The court vacated Paul Parrow's conviction for possession with intent to distribute controlled substances while affirming his conspiracy conviction. Parrow had been sentenced to concurrent 300-month prison terms following his July 2024 trial.
Circuit Judge Erickson wrote that the district court wrongly excluded evidence of co-owner Clemmie Kirk's three prior felony convictions for drug dealing as "reverse Rule 404(b)" evidence. Kirk had two prior felony convictions for intent to deliver marijuana before Parrow's indictment, and after Parrow's indictment, Kirk was convicted of intent to deliver marijuana and fentanyl. One of Kirk's convictions involved drug sales from the same Esplanade Avenue house where police found methamphetamine and fentanyl in a safe.
"The only evidence presented to the jury on this element was the recovery of the drugs from the safe, that Parrow was leasing the property, and testimony from the girlfriend of one of Parrow's dealers," Judge Erickson wrote. The court held that Kirk's convictions "may have cast reasonable doubt on the jury's decision on whether Parrow knowingly possessed the methamphetamine and fentanyl."
The court delivered sharp criticism of the district court's analysis, writing that "to deny the admission of a conviction solely because it occurred after the indictment is an abuse of discretion." The panel rejected the government's argument that admitting Kirk's convictions would create a "mini trial."
Judge Erickson emphasized that Rule 404(b) should be "construed broadly as a rule of inclusion" and noted that "evidence that another drug dealer had access to the house and sold drugs out of that house is relevant to the possession charge."
The case returns to the Southern District of Iowa for a new trial on the possession charge. The court also affirmed the district court's denial of Parrow's mistrial motion over discovery violations involving witness testimony that exceeded what was disclosed in police interview notes.