Source: https://openjurist.org/304/f3d/1001/united-states-v-proffit
Timestamp: 2018-08-21 06:44:16
Document Index: 280107346

Matched Legal Cases: ['§ 1', '§ 1', '§ 1341', '§ 2', '§ 3', '§ 3', '§ 3']

304 F3d 1001 United States v. Proffit | OpenJurist
304 F. 3d 1001 - United States v. Proffit
304 F3d 1001 United States v. Proffit
304 F.3d 1001
Stephen Ralph PROFFIT, Defendant-Appellant.
No. 01-8065.
II. More Than Minimal Planning
The Guidelines in force at the time of Defendant's sentencing provide for a two-point enhancement for crimes involving more than minimal planning. Section 2F1.1(b)(2) states "[i]f the offense involved (A) more than minimal planning, or (B) a scheme to defraud more than one victim, increase by 2 levels." Because Mr. Cook is the only victim, the court granted the increase based on more than minimal planning. The district court's decision to enhance Defendant's offense level for more than minimal planning is subject to review for clear error. United States v. Lambert, 995 F.2d 1006, 1008 (10th Cir.1993) (factual findings subject to clear error review, interpretation of the Guidelines reviewed de novo).
The Guidelines Application Notes identify three groups of activities that merit an enhancement for more than minimal planning. In order to justify an enhancement for more than minimal planning, the district court must show that 1) Defendant took "significant affirmative steps ... to conceal the offense other than conduct" prohibited under the Guidelines' provisions for the obstruction of justice enhancement, or 2) Defendant engaged in "repeated acts over a period of time," or 3) Defendant's crime evidenced "more planning than is typical for commission of the offense in a simple form." U.S. Sentencing Guidelines Manual § 1B1.1(f) (2000) (defining more than minimal planning); see, e.g., United States v. Copus, 110 F.3d 1529, 1537 (10th Cir.1997).
This offense clearly involved more than minimal planning. In fact, it was a highly sophisticated, detailed, extended effort at mail fraud. Pursuant to 2F1.1(b)(2), the Court can increase the offense levels if the record reflects repeated acts over an extended period of time and thereafter considered efforts to conceal those activities. I think all of that occurred here. A two-level increase is, therefore, appropriate for that as well.
The district court also cites Defendant's repeated acts to justify its decision to enhance for more than minimum planning. The court misconstrues the intent of the language "repeated acts over a period of time." A review of our prior decisions indicates that the notion of repeated acts refers to a series of acts each of which would be criminal standing alone, rather than referring to a crime that requires the completion of a series of steps. See, e.g., United States v. Allen, 129 F.3d 1159, 1166 (10th Cir.1997) (multiple acts of embezzlement); United States v. Orr, 68 F.3d 1247, 1253 (10th Cir.1995) (depositing 298 checks as part of a check kiting scheme); United States v. Rice, 52 F.3d 843, 850 (10th Cir. 1995) (filing fraudulent tax returns for several years); United States v. Wise, 990 F.2d 1545, 1550-51 (10th Cir.1992) (execution of five notes and twelve draw letters over two and one-half years to defraud bank); United States v. Abud-Sanchez, 973 F.2d 835, 837 (10th Cir.1992) (submission of multiple fraudulent invoices to multiple health benefit providers); United States v. Lee, 973 F.2d 832, 833 (10th Cir.1992) (five separate cases of embezzlement); United States v. Williams, 966 F.2d 555, 558-59 (10th Cir.1992) (repeated acts of embezzlement); United States v. Sanchez, 914 F.2d 206, 207 (10th Cir.1990) (using a stolen credit card fifteen times). The district court's statement that "the record reflects repeated acts over an extended period of time" is insufficient for a finding of minimal planning. Rec., Vol. IX, at 57. Without setting forth the series of acts, each of which would be criminal standing alone, we are unable to affirm the district court's enhancement decision for more than minimal planning based on repeated acts.
The third basis on which the decision to enhance for more than minimal planning may be upheld is evidence that Defendant's crime required "more planning than is typical for commission of the offense in a simple form." U.S.S.G. § 1B1.1(f) (emphasis added). Defendant pleaded guilty to a single violation of 18 U.S.C. § 1341. He was sentenced pursuant to Guideline § 2F1.1(b)(1)(G) for fraud and deceit involving more than $40,000 but less than $70,000. Thus, the proper inquiry is whether Defendant's actions demonstrated a greater amount of planning than required to defraud an individual of between $40,000-$70,000 in a simple manner.
In this case, the success of Defendant's scheme to defraud depended upon his ability to successfully ingratiate himself to Mr. Cook. This required several contacts by phone, flying to Denver to meet Mr. Cook, renting a car to drive from Denver to Wyoming, development and use of false stories concerning his success in trading cattle futures, and several requests for money culminating in the receipt of Mr. Cook's check. Taken together, these actions show a level of planning in excess of the amount of planning required to commit mail fraud of $40,000-$70,000 in its simple form. See, e.g., United States v. Levinson, 56 F.3d 780, 782 (7th Cir.1995) (inflating an otherwise valid insurance claim is an example of mail fraud in its simple form). Accordingly, we affirm the district court's decision to enhance Defendant's sentence for more than minimal planning.
Defendant also challenges the district court's decision to enhance his offense level by two points because his crime involved a vulnerable victim. Section 3A1.1(b)(1) allows an enhancement "[i]f the defendant knew or should have known that a victim of the offense was a vulnerable victim...." We have previously held that it is not a prerequisite that a defendant be aware of the victim's vulnerability at the time the defendant targets the victim; learning about the vulnerability during the criminal episode is sufficient. See United States v. Hardesty, 105 F.3d 558, 560 (10th Cir.1997).
The concept of "vulnerability" under the Guidelines is potentially confusing. Success of all fraudulent schemes depends in some measure on a victim's vulnerability, and perpetrators of fraud routinely target vulnerable individuals. The Guidelines' enhancement, however, is reserved for exceptional cases in which the victim is unusually vulnerable or particularly susceptible to the crime committed. See, e.g., United States v. Smith, 930 F.2d 1450, 1455 (10th Cir.1991) (rejecting enhancement because fact woman victim was elderly alone was insufficient to justify vulnerable victim enhancement). "Vulnerable victims" are individuals unable to protect themselves who therefore require greater societal protection. See, e.g., United States v. Shumway, 112 F.3d 1413, 1422-24 (10th Cir.1997). Membership in a class of individuals considered more vulnerable than the average individual is insufficient standing alone. See United States v. Tissnolthtos, 115 F.3d 759, 761-62 (10th Cir. 1997) (rejecting enhancement based on advanced age alone); Lee, 973 F.2d at 833-34 (same); Smith, 930 F.2d at 1455 (same); United States v. Creech, 913 F.2d 780, 781-82 (10th Cir.1990) (rejecting enhancement because newlyweds as a class did not qualify as vulnerable victims).
Clearly that is why the sentencing commission has adopted 3A1.1(b)(1), and clearly this victim-related adjustment is appropriate, given all the factual matters which have been presented to me.
Defendant next challenges the district court's refusal to grant him credit for acceptance of responsibility. The district court's decision is subject to clearly erroneous review. See United States v. Mitchell, 113 F.3d 1528, 1533 (10th Cir. 1997). Defendant bears the burden of proving entitlement to an adjustment for acceptance of responsibility. See United States v. Wach, 907 F.2d 1038, 1040 (10th Cir.1990).
Guideline § 3E1.1(a) states that "[i]f the defendant clearly demonstrates acceptance of responsibility for his offense, decrease the offense level by 2 levels." In addition, the commentary to this section indicates that "[c]onduct resulting in an enhancement under § 3C1.1 (Obstructing or Impeding the Administration of Justice) ordinarily indicates that the defendant has not accepted responsibility for his criminal conduct." U.S.S.G. § 3E1.1(a) Commentary Note 4. The Guidelines do envision extraordinary cases where a defendant could receive an adjustment for acceptance of responsibility despite also receiving an enhancement for obstruction of justice. See id.; see also United States v. Archuletta, 231 F.3d 682, 686 (10th Cir.2000) (recognizing exception for extraordinary cases but holding that defendant's case was not extraordinary).
Defendant concedes that his conduct warrants an enhancement for obstruction of justice. We have continually upheld a district court's refusal to grant an acceptance of responsibility adjustment where the defendant's actions merited an enhancement for obstruction of justice. See, e.g., Archuletta, 231 F.3d at 686; United States v. Lindsay, 184 F.3d 1138, 1143-44 (10th Cir.1999); United States v. Hawley, 93 F.3d 682, 688-90 (10th Cir.1996); United States v. Nelson, 54 F.3d 1540, 1544-45 (10th Cir.1995); United States v. Fetherolf, 21 F.3d 998, 1001 (10th Cir.1994); United States v. Tovar, 27 F.3d 497, 499 (10th Cir.1994); United States v. Amos, 984 F.2d 1067, 1072-73 (10th Cir.1993).
In addition to enhancing Defendant's offense level, the district court determined that Category V better represented Defendant's criminal history than Category IV. Accordingly, the district court added two criminal history points to Defendant's criminal history. By adding two criminal history points, Defendant's criminal history was calculated as Category V. We review the district court's decision to upwardly depart "under a unitary abuse-of-discretion standard which `includes review to determine that the discretion [of the district court] was not guided by erroneous legal conclusions.'" United States v. Hanson, 264 F.3d 988, 994 (10th Cir.2001) (quotations and citations omitted). Departure decisions resting on factual considerations are "entitled to substantial deference." Id.; United States v. Fortier, 242 F.3d 1224, 1232 (10th Cir. 2001).
"We consider four factors in reviewing the propriety of a district court's upward departure from the Guidelines." United States v. Walker, 284 F.3d 1169, 1171 (10th Cir.2002) (citation omitted). They are: "(1) whether the factual circumstances supporting a departure are permissible departure factors; (2) whether the departure factors relied upon by the district court remove the defendant from the applicable Guideline heartland thus warranting a departure; (3) whether the record sufficiently supports the factual basis underlying the departure; and (4) whether the degree of departure is reasonable." United States v. Collins, 122 F.3d 1297, 1303 (10th Cir.1997).
We first review the departure factors the district court used in its decision to upwardly depart to determine whether those factors are permissible departure factors. United States v. Whiteskunk, 162 F.3d 1244, 1249 (10th Cir.1998). The district court justified its decision to upwardly depart on at least five grounds. Those grounds were: Defendant's prior fraud sentence in excess of one year imprisonment, Defendant's declaration of bankruptcy for debts incurred without any ability to repay them, prior similar misconduct, subsequent misdemeanor bad check charges that had not been considered in establishing Defendant's criminal history, and Defendant's potential for recidivism.
Regardless, "[i]f the sentencing decision rested on other permissible factors in addition to the improper factor, and we determine the district [court] would have imposed the same sentence even in the absence of the improper factor, then we will not disturb the decision." Id. at 1250 (citation omitted). At least four of the five factors the court relied upon are valid departure factors. Because we believe the district court would have imposed the same sentence without considering Defendant's bankruptcy proceeding, we hold that the district court relied on permissible factors in deciding to depart. See Koon v. United States, 518 U.S. 81, 113, 116 S.Ct. 2035, 135 L.Ed.2d 392 (1996) (court should remand district court's decision to upwardly depart based upon valid and invalid factors unless it determines district court would have imposed same sentence without considering the invalid factors).
The final step is to determine whether the district court's degree of departure was reasonable. "Articulation of the factual basis for upwardly departing `does not automatically suffice to explain the degree of departure.'" Walker, 284 F.3d at 1172 (quoting Whiteskunk, 162 F.3d at 1253). Simply restating the justification for upward departure "does not fulfill the separate requirement of stating the reasons for imposing the particular sentence." United States v. Flinn, 987 F.2d 1497, 1502 (10th Cir.1993). The district court is required to "precisely lay out [its] reasoning and analysis as to why [it is selecting] a particular degree of departure." United States v. Bartsma, 198 F.3d 1191, 1197 (10th Cir.1999). This reasoning and analysis must give us "reasonable indicia that the sentence [the district court pronounces] is proportional to the crime committed." United States v. Kalady, 941 F.2d 1090, 1101 (10th Cir.1991). The district court accomplishes this task by using any "reasonable methodology hitched to the Sentencing Guidelines to justify the reasonableness of the departure." United States v. Harris, 907 F.2d 121, 124 (10th Cir.1990).
The district court summarized its decision to depart by stating, "[I]t is determined that the criminal history of V, Roman Number V, rather than IV as reported in the presentence investigation report, more accurately reflects the serious nature of the defendant's past conduct and the likelihood that he will commit future crimes of this nature." Rec., Vol. IX, at 62. Typically, this reasoning is insufficient because it simply restates the reasons justifying the decision to upwardly depart in the first instance. We have consistently rejected similar statements as insufficient to satisfy the reasonableness of departure requirement. See, e.g., Bartsma, 198 F.3d at 1197; United States v. Okane, 52 F.3d 828, 836 (10th Cir.1995); United States v. Yates, 22 F.3d 981, 991 (10th Cir.1994); Flinn, 987 F.2d at 1503.
We typically require a more reasoned explanation justifying the sentence the district court imposes instead of the Guidelines' sentence. It is true that district judges have not been "reduced to being scriveners in the role of sentencing." Rec., Vol. IX, at 65. However, district courts deciding to upwardly depart in extraordinary cases must show that their level of departure is reasonable. Without a reasoned analysis of the district court's degree of departure, the Guidelines' goals of uniformity and proportionality are lost. See United States v. Gardner, 905 F.2d 1432, 1436-39 (10th Cir.1990) (Guidelines require uniformity and proportionality even in decisions to upwardly depart).
After examining the briefs and appellate record, this panel has determined unanimously that oral argument would not materially assist the determination of this appealSee Fed. R.App. P. 34(a); 10th Cir. R. 34.1.9. The case is therefore ordered submitted without oral argument.