FILED U.S. COURT OF AP P EALS E LEVEN T HC IRC U IT FEB RUARY 1, 2008 THOMAS K. KAH

N CLERK [ DO NO T P UB L I S H]

I N THE UN I TE D STATE S C OU RT OF APPE ALS F O R T H E E L E V E N T H C IR C U IT

________________________ N o. 06- 16564 N on -A rgum entC al endar

________________________ D. C . Do c k e tNo . 0 6 - 0 0 1 0 4 - C R - T - 2 7 E AJ U N I T E D S T A T E S O F A M E R I C A , P la in tif f - A p p e lle e , v ersu s J O E Y K . L A N S I N G , D e f e n d a n t- A p p e lla n t.

________________________ A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f orthe M i ddl e D i s tr i c tof F l or i da

_________________________ ( F e b r u ar y 1, 2008) B efo re B L A C K , C A RN E S an d P R Y O R , C i rcu i tJu d g es. P E R C U R I A M: J oe y K . L a ns i ng appe a l s hi s c onvi c t i on a nd 51- m onth pr i s on s e nt e nc e f or2

o n e c o u n to f

c o n s p i r a c y t o d e f

r au d th e g o v e rn me n t , i n v i o l a t i o n o f 1 8 U . S. C. § 286, a nd thr e e c ount s of f a i l i ng t o f

i l e f e de r a l i nc om e t a x r e turns , i n vi ol a t i on of 26 U . S . C . § 7 20 3. L ansi ng w orked for a com pany ca l l ed A m er i ca n T ax C on sul t ant s, w hi ch fi l ed t ax re turns for i t s c l i ent s c l ai m i ng no t ax l i abi l i ty und er th e th eo ry th atp ayi n g t ax es w as v o l u n t ary o n th e g ro u n d th atal m o stev eryo n e i s a n o n - r e s id e n t a lie n . A T C a ls o f ile d f r au d u le n t r e tu rn s w ith th e I R S in a n a tte m p t to o b ta in ta x r e f

u n d s f o rits c lie n ts f

o rta x e s p a id in p r e v io u s y e a r s . I. L a n s in g c o n te n d s th a t th e e v id e n c e p r e s e n te d a t tr ia l w a s in s u f f ic ie n t to s u p p o r t h is c o n v ic tio n s f o rc o n s p ir in g to d e f

r au d th e g o v e rn m e n t a n d f o rf a ilin g to fi l e fed eral i n co m e t ax retu rn s. W e r e vi e w de novo s uf

f i c i e nc y of

the e vi de nc e c l a i m s . U ni t e d S t a t e s v. A n d e r s o n , 2 8 9 F .3 d 1 3 2 1 , 1 3 2 5 ( 1 1 th C ir . 2 0 0 2 ) . T h is “s ta n d a r d o f r e v ie w is s t a c ke d i n the gove rnm e nt ’ s f a vor . ” U ni t e d S t a t e s v. M oor e , 504 F . 3d 1345, 1348 ( 1 1 th C ir . 2 0 0 7 ) ; s e e a ls o U n ite d S ta te s v . R o b e r ts o n , 4 9 3 F .3 d 1 3 2 2 , 1 3 2 9 ( 1 1 th C i r . 2007) ( “ W e vi e w the e vi de nc e i n the l i ghtm os tf a vor abl e t o the gove rnm e nt a nd r e s ol ve a l l r e a s onabl e i nf e r e nc e s a nd c r e di bi l i ty e va l ua t i ons i n f a vorof the j ury ’ s ve r di c t . T he e vi de nc e ne e d note xc l ude e ve ry r e a s onabl e hypothe s i s of in n o c e n c e o rb e w h o lly in c o n s is te n t w ith e v e ry c o n c lu s io n e x c e p t th a t o f g u ilt,3

p r o v id e d th a t ar e a s o n ab le tr ie ro f f a c t c o u ld f

in d th a t th e e v id e n c e e s tab lis h e d g u ilt beyond a r ea sonabl e dou bt . ” ( i nt ernal ci t at i on s a nd qu ot at i on m arks om i tt ed)) . A. L a ns i ng a r gue s tha tthe di s tr i c tc our te rr e d i n de ny i ng hi s m ot i on f or j u d g m en to f acq u i tt al o n th e co n sp i racy t o d efrau d th e g o v ern m en tch arg e b ecau se the gove rnm e ntdi d nots how tha tthe r e w a s a n a gr e e m e ntbe tw e e n L a ns i ng a nd a ny c o- c ons pi r a t ort o de f r aud the gove rnm e nt . A tm os t , a c c or di ng t o L a ns i ng, the g o v e rn m e n t s h o w e d th a t th e r e w a s a n a g r e e m e n t to d e f r au d A T C ’s c lie n ts . T o e s t abl i s h tha tade f

e nda ntha s c ons pi r e d t o de f r aud the U ni t e d S t a t e s , the go vernm entm ustprov e: (1) the exi st ence of an agree m entt o d ef raud the U ni t ed S t a t e s by obt a i ni ng pa y m e ntof af a l s e c l a i m ; a nd ( 2) the de f e nda nt ’ s know i ng a nd vol unt a ry pa r t i c i pa t i on i n the c ons pi r a c y . U ni t e d S t a t e s v. G upt a , 463 F . 3d 1182, 1194 ( 11th C i r . 2006) . “ C ons pi r a c y m a y be pr ove n by c i r c um s t a nt i a l e vi de nc e a nd the e xt e ntof

pa r t i c i pa t i on i n the c ons pi r a c y ore xt e ntof know l e dge of

de t a i l s i n the conspi ra cydo es no tm att eri f the proo f s ho w s the defendantkn ew the es se nt i al obj e c t i ve of

the c ons pi r a c y . ” I d. a t1194 ( i nt e rna l punc tua t i on a nd c i t a t i on o m itte d ) . I n Un i t e d S t a t e s v . Ad k i n s o n , 1 5 8 F . 3 d 1 1 4 7 , 1 1 5 5 ( 1 1 th C i r . 1 9 9 8 ) , we a ddr e s s e d the i s s ue of

w he the rthe gove rnm e ntha d pr e s e nt e d s uf f i c i e nte vi de nc e of4

i nt e ntt o de f

r aud the I R S , a s oppos e d t o onl y the de f e nda nt s ’ c us t om e r s , i n the cont extof 18 U . S . C . § 3 71 . W e not ed thatan i nt entt o i m pede the IR S m ustbe a p u rp o s e o f

th e c o n s p ir a c y , n o t ju s t ac o lla te r a l e f f e c t o f th e a g r e e m e n t. I d . H o w e v e r , ac o n s p ir a c y m a y h a v e m u ltip le o b je c tiv e s , a n d if

am in o ro n e is to defr aud the go vernm ent , the offens e i s proven even i f there i s al ar ger, pri m ary obj e c t i ve . I d. W e c onc l ude d tha tthe ba nk f r aud c ons pi r a c y c ha r ge d i n the i ndi c tm e nt , w hi c h i nvol ve d am one y - l aunde r i ng s c he m e , w a s the f oc us of the c ons pi r a c y , a nd w e r e ve r s e d the de f e nda nt s ’ c onvi c t i ons on the t a x f r aud c ount b e c a u s e th e g o v e rn m e n t d id n o t p r o v e a“ta x p u rp o s e ” n e c e s s a ryto s u p p o r t a c onvi c t i on f

ort a x f r aud. I d. a t1156, 1159. H er e, the di stri ctcourtdi d n oterr i n d enyi ng L ansi ng ’ s m ot i on s f or ac qu i tt al on the c ha r ge of

de f r audi ng the gove rnm e ntbe c aus e the e vi de nc e , t a ke n i n the l i gh tm ostfa vo rabl e t o the go vernm ent , es t abl i shed thatA T C ’ s c l i ent s di d n otpay f e de r a l t a xe s a nd r out i ne l y f i l e d r e turns i n a n a tt e m ptt o obt a i n r e f unds f orpa y m e nt o f p r e v io u s y e a r s ’ ta x e s . T h is s h o w s th a t d e f r au d in g th e g o v e rn m e n t w a s a t le a s t a m in o ro b je c tiv e o f

th e la r g e rc o n s p ir a c y to d e f r au d A T C ’s c lie n ts , w h ic h is s u f f ic ie n t to s u s ta in L a n s in g ’s c o n v ic tio n . B. L a ns i ng a l s o a r gue s tha tthe di s tr i c tc our te rr e d i n de ny i ng hi s m ot i on f or5

ju d g m e n t o f

a c q u itta l o n th e f

a ilu r e to f

ile ta x r e tu rn s c h a r g e b e c au s e h e c la im s to ha ve r e l i e d on the a dvi c e of aC P A w ho t ol d hi m nott o f i l e a nd a s s e r t s , w i thout s uppor t , tha tthe t e s t i m ony of the I R S a ge nt , w ho e s t abl i s he d tha tL a ns i ng m a de enou gh i ncom e t o requi re the fi l i ng of a t ax re turn, w as no tbase d o n a re cogn i ze d l egi t i m at e a cc ou nt i ng t ec hn i qu e. 2 6 U .S .C . § 7 2 0 3 c r im in a liz e s th e w illf u l n o n - f ilin g o f f e d e r a l ta x r e tu rn s . T h e w illf u ln e s s e le m e n t o f

§ 7 2 0 3 c a n b e n e g a te d b y a“g o o d - f a ith m i s unde r s t a ndi ng of

the l a w oragood- f

a i th be l i e f

tha tone i s notvi ol a t i ng the l a w . ” C he e k v. U ni t e d S t a t e s , 498 U . S . 192, 199–202, 111 S . C t . 604, 609–11 ( 1991) . T o s how w i l l f

ul a c t i on, the gove rnm e ntm us tde m ons tr a t e tha tthe de f e nda nti nt e nt i ona l l y vi ol a t e d aknow n l e ga l duty . U ni t e d S t a t e s v. P om poni o, 429 U . S . 10, 12, 97 S . C t . 22, 23 ( 1976) . W he r e , a s i s the c a s e he r e , the de f e nda nt t es t i fi es , the j ury i s f

re e t o d i sbel i eve thatt es t i m on y a nd i t“ m aybe consi dere d as s ubs t a nt i ve e vi de nc e of

the de f e nda nt ’ s gui l t . ” U ni t e d S t a t e s v. B r ow n, 53 F . 3d 3 1 2 , 3 1 4 ( 1 1 th C ir . 1 9 9 5 ) . W e c onc l ude tha tthe di s tr i c tc our tdi d note rri n de ny i ng L a ns i ng’ s m ot i on for a cqui tt al on the w i l l ful no n-fi l i ng of t ax re turns coun t s bec ause the evi dence, tak en in th e lig h t m o st fa v o ra b le to th e g o v er n m en t, es tab li sh ed th at L an sin g ’s i ncom e duri ng the ye ar s i n q uest i on fa r e xcee ded the thres ho l d am ou nt s that6

r e qui r e ac i t i z e n t o f

i l e ar e turn. T he j ury w a s f r e e t o r e j e c tL a ns i ng’ s t e s t i m ony an d d eci d e th ath e k n ew th ath e h ad t o fi l e t ax retu rn s fo r th o se years. II. L ansi ng nextcont ends thatthe di stri ctcourterre d i n g i vi ng the patt ern i n s tru c t i o n o n h i s g o o d f a i th d e f e n s e w h e r e , a s h e r e , th e I RS i s th e a l l e g e d v i c t i m, be c a us e the i ns truc t i on a l l ow e d the j ury t o c onvi c thi m of c ons pi r i ng t o de f

r aud the IR S i f th e j u ry fo u n d h e d efrau d ed th i rd p arty t ax p ayers w i th reg ard t o a “ b u si n ess venture. ” W e r e vi e w de novo j ury i ns truc t i ons “ t o de t e rm i ne w he the rthe y m i s s t a t e the l a w orm i s l e a d the j ury t o the pr e j udi c e of the obj e c t i ng pa r ty . ” B r oc hu v. C i ty of R i vi e r aB e a c h, 304 F . 3d 1144, 1155 ( 11th C i r . 2002) ( i nt e rna l quot a t i on m a rks om i tt e d) . “ U nde rthi s s t a nda r d, w e w i l l onl y r e ve r s e i f w e a r e l e f

tw i th a s u b s ta n tia l a n d e r a d ic ab le d o u b t a s to w h e th e rth e ju ry w a s p r o p e r ly g u id e d in its d e lib e r a tio n s .” U n ite d S ta te s v . P u c h e , 3 5 0 F .3 d 1 1 3 7 , 1 1 4 8 ( 1 1 th C ir . 2 0 0 3 ) . “W h e n th e ju ry in s tru c tio n s , ta k e n to g e th e r , a c c u r a te ly e x p r e s s th e la w ap p lic ab le t o the ca se w i tho utconfusi ng or prej ud i ci ng the j ury, there i s no rea son for re vers al e ve n though i s ol a t e d c l aus e s m a y , i n f a c t , be c onf

us i ng, t e c hni c a l l y i m pe r f e c t , or o th e rw is e s u b

je c t to c r itic is m .” U n ite d S ta te s v . B e a s le y , 7 2 F .3 d 1 5 1 8 , 1 5 2 5 ( 1 1 th C i r. 19 96 ). W e pre sum e thatj urors f ol l ow the i nstruct i on s gi ven t o them . U ni t ed7

S ta te s v . C h a n d le r , 9 9 6 F .2 d 1 0 7 3 , 1 0 8 8 ( 1 1 th C ir . 1 9 9 3 ) . T h e d istrict co u rt’s in stru ctio n s d o n o t j u stify r ev er sa l o f L an sin g ’s conv i ct i on s bec ause even i f the spec i fi c c l ause m ent i on i ng a “ bu si ness venture” w a s c onf us i ng t o the j ury , the i ns truc t i ons , t a ke n a s aw hol e , a c c ur a t e l y e xpr e s s the l a w . L a ns i ng ha s notc l e a r l y a r t i c ul a t e d how the i ns truc t i on tha the f oc us e s on, even i f i tshou l d n othave been gi ven t o the j ury i n l i gh tof the evi dence pres ent ed a ttr i a l , pr e

j udi c e d hi m i n a ny w a y . B e c aus e L a ns i ng ha s nots how n pr e j udi c e , a nd be c a us e the r e s tof

the i ns truc t i ons the di s tr i c tc our tga ve a c c ur a t e l y de s c r i be d the l aw , w e a re no tl ef

tw i th the “ subst ant i al and eradi cabl e dou bt ” nec es sa ryt o o rdera ne w tr i a l . S e e P uc he , 350 F . 3d a t1148. III. L a ns i ng a l s o c ont e nds tha tthe di s tr i c tc our te rr e d i n f a i l i ng t o di s m i s s the i n d i c tme n ta g a i n s th i m d u e t o av i o l a t i o n o f K a s t i g a rv . U n i t e d St a t e s , 4 0 6 U . S. 4 4 1 , 9 2 S. Ct . 1 6 5 3 ( 1 9 7 2 ) , o n th e g r o u n d th a tth e e v i d e n c e a ttr i a l l e f ts o me c onf us i on r e ga r di ng w he the rt ape s of c onf e r e nc e c a l l s tha tw e r e r e l i e d upon by the go vernm entbefore the grand j ury w er e partof a proffe r L ansi ng had m ade und er a n a g r e e m e n t to c o o p e r a te w ith th e g o v e rn m e n t. W e r ev iew K as ti g arclaim s d ef er en ti ally an d af

firm th e d istrict co u rt’s de c i s i on unl e s s i ti s c l e a r l y e rr one ous . U ni t e d S t a t e s v. N y hui s , 8 F . 3d 731, 7418

(1 1 th C ir. 1 9 9 3 ). U n d erclea r e rr o r r ev iew , w e w il l aff irm th e d istrict co u rt’s d e c is io n s o lo n g a s it “p lau s ib le in lig h t o f th e r e c o r d v ie w e d in its e n tir e ty .” M erri l l S t evens D ryD ock C o. v. M /V Y eocom i co II , 32 9 F . 3d 80 9, 81 6 (11 th C i r. 20 03 ). W hen the go vernm entprosec ut es a w i tness w ho previ ou sl y has gi ven sel fi nc r i m i na t i ng t e s t i m ony pur s ua ntt o agr a ntof i m m uni ty , i tm us te s t abl i s h tha tthe evi dence i s der i ved from a l egi t i m at e s ou rc e thati s i nd ependentof the com pel l ed t e s t i m ony . K a s t i ga r , 406 U . S . a t460, 92 S . C t . a t1665. H ow e ve r , w he n the U ni t e d S t a t e s ha s r e s e rve d the r i ghtt o m a ke de r i va t i ve us e of s t a t e m e nt s a nd in f o rm a tio n p r o v id e d b y th e d e f e n d a n t in th e c o o p e r a tio n a g r e e m e n t, a s it d id in L a ns i ng’ s c a s e , s uc h us e doe s notvi ol a t e the de f e nda nt ’ s r i ght s . U ni t e d S t a t e s v. P i e l a go, 135 F . 3d 703, 709–10 ( 11th C i r . 1998) . H e r e , the di s tr i c tc our tdi d not c l e a r l y e rri n r e f

us i ng t o di s m i s s L a ns i ng’ s i ndi c tm e ntbe c aus e the gove rnm e nt sh o w edth atth e t ap e w as d el i v ered t o th e IR S b y an o th er w i tn ess an d w as, th erefo re, n o tp arto f L an si n g ’ s o ri g i n al p ro ffer t o th e g o v ern m en t . A cco rd i n g l y, the r e w a s no K a s t i ga rvi ol a t i on. I V. F i na l l y , L a ns i ng c ont e nds tha tthe di s tr i c tc our ti m pr ope r l y appl i e d a n 18- l evel enhancem entt o h i s s ent ence because the go vernm entdi d n otshow thatthere9

w a s a n y in te n d e d lo s s to th e I R S , o n ly to th e c lie n ts o f A T C . W e r evi ew the di stri ctcourt ’ s det erm i nat i on of the am ou ntof l oss f or cl ea r error. U ni t ed S t at es v. H ernand ez , 16 0 F . 3d 66 1, 66 6– 67 (11th C i r. 19 98 ). U nd er U n it ed S tates S en ten cin g G u id elin es § 2 B 1 .1 (b )( 1 ) ( N o v . 2 0 0 6 ), th e d ef en d an t’ s of f e ns e l e ve l i s e nha nc e d i f the l os s e xc e e de d $5, 000, w i th the e xt e ntof the e n h a n c e m e n t d e te rm in e d b y th e a m o u n t o f th e lo s s . F o rth e s e p u rp o s e s , th e lo s s is e i the rthe a c tua l l os s orthe i nt e nde d l os s , w hi c he ve ri s gr e a t e r . U . S . S . G . § 2 B 1 .1 ( b ) ( 1 ) c m t. n .3 ( A ) . A n in te n d e d lo s s in c lu d e s “in te n d e d h a rm th a t w o u ld h a v e b e e n im p o s s ib le o ru n lik e ly to o c c u r .” U .S .S .G . § 2 B 1 .1 ( b ) ( 1 ) c m t. n .3 ( A ) ( ii) . A lth o u g h a n in te n d e d lo s s m u s t b e d e te rm in ab le to ar e a s o n ab le ce rt ai nty, i tm aybe an es t i m at e. H ernand ez , 16 0 F . 3d at66 6. A n 1 8-l evel e nha nc e m e nti s appr opr i a t e w he r e the i nt e nde d l os s i s gr e a t e rtha n $2. 5 m i l l i on, b u t le s s th a n $ 7 m illio n . U .S .S .G . § 2 B 1 .1 ( b ) ( 1 ) ( J ) , ( K ) . T he di stri ctcourtdi d n oterr i n i t s det erm i nat i on thatthere w as an i nt ended lo ss o f m o re th an $ 2 .5 m il li o n b ec au se th e g o v er n m en t estab li sh ed th at A T C ’s cl i ent s had se nti n returns cl ai m i ng ov er$5 m i l l i on i n ref un ds. T hi s f

i nd i ng w as base d o n t es t i m on y pre se nt ed attri al and atthe se nt ence proceedi ng show i ng that A T C h a d f

lo o d e d I R S o f

f ic e s w ith m u ltip le f

r au d u le n t r e tu rn s o n b e h a lf o f its c lie n ts . A lth o u g h m o s t o f th e c lie n ts r e c e iv e d n o r e f u n d f r o m th e I R S , a t le a s t a10

f e w di d, a nd A T C ’ s a gr e e m e ntw i th i t s c l i e nte nt i t l e d i tt o as ha r e of a ny r e f und r e c e iv e d . O n th e b a s is o f th a t e v id e n c e , it w a s r e a s o n ab le f o rth e d is tr ic t c o u r t to f i nd tha tA T C i nt e nde d t o c aus e as ubs t a nt i a l l os s , e ve n i f the l i ke l i hood of s u c c e e d in g in its e n d e a v o rw a s s m a ll. AF F I RME D.