Daily Record FINANCIAL NEWS &
MONDAY, OCTOBER 17, 2016
Vol. 103, No. 241 • Two SecTioNS
35¢ www.jaxdailyrecord.com
Decision on death penalty expected
Many believed state’s fix didn’t go far enough
The 5th District Court of Appeal overturned convictions against Kelly Mathis, right, and ordered a new trial. Also pictured is Mathis’ defense attorney, Mitch Stone.
A step closer to vindication By Marilyn Young Editor
Friday morning’s call came months before Kelly Mathis expected it. The news was everything for which the former Jacksonville Bar Association president had hoped. The 5th District Court of Appeal reversed the 103 gambling-related convictions against him and ordered a new trial. One in which Mathis will be able to present evidence to rebut prosecutors’ assertions that he knowingly helped Allied Veterans of the World violate the state’s game promotions law. The ruling gives Mathis a chance to clear his name and perhaps be allowed to practice law again, three years after his license was suspended. Mathis was on his way to work Fri-
Court overturns convictions for Mathis in Allied Veterans café case
day when one of his appellate attorneys, Michael Ufferman, called about the court’s decision. “He was extremely grateful,” Ufferman said of his client. “I think he broke down in tears.” Mathis acknowledged he became emotional after learn- Ufferman ing he had won the appeal and was no longer facing six years in prison, which was precious time away from his four daughters. “It’s one thing to hope for it and think you’ve got a good chance,” he said Sunday. “It’s another to actually hear the news.” In March 2013, Mathis had been labeled
File photo by Fran Ruchalski
By David Chapman Staff Writer
the mastermind of what Attorney General Pam Bondi’s office called an illegal $300 million gambling ring that operated dozens of internet cafes under the guise that proceeds would benefit veterans’ charities. From the start, Mathis contended he only served as the group’s attorney to offer advice on Florida’s game promotions law. He wasn’t part of the business, he said, and the $6 million he was paid over the years was for legal fees. In less than a year, Mathis had gone from practicing law — a career he loved — to having his license suspended after the jury’s verdict. But the convictions had impact far beyond Mathis. Mitch Stone, Mathis’ defense attorney, said lawyers around the country were worried. MATHIS CONTINUED ON PAGE A-10
Attorney Bill Sheppard said he was “dumbfounded” by a change in the death penalty law made by Florida legislators in March. Ann Finnell said she didn’t think the change, which required a 10-2 vote of jurors to impose the death penalty, would pass the muster of a U.S. Supreme Court decision months earlier. And even some Duval County lawmakers who had a hand in the law knew the day would come where it would be changed. Friday was that day, when the Florida Supreme Court decided the Legislature’s tweak still wasn’t good enough — death penalty cases instead need a unanimous jury decision. It’s the second time this year the system has been impacted by a court ruling, but many didn’t see it as Sheppard a big surprise. “I don’t understand why in the world the Florida Legislature didn’t correct it in the first place,” said Sheppard, of Sheppard, White, Kachergus & DeMaggio. His career has included defending clients in several death penalty cases, including work for Gary Alvord, who spent more than 30 years on Death Row. “I think it was a waste,” Sheppard said of the Legislature’s attempt this year. The law should have been changed to require a unanimous decision, he said. Two members of the Duval Legislative Delegation who worked on crafting the law both believed unanimity among jurors was the way to go. Yet, like many issues in Tallahassee, there were trade-offs made. “The choice was either to compromise at DEATH PENALTY CONTINUED ON PAGE A-11
PHH Corp. wins landmark court case
Struggling mortgage banker PHH Corp. scored a landmark court victory last week that could have broad implications beyond the company. The U.S. Court of Appeals for the D.C. Circuit threw out a $109 million penalty assessed in 2014 by the Consumer Financial Protection Bureau against the New Jersey-based company, which has a major mortgage operations center in Jacksonville. It wasn’t just a ruling on the merits of the fine. The court ruled the structure of the bureau gives its director too much power and is in violation of the U.S. Con-
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stitution, so the director should not have the authority to levy the fine. The ruling said other independent federal agencies are governed by multi-member commissions and not by a single person. To lessen the power of the individual director, the court invalidated a legislative clause that only allows the president to remove the CFPB director “for cause.” It said the president will have more authority to supervise the director and remove him or her “at will.” That ruling could impact
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a range of other actions by the bureau, such as the fines imposed last month against Wells Fargo Bank for opening unauthorized accounts. The $185 million in penalties includes $100 million to the bureau’s Civil Penalty Fund. The bureau has not said if it will appeal the appellate court decision. From PHH’s perspective,
the court victory won’t alter its finances. Although PHH has been losing money, the company said in a Securities and Exchange Commission filing the removal of the $109 million fine will not have a material impact. However, the ruling does remove the stigma that PHH was acting improperly. The consumer financial watchdog agency fined PHH for violating the Real Estate Settlement Procedures Act, saying it was getting kickbacks by referring customers to certain mortgage insurers. Besides arguing in court that
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the bureau’s authority was unconstitutional, the company also said in a news release Tuesday it complied with the law “in all respects.” “We are extremely gratified that the D.C. Circuit Court of Appeals overturned the Director’s decision related to our former mortgage reinsurance activities. We are hopeful that the Court’s opinion will provide greater certainty to the entire mortgage industry regarding the industry’s reliance on long-standing regulation as to how to conduct business consistent with RESPA,” it said. BASCH CONTINUED ON PAGE A-9
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