Conspiracy or coincidence: Deck stacked against Agnews for the final fight!

VIRGINIA BEACH (August 24, 2007) - - As Mike and Barbara Agnew struggled against changing lending rules, a justice system in conflict of interest, perjured testimony, they suffered through their convictions and prison, but they really pinned some hope on mounting an effective habeas corpus appeal. Now they wonder.

"We were convicted on corrupted evidence, assisted by ineffective counsel, FBI agents and a judge in conflict of interest, surely we could salvage something through a habeas corpus proceeding," said Mike Agnew. "But the judge has ruled we can't bring up any of the contested issues.?"

They would not speak

We attempted to contact by telephone, email, or U.S. postal service letter most of the people who have been mentioned in this series: Conspiracy or Coincidence: The Agnew Saga.

When people hide from making a public explanation or defense of their actions, you can usually assume it is because of guilt or a long established agency or office policy to hide guilt.

Those not commenting include the following:

  • Phil Mann, agency spokesman for the FBI on the policy governing the destruction of exculpatory evidence, notes, and interviews by Special Agent (SA) Michael McMahon.
  • Nicole Hendericks Duckworth, the FBI agent who voluntarily originated the criminal investigation of the Agnews after reading a newspaper story, refused to comment on her prior relationships and potential conflicts could have been with Resource Bank and a FBI criminal investigation of Armada Hoffler in Chesapeake.
  • A witness VNS kept anonymous who said he'd be killed if he revealed who was responsible for the Agnew case.
  • Judge Jerome Friedman, who had a 8-year multi-million dollar development partnership with Dan Hoffler, who heard the Agnew case without a jury and sentenced them to 2-years in prison each. His relationship to Hoffler wasn't known until after the trial.
  • Dan Hoffler who was the Agnews' biggest customer.
  • A. Russell Kirk, president of Armada Hoffler, board member, & 3rd largest stockholder of Resource Bank.
  • Lawrence Smith, X-president of Resource Bank
  • Mary E. Smith, senior vice president of Resource, who lied to the court about who did and didn't rummage through the bank confiscated and unsecured Agnew records held in the halls and offices of the bank for 3 months before being taken into custody by the FBI. During that time documents were added and documents were stolen. The chain of custody of the evidence was contaminated from day 1.
  • Nelda Old, another bank official who lied about how payments to the Agnew account was handled at the bank. Judge Friedman cut the Agnews' attorneys off before they could introduce documents contradicting her testimony.
  • Michael Smythers , assistant United States district attorney (AUSA), who originally said he didn't think the government had aprosecutable case, but later said he was overruled by supervisors and forced to prosecute.
  • Haynie also lied to the 4th Circuit Court of Appeals when he argued against the Agnews' appeal saying they had 'shopped' for federal judges when they drew Friedman. They never, and documents prove it, never asked any judge to recuse until after their trial.
  • Michael Smythers, AUSA, who assisted in the prosecution with Haynie.
  • Agnew lawyers, Jon Babineau and James Broccoletti.
  • Fulton Bank, which bought Resource Bank, after the Agnews' trial.

U.S. Magistrate James E. Bradberry, assigned to hear the case by U.S. District Judge Jerome Friedman, has basically tied their legal hands behind them before even hearing the case.

He's refused to hear evidence of perjured testimony and has indicated he's going to deny most of their exhibits supporting allegations of ineffective counsel and perjured testimony.

In a hearing in July, Bradberry said, "It is my judgment that I will not permit Ed Shields, Kent Davis, Daniel Des Roches, and Mark Williams to testify."

Destruction of Evidence

Kent Davis was a witness interviewed by FBI SA Michael MaMahon. Davis told him and AUSA Smythers that the Agnews version of their relationship with Resource Bank was true.

The bank changed the rules in mid-stream. The Agnews had done nothing wrong, Davis explained.

That is called 'exculpatory' evidence - favorable to the defense.

Smythers told him, "Sounds like you have a problem with the bank." He, Haynie, and McMahon walked out.

McMahon destroyed the notes and all evidence of the interview. (See his affidavit).

Former FBI agents and a 31 year veteran of the Dept. of Justice told VNS what McMahon did was a violation of agency policy and a criminal act.

FBI PR spokesman Phil Mann was asked on July 30 about the legality of McMahon's actions.

He responded Aug. 6, he'd been away from the office, "I'm not yet familiar with the circumstances you described, but I plan to examine this further, and I'll be in touch."

VNS has received no further communication from Mann or the FBI.

The four witnesses would have testified that the Agnews' financial relationship with Resource Bank was what they said it was - not what it was changed to after bank examiners found it to be illegal.

To solve its problem with examiners, Resource picked its weakest customer in the cash flow maximizer (CFM) program - the Agnews' AGM concrete contracting company - as the scapegoat to make an example of correcting the problem for examiners.

Government witnesses, including top bank officials lied on the witness stand, but the Agnews' lawyers, Jon Babineau and James Broccoletti, for whatever reasons, did not challenge the witnesses.

"Well, for one thing," Mike Agnew said, "the judge wanted the trial speeded up and they (the lawyers) were trying to please the judge.

"They also failed to property investigate all of the witnesses and documents that could have proved us innocent."

Agnew had planned to use testimony from the 4 witnesses to show that Babineau and Broccoletti failed or did not properly interview them.

He also planned to introduce documents disproving issues that were raised during the 7-day bench trial, but not rebutted. Documents that would have proved the perjury.

Bradberry pretty much gutted their case by denying them the chance to introduce their exhibits also: "The only thing that is relevant in this case is whether or not the attorneys...did what is reasonably expected....

"To that extent, it is also my intention to probably not admit the majority of the exhibits that have been listed," Bradberry told Christopher Amolsch, the Agnews' lawyer from Arlington handling the habeas corpus proceeding.

Amolsch told Bradberry, "In order for Mr. Agnew to prevail, he has to prove two things: One, the attorneys didn't do something they were supposed to do that is normally required of them, and, two, that it would have made a difference."

Bradberry said, "...They (the Agnews) cannot bring into this case people whose primary testimony will be about what the evidence was."

Amolsch, frustrated, told the court, "This is a case about what they (Babineau and Brocoletti) did not do."

"No," Bradberry replied. "It is impossible for me to show what they did not do unless I can present witnesses to tell the court what they did not do.," Amolsch responded. He contended the trial record showed what they did do. He needs to show what they didn't.

Opinion

I have known Jerry Friedman, Judge Friedman, from his early lawyering days before he started a move toward the lofty benches of, first the Virginia Beach Circuit Court, and then the federal bench.

I'd liked him as a person, if not admired him. Do I believe he knew or recognized he'd had a relationship with Hoffler and Kirk before the issue was discovered after the Agnew's trial? It's possible, but it is likely it could have occurred to him at some point before the end of the trial. And he didn't want to waste the court's time by starting over. Then again it may not have occurred to him at all because he only had a 3% interest and no direct mangement or decision-making involvement.

The easiest people on earth to scam are lawyers and doctors. His involvement was while he was in private law practice. I've known a lot of lawyers sucked into investment deals who never had any active role, who lost their shirts, and didn't even know what business questions to ask to determine what went wrong.

Once the issue about his conflict was raised by the Agnews, however, Friedman should have done better by them. He did say theirs was the "most benign" case he'd ever heard. He did reduce their recommended sentences from 134 months to 24.

He should have ordered a new trial. He should have stepped aside.

The fact remains, since the FBI voluntarily got involved in the case, they were 'goosed' by someone and it wasn't Resource Bank. Resource hadn't planned on a criminal case. They wanted civil justice, sweep it under the rug, clear it with bank examiners, and move on to selling the bank to Fulton Financial in PA.

I don't believe Jerry Friedman is the kind of man who'd throw a case for anybody. That leaves rogue interests in the FBI, but the question remains: Who had the power to influcence them to act?

Bradberry later stated: "I'm telling you now, I'm telling you absolutely, we are not going into the evidence raised at trial. This case is not going to be retried."

Amolsch tried to open another avenue..."this is not about what evidence was presented at trial, Your Honor. This entire argument is about evidence that was not presented at trial. That's what this entire ineffective assistance claim is about."

"Well, then apparently you are not going to get it before the court," Bradberry told him, "because we are not going there."

Later, Bradberry told him he'd removed the only 4 witnesses in the case and then he took away the perjury charge, causing Amolsch to say, "You have already taken away the perjury charge even before you have heard the evidence."

Bradberry asked, "What was the perjury charge?"

Amolsch explained, "That was the allegation that people from Resource Bank committed perjury."

Bradberry replied, "Yes. That's exactly right. That's gone."

After much haggling, Amoslch and Bradberry reached an impasse with Amolsch finally saying:

"The whole point...of having this hearing is so that you can actually make a decision based on hearing from everybody, not how you would have done it or how you would have thought about it or what you think about it from the outside, but actually listening to witnesses and considering exhibits moved into evidence to make your decision."

To which Bradberry replied, "Which are not going to be evidence."

The above exchange is prima facie evidence of why the Constitution didn't go far enough: It didn't mandate justice - just a process - leaving the justice to the sitting judge, who in this case appears to have his mind made up even before the hearing is to be held.

All Amolsch can do is build a record to appeal to the 4th Circuit Court - again.

But what do you expect? Bradberry was appointed to hear the case by Judge Friedman whom the Agnews charge with conflict of interest in not recusing himself from the original trial.

After their convictions on 11 charges of bank fraud, they found Friedman had been in an 8-year multi million dollar office development deal with two parties who claimed to be victims of the Agnews' actions. Since they were tried and convicted without a jury, they felt Friedman was in conflict of interest.

They made that allegation as part of their appeal, handled for free by the prestigious Washington law firm of Baker Botts, headed by former secretary of state and White House Chief of Staff James Baker.

The 4th Circuit denied the appeal because it found no 'reasonable' person would consider Friedman's business relationship with Dan Hoffler and A. Russell Kirk, president of Armada Hoffler, the Agnews' concrete company's biggest customer, and member of the board of Resource Bank and its 3rd largest stockholder, a conflict of interest.

After the appeal, the only logical next step was a habeas corpus proceeding. Friedman gave it to Bradberry. Bradberry works in the same court complex as Friedman. They have to be buddies. Where's the justice here?

At the conclusion of the July hearing Bradberry said, "And for the record, the reason I had the hearing today was so that there would be a record created, given the nature of this case, because I'm sure it is going back to the 4th Circuit. Simple as that."

A final hearing with only Mike and Barbara as allowable witnesses will be held in September or October.

This has been a convoluted case with more potential corruption, contaminated evidence, and political inter-linkages than a black widow spider's web.

Although there is nothing to link him to any untoward activity in this case, the only single common denominator with a potential to touch all elements of the case is Dan Hoffler:

  • He was the Agnew's biggest, and at times, only customer
  • He was a client of the bank
  • The president of Hoffler's company, Armada Hoffler, was on the bank board and its 3rd largest stockholder
  • Hoffler was a business partner with judge Friedman
  • He was X-Gov. Doug Wilder's closest confidant
  • Wilder used his political influence to put Friedman on the federal bench
  • 4th Circuit Court Judge Roger Gregory was Wilder's law partner for 21 years and elevated to the bench without prior judicial experience, based on Wilder's political influence with X-Sen. Chuck Robb. Robb had received a taped cell phone conversation of Wilder and Hoffler that could have been used as political blackmail. To avoid the heat, Robb did things for Wilder he wouldn't have done had he not been caught with the illegal tape.

Was the prosecution, er... persecution of the Agnews conspiracy or coincidence?

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