would be gone on April 14 and 15. It was hoped the trial could wrap up Friday and the lawyers would be busy preparing final arguments during one of the days the judge would be gone, anyway, which would not throw off the hoped-for conclusion by too long. (It appeared Larry Reed was objecting to the judge telling the jury about her surgery, from what I could overhear of the conference at the bench. You know, there are some objections that just aren't worth making, even if you think you can find a basis of argument)

HOWEVER, this trial was supposed to go THREE WEEKS and is now into its fifth week. The defense appears willing to delay matters by the use of questions that are vague, (and therefore elicit objections) questions without firm foundation, (therefore one must go back, laying foundation) and numerous volleys of defense objections which have a very low success rate in being sustained. (Roughly 9 to 1, by my estimation)

Therefore, I find it very hard to believe the trial will wrap up Friday. Notably, Judge Chu told Reed that if he committed two more acts of contempt, he would go to jail AFTER the trail. So derailing the trial by contempt of court apparently won't stop proceedings, either.

In the words of Judge Chu: The trial will go on.