# 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 5- 35 51

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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 Hess

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

an t - Ap pe ll an t

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Uni te d S ta te s Di st ric t Co ur t fo r th e Nor th ern Dis tri ct of I owa - Ced ar Ra pi ds

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Su bm it te d: Apri l 1 5, 2 01 6 Fil ed : J ul y

18 , 20 16

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Befo re RI LEY, Chi ef J ud ge , W OLLMAN and MURPHY, Ci rcu it Ju dg es

.

__ __ __ __ __ __ RILEY, Chi ef J ud ge

.

Tax id erm is t Jam es Hes s p le d g ui lt y to on e co un t o f Lacey Act Traffi ck in g in

v i ol at io n of 16 U.S.C. §§ 33 72 (a)( 1) an d 33 73 (d )(1 )(B) fo r hi s in vo lv em e n t i n t h e
pu rch as e an d s al e o f a p ai r of bl ack rhi no cero s h or ns . The d is tri ct co ur t se nt en ced 1

The Hon or ab le Lin da R. Rea de
, Ch ie f Ju dg e, Uni te d St at es Dis tri ct Co ur t fo r 1 th e Nor th ern Dis tri ct of I owa

.Hes s to 27 m on th s im pr is on m en t, whi ch Hes s ap p e a l s , al le gi ng th e di st ric t co ur t
p r o c ed ur al ly erre d an d im po se d an un reas on ab le se nt en ce. Hav in g ap pe ll at e juri sd ic ti on un de r 28 U.S.C. § 1 29 1, we af fir m th e jud gm en t o f th e d is tri ct co ur t.

I. BACKGRO UND Thi s cas e ari se s ou t of th e Uni te d St at es Fi sh an d W il dl ife Serv ic e’s
in ve st ig at io n int o ill eg al tr af fi ck ing of rh ino ce ro s hor

ns an d iv or y

—Op erat io n Cras h. 2 Ope rat io n Cras h le d in ve st ig at or s to Fel ix Kha
, who was sm ug gl in g rh in oc ero s ho rn s

ou t of Cal ifo rn ia to bu y ers in Taiwa n an d Ch in a, whe re th e ho rn s ha ve th e hi gh es t

m ark et va lu e. Ja m es Hes s op erat ed a t a x i d e r my bu si ne ss ou t of hi s ho m e in Maq uo ke ta , Io wa, si nc e 20 00
, an d so ld wil dl ife it em s to Kha

. W ad e St effe n of te n

w o r k e d a s an ag en t fo r Kha an d tra ve le d th ro ug ho ut th e Uni te d St at es to m ak e
pu rch as es on Kha’s b eh al f.

Acco rd in g to a U.S. Fi sh an d W il dl ife Serv ic e sp eci al ag e n t who te st ifi ed at Hes s’s se nt en ci ng , Hes s agre ed to se ll a pa ir of bl ack rh in oc ero s ho rn s to St effe n in Apr il 20 11

. Hes s tra ns po rte d th e ho rn s fro m Io wa to Ill in oi s. In Ill in oi s, Hes s so ld

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th e h or ns to Ste ffen for $4 0,0 00 . Stef fen sh ip pe d t he ho rn s t o Kh a in Cal ifo rn ia

.

In Aug us t of th at y ear, Hes s res po nd ed to an on li ne ad ve rti se m en t fo r a pa ir of bl ack rh in oc ero s ho rn s fro m a se ll er res id in g in Oreg on

. Hes s in di cat ed to th e se ll er he in te nd ed to se ll th e ho rn s to an Oreg on res id en t. Hes s un su cces sf ul ly tri ed to se ll
th e ho rn s an d la te r co nt act ed St effe n to se e if he was in te res te d in bu y in g an ot he r pa ir of bl ack rh in oc ero s ho rn s. Hes s and St effe n agr eed Hes s wou ld pu rch as e th e ho rn s

“ Cras h” is a te rm

us ed to de sc rib e a h erd of r hi no cero se s. 2

The bl ack rh in oc ero s is li st ed as an en da ng ered sp eci es un de r th e End an ge red 3 Sp e c ie s Act. See 16 U.S.C. § 15 33 (a)( 1)
, (c)( 1) ; 50 C.F.R. § 17 .11 (h ). It is al so pr ot ect ed un de r th e Co nv en ti on on In t e r n a t i on al Trad e in End an ge red Sp eci es of W il d F au na an d F lo ra.

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th e se ll er i n Ore go n, St effe n wou ld se ll th e h or ns , and th e two wou ld sp li t t he

pr of it of t he sal e.

Hes s tra ve le d to Ill in oi s, whe re St effe n ga ve hi m $1 7,0 00 to m ak e th e
pu rch as e. On Aug us t 23 , 2 01 1, Hes s fle w t o Oreg on a n d m et wit h th e se ll er of th e ad ve rti se d ho rn s. Hes s sh owe d th e se ll er a co py of an Oreg o n d r i v e r’s li cen se

su pp os ed ly be lo ng in g to th e in -s ta te bu y er fo r who m Hes s was m ak in g th e pu rch as e. Hes s pu rch as ed th e ho rn s fo r $1 6,0 00 an d sh ip pe d th em to hi s Io wa ho m e. Afte r th e ho rn s arri ve d, Hes s an d St effe n m et in Dav en po rt, Io wa, whe re St effe n pa id Hes s ha lf of th e pr of

it he be li ev ed th ey wou ld m ak e on th e sa le of th e ho rn s. St effe n th en so ld
th e h or ns to Kha f

or $5 0,0 00

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Hes s ev en tu al ly cam e to th e at te nt io n of th e Ope rat io n Cras h in ve st ig at io n an d

was arre st ed

. Bas ed on t h e Aug us t 20 11 tra ns act io n, Hes s was ch arg ed wit h on e

co un t of Lacey Act Traffi ck in g, se e 16 U.S.C. §§ 33 72 (a)( 1)
, 33 73 (d )(1 ) ( B )
, f or kn owi ng ly en ga gi ng in co nd uc t in vo lv in g th e sa le an d pu rch as e of wil dl ife wit h a

m ark et va lu e ex ceed in g $3 50 th at was tra ns p o r t e d a n d so ld in vi ol at io n of th e End an ge red Sp eci es Act, 16 U.S.C. §§ 15 38 (a)( 1) (E), (F), an d 15 40 (b ). In May 20 15
, Hes s waiv ed hi s rig ht to a pr os ecu ti on by in di ct m en t. He pl ed gu il ty on May 13
, 20 15

. Hes s an d th e go ve rn m en t st ip ul at ed to a twel ve -le ve l enh an cem en t to Hes s’s of fen se le ve l un de r th e Uni te d St at es Sen te nc in g Gui de li ne s (U.S.S.G. or Gui de li ne s)

to acco un t fo r th e m ark et v a l u e o f t h e ho rn s, whi ch th ey ag reed was be twee n $2 00 ,00 0 a nd $4 00 ,00 0. See U.S.S.G. § § 2 B1 .1(b )(1 )(G), 2 Q2.1 (b )(3 )(A) (2 01 4)

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Hes s clai m s he was una ware Steff en in te nd ed to se ll th e ho rn s to Kha

. Hes s 4 al so ob jecte d to th e sa le p r i c e a n d mar ke t va lu e of th e ho rn s se t fo rth in th e pr es en te nc e in ve st ig at io n rep or t, bu t la te r ag reed wit h th e go ve rn m en t ab ou t th ei r

m ark et va lu e.

Hes s’s ch arg e was ba se d so le ly on th e Aug us t 20 11 tra n s a c t io n, an d he 5 di sp ut ed th e rel ev an ce of th e Apr il 20 11 tra ns act io n be fo re th e di st ric t co ur t. Bas ed

on th e ag reed up on m ark et va lu e, ev en if th e di st ric t co ur t ha d de ci de d to co ns id er th e

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or e se nt en ci ng , Hes s an d th e go ve rn m en t ag reed th e ap pl ic ab le ad vi s o r y Gui de li ne s ran ge was 27 to 33 m on th s im pr is on m en t (o ffen se le ve l 17
, cat eg or y II).
Hes s m ov ed fo r a do wnwar d var ia nc e, req ue st in g pro ba ti on , whi ch th e go ve rn m en t
op po se d. At sen te nc in g, th e di st ric t cou rt den ie d Hess ’s req ue st an d se nt en ced hi m
to 27 m on th s in pr is on fo ll owe d by th ree y ears of su pe rv is ed rel eas e. Hes s ap pe al s.

II

. DISCUSS IO N
Hes s fir st arg ue s th e di st ric t co ur t m ad e an “ un su st ai na bl e fin di ng on th e record

pr es en te d” whe n it st at e d : “In ge ne ral te rm s, no , M r. Hes s di d no t go to Afri ca an d

po ach a bl ack rh in o. Bu t by hi s act io ns , he he lp ed es ta bl is h a m ark et fo r th es e bl ack
rh in o h or ns , and th at is a se rio us off en se ag ai ns t t he pl an et .” Beca us e Hes s d id no t

o bjec t to th e di st ric t co ur t’s st at em en t du rin g se nt en ci ng , we rev ie w th is is su e fo r pl ai n e rro r. See Un it ed Sta te s v . Bla ck , 67 0 F .3d 87 7, 8 81 (8t h C ir. 2 01 2)

.

Hes s cl ai m s th e di st ric t co ur t’s st at em en t was “ ba se d on sp ecu la ti on ” be cau se th e reco rd do es no t de m on st rat e hi s act io ns “ su pp or t[e d] a ‘m ark et ’ fo r po ach ed bl ack
rh in o ho rn s.” In Hes s’s vi ew, be cau se th e ho rn s h e p ur ch as ed in Oreg on were fi rs t
acq ui red leg al ly in 1 95 7, h e “ di d n ot co nt rib ut e to a m ark et or d em an d fo r po ac he d bl ack rh in o ho rn s.” Dur in g se nt en ci ng , t he go ve rn m en t ca ll ed a sp eci al ag en t wit h
th e U.S. Fi sh an d W il dl ife Serv ic e who ex pl ai ne d ho w th e “ sk y ro ck et in g pr ic e” be in g
pa id fo r rh in oc ero s h or ns ha s “ fu el [ed ] a h ug e m ark et in th e h om e co un tri es fo r th e rh in os in Afri ca,” co nt rib ut in g to an d in crea si ng “ th e po ach in g ep id em ic .” See, e.g ., Uni te d St at es v. Bern al
, 90 F.3 d 46 5, 46 7 (1 1t h Ci r. 19 96 ) (p er cu ria m ) (“ The pu rp os e of th e Lacey Act is to pr ot ect ‘tho se sp eci es of fis h an d wil dl ife who se co nt in ue d

ex is te nc e is pr es en tl y th reat en ed ’ by ‘grad ua ll y dr y in g up th e in te rn at io na l m ark et fo r

en da ng ered sp eci es ,’ th us ‘redu ci ng th e po ach in g of an y su ch sp eci es in th e co un try

Apr il 20 11 tra ns act io n as rel ev an t an d in cl u d e it s va lu e in th e to ta l m ark et va lu e, Hes s’s of fen se le ve l un de r th e Gui de li ne s wou ld ha ve rem ai ne d un affe ct ed be cau se th e to ta l m ark et va lu e wou ld st il l no t ha ve ex ceed ed $4 0 0
, 0 0 0

. See U.S.S.G. §§ 2B 1.1 (b )(1 )(G), 2 Q2.1 (b )(3 )(A) (2 01 4)

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-whe re it is fo un d.’” (q uo ti ng S. Rep

. No. 91 -5 26
, as rep rin te d in 19 69 U.S.C.C.A.N.

14 13
, 14 15 -1 6) ). The reco rd su pp or ts th e di st ric t co ur t’s st at em en t th at Hes s’s

ac tio ns co ntri bu te d to es ta bl is hi ng an d fu rth eri ng a m ark et fo r bl ack rh in oc ero s ho rn s. Usi ng fal se id en ti fic at io n, Hes s pu rch as ed a pa ir of bl ack rh in oc ero s ho rn s an d

s h i pp ed th e ho rn s acro ss th e co un try—kn owi ng th ey wou ld be res ol d. The di s t r i c t

co ur t d id no t p la in ly err.

Hes s al so arg ue s, “ [g ]ive n [h is ] acce pt an ce of res po ns ib il it y , hi s li m it ed cri m in al hi st or y , an d th e m or e le ni en t se nt en ces fo r [o th er] in di vi du al s pr os ecu te d as
pa rt of Ope rat i on Cras h,” th e di st ric t co ur t im po se d an un reas on ab le se nt en ce an d
fai le d to sa ti sf

y th e se nt en ci ng go al s un de r 18 U.S.C. § 35 5 3 ( a )

. We r e vi ew th e

su bs ta nt iv e reas on ab le ne ss of a se nt en ce fo r an ab us e of di sc ret io n, af f o r di ng a

se nt en ce “ wit hi n th e Gui de li ne s ran ge

. . . a pr es um pt io n of reas on ab le ne ss .” Gall v. Uni te d Stat es , 55 2 U.S. 38
, 51 (2 00 7) ; se e Uni te d St at es v. Feem st er, 57 2 F.3 d 45 5,
46 1 (8 th Cir . 20 09 ) (en ba nc ).

The di st ric t co ur t th or ou gh ly co ns id ered Hes s’s cri m in al hi st or y an d th e effe ct th e se nt en ce wou ld ha ve on Hes s’s rel at io ns hi p wit h hi s so n, di sa gr eei ng wit h Hes s’s

pr op os it io n th at he i s no t a “ rep eat of fen de r.” The di st ric t co ur t “ care fu ll y

co ns id ered ” th e § 35 53 (a) fact or s, st at in g th e se nt en ce m us t “ refl ect th e se rio us ne ss of th e of fen se , . . . pr om ot e res pe ct fo r th e la w, be a jus t pu ni sh m en t, affo rd ad eq ua te de te rren ce

. . . , pr ot ect th e pu bl ic

. . . , [an d] pr ov i d e t h e d efen da nt wit h ne ed ed ed uc at io n

. . . o r o th er co rrec ti on al tre at m en t.” See 18 U.S.C. § 35 53 (a)( 1)
, (2 ).
Res po nd in g to Hes s’s arg um en t th at ot he r in di vi du al s pr os ecu te d th ro ug h Ope rat io n Cras h rece iv ed m or e le ni en t se nt en ces , th e di st ric t co u r t e x p l ai ne d it co ul d no t

“ sp ecu la te why jud ge s i n d iff eren t jud ic ia l d is tri ct s ac ro ss th e co un try deci de d o n a
pa rti cu la r di sp os it io n fo r a p art ic ul ar d efen da nt .”

Hav in g rev ie wed th e se nt en ci ng tra ns cri p t , w e co nc lu de Hes s ha s fai le d to

ov erco m e th e pr es um

pt io n of reas on ab le ne ss we ap pl y to hi s bo tt om of th e ad vi so ry

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-Gui de li ne s ran ge se nt en ce. See Gall
, 55 2 U.S. at 51

. “ ‘[T] he c o u r t c a r efu ll y

ex pl ai ne d t he reas on s fo r it s s en te nc e an d i ts refu sa l t o v ary d own ward , a nd we se e

no in di cat io n th at th e co ur t im p r o p e rly weig he d th e se nt en ci ng fact or s.’” Uni te d
St at es v. Harl an , 81 5 F.3 d 11 00
, 11 07 (8 th Ci r. 20 16 ) (al te rat io n in or ig in al ) (q uo ti ng Uni te d S ta te s v . W an na , 74 4 F .3d 58 4, 5 89 (8t h C ir. 2 01 4) ).

II I. CONCLUSI ON Fi nd in g n o e rro r, we affi rm

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