People v. Halo
| Decision Date | 09 August 2022 |
| Docket Number | C092509 |
| Parties | THE PEOPLE, Plaintiff and Respondent, v. PETER HALO et al., Defendants and Appellants |
| Court | California Court of Appeals Court of Appeals |
NOT TO BE PUBLISHED
Following a jury trial, codefendants Shaun Smith and Peter Halo were found guilty of numerous counts of violating Penal Code sections 487 (grand theft) and 115 (offering false documents for recording).[1] On appeal, Smith argues his entire judgment of conviction must be reversed because (1) he was not brought to trial within 60 days, in violation of section 1382, and (2) the court erroneously and prejudicially allowed the People's expert to offer an incorrect opinion on a question of law.[2] Halo argues his convictions on four counts of violating section 115 must be reversed because they are not supported by substantial evidence.
As to Smith, we conclude he was not brought to trial within 60 days in violation of section 1382, but reversal is not required because he fails to show prejudice. We thus affirm Smith's judgment of conviction. As to Halo, we conclude his conviction on two counts of violating section 115 are not supported by substantial evidence, and we thus reverse the convictions as to those counts; in all other respects, we affirm.
The facts are complicated, and the following is a greatly abbreviated version. Additional facts are provided in the relevant discussion sections, below.
This case arises from a series of transactions related to real property located at 9020 Bradshaw Road in Elk Grove, which we refer to simply as "the property." The property encompassed approximately five acres and had two houses on it. Monna Sue Ayers owned the property and lived in one of the houses until her death in 2019.
Ayers held the property in her trust, and her son, Dewey Brazeal Sr.[3] was the trustee. Dewey died in September 2011. Sometime before he died, Dewey transferred the property from Ayers' trust to himself, and then into his own trust.
After Dewey died, Carolyn Puschman, Ayers' niece, became the successor trustee of Ayers' trust, and Karen Brazeal Dewey's ex-wife, became the successor trustee of Dewey's trust.
Sometime after Puschman became the trustee of Ayers' trust, she learned that Dewey had transferred the property to himself. Puschman believed the transfer was done without Ayers' knowledge or permission or was the result of coercion, undue influence, or duress. She thus hired an attorney to file a petition in probate court to get the property back. The petition named the following three persons known to claim an interest in the property: Brazeal, as trustee of Dewey's trust; Kari Pace, Dewey and Brazeal's daughter; and Dewey Brazeal, Jr., Dewey and Brazeal's son. The petition asked the court (1) to determine that Puschman, in her capacity as the trustee of Ayers' trust, was the true owner of the property; and (2) to order Brazeal, in her capacity as the trustee of Dewey's trust, to transfer the property to Puschman. The petition was filed on September 24, 2012, and was served on Brazeal. Brazeal hired an attorney to represent her, and Smith was a paralegal who worked with the attorney on the case.
Halo Attempts to Sell the Property to Akash Lal (2012)
In the meantime, sometime in 2011, Halo met Brazeal and Pace. Halo was a real estate broker and property manager, and he managed the rental property that Brazeal and Pace were living in. Halo learned that Pace was going through a divorce, and he recommended that she contact Smith to see if he could help. Halo had met Smith several years before, and he knew Smith owned a legal services business called Quality Law For Less and specialized in family disputes.
In late 2012, Halo showed the property to a real estate investor named Akash Lal. Halo told Lal a tenant (presumably referring to Ayers) was living in one of the houses and there was some type of dispute over it, but he did not elaborate. Lal agreed to purchase the property for $215,000 and signed a standard purchase contract in December 2012. Halo was the listing agent and represented both the buyer and the seller (Brazeal). Lal put down a $2,500 deposit with First American Title. Escrow was supposed to close by March 15, 2013. When escrow did not close, Lal contacted the title company, who told him there was a problem with title. Lal also contacted Halo who said the problem with title involved a dispute between family members and he was working to resolve it. Halo asked Lal to give him $15,000 to give the family an incentive to move out. Lal found the request "very odd" and declined. He testified the deal ultimately "fizzled" because of the title problem.
Brazeal Transfers the Property to Smith (2013)
In or around March 2013, Brazeal transferred the property to STS Integrity, LLC (STS), Smith's company, as payment for his services.[4] A grant deed from Brazeal (as trustee of Dewey's trust) to STS was signed on March 15, 2013, and recorded on June 5, 2013.
Puschman Records a Lis Pendens (2013)
On July 19, 2013, and again on August 14, 2013, Puschman's attorney recorded a lis pendens regarding the Puschman petition, and both lis pendens were served on STS.[5]
Smith Sells Half of the Property to Linda Reyes (2013)
Around September or October 2013, Smith (through STS) sold half of the property to Linda Reyes for $115,000 (and we note that Halo was not involved in it).[6] Reyes was recently retired and was looking to purchase a home. She had known Smith since he was six years old when she was in a relationship with his father. Reyes had never purchased a house before and "didn't know the requirements of buying the home." She "trusted" Smith. Smith never told her there was litigation involving the property and he never mentioned a lis pendens. Reyes made three payments to Smith for a total of $108,450, with the bulk of the money coming from her retirement account. After she made the last payment, she thought she owned the house, and it was her intention to live there. On October 9, 2013, Smith signed a grant deed transferring "an undivided 50% interest" in the property from STS to Reyes. Smith then gave Reyes a copy of the deed and told her to record it. When she tried to do so, however, the recorder's office said they could not accept it because it was a copy and not the original. After the recorder's office rejected the deed, Reyes tried to call Smith "[a]lmost every day" but he never answered. In May 2014, Reyes hired an attorney and sued Smith over the property. Reyes's attorney ultimately obtained a title report and concluded Smith never actually owned the property, and thus had not conveyed title to Reyes. Reyes never got her money back.
Smith Sells Half of the Property to Majadi and Edley Scruggs (2013)
A few months after selling half of the property to Reyes, Smith (through STS) sold the other half to Majadi and Edley Scruggs.[7] A grant deed memorializing the transfer was signed on December 4, 2013, and recorded on December 6, 2013.
Granting of Puschman's Petition (2014)
At a probate hearing held in April 2014, the court granted Puschman's petition, and declared she was the true owner of the property.[8]
Halo Brokers a Sale of the North Half of the Property from the Scruggs to Christian Reynoso (2014)
In the fall of 2014, Halo brokered a sale of the north half of the property from the Scruggs to his nephew, Christian Reynoso[9] (and we note that Smith was not involved in it). The deal was that Reynoso would own 75 percent of the north half of the property and Halo would own 25 percent. Halo and Reynoso intended to fix the property up and rent it out. The purchase price was $130,000, and the deal was financed by the Scruggs. Interest only payments were due monthly, and a final balloon payment of $100,000 was due on November 30, 2016. Reynoso wrote Halo a $37,500 check as a down payment, and thereafter made monthly payments to Halo, with the understanding that Halo would make all required payments to the Scruggs. In total, Reynoso paid Halo $73,000. Halo obtained a grant deed and a quitclaim deed from the Scruggs granting the north half of the property to Reynoso; both deeds are dated December 19, 2014.[10] Halo testified the plan was that he would hold on to the deeds until the purchase price "was paid in full."[11]At some point, Halo told Reynoso they had "lost" the house because "a stepmother or a grandma had pulled an old will out, and had just taken the house from the person who had owned" it. Halo never gave Reynoso either of the two deeds he was holding on to, and they were never recorded.
Smith Sells Half of the Property to Eman and Eisar Askari (2015)
Finally in mid-2015, Smith sold half of the property to brothers Eman and Eisar Askari for $115,000.[12] Halo brokered the deal. Halo did not tell the Askaris there was a lawsuit regarding the property, and he told them "there is no need for a title company." He also told them an old woman currently lived in the house, that she was "dying, and she wants to die in the house," and that she was not to be disturbed. The Askaris paid a total of $122,500 for the property. A grant deed transferring "an undivided 50% interest" in the property from STS to the Askaris was signed by Smith on June 9, 2015. The Askaris tried to record the deed but it was rejected because it was not filled out correctly. A second grant deed was prepared, signed by Smith on September 28, 2015, and recorded on September 30, 2015. The Askaris thought the recording meant they owned the property, so they left a note on the gate asking the tenant to call them. Puschman called them, and when they told her they owned the property, she started crying and said, ...
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