2008 D e c i sion s O p inion s of the U nit e d S t at e s C our t of Appe al s for the Thir d C ir c uit 6-13-2008 

# U SA v . H olt P r e c e de nt i al or N on-P r e c e de nt i al : N on-P r e c e de nt i al D ocke t N o . 07-3579

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Thi s de c i sion i s br ou ght t o you for f r e e a nd ope n a c c e s s b y the O p inion s of the U nit e d S t at e s C our t of Appe al s for the Thir d C ir c uit at V i l l a no va U nive r sity S choo l of L a

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w . vi l l a no va . e du . Re c omme nde d C it at ion " U SA v . H o lt " (2008). 2008 D e cisio n s . P ape r 1023. http://d i git alc ommon s .l a

w . vi l l a nova . e du/thir dc ir c uit_2008/1023T h e H o n o rab le W il li am H . Y o h n , U n it ed S tat es D istri ct Ju d g e f o r th e E astern * D i s t r i ctof Penns y l vani a, s i t t i ng bydes i gnat i on. NOT P RE CE DE NT I AL UN I TED STATES CO UR T OF A PP EALS F O R T H E T H IR D C IR C U IT

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v. GEO RG E R. HO LT, A ppel l ant

____________ O n A p p ea l from the U n it ed S tat es D istri ct C o u rt f o r th e M id d le D istric t o f P e n n sy lv a n ia ( D . C . N o. 07- cr - 00098) D istric t Ju d g e : T h e H o n o ra b le W ill iam W . C a ld w e ll

____________ Subm i t t ed Pur s uantt o T hi r d C i r cui tL . A . R . 34. 1( a)

J une 3, 2008 B e f o re : F IS H E R a n d J O R D A N , C i r cui tJudges , a n d YOHN, D is tr i ct Judge . * ( Fi l ed: J une 13, 2008)

____________ OP I NI ON

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Judge . G eor ge R . H ol tappea l s t he s ent ence i m pos ed on hi m byt he D i s t r i ctC our taft erhe pl eade d gui l t yt o one countof cons pi r acyt o comm i tbank fr aud and one countof bank f ra u d . H o lt arg u e s th e D istric t C o u rt e rre d in a p p ly in g a tw o -le v e l lea d e rsh ip ro le i ncr eas e t o H ol t ’ s offe ns e l evel undert he U ni t ed St at es Sent enci ng G ui del i nes . For t he r e a s o n s d i s c u s s e d b e l o w, we wi l l a f f i r m. I. T he cr i m i nal s cheme ati s s ue i n t hi s cas e bega n as a partof H ol t ’ s empl oym ent wi t h a c h u r c h , S h a r e d M i n i s t r i e s . S h a r e d M i n i s t r i e s h i r e d Ho l tt o wo r k a s a p a r t - t i me admi ni s t r at i ve as s i s t anton J une 6, 2006. Shor t l yaft erbegi nni ng hi s empl oym entatt he chur ch, H ol tobt ai ned the s oci al s ecur i t ynum berof the chur ch’ s choi rdi r ect or . H e and hi s codef endant , T oni L ew i s , us ed the numbert o open tw o cr edi tcar d acc ount s i n t he d ire c to r’s n a m e , an d th e ysu b se q u e n tlym a d e $ 1 6 ,8 0 1 .6 7 in u n a u th o riz e d p u rc h a se s w ith t he ca r ds . T heyal s o t ook $9586. 75 i n contr i but i ons and paym ent s t hathad bee n m ai l ed to th e c h u rc h a n d d e p o site d th e m o n e yin a n a c c o u n t at P N C B a n k th a t L e w is o p e n e d in Shar ed M i ni s t r i es ’ name. Fi nal l y , t heyus ed the chur ch’ s O ffi ce M ax cr edi tcar d t o m ake $7 30 . 17 i n u nau t ho ri zed p urchases. O n M a rc h 7 , 2 0 0 7 , a g ra n d ju ryin d icte d H o lt o n th e f o llo w in g c o u n ts: (1 ) c o n sp ira c yto c o m m it fra u d , in v io latio n o f 1 8 U .S .C . § 3 7 1 ; (2 ) b a n k f ra u d , in v i o l a t i o n o f

1 8 U. S . C. § 1 3 4 4 ( 1 ) & ( 2 ) ; ( 3 ) i d e n t i f i c a t i o n f r a u d , i n v i o l a t i o n o f

1 8 U. S . C.S ect i on 3B 1. 1 p rovi des: 1 B ased on t he d efen dan t ’s rol e i n the offen se, i ncrease the o ffen se l evel as foll ow s: ( a) I f the def

endantw as an or gani zerorl eade rof a c r i m i nal act i vi t yt hati nvol ved fi ve orm or e part i ci pant s orw as otherw i se ext ensi ve, i ncrease by4 level s. ( b) I f the def

endantw as a managerors uper vi s or( butnotan or gani zerorl eade r ) and the cr i m i nal act i vi t yi nvol ved fi ve or m o r e p a r t i c i p a n t s o rw a s o t h e r w i s e e x t e n s i v e , i n c r e a s e b y 3 l evels . ( c) I f the def

endantw as an or gani zer , l eade r , m anage r , or s upervi s ori n anycr i m i nal act i vi t yot hert han des cr i bed i n ( a) or ( b), i ncrease by2 level s. 3 § 1028( a) ( 7) & ( b) ( 1) ( D ) ; ( 4) acc es s devi ce f r aud, i n vi ol at i on of 18 U . S. C . § 1029( a) ( 2) & (c )(1 )(A )(i); a n d (5 ) m a k in g f a lse sta tem e n ts to a f

e d e ra llyin su re d c re d it u n io n , in viol at i on of 1 8 U . S . C . § 1 01 4. P ursuant t o a p l ea agreem ent, H oltpled guil t yt o the fi rs t t w o count s of the i ndi ctm enton A pr i l 18, 2007. T he s t atut or ym axi m um t erm s of im p riso n m e n t w e re f

iv e y e a rs f

o r th e f irst c o u n t an d th irtyy e a rs f o r th e se c o n d c o u n t. T h e p rese n tenc e inv esti g ati o n rep o rtrec o m m en d ed a tw o -l ev el i n cre ase to H o lt ’s offe ns e l evel underU . S. S. G . § 31B . 1( c) . T hi s r ecomm endat i on w as bas ed on the 1 fol l ow i ng evi dence of H ol t ’ s l eade r s hi p r ol e i n t he s cheme. I n a s t at ementgi ven t o pol i ce o n No v e mb e r1 6 , 2 0 0 6 , Ho l ta d mi t t e d t h a th e a s k e d L e wi s t o o p e n t h e a c c o u n ta tt h e P NC B ank . H e al so exp l ai ned t hat he app l i ed fo r tw o credi tcard accou nts and op ened a po st offi ce box i n Shar ed M i ni s t r i es ’ name t o r ece i ve the cr edi tcar d bi l l s . H ol tfur t her admi t t ed thathe had the addr es s on t he cr edi tcar ds change d s o t he bi l l s w oul d notbe s ent t o Shar ed M i ni s t r i es ’ m ai n offi ce.4

T he U ni t ed St at es A t t or ney ’ s offi ce i nt ervi ew ed H ol ton M ar ch 8, 2007. D ur i ng t hi s i nt ervi ew , H ol tpr ovi ded a mor e det ai l ed expl anat i on of the s cheme. H e t ol d t he i nt ervi ew ert hatal l of the empl oy ees atShar ed M i ni s t r i es w er e fe m al e, and i f theyhad not b e e n , h e w o u ld n o t h a v e n e e d e d L e w is to a ss ist h im w ith th e sc h e m e . H e a lso sa id th a t it w as hi s i dea t o obt ai n t he cr edi tcar ds us i ng t he choi rdi r ect or ’ s name and i tw as hi s i dea t o t ake the che cks t hatw er e mai l ed t o Shar ed M i ni s t r i es . H ol tal s o expl ai ned thathe had Le wi s o p e n t h e P NC a c c o u n tb e c a u s e h e wo r k e d a tt h e c h u r c h a n d d i d n o twa n th i s n a me o n th e a c c o u n t. H e sa id th a t h e se t u p th e b a n k a c c o u n t to re q u ire tw o sig n a tu re s to w i t hdr aw m oneybeca us e he di d notw antL ew i s t o s cam hi m . H ol tt ol d t he i nves t i gat or th a t h e a n d L e w is e v e n lysp litth e m o n e yth a t w e n t in to th e a c c o u n t. L e w is w a s in ter v iew e d b yin v e stig a to rs o n A p ril 1 1 , 2 0 0 7 . S h e e x p lain e d th a t H o lt cal l ed heri n J ul y2006 and s ai d he had a pl an thathe di d notw antt o di s cus s w i t h her o v e r th e p h o n e . W h e n th e ym e t, H o lt ex p lain e d to L e w is th a t h e h a d a p lan to o b tain m o n e ya n d th a t L e w is w o u ld re c e iv e $ 1 0 0 0 f o r h e r a ss ista n c e . A c c o rd in g to L e w is, H o lt t ol d hert hathe had a cr edi tcar d i n t he choi rdi r ect or ’ s name, expl ai ni ng t hatt he di r ect or w a s in jail a n d h a d g iv e n H o lt p e rm iss io n to u se th e c a rd . L e w is s a id th a t sh e a n d H o lt appl i ed fora s econd c r edi tcar d us i ng t he choi rdi r ect or ’ s name. L ew i s expl ai ned that t heyw enton one s hoppi ng s pr ee w i t h t he ca r ds . She fur t heradmi t t ed thatH ol tgave he r app roxi m at el y$5 0 to $10 0 in cash from t he creditcards on thr ee or fou r occasi on s.T he governm entcal cul at ed thatL ew i s r ece i ved l es s t han $2000 of the $27, 000 2 H ol tand Lew i s s t ol e. 5 A ccor di ng t o L ew i s , abouta mont h aft ert heyus ed the cr edi tcar ds , H ol tcal l ed her a n d a sk e d h e r to o p e n a b a n k a c c o u n t. S h e in iti a llyre f u se d , b u t sh e a g re e d a f

ter H o lt as ked herfort he thi r d t i m e. L ew i s admi t t ed thataft ers he s aw m oneyw as goi ng i nt o and outof the ac count , s he dec i ded t o us e s om e of the moneyi n t he ac countt o payt hr ee ut i l i t ybi l l s , and s he w r ot e addi t i onal chec ks forcas h, t ot al i ng s om ew her e betw een $500 and $660. 2 H ol tobj ect ed t o t he pr es ent ence i nves t i gat i on r epor t ’ s r ecomm ended tw o- l evel in c re a se , an d th e D istric t C o u rt h e ld a h e a rin g o n A u g u st 2 2 , 2 0 0 7 . A t th e h e a rin g , H o lt t es t i fi ed thatt he s cheme actual l ybegan w hen Lew i s vi s i t ed hi m w hi l e he w as w or ki ng at Shar ed M i ni s t r i es . H ol ts t at ed thatw hi l e Lew i s w as t her e, s he br oughtup t he i dea of us i ng ot herpeopl e’ s s oci al s ecur i t ynum ber s t o obt ai n cr edi tcar ds . H e furt hert es t i fi ed t hati tw as hi s i dea t o open the bank a ccountand thathe gave L ew i s t he i nfor m at i on s he neede d t o open the ac counti n Shar ed M i ni s t r i es ’ name. H ol tadmi t t ed thathe opene d t he c re d it ca rd a c c o u n ts w ith in f o rm a tio n h e re c e iv e d f

ro m th e c h u rc h f

iles a n d th a t L e w is di d nothave a ny t hi ng t o do w i t h openi ng t hos e ac count s . H e al s o admi t t ed t o openi ng t he pos toffi ce box hi m s el f. Fi nal l y , H ol tt es t i fi ed thathe gave L ew i s a keyt o t he chur ch, and s om et i m es s he w oul d t ake c hecks fr om t he chur ch w i t houthi s know l edge.6

A ft erH ol t ’ s t es t i m onyand ar gum ent s fr om t he att or ney s r egar di ng t he tw o- l evel i ncr eas e, t he D i s t r i ctC our tconcl uded: “I agr ee t ot al l yw i t h t he pos i t i on of the pr os ecut i on on t hi s poi nt , and I w i l l denyt he obj ect i on t hathas been made i n t he present ence repo rt . I think M r. H oltw as i n a d i rect i ng l eadershi p type rol e, al t ho ug h M s. L ew i s cert ai nl yw ental ong w i l l i ngl y . W i t houthi m t hi s w hol e thi ng coul dn’ thave happene d . . . . ” The D i s t r i ctC our ts ubs equent l yappl i ed the l eade r s hi p r ol e enha ncement a n d se n ten c e d H o lt t o c o n c u rre n t term s o f six tee n m o n th s’ im p riso n m e n t o n e a c h c o u n t; r es t i tut i on i n t he amountof $17, 456; a $200 s peci al as s es s m ent ; and conc ur r entt erm s of th re e y e a rs’ su p e rv ise d re lea se o n e a c h c o u n t. H o lt t im e lyf iled a n a p p e a l. II. T h e D istric t C o u rt h a d ju risd ictio n u n d e r 1 8 U .S .C . § 3 2 3 1 . W e h a v e a p p e llate j ur i s di ct i on under28 U . S. C . § 1291. W e exe r ci s e pl enaryr evi ew overt he D i s t r i ct C our t ’ s i nt erpr et at i on of the advi s or ys ent enci ng gui del i nes , and w e r evi ew t he D i s t r i ct C o u rt ’s f a c tu a l f in d in g s f o r c le a r e rr o r. U

ni t ed Stat es v. G r i er , 4 7 5 F . 3 d 5 5 6 , 5 7 0 (3d C ir . 2007) ( en banc ) . A nyfac tual fi ndi ngs m us tbe s uppor t ed bya pr eponder ance of the e v id e n c e . I

d. at568. III . H ol tar gues t hatdur i ng s ent enci ng he t es t i fi ed thati tw as L ew i s ’ s i dea t o us e the choi rdi r ect or ’ s s oci al s ecur i t ynum bert o obt ai n t he cr edi tcar ds . H e al s o poi nt s outt hat L e w is o p e n e d th e P N C a c c o u n t, sp e n t th e m o n e yin th e a c c o u n t, an d u se d th e c re d it7

c a r d s . Ho l tc o n c l u d e s t h a tt h i s e v i d e n c e s h o ws t h e s c h e me wa s u n d e r t a k e n j o i n t l y . He fur t hercont ends t hatt her e i s no evi dence t hathe contr ol l ed ors uper vi s ed Lew i s , and the exi s t ence of an a ddi t i onal par t i ci pantw ho bor e equa l r es pons i bi l i t yforpl anni ng and or gani zi ng t he cr i m e i s i ns uffi ci entt o j us t i fyt he enha ncement . Fi nal l y , H ol tar gues t hat th e D istric t C o u rt’s f

in d in g th a t “w ith o u t h im th is w h o le th in g c o u ld n ’t h a v e h a p p e n e d ” is n o t an a d e q u a te b a sis o n w h ich to a p p lyth e e n h a n c e m e n t. “To appl ys ect i on 3B 1. 1, a di s t r i ctcour tm us tfi nd t hatt he def endantexer ci s ed contr ol overatl eas tone otherper s on. ” U nited S t ates v. Katora , 981 F. 2d 1398, 1402 ( 3d C i r . 1992) . T he D i s t r i ctC our tm us tal s o fi nd t hatt her e w er e mul t i pl e part i ci pant s i n t he c ri m e a n d th a t th e re w a s s o m e d if f e re n tia tio n in th e irre la tiv e c u lp a b iliti e s . I d. a t 1 4 0 5 . Fact or s t o cons i derw hen det erm i ni ng w hethert o appl ya § 3B 1. 1 enhanc ementi ncl ude: ( 1) t he exe r ci s e of de ci s i on m aki ng author i t y ; ( 2) t he natur e of pa r t i ci pat i on i n t he comm i s s i on of the off ens e; ( 3) t he r ecrui t m entof ac compl i ces ; ( 4) t he cl ai m ed r i ghtt o a l ar gers har e of the frui t s of the cr i m e; ( 5) t he degr ee of par t i ci pat i on i n pl anni ng oror gani zi ng t he off ens e; ( 6) t he natur e and s cope of the i l l egal act i vi t y ; and ( 7) t he degr ee of contr ol and author i t yexer ci s ed ov er others. U ni t ed Stat es v. G r i cco , 277 F. 3d 339, 358 ( 3d C i r . 2002) ( quot i ng U ni t ed Stat es v. H unt er , 52 F. 3d 489, 492 ( 3d C i r . 1995) ) . T he governm entneed notpr es entevi dence of e v e ryf a c to r o r e v id e n c e th a t th e d e f e n d a n t is th e so le o r p re d o m in a te le a d e r; ra th e r, it need onl ys how s uffi ci entevi dence t o j us t i fya fi ndi ng t hatt he def endanti s a l eade ror o rg a n iz e r u n d e r § 3 B 1 .1 . U nited S t ates v. B ass , 5 4 F . 3 d 1 2 5 , 1 2 8 -29 (3d C ir . 1 9 9 5 ).8

A l t hough t he D i s t r i ctC our tcoul d have gone i nt o a more det ai l ed ana l y s i s of the fac t or s befor e i tappl i ed the tw o- l evel l eade r s hi p i ncr eas e, i tdi d noterrw hen i tappl i ed t he i ncr eas e. T he D i s t r i ctC our tfound thatH ol tdi r ect ed Lew i s , and i tr ecogni zed that t her e w er e mul t i pl e part i ci pant s w i t h di ffe r entcul pabi l i t i es . T hus , t he tw o Katora p re re q u isites f

o r a p p ly in g th e lea d e rsh ip e n h a n c e m e n t w e re m e t. Fur t herm or e, t he D i s t r i ctC our tadopt ed the governm ent ’ s pos i t i on on t he tw ol evel l eade r s hi p i ncr eas e. I n i t s s ent enci ng m emora ndum and att he s ent enci ng hear i ng, t he governm entar gued thatH ol t ’ s fi r s ts t at ement s , i n w hi ch he a dm i t t ed thathe r ecrui t ed L ew i s t o hel p hi m i n t he s cheme, opened the cr edi tcar d acc ount s , pr ovi ded the i nfor m at i on nece s s aryt o open the bank a ccount , came up w i t h t he i dea t o s t eal t he chec ks , opened the pos toffi ce box, and di r ect ed and s uper vi s ed Lew i s ’ s act i vi t i es demonst r at ed thatH ol thad a l eade r s hi p r ol e i n t he s cheme. T he governm ental s o ar gued t hatH ol t ’ s t es t i m onyt o t he contr aryatt he s ent enci ng hear i ng w as notcr edi bl e. T he D i stri ctC ou rtcl earl yst at ed thati tagreed w i t h the gov ernm ent’ s vers i on of the fact s. E x am ining this ev iden ce , w h ich th e D istri ct C o u rtac ce p ted, i n li g h t of the f ac tors t hats houl d be cons i der ed i n appl y i ng t he l eade r s hi p enhanc ements how s t hatt he evi dence s uppor t s t he fi ndi ng t hatt hi s s cheme w as nots i m pl ya j oi nt l ypl anned a nd exec ut ed s cheme. Fi r s t , t her e w as evi dence t hatH ol texer ci s ed dec i s i on- m aki ng author i t yby det erm i ni ng w hi ch cr edi tcar ds t o open, byopeni ng t he pos toffi ce box, and bydi r ect i ng L ew i s t o open the bank a ccount . A ddi t i onal l y , H ol tadmi t t ed thathe w as t he one w ho9

acc es s ed the choi rdi r ect or ’ s s oci al s ecur i t ynum berand the i nfor m at i on aboutt he chur ch t hatw as nece s s aryt o open the bank a ccount . G ather i ng t hi s i nfor m at i on and openi ng t he cr edi tcar d acc ount s and pos toffi ce box de m ons t r at ed thatH ol t ’ s par t i ci pat i on i n t he s cheme w as gr eat ert han Lew i s ’ s par t i ci pat i on. Si m i l ar l y , t he evi dence demonst r at ed that H olthad a l argerdeg ree of part i ci pati on i n p l ann i ng and organizi ng t he cri m es becau se o p e n in g th e b a n k a c c o u n t, cre d it ca rd s, a n d p o st o f f ice b o x w e re h is id e a s. A lth o u g h H o lt deni ed thati tw as hi s i dea t o open the cr edi tcar d acc ount s , he di d notdo s o unt i l t he se n ten c in g h e a rin g , an d th e D istric t C o u rt a c c e p ted th e g o v e rn m e n t’s p o sitio n th a t th is tes tim o n yw a s n o t cr e d ib le a n d th a t itc o n tra d icte d th e in f o rm a tio n h e a n d L e w is previ ou sl ygav e t he invest i gator s. L ew i s al s o t ol d i nves t i gat or s t hatH ol tr ecrui t ed heras an ac compl i ce, d em o n str ati n g that H o ltinit iat ed the s ch em e. F u rth er su p p o rt ing this find ing is H o lt ’s admi s s i on t hathe onl yneede d L ew i s ’ s as s i s t ance i n t he s cheme beca us e al l of the other chur ch empl oy ees w er e fe m al e. A ddi t i onal l y , al t hough t her e w as confl i ct i ng evi dence abouthow H ol tand Lew i s s pl i tt he pr ofi t s , t her e w as s om e evi dence t hatH ol thad a large r po rt ion o f th e p rof it s. G iven all o f th is ev iden ce , the D istri ct C o u rtd id n o t err w hen i tdet erm i ned thatt he fa ct s ampl ydemonst r at ed thatH ol tm etm os t , i f notal l , of the fac t or s , concl uded thathe w as a l eade roror gani zerof the s cheme, and appl i ed a tw olev e l en h a n c e m e n t f

o r a lea d e rsh ip ro le to H o lt’s o f f e n se lev e l. W e w ill th e re f

o re a f f irm th e ju d g m e n t o f

th e D istric t C o u rt.