Maxwell Mortgage Fraud Case: Prosecution Presses Its Advantage, Maxwell Seems Doomed, Football Punter And Joe The Plumber's Accountant Testify

Photos By John Hoff 

Though it seemed like the prosecution was warming up to argue for striking all the testimony of Charlotte Palmer, a rather under-qualified "expert" witness from Atlanta, Georgia, after lunch on Monday prosecutor Brad Johnson had a better plan: turn the defense witness into a prosecution witness...

Starting out with a seemingly-innocuous line of inquiry about what materials the expert witness had reviewed, and making use of his right to know what documents had been in the possession of the so-called "expert," Johnson somehow got his hands on a fat book of material from the defense. At one point the defense attorney made objections, trying to "retrieve the document" and arguing it was "attorney client work product."

Incredibly, Johnson got a document admitted as evidence that had been created by the defense, a kind of chart showing some of the players and their (possible?) roles. Clearly, this was a low moment for the defense. One strongly suspects "inadequate counsel" will be argued on appeal because of moments like this taken along with that whole "insolent, disrespectful, contempt of court, I fine you a hundred bucks" thing.

The jury was clearly paying rapt attention as the expert witness admitted she was now seeing documents which the defense had NOT forwarded to her. Perhaps expecting to be ripped apart by the prosecution, ("magnum" cum laude, cough cough) the witness at first seemed relieved, and then appeared to be actually HAVING FUN as Johnson took her through document after document, some of which clearly bore then name "Larry Maxwell" listed as a "loan officer" for World Link. 

(For an explanation about why this fact seems so important, check out some anonymous but incredibly specific comments made to the blog post directly below)

Using the surprisingly friendly and cooperative witness as a beach head to successfully press his attack, Johnson did a lot of damage to the defense. In fact, one of the jurors--"The Dude Who Loves Sports"--clearly seemed amused at Johnson getting his hands on a defense document and then introducing it as evidence, plus eliciting so many friendly, helpful answers from defense expert Palmer, many times over the repeated objections of defense counsel Larry Reed.

Despite Johnson's opportunistic use of the defense witness to get in his own evidence, there were still moments when Palmer's inadequacy as an expert was revealed, such as when she leaned over and asked the judge what she is supposed to do when an objection to her testimony is "sustained."

Finishing up with the witness, asking a few more questions about her background, Johnson managed to confirm Palmer's rather interesting claim to fame: she once did the taxes for "Joe the Plumber." Palmer also asserted every lender doing subprime mortgages has gone out of business. (Is that true? Any reader who can confirm or deny is invited to comment)

At this point in the proceedings, I noticed I was the ONLY spectator in the court room. The law students--logging in 50 hours of courtroom observation for a mentoring class at St. Thomas--were gone. Larry's wife, Vicki Cox-Maxwell, was gone. The small clique of angry-faced men worrying aloud the jury would "hang" Larry Maxwell were gone. It was just me. The prosecutor logs a 95 hour week, dealing with all these tedious documents, and where is everybody?

For that matter, Larry Reed has gone right to the mat for his client--risking reputation and law license--as though this case were somehow more important than most other cases. Something about this case seems to really, deeply matter to Larry Reed at a personal level.

So you have to wonder...what if, one day, somebody just blew the lid right off Twin Cities mortgage fraud--and nobody was there to watch? I'm glad I'm there to watch.

At a point near the end of Palmer's testimony--after Johnson was mostly done with her, and Reed was trying to rehabilitate some of her testimony--something Palmer said elicited the strongest reaction I've seen so far from Larry Maxwell, a man who ordinarily sits calmly, without reacting, without looking at the jury. Palmer discussed an email document which seemed to be addressing Larry Maxwell AS THOUGH HE WERE A LOAN OFFICER. The document talked about a transaction getting delayed because of a snow storm. Palmer said the sender of the email might have been, in effect, trying to keep everybody informed and in the loop because some kind of "customer service issue" had arisen.

There was an angry client wanting to know why the deal had been delayed. That's why you'd send an email like that. To this, Larry Maxwell threw up his hands as though to say, "THERE!!! There you go! Finally, somebody figured THAT out!"

It is unknown whether Palmer's flight back home will be a "midnight plane to Georgia." In any case, the prosecutor wished her a safe trip and Palmer thanked him, smiling broadly. Johnson clearly knows how to catch more flies with honey than with vinegar.

The defense called another witness to the stand, Gregory Jerome Coleman, who had a 12-year career as a punter, including with the Minnesota Vikings. Coleman is a resident of the Hawthorne Neighborhood in North Minneapolis, living at the luxury condos in the "Hawthorne Annex" area near Broadway Pizza, at 2313 Riverpoint Circle. The condos overlook the Mississippi River. He is also a sports commentator and an associate pastor at a church called Living Word, where Larry Maxwell is a parishioner, as well.

Coleman said Maxwell was "widely known in the community" for his real estate sales, and was also running the homeowner's association at the condos for a while, "up until 6 months ago." Maxwell was the "initial president" of the homeowner's association, according to Coleman.

Coleman said Maxwell had "recommended Coleman to a source to get financing." Coleman has known Maxwell for 4 years and had never known him to be a loan officer. Unlike Palmer's testimony, which took all morning and afternoon, Coleman's testimony was brief--rather like a punter's job on the football field.

Brad Johnson cross-examined Coleman, starting out by saying he wished they could have met under other circumstances, and said "When I was 10 years old I had your (football) jersey. Number 8!"

Brad Johnson approached Greg Coleman with the fake ID found in Maxwell's house, but then accidentally dropped the ID. FUMBLE! Oh, but then Johnson picked up the ID and, well, returned it. Larry Reed was not looking forward to questions directed at Coleman about the fake ID found in Maxwell's house, and whether any of this changed Coleman's positive opinion of Maxwell.

A conference was called out of the hearing of the jury, most likely in regard to whether Coleman's testimony was that of a "character witness" and, therefore, whether the fake ID could be brought before the witness to see if Coleman's opinion about Maxwell's character would change. (A similar issue arose with another witness some days ago, which this blog didn't have a chance to report)

These are the moments that get interesting, when the jury is left alone in the room without the lawyers and judge present.

Four of the women jurors in the front row looked over toward "The Dude Who Loves Sports," seated at the end of the jury box just a few feet from Greg Coleman. They realized this must be a great moment for Dude, in a trial he found boring beyond endurance, to have a sports hero on the stand. Dude commented that he'd love to have this guy sign his football. Suddenly, the witness (Coleman) and the juror (Dude) were talking--not about the trial but the fact Greg Coleman had already met the juror. When the juror was a little child, Greg Coleman had signed his SHOE.

"I signed your dirty shoe?" Coleman laughed, shaking his head. These are the things you do when you're a sports star; you sign autographs for kids. If they want you to sign their dirty little shoe, you sign it. You smile, and maybe you genuinely enjoy it, or maybe it's kind of an act, but either way if you can pull this kind of thing off for 12 years you end up in the same place: living in a luxury 3 story condo unit, with an ELEVATOR inside, overlooking the Mississippi River within easy walking distance of Broadway Pizza.

To the mighty Greg Coleman, the Sports Loving Dude revealed he attended Orno High School and played "tight end." They nodded to each other. In their own way, they had both been "Mister Football." Here sat the mighty Greg Coleman, football star, but who had more power in that conversation? The juror. The guy with a swollen foot who had to elevate his leg, who played football in high school and, apparently, never even managed to play at a college level. But it was the "Sports Dude" who had the power to make the play, here, and send Maxwell to prison or, in the alternative, hang the jury single-handedly.

The conversation--though rather odd in a court proceeding--seemed quite innocent, no more than one might have in an elevator or standing, awkwardly, side by side at urinals. And moments like that happen in a court proceeding, all the time. The jury is sequestered and yet they wander the building during lunch, they bump into characters in the trial, and there are moments like this. I've talked to Dude in the elevator, for example. I asked him if his white stocking cap said "UND" or "Notre Dame," since the entwined letters look very similar.

"Notre Dame," he told me, and asked if my computer was an Apple. Yes, it was an Apple. He mentioned he used to have an Apple.

The prosecution either didn't get its way in counsel chambers or decided, given the late hour of the day, bringing up the fake drivers license with this witness just wasn't worth the effort. Send the jury home. Let the judge have her surgery and her day of recovery.

As the jury left, Brad Johnson made it clear they should STAY OFF THE INTERNET and not read the Johnny Northside blog. (OK, my blog wasn't mentioned but somehow I felt like it was STRONGLY IMPLIED) Johnson said the last thing they wanted to do was START ALL OVER AGAIN.

The jurors left, smiling, especially Sports Dude. Two days off and he had chatted with Greg Coleman! If only he'd brought his football, though.

"Counsel," said Judge Chu, in a serious tone, "I need to talk to you."

Outside the hearing of the jury, the judge needed to know if Maxwell would testify, and how many other defense witnesses would testify. Reed said somebody named "Larry Fitzgerald" might be a witness. As for Maxwell, his client is inclined NOT to testify, but he may change his mind on that, though he "probably" won't change his mind on that, but if he does change his mind the prosecution will get notice the day before. (By which I assumed Reed probably meant 11:59 pm)

Reed emphasized that "my client does not have to make a decision until we get to a point of closing."

The judge--who has never revealed exactly why she is having surgery, though removing a painful defense lawyer from her lower back comes to mind--said she would like the defense and prosecution to get a copy of the jury instructions "as they are now," and furthermore would like to accomplish something while at home recovering from surgery. The judge suggested a telephonic conference over the "Blakely proposed instructions."

These Blakely instructions will be used in a few days when the jury finds Maxwell guilty as all-get-out, guilty as charged, guilty as sin, guilty in a way only Jesus can forgive, and then needs to decide whether there were aggravating factors.

Defense Attorney Larry Reed said it is possible they may close on Thursday but Prosecutor Brad Johnson said a Thursday conclusion was contingent on rebuttal witnesses who may be called. And so the trial that has no end continues to march toward May Day but, in the meantime, Larry Maxwell can enjoy one more walk in the spring sunshine near the river, one more hot and cheesy takeout pizza, and the unrestricted companionship of his wife.

I hope the judge has made Maxwell turn over his passport. I really hope that's the case.

Leaving the courtroom, the judge cheerfully promised not to die on the operating table.

In the photos above, the woman walking in the front in the top photo, (obscured by a small tree) is defense witness Palmer. Behind Palmer is Defense Attorney Larry Reed, loaded down with documents. The man in the red tie, directly behind Reed, is the defendant Larry Maxwell.

A random passerby is behind Maxwell. The woman in the far right of the top photo, dressed in aqua, is Maxwell's mother.

In the photo below, a woman who may be Maxwell's daughter, on the right, Larry Reed, center, and Larry Maxwell confer at a tree planter in the public lobby of the Hennepin County Government Center.

A secluded area like this, with some trees, is sometimes known as a "bower."

This post was corrected in regard to the identity of the woman, who I initially believed to be Vicki Cox-Maxwell. It should also be corrected in this regard: if Vicki is in California, then Larry Maxwell would not, in fact, be able to enjoy her companionship even if the trial drags on prior to what I seriously expect will be a prison sentence.