Source: https://law.justia.com/cases/federal/appellate-courts/F3/10/485/583956/
Timestamp: 2019-12-10 00:24:13
Document Index: 300962448

Matched Legal Cases: ['§ 1344', '§ 656', '§ 1001', '§ 3742', '§ 3664', '§ 3664', '§ 3664', '§ 3664', '§ 3664', '§ 3664', '§ 3664']

United States of America, Plaintiff-appellee, v. John Boyle, Defendant-appellant, 10 F.3d 485 (7th Cir. 1993) :: Justia
Justia › US Law › Case Law › Federal Courts › Courts of Appeals › Seventh Circuit › 1993 › United States of America, Plaintiff-appellee, v. John Boyle, Defendant-appellant
United States of America, Plaintiff-appellee, v. John Boyle, Defendant-appellant, 10 F.3d 485 (7th Cir. 1993)
US Court of Appeals for the Seventh Circuit - 10 F.3d 485 (7th Cir. 1993) Argued May 5, 1993. Decided Nov. 24, 1993
In 1992, John Boyle pled nolo contendere to one count of wire fraud, in violation of 18 U.S.C. § 1344, one count of bank embezzlement, in violation of 18 U.S.C. § 656, and eleven counts of making false and fraudulent statements to an agency of the United States, in violation of 18 U.S.C. § 1001. Over Boyle's objections, the district court (1) imposed a sentence enhancement for abuse of a position of trust, pursuant to U.S.S.G. Sec. 3B1.3; (2) denied a reduction in his offense level under U.S.S.G. Sec. 3E1.1 for acceptance of responsibility; and (3) ordered him to pay $2 million in restitution. Boyle appeals these rulings. For the reasons expressed below, we affirm.
Under U.S.S.G. Sec. 3B1.3, a sentencing court must enhance a defendant's sentence two levels " [i]f the defendant abused a position of public or private trust, or used a special skill, in a manner that significantly facilitated the commission or concealment of the offense...." Application Note 1 to U.S.S.G. Sec. 3B1.3 further advises: "The position of trust must have contributed in some substantial way to facilitating the crime and not merely have provided an opportunity that could as easily have been afforded to other persons." U.S.S.G. Sec. 3B1.3 comment. (n. 1). As such, in determining the applicability of this Guideline, the court must determine "(1) whether the defendant occupies a position of trust; and (2) whether the defendant abused his position in a manner that significantly facilitated the commission or concealment of the offense." United States v. Gould, 983 F.2d 92, 94 (7th Cir. 1993). Boyle contests the district court's determination only as to the first issue, arguing that the relationship he had with his victims was not the type contemplated by Sec. 3B1.3 of the Guidelines. Whether Boyle occupied such a position is a question of fact, which we review under the clearly erroneous standard, while the interpretation of the term "position of trust" is a legal question subject to de novo review. Id. at 93.
Boyle argues that he did not occupy a position of trust because he had a contractual relationship with the FRB, the Illinois Tollway Authority and Drovers Bank. In making this argument, Boyle relies on United States v. Kosth, 943 F.2d 798 (7th Cir. 1991). In Kosth, the defendant opened a merchant account at a bank to process orders from customers using credit cards. The account allowed him to forward credit card invoices to the bank, which would then credit his account and seek reimbursement from the credit card company. Using fraudulent and altered credit cards, Kosth received payment from the bank for phantom purchases. After Kosth pled guilty to conspiracy to commit fraud by access device, the district court found that he had abused a position of private trust and, thus, applied a two-level enhancement under U.S.S.G. Sec. 3B1.3. This Court reversed that determination, reasoning that
We disagree. Whether someone occupies a "position of trust" for purposes of Sec. 3B1.3 does not turn on simple categories that might be used to characterize the relationship. Instead, as this Court recently held, application of the enhancement depends on whether the defendant has " 'access or authority over valuable things.' " United States v. Lamb, 6 F.3d 415, 421 (7th Cir. 1993) (quoting United States v. Odoms, 801 F. Supp. 59, 64 (N.D. Ill. 1992)). Therefore, the sentencing court must look beyond descriptive labels to the actual nature of the relationship and the responsibility the defendant is given.
The Sentencing Guidelines provide for a two-level reduction in a defendant's offense level " [i]f the defendant clearly demonstrates a recognition and affirmative acceptance of personal responsibility for his criminal conduct." U.S.S.G. Sec. 3E1.1. It is the defendant's burden to prove his entitlement to this reduction. United States v. Skinner, 986 F.2d 1091, 1100 (7th Cir. 1993).
Whether a defendant accepted responsibility for his criminal conduct is a question of fact, which this court reviews for clear error. 18 U.S.C. § 3742(e); Skinner, 986 F.2d at 1100. Under this standard of review, an appellate court is not to disturb a finding of fact unless, after reviewing all the evidence, it "is left with the definite and firm conviction that a mistake has been committed." United States v. United States Gypsum Co., 333 U.S. 364, 395, 68 S. Ct. 525, 542, 92 L. Ed. 746 (1948).
We also reject Boyle's argument that he was entitled to the reduction because his nolo contendere plea saved the government and district court the time and expense of a long and complicated trial. Although the Guideline encourages judicial and law enforcement economy, that is not its only purpose. It also recognizes the societal interest in crime reduction, restitution, rehabilitation, early withdrawal from criminal activity and withdrawal of criminals from positions of trust and responsibility. United States v. Henry, 883 F.2d 1010, 1011-1012 (11th Cir. 1989) (quoting United States v. Belgard, 694 F. Supp. 1488, 1497 (D. Or. 1988), aff'd, 895 F.2d 615 (9th Cir. 1990), cert. denied, 498 U.S. 959, 111 S. Ct. 389, 112 L. Ed. 2d 399 (1990)). To adopt the rule that Boyle suggests would ignore these other purposes and emasculate the Guideline. This we refuse to do.
The district court's decision to order restitution and the amount ordered is reviewed for abuse of discretion. United States v. Arvanitis, 902 F.2d 489, 496 (7th Cir. 1990). A restitution order will not be disturbed on appeal unless the sentencing judge exercised his or her discretion using inappropriate factors or unreliable information or failed to exercise any discretion at all in issuing the order. United States v. Mahoney, 859 F.2d 47, 49 (7th Cir. 1988).
When determining whether to order restitution and the amount to award, the trial court must consider the following factors: (1) the amount of the loss sustained by the victim as a result of the offense; (2) the financial resources of the defendant; (3) the financial needs of the defendant and the defendant's dependents; (4) the financial earning ability of the defendant and the defendant's dependents; and (5) any other factors the court deems appropriate. 18 U.S.C. § 3664(a). The sentencing judge need not explicitly express reliance upon each of these mandatory factors, although it is always advisable to do so. United States v. Gomer, 764 F.2d 1221, 1223 (7th Cir. 1985).
The government has the burden of establishing by a preponderance of the evidence the amount of the loss sustained by the victims of a defendant's criminal conduct. 18 U.S.C. § 3664(d). At Boyle's sentencing hearing, F.B.I. Special Agent William Keefe testified that the FRB conducted an audit and determined that $2,476,175 of its deposit was missing. Tr. 65. Keefe also testified that Drovers Bank conducted an audit and determined that $1,599,725 in coin was not in storage at PAC as it should have been. Tr. 68. Keefe not only knew the amount of the missing funds but also how the audits were performed. Tr. 61, 64-65, 69-70. Boyle complains that Keefe's testimony lacked an adequate foundation because he could not identify who conducted the Drovers Bank audit or the accounting method that was used. However, we cannot conclude that Keefe's testimony should have been given no weight because he was unfamiliar with these details. Given the matters to which Keefe was able to testify, it was well within the district judge's discretion to conclude that the losses sustained totalled $4,075,900.
We also reject Boyle's argument that the government was required to prove that the money was not stolen by others who had access to it. Title 18 U.S.C. § 3664(d) only requires the government to show that it was more likely than not that Boyle's conduct caused the victims' loss. Thus, the government need not disprove all other theories that might account for the loss.
The defendant bears the burden of establishing by a preponderance of the evidence his current and potential financial resources. 18 U.S.C. § 3664(d). When Boyle objected to the Presentence Investigation Report, he indicated that he has a high school education, a negative net worth of $10,715, and a positive cash flow of only $250 per month. Tr. 26, 130. He also notes that the district court appointed counsel for him based on his indigent status and declined to impose a fine because of his inability to pay it. Boyle further argues that there is no hope of his ever being able to comply with the restitution order since PAC is no longer in business and he is legally foreclosed from securing employment in law enforcement or the armored car business, the only two fields in which he has experience.
Despite Boyle's contentions, the record demonstrates that the district court gave proper attention to his financial status and earning capacity in its restitution order. The district court expressly stated that it considered Boyle's available financial resources and his financial needs in fashioning its order. Tr. 165. Although 18 U.S.C. § 3664(a) requires the sentencing judge to take the defendant's indigence into account, it is not determinative of whether restitution is appropriate. See United States v. House, 808 F.2d 508, 510 (7th Cir. 1986). The court also stated that it considered Boyle's future earning capacity in light of the custodial sentence and probation period it was imposing as well as the factors that Boyle argues would limit his ability to comply with the restitution order. Tr. 148, 165. However, the court permissibly concluded that Boyle's "great zeal" in operating businesses and engaging in substantial financial transactions would enable him to one day earn a significant income. Tr. 148. It was also permissible for the district court to conclude that Boyle still had access to $1.7 million of the missing money. Evidence indicated that he had pocketed over $480,000 of the missing funds and another $1,250,000 remained unaccounted for. The court also noted that the funds were taken over a short period of time and there was little time in which to spend them. Tr. 165.
The record demonstrates that the district court considered all of the mandatory factors, pursuant to 18 U.S.C. § 3664(a), when ordering Boyle to make restitution. In its assessment of Boyle's current and future financial condition, the district court appropriately considered the likelihood that he had access to the missing funds. Where there is evidence that a defendant's criminal conduct caused the loss and the missing funds cannot be accounted for, the district court may reasonably infer that the defendant knows their whereabouts. In such cases, it is appropriate for the sentencing judge to fashion a restitution order that prevents the defendant from reaping any gain from his criminal activities after being released.
Finally, Boyle argues that the restitution order should be vacated because the amount was not accurately computed. Boyle bases this argument on the fact that the district court ordered him to pay $2 million in restitution even though it found that Boyle secreted only $1.7 million. The restitution amount must be ascertained and delineated with an accurate computation, cannot exceed the loss actually caused, and must be clearly set out with specific findings. United States v. Lovett, 811 F.2d 979, 990 (7th Cir. 1987). In this case, the district court ordered Boyle to make restitution in an amount less than the actual loss. The court supported this determination with findings as to Boyle's current financial status, his future earning capacity and his access to a portion of the missing funds. The restitution amount is also reasonable in light of these findings. In determining the restitution amount, a sentencing judge is limited only by the actual loss as well as the other mandatory factors enumerated in 18 U.S.C. § 3664(a), not the amount that the defendant may have squirreled away. Since the district court complied with all of these requirements, it did not abuse its discretion in computing the restitution amount.