Thread by @BenWinslow

I am in federal court for a pre-trial hearing for Rick Koerber, who was convicted in one of Utah's biggest fraud cases. He was ordered to surrender to U.S. Marshals 15 minutes prior to the hearing on a pre-trial release violation.

Some background: fox13now.com/2018/09/20/jur… #utpol

Koerber arrived with 4 minutes to spare and told me he had no comment. In court, Judge Warner ordered him brought up. Koerber is now in shackles.

"Your honor, can we remove the shackles?" his lawyer asks.

"No," the judge says. @fox13 #utpol

Judge Warner is getting into the meat of the hearing. Here's what the feds allege Koerber has done to violate the terms of his release. @fox13 #utpol

"How do you plead to the single allegation in the petition. Admit or deny?" Judge Warner asks.

"Deny," Koerber says.

Now the ball is in the feds' court to make their case. @fox13 #utpol

Judge Warner says Koerber has been released 2x now, and he's questioning whether "no other violations" apply. Apparently, that's under review by SCOTUS. So we're in a gray area, according to the defense. @fox13 #utpol

"If I don't find a violation, that's the end of this proceeding," Judge Warner says, laying out the ground rules.

If he does, then the burden shifts to defendant to prove he doesn't represent an ongoing danger to the community. @fox13 #utpol

Defense says Koerber may want to address the court in addition to their 5 witnesses.

Feds call Annie Carr, a U.S. Probation Officer, is testifying. She supervises Koerber. @fox13 #utpol

Carr is shown docs, and feds allege Koerber was acting as a paralegal for Morgan Philpot, a local attorney (and once a candidate for Utah Attorney General) in a case in Oregon.
@fox13 #utpol

The feds allege that in addition to working as Philpot's paralegal, Koerber created a commercial delivery service under the alias "Derrick O Roebuck." The docs in question were submitted to the Oregon Court of Appeals. @fox13 #utpol

Feds are going down through documents they have to make their case, including @UtahCommerce registration. Bottom line, Koerber is accused of committing fraud on the Oregon Court of Appeals. While awaiting sentencing in a BIG fraud case here in Utah. @fox13 #utpol

@UtahCommerce @fox13 U.S. Probation Officer says "Derek Roebuck" IS Claud "Rick" Koerber.

Feds are done. Kathy Nester, Koerber's attorney, is now beginning her cross-examination. @fox13 #utpol

Nester shows Carr a birth certificate, showing Koerber was not his original name.

Nester also asks if the person who got the docs was ever shown a picture of Koerber?

"No," the witness says. @fox13 #utpol

@fox13 Defense asks if U.S. Probation Officer even looked up the case? Or what's permitted to serve papers in Oregon?

"No," the witness says.

Nester asks what was criminal here? Officer says the docs show it.

"And nothing else?"

"Correct." @fox13 #utpol

BTW, the case in question in Oregon has a $4 million judgment. I'm desperately trying to find out information about the lawsuit, but so far, not much easily available. @fox13 #utpol

Nester asks Carr how she knows Koerber's alleged alias is him? Pre-sentence investigation report. That report is sealed so we're all in the dark here.

Defense asserts that Koerber was a paralegal since 2013 and the feds knew it. @fox13 #utpol

Koerber has already told the probation officer he had this company, defense says.

He also attached his picture with emails.

"He wasn't hiding who he was," Nester says. @fox13 #utpol

Through their questioning, defense saying basically the feds didn't do their jobs, and this was no big secret. @fox13 #utpol

Defense picking apart feds' case here, showing that it's Koerber who self-reported all of this.

Oh, and Koerber got paid $209 for this process service.

Defense says did he make any representations to an Oregon court?

"No," probation officer says. @fox13 #utpol

So how long has U.S. Probation been watching Koerber? It's been several years now, Carr testifies.

This is the first violation he's been accused of, court is told. Cross-exam over. @fox13 #utpol

Defense now calling U.S. Probation Office Greg Peterson, who supervised Koerber on pre-trial release for 4 years.

He was aware of "Corvus Law Group, LLC." Feds say it's now a UPS Box, but defense trying to show it had an office at some point. @fox13 #utpol

Morgan Philpot notified the U.S. Probation Office he was hiring Koerber as his paralegal, law clerk.

So the defense is basically saying it's no secret he was a paralegal, and no secret he was doing nothing wrong. @fox13 #utpol

Koerber was not a problem on pre-trial release, but did miss a few check-ins and moved without telling them (and got verbal admonishments), probation officer says. But no sanctions ever taken against him. @fox13 #utpol

Defense keeps going, now John Belcher is on the stand. He's Koerber's brother-in-law.

He's familiar with the creation of "Corvus Administration and Management." Legal services. They deliver process, etc. @fox13 #utpol

Claude Koerber was listed as a Corvus manager.

Who's Derek Roebuck?

"It's an alias. It's an anagram," Belcher says.

Why?

Because of Koerber's legal troubles and harassment of their clients. @fox13 #utpol

Belcher testifies the alias was for public face because of Koerber's ongoing legal troubles.

But he says @UtahCommerce employees told him there was no problem registering under an alias. @fox13 #utpol

Belcher says at some point, Corvus was re-registered with the state, with the alias.

"Why didn't you change it?" Nester asks.

"It was out there, and we didn't want to make it look like we were changing or trying to hide something," he says. @fox13 #utpol

Judge Warner asks if Corvus Law Group and Corvus Management are the same thing?

Belcher says he can only speak to Corvus Administration.

Judge Warner asks about the purpose of the business. Legal service, Belcher says. @fox13 #utpol

Judge Warner asks him to name five clients. Belcher struggles to specifically name a few.

"I was an owner, I wasn't a manager," he says.

"You didn't do any work," Judge Warner says.

Belcher concedes he wasn't involved in the day to day. @fox13 #utpol

Judge Warner now pressing Belcher on whether the company was "lawfully organized."

How much money did he make? Belcher says once the legal smoke cleared from Koerber's case, they would start to make money.

The judge says, Koerber asked for Belcher's legal name on a doc. #utpol

Judge Warner says the stated purpose of the company was "business administration and service," but it doesn't say much about legal services?

"We're not limited by any means to legal businesses," Belcher responds. @fox13 #utpol

Russell Skousen, an attorney here in Utah, is now testifying for the defense.

He's discussing company registrations and what happens when they lapse. @fox13 #utpol

Lapsing doesn't really cause problems, Skousen is testifying, once they re-register.

FYI, @UtahCommerce doesn't explicitly prohibit the use of aliases, Skousen testifies. So long as there's contact info. Ditto for a PO Box. @fox13 #utpol

@UtahCommerce @fox13 Skousen says he hired Koerber's company to do legal work for his firm. He paid "Corvus Administration."

Has he ever used the name "Derek Roebuck?"

"No," Skousen says. @fox13 #utpol

Skousen is showing the court some checks he cut to Corvus Administration for their work for his firm.

He says the firm was "quite reliable."

"It might be 11:59 p.m., but it gets done," Skousen says.

@fox13 #utpol

Feds are up on cross-examination. Why did you leave @UtahCommerce? A pay dispute, Skousen says.

"So you weren't asked to leave the [Huntsman] administration?" he's asked.

Skousen admits some controversy over a division head he fired. @fox13 #utpol

"It was a mutual departure, but yeah I was asked to go," he says.

Feds also bring up Skousen is related to Koerber through a marriage and has been a witness in the criminal cases.

"I'm aware of the verdict," he says. @fox13 #utpol

Judge Warner briefly touches on Skousen's tenure as head of @UtahCommerce and his departure was "mutual."

Judge now asking about quality of work by Koerber at Corvus. Skousen concedes sometimes he cut deadlines close, and it was "irritating to me." @fox13 #utpol

Did Koerber miss filing deadlines? Maybe once or twice, but Skousen indicates it's not that big of a deal to him.

He's done. Now Morgan Philpot is going to testify. Judge calls a recess. @fox13 #utpol

Judge Warner is back on the bench. He summons the always-dapper @SLCrimeDefense to the bench. After a brief conference, Simms is excused to go enjoy a beautiful Friday. Testimony continues with attorney J. Morgan Philpot on the witness stand. @fox13 #utpol

"I'm a street lawyer," Philpot testifies to some chuckles from the crowd.

He is certified to practice law in UT and OR. He met Koerber in 2012. He has retained Corvus Administration to do work for him. @fox13 #utpol

"What name has he always used when he works for you?" Nester asks.

"I know him as Rick Koerber," Philpot says. The family uses Franklin because "of the stigma of so much bad press."

Did he ever use Derrick Roebuck? No, Philpot testifies. @fox13 #utpol

Koerber has done work for other law firms in town and across the country, Philpot testifies.

"They don't talk to me," Nester jokes.

"Me either," Philpot says. @fox13 #utpol

Philpot has gotten good feedback about Koerber's work and testifies he gets the job done.

Defense now asking about Freyberger v. Edwards, the case in question. @fox13 #utpol

"It's a contract land dispute basically," Philpot testifies.

He is NOT happy with opposing counsel in that case, which he says is some of the grounds for their appeal before Oregon's Court of Appeals. @fox13 #utpol

Philpot goes off on the opposing counsel, accusing them of misleading the court to get a detailed judgment.

So he went to the Oregon Court of Appeals (and used Koerber to serve process). There was a complaint of improper service, but nothing came of it, Philpot says. #utpol

Philpot talking about Oregon's rules on process serving.

"I told Rick to get it done," he says of the appeal. He asked Koerber to deliver it by hand. It was, by a friend named Maureen Peltier and her husband. @fox13 #utpol

Philpot testifies his motion for appeal still stands and there are "millions of dollars at stake and a very valuable ranch in eastern Oregon."

U.S. Probation has never contacted him about process service, he says. @fox13 #utpol

Philpot now facing a cross-exam by the feds. What would have happened if notice of appeal was untimely? They'd seek an extension and then there'd be a whole round of appeals.

Philpot would also be on the hook, he concedes. @fox13 #utpol

Why is Corvus hiring Maureen Peltier to deliver notice of appeal? Philpot says he met her in OR for a trial.

Feds want to know how you know her?

"It'd help if we cut to the chase," Philpot says.

"You know the answer to the question," Judge Warner says. @fox13 #utpol

"I met her at the Ammon Bundy trial in Oregon," Philpot says. "She was a supporter of Ammon Bundy."

@fox13 #utpol

Judge Warner now has a few questions. He asks who Philpot referred Koerber's service to? He starts to name lawyers.

"Any local attorneys?" he asks.

"I'm a little bit protective of them here," Philpot says.

"You're under oath," the judge says. @fox13 #utpol

Judge says Corvus wasn't a commercial delivery service, where they?

Philpot says it's irrelevant.

"You're saying my question is irrelevant?" the judge says, joking. "My questions are always relevant."

It's not their primary job, Philpot says. @fox13 #utpol

Why pay Corvus $200 when you could FedEx it? Why not use those?

"I did not want that," Philpot says. He wanted it hand-delivered by somebody he knew and trusted.

"You didn't trust FedEx, correct?" judge says.

"I guess not," Philpot says. @fox13 #utpol

"You trusted her, but not FedEx?" Judge Warner says.

Philpot says he'd rather pay her than go through a commercial service.

Why her? Philpot says he recommended to Koerber he use her.

"You didn't just them yourself, you paid him $200 to send them?"

"Yes." @fox13 #utpol

How much was she paid to deliver? $300.

Judge Warner says Koerber got $209 and Peltier got $300.

"So you paid over $500 for this service that FedEx could have done for $45-50," the judge says.

"I disagree with that characterization," Philpot says. @fox13 #utpol

Feds now suggesting this whole thing may have fudged an appeal deadline.

Philpot is done. Judge calls a recess. @fox13 #utpol

Judge Warner is back on the bench. Koerber will NOT speak, apparently.

Hearing is winding down. @fox13 #utpol

Feds making closing arguments. They say Koerber lied.

That's it. They sit down. @fox13 #utpol

Defense up and says was there an attempt to commit a fraud? No evidence Koerber submitted anything untrue. Philpot signed the affidavit. Declaration from the woman who got the papers. No misrepresentation, Nester says. @fox13 #utpol

Corvus didn't try anything improper with their expired records.

"It's not a crime. It's to their own detriment," Nester says.

They have no evidence of a crime, she tells the judge. Affidavits from law firm show they stand to gain $$ from missed deadline on appeal. #utpol

You can use other names on a record, Nester tells the judge.

As far as proof of a falsity? There's none, she says.

He was hired to do a job by a lawyer and he shouldn't go to jail for it. @fox13 #utpol

Judge Warner says he finds a burden of probable cause.

"That's not a high standard," he says.

The judge says testimony was inconsistent, but he does give weight to docs and sides with the government as "sufficient to meet the burden." @fox13 #utpol

"The timing is not in Mr. Koerber's favor," Judge Warner says.

Koerber sometimes does things at the last minute, and the appeal was due, judge says, adding he found Philpot's testimony "peculiar." @fox13 #utpol

"While it's certainly not, in my opinion, a high standard to meet. I do believe the government has met the burden," Judge Warner says.

Now he addresses keeping Koerber in jail. @fox13 #utpol

Judge's standard is danger to the community. He doesn't believe he's violent, but expresses concern about ongoing fraud.

Defense says there are conditions that can be placed on Koerber, but he ought to be released. @fox13 #utpol

"He was working to put food on the table," Nester says.

She reiterates he has never hidden his work for Corvus.

"He's not out there taking money from clients. He's not out there doing anything of that nature," she tells the judge. @fox13 #utpol

Koerber has sat through two trials and made every court hearing.

"This is just a very odd situation," she says, asking for a delay until Oregon rules on issues surrounding the process serving.

(BTW, trial judge indicated he'd let Koerber stay free on appeal.)

@fox13 #utpol

Nester says this was brought to the court's attention by lawyers who have something to gain.

Koerber's faced 10 years of prosecution and still shows up to court. Nester reiterates to the judge to put conditions on him, but not jail him. @fox13 #utpol

Nester points out this is not connected to his fraud case in Utah.

"I don't care about that lawsuit, per se," Judge Warner says. "What I am concerned about... is what Mr. Koerber has done relative to his participation in the filing of that appeal." @fox13 #utpol

Judge Warner says it's true Corvus registration expired in 2013. Then it's renewed, coincidentally, at the time the service takes place in Oregon.

U.S. Probation called his attention to it, defense says. That's why he fixed it. @fox13 #utpol

Judge Warner calls it "tortured reasoning" that Philpot uses Corvus (paying them $200) when he could have used FedEx or gone to Peltier directly, spending over $500 on the cusp of losing an appeal deadline. @fox13 #utpol

"There's no dishonesty on the part of Mr. Koerber, though," Nester says.

"That's where you and I disagree," he says.

@fox13 #utpol

Feds up now to make their arguments. Koerber's conduct fits a pattern, he says.

"Our concern is this is the same kind of thing. There's is something that is just plain shady," he says. @fox13 #utpol

"It seems almost laughable to me that we are going to try to craft conditions to make him behave honorably and not do shady things," prosecutors says of Koerber. @fox13 #utpol

"It seems to the Court that we are in a position where we have to look at Mr. Koerber in the totality of the circumstances on whether or not he remains on release or whether or not he is detained," Judge Warner says. @fox13 #utpol

"While I don't put a lot of weight on these other instances... they are part of what I call a pattern of deception," Judge Warner says.

He acknowledges they can all be litigated, but "where there's smoke, there's fire." @fox13 #utpol

"Perhaps he's just used to being on thin ice and it's not as frightening to him as it would be to many people," Judge Warner.

"It just has a ring to it, an odor to it... it just doesn't look right to me." @fox13 #utpol

"The timing is suspect," Judge Warner says of Koerber's motives for re-registering his business.

Judge says it appears this was not an arms-length transaction, but some attempt to deceive the Oregon Court of Appeals in terms of the filing. @fox13 #utpol

Judge Warner acknowledges there's issues with defense preparation, supporting his family, etc, for Koerber.

Judge says he finds Koerber IS an ongoing danger to the community for fraud. @fox13 #utpol

"The facts suggest Mr. Koerber has yet to learn or change his ways," Judge Warner says.

He orders Koerber JAILED pending sentencing. @fox13 #utpol

Judge Warner says he will entertain a review of detention.

"But the pattern of fraud has to end. No more fraud. No more deception," the judge says.

He wants assurances of no more fraud "of any kind." @fox13 #utpol

"There are consequences and Mr. Koerber is now experiencing those consequences," Judge Warner says. "We make our choices, but we don't get to pick our consequences."

@fox13 #utpol

Judge tells defense not to come back to him on a review of detention for at least 3 weeks.

@fox13 #utpol

Judge does give the defense a break in extending their deadlines on some pending motions and sentencing issues.

Court is over. @fox13 #utpol