T hi s d i s p o s i ti o n i s no t a p p ro p ri a te f o r p ub l i c a ti o n a nd i s no t p re c e d e nt * ex ceptas pr ov i ded by 9thC i r . R . 36- 3. NOT FOR PUBLI CATI ON U N IT E D S T A T E S C O U R T O F A P P E A LS F O R TH E N I N TH C I R C U I T U N I TE D ST AT ES O F AM ER I C A, Pl ai n t i f

f - Ap pe l l ee , v. AN D Y S. S. Y I P, D e f

e nd a nt - A p p e l l a nt. N o. 08- 10235 D .C . N o . C R -0 2 -0 0 2 2 5 -D A E -1 M E M OR A ND UM *

A p p e a lf ro m the U ni te d S ta te s D i s tr i c t C o urt fo rth e D is tr ic to f H a w a ii D a vi d A . E z ra , D i s tri c t J ud ge , P re s i d i ng Ar g u ed an d Subm i t t ed O ct ober13, 2009

H o n o lu lu , H a w a ii Bef or e: BEEZER , G R ABER , an d F I SHER , C i r cu i tJu dg es. D ef en dan tAn dyS. S. Y ip appeal s f r omh i s con v i ct i ononon e cou n tof c o ns p i ra c y to d e f

ra ud the U ni te d S ta te s , 1 8 U . S . C . § 3 7 1 ; o ne c o unt o f f i l i ng a f a l s e ta x re turn, 2 6 U . S . C . § 7 2 0 6 (1 ); a nd tw o c o unts o f f a i lure to re p o rt f

o re i gn fin a n c ia l a g e n c ytr a n s a c t io n s , 3 1 U . S . C . § § 5 3 1 4 , 5 3 2 2 ( b ) . H e a ls o a p p e a ls h is 

# FI L ED JA N 13 2010 MO L L Y C. DW Y ER, CL ERK U . S . C O U R T O F A P P E A LSW e a dd r es s s om e i ss u es i na p ubl i sh ed op i n i onf i l ed th i s d at e. 1 2 se n t en ce onth es e c oun t s a n d o nth e f ourad di t i on alco u n t s o f f i l i n g a f al se t ax re turn to w hi c h he p l e a d e d gui l ty. 1 1. D ef en dan tappeal s th e di str i ctcou rt ’s den i alof h i s m ot i onf

oracqu i t t alon C oun t s 9 , 10 , an d 1 1. I nh i s m ot i onf orac qu i t t al , D ef

en da n tar g u ed th atth er e w as i ns uf f i c i e nt e vi d e nc e tha t he k ne w o f hi s d uty to re p o rt the f

o re i gn a c c o unts a nd tha t hi s f a i lure to re p o rt the m w a s w i l l f ul . W e re vi e w d e no vo . U ni te d S ta te s v. C a rra nz a , 2 8 9 F. 3 d 6 3 4 , 6 4 1 (9 th C i r. 2 0 0 2 ). D e f e nd a nt’ s a c c o unta nt, w ho pr ep ar ed D ef

en da n t ’s t ax es f

orse v eny ea r s b ef

or e th e f i r stt ax f i l i n g ati ss u e h er e, t est i f i ed th ati tw as h i s u su alpr act i ce t o r ev i ew th e f or ei g naccou n tqu est i onon D ef en dan t ’s t ax f

ormw i thh i meach y ear . Th i s con st i tu t ed su f f i ci en tev i den ce f

or a r at i on alj u ryt o h av e i n f err ed th atD ef

en da n tkn ew of

h i s d u tyan d w i l l f

u l l yf ai l ed t o r e p o rtth e f

o r e i g na c c o u n t s . 2 . D e f e nd a nta rg ue s th a t the juryw a s no t i ns truc te d th a t tw o o f th e o ve rt ac t s c h ar g ed i nth e i n di ctm en tar e l eg al l yi n ad eq u at e g r oun ds f ora c on sp i r ac y c o nvi c ti o n und e r G rune w a l d v. U ni te d S ta te s , 3 5 3 U . S . 3 9 1 (1 9 5 7 ). D e f e nd a nt a rgue s tha t the i nd i c tme nt d e f i ne d the c o ns p i ra c y a s a n a gre e me nt to o b s truc t the I R S on l ydu r i n g th e au di tan d th atth e di spu t ed act s w er e m er el ycon ceal m en tof th e con spi r acy . W e r ev i ew f orpl ai nerr or . U n i t ed St at es v . R eci o, 371 F . 3d 1093,3

1 0 9 9 (9 th C i r. 2 0 0 4 ). T he i nd i c tme nt, re a d i n i ts e nti re ty a nd c o ns true d w i th c o mm o n s e ns e , U ni te d S ta te s v. B e rg e r, 4 7 3 F.3 d 1 0 8 0 , 1 1 0 3 (9 thC i r. 2 0 0 7 ), a l l e ge s a c o ns p i ra c y w ho s e o b je c ti ve e xte nd s b e yo nd the a ud i t. M o re o ve r, the e vi d e nc e a s to the und i s p ute d o ve rt a c ts w a s o ve rw he l mi ng. U ni te d S ta te s v. F u c h s , 2 1 8 F .3 d 9 5 7 , 9 6 3 ( 9 thC i r . 2 0 0 0 ) . 3. D ef en da n tar g u es th atth e j u ryi n stru ct i onw as de f ec t i v e b ec au se i tf

ai l ed t o i n clu de th e kn ow l edg e el em en tr equ i r ed by R at zl af v . U n i t ed St at es, 510 U . S. 1 3 5 , 1 4 9 (1 9 9 4 ). W e re vi e w f o r p l a i n e rro r. R e c i o , 3 7 1 F. 3 d a t 1 0 9 9 . T he i n stru ct i onw as n oterr on eo u s, be ca u se i ti n f orm ed th e j u ryth atco n v i ct i onr eq u i r ed a f i nd i ng tha t D e f

e nd a nt k ne w tha t he ha d a l e ga ld uty to re p o rt hi s f o re i gn b a nk a c c o u n t s . 4. D ef en da n tar g u es th atth e j u ryi n stru ct i onw as de f ec t i v e b ec au se i tf

ai l ed t o i n clu de th e m en s r ea of w i l l f u l n es s f orC oun t s 1 0 a n d 1 1, f

ai lur e t o f

i l e a Tr ea suryf

ormr ep ort i n g h i s f

or ei g nba n k a cc oun t s i n19 98 an d 1 99 9. W e r ev i ew f o rp l a i ne rr o r . I d . T h e o m i s s i o no f th e m e n s r e a w a s a ne rr o r , a n d a no b v i o u s o n e . H o w e ve r, no t e ve ry e rro r a f f e c ts a d e f

e nd a nt’ s s ub s ta nti a lri ghts . U ni te d S ta te s v. T u y e tT h i - B a c hN g u y e n , 5 6 5 F .3 d 6 6 8 , 6 7 7 - 7 8 ( 9 thC i r . 2 0 0 9 ) . T h i s o n e d i d n o t . T he juryf

o un d th a t D e f

e nd a ntk ne w o f

hi s d uty t o f

i l e th e f o rm . B e c a us e th e jury f o und tha t D e f

e nd a nt w i l l f

ul l y f i l e d a 1 9 9 9 re turn f

a l s e l y s ta ti ng tha t he ha d no4

fo r e ig nb a n k a c c o u n t , ita lm o s tc e rt a in lyw o u ld h a v e fo u n d th a th is fa ilu r e t o file the a s s o c i a te d T re a s ury f o rms i n 1 9 9 8 a nd 1 9 9 9 , a s he k ne w tha t he ha d a d uty to d o , w a s a l s o w i l l f

u l . 5. D ef en da n tar g u es th atth e j u ryi n stru ct i onw as de f ec t i v e b ec au se i tf

ai l ed to i nc lud e the a c tus re us f o r the c o unts o f

f a i lure to f

i l e a T re a s ury f

o rm re p o rti ng h i s f or ei g nban k accou n t s i n1998 an d 1999. W e r ev i ew f orpl ai nerr or . R eci o, 3 7 1 F . 3 d a t1 0 9 9 . T h e o m is s io no f th e a c tu s r e u s w a s a no b v io u s e rr o r , b u titd id n o ta ffe c tD e fe n d a n t ’ s s ub s t a n t ia l r ig h t s . A ttr ia l, D e fe n d a n td id n o td is p u t e h is f a i lur e to f

i l e th e f o rm s . U ni te d S ta te s v. S mi th , 2 8 2 F.3 d 7 5 8 , 7 6 7 (9 thC i r. 2 0 0 2 ). 6. D ef en da n tar g u es th atth e d i str i ctco u rterr ed byi n stru ct i n g th e j u ryth at "no i nf e re nc e w ha te ve r ma y b e d ra w n f ro m the e l e c ti o n o f

a d e f e nd a nt no t to t e s t ify . " W e r e v ie w fo rp la ine rr o r . R e c io , 3 7 1 F . 3 d a t1 0 9 9 . A j u ryth a tis t o ld th ati tm aydr aw " n o i n f er en ce w h at ev er " i s c l ea r l yi n f orm ed th ati tm ayn otdr aw a ni n f e r e n c e o f g u i l t . 7. D ef en dan tar g u es th ath i s sen t en ce of 67 m on th s’ i mpr i son m en tf or c o nv i c ti o n o f

c o ns p i ra c y t o d e f

ra ud th e U ni te d S ta te s e xc e e d s th e s ta tu to ry m a x i mu ms e n t e n c e o f

6 0 m o n th s . 1 8 U .S .C . § 3 7 1 . W e r e v i e w f o rp l a i ne rr o r . U ni te d S ta te s v. Lo mo w , 2 6 6 F. 3 d 1 0 1 3 , 1 0 2 2 (9 th C i r. 2 0 0 1 ). W e ho l d tha t the d i s tri c t c o urt p l a i nl y e rre d i n s e nte nc i ng D e f e nd a nt to a s e nte nc e i n e xc e s s o f theW e no te tha t the re i s s o me unc e rta i nty a s to w he the r the E x P o s t Fa c to 2 C l au se i s i mpl i ca t ed byth e a dv i so ryu se of th e S en t en ci n g G u i de l i n es af t erU n i t ed St at es v . Booker , 543 U . S. 220 ( 2005) . C ompar e U n i t ed St at es v . D em ar ee, 459 F . 3d 791, 795 ( 7thC i r . 2006) , w i thU n i t ed St at es v . Tu rn er , 548 F . 3d 1094, 1100 ( D . C . C ir . 2 0 0 8 ) . W e n e e d n o ta n d d o n o td e c id e w h e th e rB o o k e ris irr e c o n c ila b le w i thou rh ol di n g s i nO rt l an d an d C astr o, becau se n ei th erof th e part i es bef

or e u s so c o n t e n d s . 5 st atu t orym ax i mu m . I d. W e v ac at e D ef en da n t ’s se n t en ce onth e c on sp i r ac y con v i ct i onan d r em an d f orr esen t en ci n g i ncon f

orm i tyw i th18 U . S. C . § 371. 8 . D e f e nd a nt a rgue s tha t the d i s tri c t c o urt e rre d b y s e nte nc i ng hi m und e r the 2 0 0 1 v e r s i o no f

th e S e n t e n c i n g G u i d e l i n e s o nc o u n t s c o mp l e t e d e a r l i e rth a n2 0 0 1 . W e re vi e w f

o r p l a i n e rro r. R e c i o , 3 7 1 F. 3 d a t 1 0 9 9 . U nd e r U ni te d S ta te s v. O rt l an d, 10 9 F . 3d 53 9, 54 6 ( 9thC i r . 19 97 ) , a c on t i nu i n g of f en se mu stbe se n t en ce d u n de rth e G u i de l i n es v er si oni nef f ec tatth e c on clu si onof

th e o f f en se , i f a l at er v er si oni s un f

av or ab l e t o th e d ef

en da n t . Ho w ev er , w h ena d ef en da n ti s c on v i ct ed 2 of bo tha c on t i nu i n g of

f en se an d o f

f en se s c ompl et ed ea r l i er , th e e ar l i erof f en se s mu stbe se n t en ce d un de rth e v er si oni nef f ec tw h enth eyw er e c ompl et ed . I d. at 546- 47; U n i t ed St at es v . C astr o, 972 F . 2d 1107, 1112 ( 9thC i r . 1992) , ov erru l ed on o the r gro und s b y U ni te d S ta te s v. J i me ne z R e c i o , 5 3 7 U . S . 2 7 0 (2 0 0 3 ). H e re , the c o ns p i ra c y c o unt w a s p ro p e rl y s e nte nc e d und e r the 2 0 0 1 G ui d e l i ne s b e c a us e the l a s t o ve rt a c ts o f

the c o ns p i ra c y o c c urre d a f te r tha t ve rs i o n to o k e f

f e c t. B ut the di str i ctco u rterr ed i nse n t en ci n g D ef en da n tu n de rth e 2 00 1 S en t en ci n g G u i de l i n es6

f o r the c ri me s tha t w e re c o mp l e te d i n e a rl i e r ye a rs — na me l y, f i l i ng f a l s e ta x re turns an d f ai l i n g t o f

i l e th e Tr easu ryf

orm s. U n i t ed St at es v . Pace, 314 F . 3d 344, 352 (9 thC i r. 2 0 0 2 ). T he e rr o r w a s c l e a r a nd o b vi o us un d e r O rt l a nd a nd C a s tr o . It a f f e c t e d D e f

e n d a n t ’ s s ub s t a n t i a lr i g h t s b e c a u s e th e 2 0 0 1 v e r s i o no f § 2 T 4 .1 r e s u l t e d i na l e n g th i e rs e n t e n c e th a nth e r a n g e r e c o m m e n d e d b yth e e a r l i e rv e r s i o n . Sen t en ci n g D ef

en dan tt o a t ermof

i mpr i son m en tl on g erth anth atr ecom m en ded by a p r op erap pl i ca t i onof

th e G u i de l i n es se r i ou slyaf f ec t s th e f ai rn es s o f

j u di ci al p ro c e e d i ng s . U ni te d S ta te s v. P o rt i l l o -M e nd o z a , 2 7 3 F.3 d 1 2 2 4 , 1 2 2 8 (9 thC i r. 2 0 0 1 ) . W e v a c a t e D e f

e n d a n t ’ s s e n t e n c e o nC o un t s 4 th r o u g h7 , a n d 9 th r o u g h1 1 . W e re ma nd to the d i s tri c t c o urt f o r re s e nte nc i ng und e r the p ro p e r ve rs i o ns o f the G u i d e l i n e s . 9 . D e f e nd a nt a rgue s tha t the d i s tri c t c o urt e rre d b y s e nte nc i ng hi m und e r the 2 0 0 1 S e n t e n c in g G u id e lin e s b e c a u s e , u n d e rG ru n e w a ld , th e la s ta c t s p r o p e r ly a t tr ib u t a b l e t o th e c o n s p i r a c yo c c u rr e d b e f o r e th e 2 0 0 1 v e r s i o nc a m e i n t o e f f e c t . W e re vi e w d e no vo . O rtl a nd , 1 0 9 F. 3 d a t 5 4 3 . T he i nd i c tme nt, re a d i n i ts e nti re ty an d c on stru ed w i thco m m onse n se , Be r g er , 47 3 F . 3d at11 03 , al l eg es a c on sp i r ac y w h os e o bj ec t i v e e x t en ds be y on d th e a u di t . D ef en da n tal so ar g u es th atth e d i str i ct c o urt e rre d b e c a us e the tw o a c ts o c c urri ng i n 2 0 0 2 w e re no t p ro ve d b y a7

pr ep on de r an ce of

th e e v i de n ce . U n de rourpl ai nerr orr ev i ew , L om ow , 26 6 F . 3d at 1022, w e f

i n d th atth ese act s w er e su f f i ci en t l ypr ov ed. 10. D ef en dan tar g u es th atth e di str i ctcou rtv i ol at ed F eder alR u l e of C ri mi na lP ro c e d ure 3 2 b y f a i l i ng to e nte r f

i nd i ngs o n the s uf

f i c i e nc y o f

the e vi d e nc e f

o r the tw o o ve rt a c ts tha t tri gge re d the us e o f the 2 0 0 1 ve rs i o n o f

the Sen t en ci n g G u i del i n es. W e r ev i ew de n ov o. U n i t ed St at es v . Herr er a- R oj as, 243 F . 3d 1139, 1142 ( 9thC i r . 2001) . D ef en dan tdi d n otobj ectt o th e u se of th e 2001 ve rs i o n o f

the G ui d e l i ne s o n the gro und tha t tho s e tw o a c ts w e re no t s up p o rte d b y a p re p o nd e ra nc e o f

the e vi d e nc e . T hus , the d i s tri c t c o urt w a s no t re q ui re d to f i nd th a t tho s e a c ts w e re p ro ve d . Fe d . R . C ri m. P . 3 2 (i )( 3 )( B ). 1 1 . D e f e nd a nt a rgue s tha t the d i s tri c t c o urt vi o l a te d R ul e 3 2 b y f a i l i ng to e nte r f i nd i ngs o n D e f

e nd a nt’ s o b

je c ti o ns to the c a l c ul a ti o n o f ta x l o s s i n the P re -S e nte nc e R e p o rt, the c a l c ul a ti o n o f ta x l o s s f

o r p urp o s e s o f

re s ti tuti o n, a nd the c o s t o f p ro s e c uti o n. W e re vi e w d e no vo . H e rre ra -R o ja s , 2 4 3 F. 3 d a t 1 1 4 2 . T he d i s tri c t c o urt f

o und tha t the go ve rnme nt’ s c a l c ul a ti o n o f ta x l o s s "i s the c o rre c t a nd ac cur at e d et erm i n at i onof th e t ax l os s. " Th e d i str i ctco u rtal so f oun d th atth e t ax l o s s c a l c ul a ti o n f

o r r e s ti tu ti o n w a s a d e q ua te l y e xp l a i ne d . Fi na l l y, th e d i s tr i c t c o urt f o und tha t the c o s t o f

p ro s e c uti o n c a me to a s um tha t i nc o rp o ra te d the a mo unt c h a l l e n g e d b yD e f

e n d a n t . T h e d i s tr i c tc o u rtc o mp l i e d w i thR u l e 3 2 .8

1 2 . D e fe n d a n ta r g u e s th a tth e d is tr ic tc o u rte rr e d b yr e fu s in g t o d e c r e a s e h is of f en se l ev elu n derth e § 3E1. 1 sen t en ci n g adj u st m en tf oraccept an ce of r espon sibi l i ty . D ef

en dan tw en tt o tr i alonsom e cou n t s an d di d n ot" accept re s p o ns ib i l i ty f

o r a l lc ri me s o f

w hi c h he . . . i s c o nvi c te d . " U ni te d S ta te s v. G i nn, 8 7 F . 3 d 3 6 7 , 3 7 1 ( 9 thC ir . 1 9 9 6 ) . H e w a s n o te lig ib le fo rth e e x c e p t io na p p lic a b le t o cases i n v ol v i n g tw o separ at e i n di ct m en t s. U n i t ed St at es v . Kel lu m , 372 F . 3d 1 1 4 1 , 1 1 4 5 (9 th C i r. 2 0 0 4 ). T he d i s tri c t c o urt p ro p e rl y d e ni e d the s e nte nc i ng a d jus tme nt. 13. D ef en dan tar g u es th atth e di str i ctcou rterr ed by i n cr easi n g h i s of f en se l e v e lu n d e rth e § 2 T 1 .1 ( b ) ( 2 ) e n h a n c e m e n tf o rth e u s e o f

s o p h i s t i c a t e d m e a n s . D e f e nd a nt’ s us e o f

f o re i gn b a nk a c c o unts to hi d e hi s unre p o rte d i nc o me a nd the c re a ti o n o f

s e ve ra ls ha m l o a ns to c o nc e a lhi s c ri me s w e re no t ne c e s s a ry f o r the c o mm i s s i o n o f

th e c ri me s . U ni te d S ta te s v. M o nt a no , 2 5 0 F.3 d 7 0 9 , 7 1 5 (9 thC i r. 2 0 0 1 ). T he s e a c ti vi ti e s w e re s uf f i c i e ntl y c o mp l e x to s up p o rt a p p l i c a ti o n o f the e n h a n c e m e n tu n d e ra l lr e l e v a n tv e r s i o n s o f th e S e n t e n c i n g G u i d e l i n e s . U .S .S .G . § 2 T 1 .1 c m t . n .4 ; U n i t e d S t a t e s v . A r a g b a y e , 2 3 4 F .3 d 1 1 0 1 , 1 1 0 8 ( 9 thC i r . 2 0 0 0 ) . T he d i s tri c t c o urt p ro p e rl y i mp o s e d the s e nte nc i ng e nha nc e me nt. 14. D ef en dan tar g u es th atth e di str i ctcou rterr ed i ncal cu l at i n g t ax l oss f or p urp o s e s o f

s e nte nc i ng a nd re s ti tuti o n. W e re vi e w f o r c l e a r e rro r. U ni te d S ta te s v.9

G a rr o , 5 1 7 F . 3 d 1 1 6 3 , 1 1 6 7 ( 9 thC ir . 2 0 0 8 ) . T h e d is tr ic tc o u rtc le a r lye rr e d in tr ea t i n g al lth e y enex ch an g ed w i thHo n olu luF or ei g nEx ch an g e a s un r ep ort ed i n com e, becau se th er e w as ev i den ce th atsom e of th e y enw er e der i v ed f

r om re p o rte d s a l e s b y A & E C re a ti o ns , a nd the re w a s no e vi d e nc e to the c o ntra ry. T he di str i ctcou rtal so cl ear l yerr ed i ntr eat i n g th e u n r econ ci l ed ex cess deposi t s f or 1998 as i n com e, as th e ch an g e f r oma sol e pr opr i et or sh ip t o anS C orpor at i on w o ul d no t ha ve w a rra nte d d i f f e re nt tre a tme nt o f

the d e p o s i ts . W e va c a te D e f e nd a nt’ s s e nte nc e a nd re s ti tuti o n o rd e r a nd re ma nd to the d i s tri c t c o urt to re c a l c ul a te ta x l o s s , a c c o unti ng f o r the ye n d e ri ve d f

ro m re p o rte d s a l e s a nd tre a ti ng th e 1 99 8 un r ec on ci l ed ex ce ss de po si t s a s n on - i n co m e. 1 5 . D e fe n d a n ta ls o a r g u e s th a tth e d is tr ic tc o u rtm a d e s e v e r a l o th e re rr o r s in c a l c u l a t i n g t a x l o s s . W e r e v i e w f o rc l e a re rr o r . G a rr o , 5 1 7 F .3 d a t1 1 6 7 . D e f e nd a nt’ s a rgume nts a re una va i l i ng. T he d i s tri c t c o urt d i d no t e rr b y s ub tra c ti ng D e f e nd a nt’ s ne ga ti ve i nc o me f o r 1 9 9 8 f ro m hi s c o rre c te d ta xa b l e i nc o me . T he d i s tr i c t c o urt d i d no t c l e a rly e rri n f i nd i ng th a t D e f

e nd a nt ’ s unre p o rt e d s a l e s w e re i n - st at e, r et ai lsal es; i nf i n di n g th ath i s cr edi tcar d ch ar g es w er e n otbu si n ess expe n se s; ori nr ef

u si n g t o a dj u stth e t ax l os s f orth e v alu e o f

D ef en da n t ’s i nve nto ry w he n the re w a s no e vi d e nc e re ga rd i ng i ts c o s t.10

1 6 . D e f e nd a nt a rgue s tha t the d i s tri c t c o urt e rre d i n rul i ng tha t the g ov ern m en th ad pr ov i ded th e i n f orm at i onr equ est ed by D ef en dan t . W e r ev i ew f

or c l e a r e rro r. U ni te d S ta te s v. W a k ni ne , 5 4 3 F. 3 d 5 4 6 , 5 5 5 (9 th C i r. 2 0 0 8 ). T he d i s tri c t c o urt c l e a rl y e rre d b e c a us e the go ve rnme nt c l a i me d w o rk -p ro d uc t p ri vi l e ge f o r the ma te ri a l . H o w e ve r, the o utc o me w o ul d ha ve b e e n the s a me e ve n ha d the d is tr ic tc o u rtr e c o g n iz e d th a tth e g o v e rn m e n th a d n o tp r o v id e d th e m a t e r ia l, becau se n o ex cept i onf

r omth e pr i v i l eg e appl i ed. Hi ckm anv . Tay l or , 329 U . S. 4 9 5 , 5 1 3 ( 1 9 4 7 ) . T h u s , th e e rr o rw a s h a rm l e s s . 17. D ef en dan tar g u es th atth e di str i ctcou rterr ed i nf i n di n g th atth e cost s of p r o s e c u t io nin c lu d e d c e rt a ine x p e n s e s . W e r e v ie w fo rc le a re rr o r . P . N . v . S e a t t le Sch . D i st . N o. 1, 474 F . 3d 1165, 1168 ( 9thC i r . 2007) . Th e pr e- tr i alpr epar at i on ex pen ses r el at ed t o C ou n t s 4 th r ou g h7 w er e pr operbecau se D ef en dan tdi d n ot pl ead g u i l tyt o th ose cou n t s u n t i lsh ort l ybef or e tr i al . D ef

en dan tw en tt o tr i alon C ou n t9. Th e di str i ctcou rtdi d n otcl ear l yerrbyf i n di n g th atth e cost s of p r o s e c u t i o ni n c lu d e d th e d i s p u t e d a m o u n t s . C o nvi c ti o ns A FFIR M E D . S e nte nc e a nd re s ti tuti o n o rd e r V A C A T E D a nd R EM AN D ED f

orr esen t en ci n g onanopenr ecor d. U n i t ed St at es v . M at th ew s, 278 F.3 d 8 8 0 , 8 8 5 (9 thC i r. 2 0 0 2 ) ( e n b a nc ).