# U ni te d S ta te s Co ur t of A pp ea ls

For the Eig hth Circu it

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No. 1 6- 13 73

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Uni te d S ta te s o f Am eri ca

ll ll ll ll ll ll ll ll ll ll l Pla in ti

ff - App el le e

v.

Ja m es Cla y to n B ai le y

ll ll ll ll ll ll ll ll ll ll l Defe nd

an t - Ap pe ll an t

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App eal fro m

Uni te d S ta te s Di st ric t Co ur t fo r th e So ut he rn Dis tri ct of I owa - Dav en po rt

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Su bm it te d: Sep te m

be r 19 , 20 16
Fi le d: Sep te m

be r 26 , 20 16 [Un pu bl is he d]

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Befo re LOKEN, BEAM, and GRUENDER, Circu it Ju dg es

.

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PER CURI AM.

Ja m es Cl ay to n Bai le y ap pe al s th e di st ric t co ur t's ap pl ic at io n of Uni te d St at es 1

Sen te nc in g Gui de li ne s (U.S.S.G.) § 3C 1.1 , t he o b s t r u ct io n of jus ti ce en ha nc em en t,

Th e Hon or ab le St ep ha ni e M. Ro se , Uni te d St at es Dis tri ct Ju dg e fo r t h e 1

So ut he rn Dis tri ct of I owa

.whe n cal cu la ti ng hi s se nt en ce of fif te en m on th s' im

p r i s on m en t fo r th eft of

go ve rn m en t fu nd s. Fo r th e rea so ns di sc us se d b el ow, we af fir m

.

I. BACKGRO UND

In Decem be r 20 03

, Bai le y be ga n rece iv in g So ci al Sec u r i t y Dis ab il it y (SSD)

be ne fit s. The le tt er acco m pa nyin g hi s award of SSD be ne fit s sp eci fic al ly st at ed th at

he was to in fo rm th e So ci al Secu rit y Adm in is tra ti on (SSA) if he were ev er co nv ic te d

of a cri m e, as in carc erat ed in di vi du al s are no t e n t i tl ed to SSD be ne fit s. In Octo be r

20 09

, Bai le y was co nv ic te d of se xu al ab us e an d se nt en ced to a te rm of im pr is on m en t

n o t to ex ceed te n y ears

. He was rel eas ed in May 20 14

. Dur in g h i s t i me o f

in carc erat io n, Ba il ey co nt in ue d rece iv in g SSD b en efi ts . The SSA h ad no reco rd of

hi s co nv ic ti on an d in carc erat io n an d th us co nt in ue d de po si ti ng fu nd s in to hi s acco un t

at Deere Harv es te r Cred it Uni on

. As a res ul t, th e SSA ov erp ai d Bai le y a to ta l of

$5 3,7 55 .80

.

In Ju ly 20 14

, th e SSA co nt act ed Bai le y aft er rece iv in g a Pri so ne r Upd at e Aler t

st at in g th at B a i l ey ha d be en in carc erat ed fro m Octo be r 20 09 to May 20 14

. W he n

Bai le y co nf

irmed th at he ha d be en in carc erat ed

, th e SSA be ga n an in ve st ig at io n an d

is su ed a Not ic e o f Ch an ge in Ben efi ts in di cat in g th at he was o ve rp ai d $ 53 ,75 5.8 0. 2

In Sep te m be r 20 14

, Bai le y fil ed a Req ue st fo r W ai ve r of Ove rp ay m en t Rec ov ery (th e

fo rm ) st at in g t ha t h e was un ab le to rep ay th e am ou nt req ue st ed

. In th e fo rm , whi ch

co nt ai ne d a pe na lt y of pe rjury cl au se , Bai le y st at ed th at he was no t res po ns ib le fo r th e

ov erp ay m en t be cau se "[h e] d id no t acce pt th e o ve rp ay m en t. [He] was l oc ke d up at

th e ti m e. [His ] po wer of at to rn ey go t th e m on ey

. Sh e was su pp os ed to st op [ h i s]

ch eck s." He fu rth er sta te d th at "[h e] di dn 't real iz e th at sh e di d no t st op [h is ] ch eck s

un ti l [h e] was rel eas ed fro m jail ."

The SSA was ab le to w i t h h ol d di sb ur se m en ts in th e am ou nt of $1 ,31 4.6 0. 2

Thu s, Ba il ey

was o ve rp ai d $ 52 ,44 1.2 0.

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-Pri so n ph on e reco rd s an d te st im on y fro m Lan a Lue dt ke

, Bai le y 's gi rlf rie nd an d

po wer of at to rn ey , sh ow th at each m on th Bai le y ge ne ral ly in st ru ct ed Lue dt ke to us e

th e SSD be ne fit fu nd s to m ak e Bai le y 's lo an pa y m en t fo r hi s m ot or cy cl e an d se nd hi m $2 00 in pr is on

. Lue dt ke was th en al lo wed to us e th e rem ai ni ng m on ey fo r wha te ve r
sh e ne ed ed

. Bet ween Octo be r 20 09 an d Ja nu ary 20 14

, Lue dt ke wit hd rew m or e th an $3 8,0 00 fro m t h e a c c o un t an d wire d ap pr ox im at el y $1 0,0 00 to Bai le y in pr is on

. Dur in g an Apr il 20 15 in te rv ie w, Bai le y ad m it te d to la w en fo rcem en t of fic ers th at he

kn ew he ne ed ed to rep or t hi s in carc erat io n to th e SSA, th at he co nt in ue d t o re cei ve

SSD be ne fit s whi le in carc erat ed

, an d th at Lue dt ke di st rib ut ed th e m on th ly ch eck s as

in di cat ed

.

In Ju ne 20 15

, Bai le y was ch arg ed wit h th eft of go ve rn m en t pr op ert y , in

vi ol at i o n o f 1 8 U.S.C. § 64 1, an d fai lu re to di sc lo se in fo rm at io n to th e SSA, in

vi ol at io n o f 4 2 U

. S .C. § 40 8( a)(4 ). On Octo be r 26 , 2 01 5, he pl ed gu il ty t o th eft of

go ve rn m en t pr op ert y an d was se nt e n c e d on Ja nu ary 29

, 20 16

. The Pres en te nc e

In ve st ig at io n Rep or t (PSR ) in crea se d t he ba se le ve l of si x by s ix le ve ls pu rs ua nt to

U.S.S.G. § 2B 1.1 (b )(1 )(D) be cau se th e lo ss ex ceed ed $4 0,0 00

, de crea se d th e of fen se
le ve l by two le ve ls pu rs ua nt to U.S.S.G. § 3E1 .1(a ) be cau se Bai le y acce pt ed

res po ns ib il it y , an d ad de d a two -le ve l en ha nc em en t pu rs ua nt to U.S.S.G. § 3C 1.1 fo r
ob st ru ct io n of jus ti ce. Acco rd in g to th e PSR, by m ak in g fal se st at em en ts on th e Sep te m be r 20 14 fo rm , Bai le y "p ro du c[ed ] or at te m pt [ed ] to pr od uc e a fal se , al te red

,

or co un te rfei t do cu m en t or reco rd du rin g an of fic ia l in ve st ig at io n," whi ch m ad e hi m
el ig ib le fo r th e ob st ru ct io n of jus ti ce en ha nc em en t. U.S.S.G. § 3C 1.1 , c m t. n.4 (C).

At se nt en ci ng , Bai le y ob je c te d to th e two -le ve l en ha nc em en t fo r ob st ru ct io n of
jus ti ce, arg ui ng th at th e st at em en ts on th e fo rm , whi ch was pr ov id ed by th e SSA, di d

"n ot ris e to th e le ve l of wil lfu ll y ob st ru ct in g or at te m pt in g to ob st ru ct or im

pe de th e

ad m in is tra ti on of ju st ic e."

The di st ric t co ur t co nc lu de d t ha t th e § 3C1 .1 en ha nc em en t fo r ob st ru ct io n o f
jus ti ce ap pl ie d be cau se Bai le y m ad e an "u nq ue st io na bl y fal se st at em en t . . . . un de r

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-pe na lt y of pe rjury" wit h th e sp eci fic in te nt of "p rev en t[i ng ] th e [SSA] fro m de te ct in g

w h a t h a p p e n ed an d fro m co ll ect in g m on ey fro m hi m th at he fal se ly an d un de r

frau du le nt ci rcu m st an ces to ok ." W it h a to ta l o ffen se lev el of t welv e an d a cri m in al

hi st or y cat eg or y of III, Bai le y 's Gui de li ne s rang e was fif te en to twen ty-on e m on th s.

The di st ric t co ur t se nt en ced hi m to fif te en m ont hs ' im pr is on m en t. Bai le y no w ap pe al s

arg ui ng th at th e di st ric t co ur t erre d by en ha nc in g hi s Gui de li ne s ran ge fo r ob st ru ct io n

of jus ti ce ba se d o n h i s s t at em en ts in th e SSA fo rm be cau se (1 ) he di d no t in te nd to

ob st ru ct th e in ve st ig at io n, (2 ) th ere is no ev id en ce hi s st at em en ts were li ke ly to th wart

t he in ve st ig at io n in to hi s cri m in al of fen se , an d (3 ) hi s co nd uc t was no t ak in t o t h e

co nd uc t d es cri be d i n No te 4(C ) of § 3 C1 .1.

II

. DISCUSS IO N

W e rev ie w l eg a l co nc lu si on s in ap pl y in g a Gui de li ne s en ha nc em en t de no vo

an d th e un de rlyin g fact ua l su pp or t fo r th e en ha nc em en t fo r cl ear erro r. Uni te d St at es

v. Co ll in s, 75 4 F.3 d 62 6, 62 9 (8 th Ci r. 20 14 ). U.S.S.G. § 3C 1.1 in crea se s th e of fen se
le ve l by t wo whe re "t he de fen da nt wil lfu ll y ob st ru ct ed or im pe de d, or at te m

pt ed to

ob st ru ct or im

pe de

, th e ad m in i s t r a t i on of jus ti ce wit h res pe ct to th e in ve st ig at io n,

pr os ecu ti on , or se nt en ci ng of t h e in st an t of fen se of co nv ic ti on ." Co nd uc t by th e

de fen da nt th at oc cu rred pr io r to th e st art of an of f i c i a l i nv es ti ga ti on fit s wit hi n th e

en ha nc em en t "i f th e co nd uc t was pu rp os efu ll y cal cu la te d, an d li ke ly, to t h w a r t t he

in ve st ig at io n o r pr os ecu ti on of t he off en se ." U.S.S.G. § 3 C1 .1 cm t. n .1.

Fi rs t, th ere is su ffi ci en t ev id en ce to co nc lu de th at Bai le y "co ns ci ou sl y act [ed ]

wit h th e pu rp os e of ob st ru ct in g jus ti ce." Uni te d St at es v. W at ts

, 94 0 F.2 d 33 2, 33 2-

3 3 (8 th Ci r. 19 91 ) (q uo ti ng Uni te d St at es v. St ro ud

, 89 3 F.2 d 50 4, 50 7 ( 2 d C i r

. 19 90 )). He cl earl y in te nd ed to ob st ru ct th e SSA's in ve st ig at io n so th at he wou ld no t

ha ve to rep ay th e m on ey th at he il le ga ll y co ll ect e d

. B a i l e y a rg ue s th at he di d no t

kn ow h e wou ld be cri m in al ly li ab le fo r hi s fals e st at em en ts be cau se th e fo rm st at ed

th at th e SSA rare ly us es su ch in fo rm at io n fo r a n y pu rp os e ot he r th an as se ss in g

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-r e pa y m en t waiv ers

. Thi s arg um en t, ho wev er, do es no t ch an ge th e fact th at hi s

pu rp os e fo r m ak in g fal se st at em en ts was to in te rfer e w i t h th e in ve st ig at io n in to hi s
cri m in al act iv it y

.

S eco nd

, th e reco rd sh ows th at Bai le y 's act io ns were "l ik el y " to th wart t h e

in ve st i g a ti on in to hi s cri m in al of fen se , U.S.S.G. § 3C 1.1 cm t. n.1

, an d th e fal se

st at em en ts on th e fo rm di d in fact "s ig ni f i c a n tl y ob st ru ct [] or im

pe de [] th e of

fic ia l

in ve st ig at io n," id

. § 3C 1.1 cm t. n.4 (G). In Uni te d St at es v. McKa nr y , 62 8 F.3 d 10 10

, 10 14 -1 5 (8 th Ci r. 20 11 ), McKa nr y as si st ed wit h th e frau du le nt sa le an d fin an ci ng of

res id en ti al pr op ert ie s an d th en de ni ed in vo lv em en t in th e tra ns act io n whe n

in te rv ie wed by a Uni te d St at es Po st al In sp ect or

. Dur in g se nt en ci ng , th e di st ric t co ur t

ap pl ie d th e ob st ru ct io n of jus ti ce en ha nc em en t. Id

. at 10 15 -1 6. On ap pe al

, McKa nr y
ch al le ng ed th e en ha nc em en t, arg ui ng th at th e in ve st ig at io n was in no way ob st ru ct ed

or im pe de d by hi s fal se st at em en ts

. Id

. at 10 21

. Thi s co ur t up he ld th e ob st ru ct io n of
jus ti ce en ha nc em en t st at in g th at "[h ]ad McKa nr y tol d In spe ct or W alter th e tru th ab ou t

th e do w n p ay m en ts du rin g th ei r m eet in g, th e in ve st ig at io n an d pr os ecu ti on

reas on ab ly wou ld h a v e pr oc eed ed m or e qu ic kl y an d req ui red le ss effo rt." Id

. Si m il arl y , ha d Bai le y to ld th e tru th on th e fo rm , th e SSA in ve st ig at or s wou ld no t ha ve

ha d to si ft th ro ug h y ears of ba nk reco rd s an d li st en to ho ur s of te le ph o n e cal ls to

de te rm in e whe th er B a i l e y h a d kn owl ed ge of th e co nt in ue d SSD be ne fit pa y m en ts

. Thu s, Bai le y 's fal se st at em en ts on th e SSA fo rm ob st ru ct ed or i mp e de d th e

in ve st ig at io n.

Thi rd

, Not e 4 of § 3C 1.1 pr ov id es a no n- ex ha us ti ve li st of co nd uc t co ve red by

th e en ha nc em en t, an d Not e 5 pr ov id es a no n- ex ha us ti ve li st of co nd uc t no t ge ne ral ly

co ve red by th e en ha nc em en t. Bai le y arg ue s th at hi s co nd uc t was m or e si m il ar to th e

co nd uc t in Not e 5, no t Not e 4, wh i c h t he di st ric t co ur t rel ie d on whe n ap pl y in g th e

en ha nc em en t. Howev er, ev en co nd uc t li st ed in Not e 5 fit s wit hi n th e ob st ru ct io n of
jus ti ce en ha nc em en t if th e co nd uc t si gn ifi c a n t l y ob st ru ct ed th e in ve st ig at io n. See

U.S.S.G. § 3C 1.1 cm t. n.5 & cm t. n.4 (G). A s d i s c u s s ed ab ov e, Bai le y 's fal se

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-st at em en ts on th e fo rm ob st ru ct ed or im pe de d th e in ve st ig at io n. Thu s, be cau se t h e

st at em en ts Bai le y m ad e on th e fo rm were cl earl y fal se , m ad e un de r pe na lt y of pe rjury,

m ad e wit h in te nt to

, an d di d in fact

, s ig ni fic an tl y ob st ru ct th e SSA's in ve st ig at io n,

Bai le y 's co nd uc t co m es wit hi n th e pu rv ie w of th e ob st ru ct io n of jus ti ce en ha nc em en t.

II I. CONCLUSI ON

The jud gm en t o f th e d is tri ct co ur t i s af fir m ed

.

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