Source: http://www.ussc.gov/guidelines/2015-guidelines-manual/archive/2005-2b11
Timestamp: 2016-07-26 14:10:08
Document Index: 499493709

Matched Legal Cases: ['§2', '§ 1037', '§ 1030', '§ 1030', '§ 1030', '§2', '§2', '§2', '§2', '§2', '§ 1001', '§ 1341', '§ 1342', '§ 1343', '§2', '§ 6', '§ 50', '§ 38', '§ 2401', '§ 501', '§ 1011', '§ 30170', '§ 78', '§ 20', '§ 656', '§ 657', '§ 1005', '§ 1006', '§ 1007', '§ 1014', '§1', '§ 1839', '§ 78', '§ 78', '§ 78', '§ 1839', '§1', '§2', '§ 1030', '§ 1030', '§ 3742', '§ 276', '§ 1001', '§2', '§ 1037', '§ 1037', '§ 1037', '§3', '§2', '§4', '§ 1001', '§3', '§3', '§3', '§3', '§3', '§3', '§ 1029', '§ 1029', '§ 1029', '§ 1029', '§ 1029', '§ 1029', '§ 1028', '§1', '§ 1028', '§2', '§1', '§8', '§ 1030', '§ 1', '§ 1', '§ 1', '§ 1', '§ 1', '§ 80', '§ 78', '§ 80', '§ 78', '§ 1348', '§ 78', '§3', '§3', '§ 1001', '§2', '§2', '§ 1341', '§2', '§ 225', '§2', '§2', '§ 1030', '§ 43', '§\n1030', '§2', '§ 1028']

2005 2b1_1 | United States Sentencing Commission
2005 2b1_1
2005 Federal Sentencing GuidelinesChapter 2 - PART B - BASIC ECONOMIC OFFENSES§2B1.1. Larceny, Embezzlement,
Counterfeit Instruments Other than Counterfeit Bearer Obligations of the
United States(a) Base Offense Level:
(1) 7, if (A) the defendant was convicted
of an offense referenced to this guideline; and (B) that offense of conviction
has a statutory maximum term of imprisonment of 20 years or more; or (2) 6, otherwise.
(1) If the loss exceeded $5,000, increase the offense level as follows: Loss
(Apply the Greatest) Increase in Level
(A) (i) involved 10 or more victims; or (ii) was committed through mass-marketing,
(B) involved 50 or more victims, increase by 4 levels;
(3) If the offense involved a theft from the person of another, increase
by 2 levels. (4) If the offense involved receiving stolen property, and the defendant
was a person in the business of receiving and selling stolen property, increase
by 2 levels. (5) If the offense involved misappropriation of a trade secret and the defendant
knew or intended that the offense would benefit a foreign government, foreign
instrumentality, or foreign agent, increase by 2 levels.
(6) If the offense involved theft of, damage to, or destruction of, property
from a national cemetery, increase by 2 levels.
(7) If (A) the defendant was convicted of an offense under 18 U.S.C. § 1037;
and (B) the offense involved obtaining electronic mail addresses through
improper means, increase by 2 levels.
(8) If the offense involved (A) a misrepresentation that the defendant was
acting on behalf of a charitable, educational, religious, or political organization,
or a government agency; (B) a misrepresentation or other fraudulent action
during the course of a bankruptcy proceeding; (C) a violation of any prior,
specific judicial or administrative order, injunction, decree, or process
not addressed elsewhere in the guidelines; or (D) a misrepresentation to
a consumer in connection with obtaining, providing, or furnishing financial
assistance for an institution of higher education, increase by 2 levels.
If the resulting offense level is less than level 10,
(9) If (A) the defendant relocated, or participated in relocating, a fraudulent
scheme to another jurisdiction to evade law enforcement or regulatory officials;
(B) a substantial part of a fraudulent scheme was committed from outside
the United States; or (C) the offense otherwise involved sophisticated means,
increase by 2 levels. If the resulting
offense level is less than level 12,
(10) If the offense involved (A) the possession or use of any (i) device-making
equipment, or (ii) authentication feature; (B) the production or trafficking
of any (i) unauthorized access device or counterfeit access device, or (ii)
authentication feature; or (C)(i) the unauthorized transfer or use of any
means of identification unlawfully to produce or obtain any other means of
identification, or (ii) the possession of 5 or more means of identification
that unlawfully were produced from, or obtained by the use of, another means
of identification, increase by 2 levels.
(11) If the offense involved an organized scheme to steal vehicles or vehicle
parts, and the offense level is less than level 14,
(12) If the offense involved (A) the conscious or reckless risk of death
or serious bodily injury; or (B) possession of a dangerous weapon (including
a firearm) in connection with the offense, increase by 2 levels.
If the resulting offense level is less than level 14,
(13) (Apply the greater) If— (A) the defendant derived more than $1,000,000 in gross receipts from
(B) the offense (i) substantially jeopardized the safety and soundness
of a financial institution; (ii) substantially endangered the solvency
or financial security of an organization that, at any time during the offense,
(I) was a publicly traded company; or (II) had 1,000 or more employees;
or (iii) substantially endangered the solvency or financial security of
100 or more victims, increase by 4 levels.
(C) The cumulative adjustments from application of both subsections (b)(2)
and (b)(12)(B) shall not exceed 8 levels,
except as provided in subdivision (D).
(D) If the resulting offense level determined under subdivision (A) or
(B) is less than level 24, increase
(14) (A) (Apply the greatest) If the defendant was convicted of an offense
(i) 18 U.S.C. § 1030, and the offense involved (I) a computer
system used to maintain or operate a critical infrastructure, or used
by or for a government entity in furtherance of the administration of
justice, national defense, or national security; or (II) an intent to
obtain personal information, increase by 2 levels. (ii) 18 U.S.C. § 1030(a)(5)(A)(i), increase by 4 levels.
(iii) 18 U.S.C. § 1030, and the offense caused a substantial disruption
of a critical infrastructure, increase by 6 levels.
(B) If subdivision (A)(iii) applies, and the offense level is less than
level 24, increase to level 24.
(A) a violation of securities law and, at the time of the offense, the
defendant was (i) an officer or a director of a publicly traded company;
(ii) a registered broker or dealer, or a person associated with a broker
or dealer; or (iii) an investment adviser, or a person associated with
(B) a violation of commodities law and, at the time of the offense, the
defendant was (i) an officer or a director of a futures commission merchant
or an introducing broker; (ii) a commodities trading advisor; or (iii)
a commodity pool operator, increase by 4 levels.
(1) If (A) a firearm, destructive device, explosive material, or controlled
substance was taken, or the taking of any such item was an object of the
offense; or (B) the stolen property received, transported, transferred, transmitted,
or possessed was a firearm, destructive device, explosive material, or controlled
substance, apply §2D1.1 (Unlawful Manufacturing, Importing, Exporting,
Attempt or Conspiracy), §2D2.1 (Unlawful Possession; Attempt or Conspiracy), §2K1.3
(Unlawful Receipt, Possession, or Transportation of Explosive Materials;
Prohibited Transactions Involving Explosive Materials), or §2K2.1 (Unlawful
Transactions Involving Firearms or Ammunition), as appropriate.
(2) If the offense involved arson, or property damage by use of explosives,
apply §2K1.4 (Arson; Property Damage by Use of Explosives), if the resulting
(3) If (A) neither subdivision (1) nor (2) of this subsection applies; (B)
the defendant was convicted under a statute proscribing false, fictitious,
or fraudulent statements or representations generally (e.g.,
18 U.S.C. § 1001, § 1341, § 1342, or § 1343);
and (C) the conduct set forth in the count of conviction establishes an offense
apply that other guideline.
(4) If the offense involved a cultural heritage resource, apply §2B1.5
Sale, Purchase, Exchange, Transportation, or Receipt of Cultural Heritage
Resources), if the resulting offense level is greater than that determined
CommentaryStatutory Provisions: 7 U.S.C. §§ 6,
6b, 6c, 6h, 6o, 13, 23; 15 U.S.C. §§ 50, 77e, 77q, 77x, 78j, 78ff,
80b-6, 1644, 6821; 18 U.S.C. §§ 38, 225, 285-289, 471-473, 500, 510,
553(a)(1), 641, 656, 657, 659, 662, 664, 1001-1008, 1010-1014, 1016-1022, 1025,
1026, 1028, 1029, 1030(a)(4)-(5), 1031, 1037, 1341-1344, 1348, 1350, 1361,
1363, 1702, 1703 (if vandalism or malicious mischief, including destruction
of mail, is involved), 1708, 1831, 1832, 1992, 1993(a)(1), (a)(4), 2113(b),
2312-2317, 2332b(a)(1), 2701; 19 U.S.C. § 2401f; 29 U.S.C. § 501(c);
42 U.S.C. § 1011; 49 U.S.C. §§ 30170, 46317(a), 60123(b).
purposes of this guideline:"Cultural heritage resource" has the meaning given that term in Application
Unlawful Sale, Purchase, Exchange, Transportation, or Receipt of Cultural Heritage
Resources)."Equity securities" has the meaning given that term in section 3(a)(11) of
the Securities Exchange Act of 1934 (15 U.S.C. § 78c(a)(11))."Financial institution" includes any institution described in 18 U.S.C. § 20, § 656, § 657, § 1005, § 1006,
§ 1007, or § 1014; any state or foreign bank, trust company, credit
union, insurance company, investment company, mutual fund, savings (building
and loan) association, union or employee pension fund; any health, medical,
or hospital insurance association; brokers and dealers registered, or required
to be registered, with the Securities and Exchange Commission; futures commodity
merchants and commodity pool operators registered, or required to be registered,
with the Commodity Futures Trading Commission; and any similar entity, whether
or not insured by the federal government. "Union or employee pension fund" and "any
health, medical, or hospital insurance association," primarily include large
pension funds that serve many persons (e.g.,
medical or hospitalization insurance) to large numbers of persons."Firearm" and "destructive device" have the meaning given those terms in
the Commentary to §1B1.1 (Application Instructions). "Foreign instrumentality" and "foreign agent" have the meaning given those
terms in 18 U.S.C. § 1839(1) and (2), respectively."National cemetery" means a cemetery (A) established under section 2400 of
the Secretary of the Interior."Publicly traded company" means an issuer (A) with a class of securities
registered under section 12 of the Securities Exchange Act of 1934 (15 U.S.C. § 78l);
or (B) that is required to file reports under section 15(d) of the Securities
Exchange Act of 1934 (15 U.S.C. § 78o(d)). "Issuer" has the meaning given
that term in section 3 of the Securities Exchange Act of 1934 (15 U.S.C. § 78c). "Theft from the person of another" means theft, without the use of force,
of property that was being held by another person or was within arms’ reach.
Examples include pick-pocketing and non-forcible purse-snatching, such as the
theft of a purse from a shopping cart. "Trade secret" has the meaning given that term in 18 U.S.C. § 1839(3). "Victim" means (A) any person who sustained any part of the actual loss determined
under subsection (b)(1); or (B) any individual who sustained bodily injury
as a result of the offense. "Person" includes individuals, corporations, companies,
associations, firms, partnerships, societies, and joint stock companies.2. Application of Subsection (a)(1).—
(A) "Referenced to this Guideline".—For
purposes of subsection (a)(1), an offense is "referenced to this guideline" if
(i) this guideline is the applicable Chapter Two guideline determined under
the provisions of §1B1.2 (Applicable Guidelines) for the offense of
conviction; or (ii) in the case of a conviction for conspiracy, solicitation,
or attempt to which §2X1.1 (Attempt, Solicitation, or Conspiracy) applies,
this guideline is the appropriate guideline for the offense the defendant
was convicted of conspiring, soliciting, or attempting to commit.
(B) Definition of "Statutory Maximum
Term of Imprisonment".—For purposes of this guideline,
"statutory maximum term of imprisonment" means the maximum term of imprisonment
authorized for the offense of conviction, including any increase in that
(C) Base Offense Level Determination
for Cases Involving Multiple Counts.—In a case involving multiple
counts sentenced under this guideline, the applicable base offense level
is determined by the count of conviction that provides the highest statutory
3. Loss Under Subsection (b)(1).—This
application note applies to the determination of loss under subsection (b)(1).
(A) General Rule.—Subject
to the exclusions in subdivision (D), loss is the greater of actual loss
or intended loss.
(i) Actual Loss.—"Actual
loss" means the reasonably foreseeable pecuniary harm that resulted from
(ii) Intended Loss.—"Intended
loss" (I) means the pecuniary harm that was intended to result from the
offense; and (II) includes intended pecuniary harm that would have been
impossible or unlikely to occur (e.g.,
as in a government sting operation, or an insurance fraud in which the
claim exceeded the insured value).
(iii) Pecuniary Harm.—"Pecuniary
harm" means harm that is monetary or that otherwise is readily measurable
in money. Accordingly, pecuniary harm does not include emotional distress,
harm to reputation, or other non-economic harm.
(iv) Reasonably Foreseeable
Pecuniary Harm.—For purposes of this guideline, "reasonably
foreseeable pecuniary harm" means pecuniary harm that the defendant knew
or, under the circumstances, reasonably should have known, was a potential
result of the offense. (v) Rules of Construction in
Certain Cases.—In the cases described in subdivisions (I)
through (III), reasonably foreseeable pecuniary harm shall be considered
to include the pecuniary harm specified for those cases as follows:
(I) Product Substitution Cases.—In
the case of a product substitution offense, the reasonably foreseeable
pecuniary harm includes the reasonably foreseeable costs of making substitute
transactions and handling or disposing of the product delivered, or of
retrofitting the product so that it can be used for its intended purpose,
and the reasonably foreseeable costs of rectifying the actual or potential
disruption to the victim’s business operations caused by the product
substitution. (II) Procurement Fraud Cases.—In
the case of a procurement fraud, such as a fraud affecting a defense
contract award, reasonably foreseeable pecuniary harm includes the reasonably
foreseeable administrative costs to the government and other participants
of repeating or correcting the procurement action affected, plus any
increased costs to procure the product or service involved that was reasonably
foreseeable. (III) Offenses Under 18 U.S.C. § 1030.—In
the case of an offense under 18 U.S.C. § 1030, actual loss
includes the following pecuniary harm, regardless of whether such pecuniary
harm was reasonably foreseeable: any reasonable cost to any victim, including
the cost of responding to an offense, conducting a damage assessment,
and restoring the data, program, system, or information to its condition
prior to the offense, and any revenue lost, cost incurred, or other damages
incurred because of interruption of service.
(B) Gain.—The court
shall use the gain that resulted from the offense as an alternative measure
of loss only if there is a loss but it reasonably cannot be determined.
(C) Estimation of Loss.—The
court need only make a reasonable estimate of the loss. The sentencing judge
is in a unique position to assess the evidence and estimate the loss based
upon that evidence. For this reason, the court’s loss determination
is entitled to appropriate deference. See 18
U.S.C. § 3742(e) and (f). The estimate of the loss shall be based on available information, taking
into account, as appropriate and practicable under the circumstances, factors
(i) The fair market value of the property unlawfully taken or destroyed;
or, if the fair market value is impracticable to determine or inadequately
measures the harm, the cost to the victim of replacing that property.
(ii) The cost of repairs to damaged property. (iii) The approximate number of victims multiplied by the average loss
to each victim.
(iv) The reduction that resulted from the offense in the value of equity
securities or other corporate assets.
(v) More general factors, such as the scope and duration of the offense
and revenues generated by similar operations.
(D) Exclusions from Loss.—Loss
(i) Interest of any kind, finance charges, late fees, penalties, amounts
based on an agreed-upon return or rate of return, or other similar costs.
(ii) Costs to the government of, and costs incurred by victims primarily
to aid the government in, the prosecution and criminal investigation of
(E) Credits Against Loss.—Loss
shall be reduced by the following:
(i) The money returned, and the fair market value of the property returned
and the services rendered, by the defendant or other persons acting jointly
with the defendant, to the victim before the offense was detected. The
time of detection of the offense is the earlier of (I) the time the offense
was discovered by a victim or government agency; or (II) the time the defendant
knew or reasonably should have known that the offense was detected or about
to be detected by a victim or government agency.
(ii) In a case involving collateral pledged or otherwise provided by
(F) Special Rules.—Notwithstanding
subdivision (A), the following special rules shall be used to assist in determining
(i) Stolen or Counterfeit Credit
Cards and Access Devices; Purloined Numbers and Codes.—In
a case involving any counterfeit access device or unauthorized access
device, loss includes any unauthorized charges made with the counterfeit
access device or unauthorized access device and shall be not less than
$500 per access device. However, if the unauthorized access device is
a means of telecommunications access that identifies a specific telecommunications
instrument or telecommunications account (including an electronic serial
number/mobile identification number (ESN/MIN) pair), and that means was
only possessed, and not used, during the commission of the offense, loss
shall be not less than $100 per unused means. For purposes of this subdivision, "counterfeit
access device" and "unauthorized access device" have the meaning given
those terms in Application Note 7(A).
(ii) Government Benefits.—In
a case involving government benefits (e.g.,
grants, loans, entitlement program payments), loss shall be considered
to be not less than the value of the benefits obtained by unintended recipients
or diverted to unintended uses, as the case may be. For example, if the
defendant was the intended recipient of food stamps having a value of $100
but fraudulently received food stamps having a value of $150, loss is $50.
(iii) Davis-Bacon Act Violations.—In
a case involving a Davis-Bacon Act violation (i.e.,
a violation of 40 U.S.C. § 276a, criminally prosecuted under 18 U.S.C. § 1001),
the value of the benefits shall be considered to be not less than the difference
between the legally required wages and actual wages paid. (iv) Ponzi and Other Fraudulent
Investment Schemes.—In a case involving a fraudulent investment
scheme, such as a Ponzi scheme, loss shall not be reduced by the money
or the value of the property transferred to any individual investor in
the scheme in excess of that investor’s principal investment (i.e.,
the gain to an individual investor in the scheme shall not be used to
offset the loss to another individual investor in the scheme).
(v) Certain Other Unlawful Misrepresentation
Schemes.—In a case involving a scheme in which (I) services
were fraudulently rendered to the victim by persons falsely posing as
licensed professionals; (II) goods were falsely represented as approved
by a governmental regulatory agency; or (III) goods for which regulatory
approval by a government agency was required but not obtained, or was
obtained by fraud, loss shall include the amount paid for the property,
services or goods transferred, rendered, or misrepresented, with no credit
(vi) Value of Controlled Substances.—In
a case involving controlled substances, loss is the estimated street value
of the controlled substances. (vii) Value of Cultural Heritage
Resources.—In a case involving a cultural heritage resource,
loss attributable to that cultural heritage resource shall be determined
in accordance with the rules for determining the "value of the cultural
heritage resource" set forth in Application Note 2 of the Commentary
to §2B1.5.
purposes of subsection (b)(2), "mass-marketing" means a plan, program, promotion,
or campaign that is conducted through solicitation by telephone, mail, the
Internet, or other means to induce a large number of persons to (i) purchase
goods or services; (ii) participate in a contest or sweepstakes; or (iii)
invest for financial profit. "Mass-marketing" includes, for example, a telemarketing
(B) Applicability to Transmission
of Multiple Commercial Electronic Mail Messages.—For purposes
of subsection (b)(2), an offense under 18 U.S.C. § 1037, or any
other offense involving conduct described in 18 U.S.C. § 1037, shall
be considered to have been committed through mass-marketing. Accordingly,
the defendant shall receive at least a two-level enhancement under subsection
(b)(2) and may, depending on the facts of the case, receive a greater enhancement
under such subsection, if the defendant was convicted under, or the offense
involved conduct described in, 18 U.S.C. § 1037.
(C) Undelivered United States
(i) In General.—In
a case in which undelivered United States mail was taken, or the taking
of such item was an object of the offense, or in a case in which the stolen
property received, transported, transferred, transmitted, or possessed
was undelivered United States mail, "victim" means (I) any victim as defined
in Application Note 1; or (II) any person who was the intended recipient,
or addressee, of the undelivered United States mail. (ii) Special Rule.—A
case described in subdivision (C)(i) of this note that involved— (I) a United States Postal Service relay box, collection box, delivery
vehicle, satchel, or cart, shall be considered to have involved at least
50 victims.
(II) a housing unit cluster box or any similar receptacle that contains
multiple mailboxes, whether such receptacle is owned by the United States
Postal Service or otherwise owned, shall, unless proven otherwise, be
presumed to have involved the number of victims corresponding to the
number of mailboxes in each cluster box or similar receptacle.
(iii) Definition.—"Undelivered
United States mail" means mail that has not actually been received by the
addressee or his agent (e.g.,
mail taken from the addressee’s mail box).
(D) Vulnerable Victims.—If
subsection (b)(2)(B) or (C) applies, an enhancement under §3A1.1(b)(2)
shall not apply. 5. Enhancement for Business of Receiving
and Selling Stolen Property under Subsection (b)(4).—For purposes
of subsection (b)(4), the court shall consider the following non-exhaustive
list of factors in determining whether the defendant was in the business
of receiving and selling stolen property:
(B) The value and size of the inventory of stolen property maintained by
(C) The extent to which the defendant’s activities encouraged or
facilitated other crimes.
(D) The defendant’s past activities involving stolen property. 6. Application of Subsection (b)(7).—For
purposes of subsection (b)(7), "improper means" includes the unauthorized harvesting
of electronic mail addresses of users of a website, proprietary service, or
other online public forum.7. Application of Subsection (b)(8).—
(A) In General.—The
adjustments in subsection (b)(8) are alternative rather than cumulative.
If, in a particular case, however, more than one of the enumerated factors
applied, an upward departure may be warranted.
(B) Misrepresentations Regarding
Charitable and Other Institutions.—Subsection (b)(8)(A) applies
in any case in which the defendant represented that the defendant was acting
to obtain a benefit on behalf of a charitable, educational, religious,
or political organization, or a government agency (regardless of whether
the defendant actually was associated with the organization or government
agency) when, in fact, the defendant intended to divert all or part of
that benefit (e.g., for
the defendant’s personal gain). Subsection (b)(8)(A) applies, for
example, to the following: (i) A defendant who solicited contributions for a non-existent famine
relief organization. (ii) A defendant who solicited donations from church members by falsely
claiming to be a fundraiser for a religiously affiliated school.
(iii) A defendant, chief of a local fire department, who conducted a
intended to divert some of the funds for the defendant’s personal
(C) Fraud in Contravention of
Prior Judicial Order.—Subsection (b)(8)(C) provides an enhancement
if the defendant commits a fraud in contravention of a prior, official
judicial or administrative warning, in the form of an order, injunction,
decree, or process, to take or not to take a specified action. A defendant
who does not comply with such a prior, official judicial or administrative
warning demonstrates aggravated criminal intent and deserves additional
punishment. If it is established that an entity the defendant controlled
was a party to the prior proceeding that resulted in the official judicial
or administrative action, and the defendant had knowledge of that prior
decree or order, this enhancement applies even if the defendant was not
a specifically named party in that prior case. For example, a defendant
whose business previously was enjoined from selling a dangerous product,
but who nonetheless engaged in fraudulent conduct to sell the product,
is subject to this enhancement. This enhancement does not apply if the
same conduct resulted in an enhancement pursuant to a provision found elsewhere
in the guidelines (e.g.,
a violation of a condition of release addressed in §2J1.7 (Commission
of Offense While on Release) or a violation of probation addressed in §4A1.1
(Criminal History Category)).
(D) College Scholarship Fraud.—For
purposes of subsection (b)(8)(D): "Financial assistance" means any scholarship, grant, loan, tuition, discount,
award, or other financial assistance for the purpose of financing an education. "Institution of higher education" has the meaning given that term in section
101 of the Higher Education Act of 1954 (20 U.S.C. § 1001).
(i) Subsection (b)(8)(A).—If
the conduct that forms the basis for an enhancement under subsection (b)(8)(A)
is the only conduct that forms the basis for an adjustment under §3B1.3
(Abuse of Position of Trust or Use of Special Skill), do not apply that
adjustment under §3B1.3.
(ii) Subsection (b)(8)(B) and
(C).—If the conduct that forms the basis for an enhancement
under subsection (b)(8)(B) or (C) is the only conduct that forms the
basis for an adjustment under §3C1.1 (Obstructing or Impeding the
Administration of Justice), do not apply that adjustment under §3C1.1.
8. Sophisticated Means Enhancement
under Subsection (b)(9).—
(A) Definition of United States.—For
purposes of subsection (b)(9)(B), "United States" means each of the 50 states,
the District of Columbia, the Commonwealth of Puerto Rico, the United States
Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa.
(B) Sophisticated Means Enhancement.—For
purposes of subsection (b)(9)(C), "sophisticated means"
means especially complex or especially intricate offense conduct pertaining
to the execution or concealment of an offense. For example, in a telemarketing
scheme, locating the main office of the scheme in one jurisdiction but locating
soliciting operations in another jurisdiction ordinarily indicates sophisticated
means. Conduct such as hiding assets or transactions, or both, through the
use of fictitious entities, corporate shells, or offshore financial accounts
also ordinarily indicates sophisticated means.
(C) Non-Applicability of Enhancement.—If
the conduct that forms the basis for an enhancement under subsection (b)(9)
is the only conduct that forms the basis for an adjustment under §3C1.1,
do not apply that adjustment under §3C1.1.
purposes of subsection (b)(10):
"Counterfeit access device" (i) has the meaning given that term in 18 U.S.C. § 1029(e)(2);
and (ii) includes a telecommunications instrument that has been modified
or altered to obtain unauthorized use of telecommunications service. "Telecommunications
service" has the meaning given that term in 18 U.S.C. § 1029(e)(9). "Device-making equipment" (i) has the meaning given that term in 18 U.S.C. § 1029(e)(6);
and (ii) includes (I) any hardware or software that has been configured as
described in 18 U.S.C. § 1029(a)(9); and (II) a scanning receiver referred
to in 18 U.S.C. § 1029(a)(8). "Scanning receiver" has the meaning
given that term in 18 U.S.C. § 1029(e)(8). "Means of identification" has the meaning given that term in 18 U.S.C. § 1028(d)(7),
except that such means of identification shall be of an actual (i.e.,
not fictitious) individual, other than the defendant or a person for whose
conduct the defendant is accountable under §1B1.3 (Relevant Conduct).
"Produce" includes manufacture, design, alter, authenticate, duplicate,
or assemble. "Production"
includes manufacture, design, alteration, authentication, duplication, or
(B) Authentication Features and
Identification Documents.—Offenses involving authentication
features, identification documents, false identification documents, and
means of identification, in violation of 18 U.S.C. § 1028, also
are covered by this guideline. If the primary purpose of the offense, under
(Trafficking in a Document Relating to Naturalization) or §2L2.2 (Fraudulently
Acquiring Documents Relating to Naturalization), as appropriate, rather than
(C) Application of Subsection
(b)(10)(C)(i).—
(i) In General.—Subsection
(b)(10)(C)(i) applies in a case in which a means of identification of an
individual other than the defendant (or a person for whose conduct the
defendant is accountable under
§1B1.3 (Relevant Conduct)) is used without that individual’s
authorization unlawfully to produce or obtain another means of identification.
(ii) Examples.—Examples
of conduct to which subsection (b)(10)(C)(i) applies are as follows:
(I) A defendant obtains an individual’s name and social security
number from a source (e.g.,
from a piece of mail taken from the individual’s mailbox) and obtains
a bank loan in that individual’s name. In this example, the account
number of the bank loan is the other means of identification that has
been obtained unlawfully.
(II) A defendant obtains an individual’s name and address from
a source (e.g., from
a driver’s license in a stolen wallet) and applies for, obtains,
and subsequently uses a credit card in that individual’s name.
In this example, the credit card is the other means of identification
that has been obtained unlawfully. (iii) Nonapplicability of Subsection
(b)(10)(C)(i):—Examples of conduct to which subsection (b)(10)(C)(i)
(I) A defendant uses a credit card from a stolen wallet only to make
a purchase. In such a case, the defendant has not used the stolen credit
card to obtain another means of identification.
(II) A defendant forges another individual’s signature to cash
a stolen check. Forging another individual’s signature is not producing
another means of identification.
(D) Application of Subsection
(b)(10)(C)(ii).—Subsection (b)(10)(C)(ii) applies in any case
in which the offense involved the possession of 5 or more means of identification
that unlawfully were produced or obtained, regardless of the number of
individuals in whose name (or other identifying information) the means
of identification were so produced or so obtained. 10. Chop Shop Enhancement under
Subsection (b)(11).—Subsection (b)(11) provides a minimum offense
level in the case of an ongoing, sophisticated operation (such as an auto
theft ring or "chop shop") to steal vehicles or vehicle parts, or to receive
stolen vehicles or vehicle parts. "Vehicles" refers to all forms of vehicles,
including aircraft and watercraft.11. Gross Receipts Enhancement under
Subsection (b)(13)(A).—
purposes of subsection (b)(13)(A), the defendant shall be considered to have
(A) Application of Subsection
(b)(13)(B)(i).—The following is a non-exhaustive list of factors
that the court shall consider in determining whether, as a result of the
offense, the safety and soundness of a financial institution was substantially
jeopardized:
(i) The financial institution became insolvent. (ii) The financial institution substantially reduced benefits to pensioners
or insureds. (iii) The financial institution was unable on demand to refund fully
any deposit, payment, or investment.
(iv) The financial institution was so depleted of its assets as to be
forced to merge with another institution in order to continue active operations. (B) Application of Subsection
(b)(13)(B)(ii).—
(i) Definition.—For
purposes of this subsection, "organization" has the meaning given that
term in Application Note 1 of §8A1.1 (Applicability of Chapter Eight). (ii) In General.—The
following is a non-exhaustive list of factors that the court shall consider
in determining whether, as a result of the offense, the solvency or financial
security of an organization that was a publicly traded company or that
had more than 1,000 employees was substantially endangered: (I) The organization became insolvent or suffered a substantial reduction
in the value of its assets. (II) The organization filed for bankruptcy under Chapters 7, 11, or
13 of the Bankruptcy Code (title 11, United States Code).
(III) The organization suffered a substantial reduction in the value
of its equity securities or the value of its employee retirement accounts. (IV) The organization substantially reduced its workforce. (V) The organization substantially reduced its employee pension benefits.
(VI) The liquidity of the equity securities of a publicly traded company
was substantially endangered. For example, the company was delisted from
its primary listing exchange, or trading of the company’s securities
purposes of subsection (b)(14):
"Critical infrastructure" means systems and assets vital to national defense,
national security, economic security, public health or safety, or any combination
of those matters. A critical infrastructure may be publicly or privately
owned. Examples of critical infrastructures include gas and oil production,
storage, and delivery systems, water supply systems, telecommunications networks,
electrical power delivery systems, financing and banking systems, emergency
services (including medical, police, fire, and rescue services), transportation
systems and services (including highways, mass transit, airlines, and airports),
and government operations that provide essential services to the public. "Government entity" has the meaning given that term in 18 U.S.C. § 1030(e)(9).
"Personal information" means sensitive or private information (including
such information in the possession of a third party), including (i) medical
records; (ii) wills; (iii) diaries; (iv) private correspondence, including
e-mail; (v) financial records; (vi) photographs of a sensitive or private
nature; or (vii) similar information.
(B) Subsection (b)(14)(iii).—If
the same conduct that forms the basis for an enhancement under subsection
(b)(14)(iii) is the only conduct that forms the basis for an enhancement
under subsection (b)(13)(B), do not apply the enhancement under subsection
(b)(13)(B). 14. Application of Subsection (b)(15).—
"Commodities law" means (i) the Commodities Exchange Act (7 U.S.C. § 1 et seq.);
and (ii) includes the rules, regulations, and orders issued by the Commodities
"Commodity pool operator" has the meaning given that term in section 1a(4)
of the Commodities Exchange Act (7 U.S.C. § 1a(4)).
"Commodity trading advisor" has the meaning given that term in section
1a(5) of the Commodities Exchange Act (7 U.S.C. § 1a(5)).
"Futures commission merchant" has the meaning given that term in section
1a(20) of the Commodities Exchange Act (7 U.S.C. § 1a(20)).
"Introducing broker" has the meaning given that term in section 1a(23)
of the Commodities Exchange Act (7 U.S.C. § 1a(23)). "Investment adviser" has the meaning given that term in section 202 of
the Investment Advisers Act of 1940 (15 U.S.C. § 80b-2(a)(11)).
"Person associated with a broker or dealer" has the meaning given that
term in section 3(a)(48) of the Securities Exchange Act of 1934 (15 U.S.C. § 78c(a)(18)). "Person associated with an investment adviser" has the meaning given that
term in section 202 of the Investment Advisers Act of 1940 (15 U.S.C. § 80b-2(a)(17)).
"Registered broker or dealer" has the meaning given that term in section
3(a)(48) of the Securities Exchange Act of 1934 (15 U.S.C. § 78c(a)(48)).
"Securities law" (i) means 18 U.S.C. §§ 1348, 1350, and the provisions
of law referred to in section 3(a)(47) of the Securities Exchange Act of
1934 (15 U.S.C. § 78c(a)(47)); and (ii) includes the rules, regulations, and orders issued by the Securities
and Exchange Commission pursuant to the provisions of law referred to in
(B) In General.—A
conviction under a securities law or commodities law is not required in order
for subsection (b)(15) to apply. This subsection would apply in the case
of a defendant convicted under a general fraud statute if the defendant’s
conduct violated a securities law or commodities law. For example, this subsection
would apply if an officer of a publicly traded company violated regulations
issued by the Securities and Exchange Commission by fraudulently influencing
an independent audit of the company’s financial statements for the
purposes of rendering such financial statements materially misleading, even
if the officer is convicted only of wire fraud.
(C) Nonapplicability of §3B1.3
(Abuse of Position of Trust or Use of Special Skill).—If subsection
(b)(15) applies, do not apply §3B1.3. 15. Cross Reference in Subsection
(c)(3).—Subsection (c)(3) provides a cross reference to another
guideline in Chapter Two (Offense Conduct) in cases in which the defendant
is convicted of a general fraud statute, and the count of conviction establishes
an offense involving fraudulent conduct that is more aptly covered by another
guideline. Sometimes, offenses involving fraudulent statements are prosecuted
under 18 U.S.C. § 1001, or a similarly general statute, although the
offense involves fraudulent conduct that is also covered by a more specific
statute. Examples include false entries regarding currency transactions,
for which §2S1.3 (Structuring Transactions to Evade Reporting Requirements)
likely would be more apt, and false statements to a customs officer, for
which §2T3.1 (Evading Import Duties or Restrictions (Smuggling); Receiving
or Trafficking in Smuggled Property) likely would be more apt. In certain
other cases, the mail or wire fraud statutes, or other relatively broad statutes,
are used primarily as jurisdictional bases for the prosecution of other offenses.
For example, a state employee who improperly influenced the award of a contract
and used the mails to commit the offense may be prosecuted under 18 U.S.C. § 1341
for fraud involving the deprivation of the intangible right of honest services.
Such a case would be more aptly sentenced pursuant to §2C1.1 (Offering,
Governmental Functions).16. Continuing Financial Crimes
Enterprise.—If the defendant is convicted under 18 U.S.C. § 225
(relating to a continuing financial crimes enterprise), the offense level
is that applicable to the underlying series of offenses comprising the "continuing
financial crimes enterprise".17. Partially Completed Offenses.—In
the case of a partially completed offense (e.g.,
an offense involving a completed theft or fraud that is part of a larger, attempted
theft or fraud), the offense level is to be determined in accordance with the
provisions of §2X1.1 (Attempt, Solicitation, or Conspiracy) whether the
conviction is for the substantive offense, the inchoate offense (attempt, solicitation,
or conspiracy), or both. See Application
Note 4 of the Commentary to §2X1.1.18. Multiple-Count Indictments.—Some
fraudulent schemes may result in multiple-count indictments, depending on the
technical elements of the offense. The cumulative loss produced by a common
scheme or course of conduct should be used in determining the offense level,
regardless of the number of counts of conviction. See Chapter
Three, Part D (Multiple Counts).19. Departure Considerations.—
(A) Upward Departure Considerations.—There
may be cases in which the offense level determined under this guideline substantially
may be warranted. The following is a non-exhaustive list of factors that
the court may consider in determining whether an upward departure is warranted:
(i) A primary objective of the offense was an aggravating, non-monetary
objective. For example, a primary objective of the offense was to inflict
emotional harm. (ii) The offense caused or risked substantial non-monetary harm. For
educational, or financial records). An upward departure would be warranted,
for example, in an 18 U.S.C. § 1030 offense involving damage to a
protected computer, if, as a result of that offense, death resulted. An
upward departure also would be warranted, for example, in a case involving
animal enterprise terrorism under 18 U.S.C. § 43, if, in the
course of the offense, serious bodily injury or death resulted, or substantial
scientific research or information were destroyed.
(iii) The offense involved a substantial amount of interest of any kind,
finance charges, late fees, penalties, amounts based on an agreed-upon
return or rate of return, or other similar costs, not included in the determination
of loss for purposes of subsection (b)(1). (iv) The offense created a risk of substantial loss beyond the loss determined
for purposes of subsection (b)(1). (v) In a case involving stolen information from a "protected computer",
as defined in 18 U.S.C. §
1030(e)(2), the defendant sought the stolen information to further a broader
criminal purpose.
(vi) In a case involving access devices or unlawfully produced or unlawfully
obtained means of identification:
(I) The offense caused substantial harm to the victim’s reputation
or credit record, or the victim suffered a substantial inconvenience
related to repairing the victim’s reputation or a damaged credit
record. (II) An individual whose means of identification the defendant used
to obtain unlawful means of identification is erroneously arrested or
denied a job because an arrest record has been made in that individual’s
(III) The defendant produced or obtained numerous means of identification
with respect to one individual and essentially assumed that individual’s
(B) Upward Departure for Debilitating
Impact on a Critical Infrastructure.—An upward departure would
be warranted in a case in which subsection (b)(14)(iii) applies and the
disruption to the critical infrastructure(s) is so substantial as to have
a debilitating impact on national security, national economic security,
national public health or safety, or any combination of those matters.
(C) Downward Departure Consideration.—There
may be warranted. Background: This guideline
covers offenses involving theft, stolen property, property damage or destruction,
fraud, forgery, and counterfeiting (other than offenses involving altered or
counterfeit bearer obligations of the United States). Because federal fraud statutes often are broadly written, a single pattern
of offense conduct usually can be prosecuted under several code sections, as
a result of which the offense of conviction may be somewhat arbitrary. Furthermore,
most fraud statutes cover a broad range of conduct with extreme variation in
severity. The specific offense characteristics and cross references contained
in this guideline are designed with these considerations in mind.The Commission has determined that, ordinarily, the sentences of defendants
convicted of federal offenses should reflect the nature and magnitude of the
loss caused or intended by their crimes. Accordingly, along with other relevant
factors under the guidelines, loss serves as a measure of the seriousness of
the offense and the defendant’s relative culpability and is a principal
factor in determining the offense level under this guideline.Theft from the person of another, such as pickpocketing or non-forcible purse-snatching,
receives an enhanced sentence because of the increased risk of physical injury.
This guideline does not include an enhancement for thefts from the person by
means of force or fear; such crimes are robberies and are covered under §2B3.1
(Robbery). A minimum offense level of level 14 is provided for offenses involving an
organized scheme to steal vehicles or vehicle parts. Typically, the scope of
such activity is substantial, but the value of the property may be particularly
difficult to ascertain in individual cases because the stolen property is rapidly
resold or otherwise disposed of in the course of the offense. Therefore, the
specific offense characteristic of
"organized scheme" is used as an alternative to "loss" in setting a minimum
offense level.Use of false pretenses involving charitable causes and government agencies
enhances the sentences of defendants who take advantage of victims’ trust
in government or law enforcement agencies or the generosity and charitable
motives of victims. Taking advantage of a victim’s self-interest does
not mitigate the seriousness of fraudulent conduct; rather, defendants who
exploit victims’ charitable impulses or trust in government create particular
social harm. In a similar vein, a defendant who has been subject to civil or
administrative proceedings for the same or similar fraudulent conduct demonstrates
aggravated criminal intent and is deserving of additional punishment for not
conforming with the requirements of judicial process or orders issued by federal,
state, or local administrative agencies.Offenses that involve the use of financial transactions or financial accounts
outside the United States in an effort to conceal illicit profits and criminal
conduct involve a particularly high level of sophistication and complexity.
These offenses are difficult to detect and require costly investigations and
prosecutions. Diplomatic processes often must be used to secure testimony and
evidence beyond the jurisdiction of United States courts. Consequently, a minimum
offense level of level 12 is provided for these offenses.Subsection (b)(6) implements the instruction to the Commission in section
2 of Public Law 105–101.Subsection (b)(8)(D) implements, in a broader form, the directive in section
3 of the College Scholarship Fraud Prevention Act of 2000, Public Law 106–420.Subsection (b)(9) implements, in a broader form, the instruction to the Commission
in section 6(c)(2) of Public Law 105–184.Subsections (b)(10)(A)(i) and (B)(i) implement the instruction to the Commission
in section 4 of the Wireless Telephone Protection Act, Public Law 105–172.Subsection (b)(10)(C) implements the directive to the Commission in section
4 of the Identity Theft and Assumption Deterrence Act of 1998, Public Law 105–318.
This subsection focuses principally on an aggravated form of identity theft
known as "affirmative identity theft" or "breeding", in which a defendant uses
another individual’s name, social security number, or some other form
of identification (the "means of identification") to "breed" (i.e.,
produce or obtain) new or additional forms of identification. Because 18 U.S.C. § 1028(d)
broadly defines "means of identification", the new or additional forms of identification
can include items such as a driver’s license, a credit card, or a bank
loan. This subsection provides a minimum offense level of level 12, in part
because of the seriousness of the offense. The minimum offense level accounts
for the fact that the means of identification that were
"bred" (i.e., produced or obtained)
often are within the defendant’s exclusive control, making it difficult
for the individual victim to detect that the victim’s identity has been "stolen." Generally,
the victim does not become aware of the offense until certain harms have already
occurred (e.g., a damaged credit
rating or an inability to obtain a loan). The minimum offense level also accounts
for the non-monetary harm associated with these types of offenses, much of
which may be difficult or impossible to quantify (e.g.,
harm to the individual’s reputation or credit rating, inconvenience,
and other difficulties resulting from the offense). The legislative history
of the Identity Theft and Assumption Deterrence Act of 1998 indicates that
Congress was especially concerned with providing increased punishment for this
type of harm.Subsection (b)(12)(B) implements, in a broader form, the instruction to the
Commission in section 110512 of Public Law 103–322.Subsection (b)(13)(A) implements, in a broader form, the instruction to the
Commission in section 2507 of Public Law 101–647.Subsection (b)(13)(B)(i) implements, in a broader form, the instruction to
the Commission in section 961(m) of Public Law 101–73.Subsection (b)(14) implements the directive in section 225(b) of Public Law
107–296. The minimum offense level of level 24 provided in subsection
(b)(14)(B) for an offense that resulted in a substantial disruption of a critical
infrastructure reflects the serious impact such an offense could have on national
security, national economic security, national public health or safety, or
a combination of any of these matters.Historical Note: Effective
C, amendment 7); November 1, 1989 (see Appendix
C, amendments 99-101 and 303); November 1, 1990 (see Appendix
C, amendments 312, 317, and 361); November 1, 1991 (see Appendix
C, amendments 364 and 393); November 1, 1993 (see Appendix
C, amendments 481 and 482); November 1, 1995 (see Appendix
C, amendment 512); November 1, 1997 (see Appendix
C, amendment 551); November 1, 1998 (see Appendix
C, amendment 576); November 1, 2000 (see Appendix
C, amendment 596); November 1, 2001 (see Appendix
C, amendments 637, 638, and 646); January 25, 2003 (see Appendix
C, amendments 653, 654, 655, and 661); November 1, 2004 (see Appendix
C, amendments 665, 666, and 674); November 1, 2005 (see Appendix