Source: https://law.justia.com/cases/federal/appellate-courts/F3/418/466/544517/
Timestamp: 2018-10-18 02:21:48
Document Index: 481327734

Matched Legal Cases: ['§ 1344', '§ 513', '§ 513', '§ 513', '§ 513', '§ 513', '§ 513', '§ 3231', '§ 513', '§ 513', '§ 844', '§ 844', '§ 844', '§ 513', '§ 513', '§ 513', '§ 513', '§ 513', '§ 513', '§ 513', '§ 513', '§ 513', 'art, 474', '§ 2', '§ 2', '§ 1365', '§ 513', '§ 513', '§ 513', '§ 513', '§ 513', '§ 844', '§ 844', '§ 513', '§ 844', '§ 127']

United States of America, Plaintiff-appellee, v. Jane Reasor, A/k/a San Juanita Rangel Reasor, Defendant-appellant, 418 F.3d 466 (5th Cir. 2005) :: Justia
Justia › US Law › Case Law › Federal Courts › Courts of Appeals › Fifth Circuit › 2005 › United States of America, Plaintiff-appellee, v. Jane Reasor, A/k/a San Juanita Rangel Reasor, Defen...
United States of America, Plaintiff-appellee, v. Jane Reasor, A/k/a San Juanita Rangel Reasor, Defendant-appellant, 418 F.3d 466 (5th Cir. 2005)
US Court of Appeals for the Fifth Circuit - 418 F.3d 466 (5th Cir. 2005)
COPYRIGHT MATERIAL OMITTED Joseph H. Gay, Jr., Asst. U.S. Atty., Thomas Joseph McHugh (argued), San Antonio, TX, for U.S.
Jane Reasor, a/k/a San Juanita Rangel Reasor, pleaded guilty to one count of bank fraud, twenty-eight counts of making, uttering, and possessing forged or counterfeit securities, one count of making a false statement on a credit application, and three counts of mail fraud. See 18 U.S.C. §§ 1344, 513(a), 1014, 1341. (1) Ms. Reasor appeals her convictions and sentences based on the twenty-eight counts of forgery of securities under 18 U.S.C. § 513(a), contending that her forgery pleas were not supported by an adequate factual basis as required by Fed. R. Crim. P. 11.1 (2) Ms. Reasor appeals the denial of her motion to withdraw her pleas of guilty to the entire indictment, and the calculation of her sentences under the Federal Sentencing Guidelines based on alleged improper loss calculations, an ex post facto application of a sentencing enhancement, and United States v. Booker, ___ U.S. ___, 125 S. Ct. 738, 160 L. Ed. 2d 621 (2005). We affirm in part, vacate in part, and remand for further proceedings. Ms. Reasor's convictions of bank fraud, making a false statement on a credit application, and three counts of mail fraud are affirmed. Ms. Reasor's convictions and sentences based on her guilty pleas to forgery of securities under 18 U.S.C. § 513(a) are vacated, and the case is remanded for further proceedings on the forgery counts. Ms. Reasor's remaining sentences are vacated and the case is remanded to the district court for re-sentencing.
It is a federal crime under 18 U.S.C. § 513(a) to (1) make, utter or possess (2) a counterfeit security (3) of an organization (4) with intent to deceive (5) another person, organization, or government. For this purpose, § 513(c) defines "organization" as "a legal entity, other than a government, established or organized for any purpose, and includes a corporation, company, association, firm, partnership, joint stock company, foundation, institution, society, union or other association of persons which operates in or the activities of which affect interstate or foreign commerce." This case presents the question of whether the factual basis of Ms. Reasor's guilty plea to twenty-eight counts of forgery under § 513(a) sufficiently established that at the relevant times the entity whose securities she allegedly forged was an "organization," i.e., an entity which "operat [ed] in or the activities of which affect [ed] interstate or foreign commerce." Id.
Initially, Ms. Reasor raised an argument that the district court did not have subject matter jurisdiction over these counts but she has conceded that it did in her reply brief.2 We agree that the district court had subject matter jurisdiction. The prosecution of Ms. Reasor under 18 U.S.C. § 513 is a case arising under the laws of the United States.3 More specifically it is a case involving a federal crime, over which federal district courts have jurisdiction pursuant to 18 U.S.C. § 3231. Analogously, this Court has ruled, in a Hobbs Act case, that an element can be jurisdictional in nature without affecting the jurisdiction of the court to adjudicate the case. United States v. Robinson, 119 F.3d 1205, 1212 n. 4 (5th Cir. 1997). Also, in the context of a federal arson prosecution, this Court has held that the interstate commerce requirement is an element of that crime and not a prerequisite to subject matter jurisdiction. United States v. Johnson, 194 F.3d 657, 659 (5th Cir. 1999) vacated and remanded for consideration in light of Jones v. United States, 529 U.S. 848, 120 S. Ct. 1904, 146 L. Ed. 2d 902 (2000) by United States v. Johnson, 530 U.S. 1201, 120 S. Ct. 2193, 147 L. Ed. 2d 230 (2000), reinstated by United States v. Johnson, 246 F.3d 749 (5th Cir. 2001); accord United States v. Rayborn, 312 F.3d 229, 231 (6th Cir. 2002); United States v. Rea, 169 F.3d 1111,1113 (8th Cir. 1999), vacated on other grounds, 223 F.3d 741 (8th Cir. 2000); United States v. Martin, 147 F.3d 529, 531-32 (7th Cir. 1998). We see no indication in § 513 that Congress intended for the statute's interstate commerce nexus requirement to serve any other purpose in the crime definition than as an essential element of the crime.4
A district court cannot enter a judgment of conviction based on a guilty plea unless it is satisfied that there is a factual basis for the plea. Fed. R. Crim. P. 11(f). "The purpose underlying this rule is to protect a defendant who may plead with an understanding of the nature of the charge, but `without realizing that his conduct does not actually fall within the definition of the crime charged.'" Johnson, 194 F.3d at 659. Therefore, " [t]his factual basis must appear in the record. . . and must be sufficiently specific to allow the court to determine that the defendant's conduct was within the ambit of that defined as criminal." United States v. Oberski, 734 F.2d 1030, 1031 (5th Cir. 1984); Accord Johnson, 194 F.3d at 659; United States v. Armstrong, 951 F.2d 626, 629 (5th Cir. 1992); United States v. Spruill, 292 F.3d 207, 215 (5th Cir. 2002).
A guilty plea does not waive the right of a defendant to appeal a district court's finding of a factual basis for the plea on the ground that the facts set forth in the record do not constitute a federal crime. Johnson, 194 F.3d at 659; Spruill, 292 F.3d at 215. In general, we regard a district court's acceptance of a guilty plea as a factual finding that we review under the clearly erroneous standard. Johnson, 194 F.3d at 659 (citing United States v. Rivas, 85 F.3d 193, 194 (5th Cir. 1996)). Because Ms. Reasor objected to the sufficiency of the factual basis for her pleas of guilty to forgery in the district court, we review her argument that the district court erred in this regard under that standard. See Johnson, 194 F.3d at 660; United States v. Bredimus, 352 F.3d 200, 204 (5th Cir. 2003).
Applying the standard to the record in this case, we conclude that the factual basis does not support Ms. Reasor's guilty pleas to the federal crime charged in the indictment, namely, forging or counterfeiting securities of an "organization," that is, an entity which operates in or the activities of which affect interstate or foreign commerce. 18 U.S.C. § 513(c).6 The factual basis provided by the government is not sufficiently specific to demonstrate that St. Dominic's Church operated in or affected interstate commerce. As a general rule, a church is not a commercial entity which operates in or conducts activities that affect interstate commerce. That is not to say that a church's activities may never affect interstate commerce, but only that the operations and activities of a church are not intrinsically in or affecting interstate commerce. See United States v. Terry, 257 F.3d 366, 369 (4th Cir. 2001); Rayborn, 312 F.3d 229.
In the present case, the factual basis does not contain any statement of specific, concrete facts from which it could be inferred that the church's operations and activities either were in or affecting interstate commerce. On the contrary, the facts stated tend to confirm that St. Dominic's operations were typical of a church and not similar to those of a commercial enterprise affecting interstate commerce. The only references to specific activities of the church in the factual basis provided were that, " [t]he evidence would show that St. Dominic's Catholic Church is just one of many churches that has limited resources. It doesn't employ a controller, it doesn't have a business office . . ." and that the church's bank accounts were insured by the Federal Deposit Insurance Corporation. The only other statements in the record that the church had connections to interstate commerce were made in argument by the government in its response to a motion to dismiss for lack of federal subject matter jurisdiction. The prosecutor argued that the role of the church is "to go forth and serve the Lord" and so is not limited by geographic boundaries, and that, accordingly, the church received donations from out of town parishioners, made purchases from out of state vendors, and some of the church's bank accounts were serviced in other states. These facts show that St. Dominic's operations and activities were typical of churches in general, most if not all of which have accounts in banks insured by the FDIC, purchase some goods from out of state vendors, and receive some donations from out of state donors.
The relationship between church building use and interstate commerce in an arson case was also considered by the Eleventh Circuit in United States v. Odom, 252 F.3d 1289 (11th Cir. 2001). At trial the government submitted evidence that the church (1) received donations from two out-of-state donors (relatives of the pastor), (2) used "a handful" of bibles and prayer books purchased from an out-of-state supplier, and (3) made indirect contributions to an out-of-state church organization through its membership in an in-state church organization. Id. at 1292-93. The Eleventh Circuit found these facts, though more detailed and specific than a conclusory statement, insufficient to support a jury's finding of the requisite interstate nexus. Id. The purchase of goods from an out-of-state supplier was insufficient, even in combination with specific information about the receipt of out-of-state donations. Id. Although the facts of out-of-state purchases and the receipt of out-of-state donations in Odom were more specific than those in the government's factual basis in Ms. Reasor's case they were still insufficient.
The Supreme Court, in another somewhat analogous situation, held that "an owner-occupied residence not used for any commercial purpose does not qualify as property `used in' commerce or commerce-affecting activity; arson of such a dwelling, therefore, is not subject to federal prosecution under § 844(i)." Jones v. United States, 529 U.S. 848, 852, 120 S. Ct. 1904, 146 L. Ed. 2d 902 (2000). In Jones, the Court concluded that the "Indiana dwelling [use] involved there was not within § 844(i) notwithstanding that it was used by the owner as collateral for a mortgage from an Oklahoma lender and by the lender as security for that loan, was insured by a Wisconsin insurance policy protecting both the owner and the lender, and used natural gas from outside Indiana." United States v. Johnson, 246 F.3d 749, 751 (5th Cir. 2001). The Jones Court held that § 844(i) required more, viz. "active employment for commercial purposes," and noted that the owner "did not use the residence in any trade or business." Id. (quoting Jones, 120 S. Ct. at 1910).
"Notwithstanding an unconditional plea of guilty, we will reverse on direct appeal where the factual basis for the plea as shown of record fails to establish an element of the offense of conviction." Spruill, 292 F.3d at 215 (quoting United States v. White, 258 F.3d 374, 380 (5th Cir. 2001)); see United States v. Baymon, 312 F.3d 725 (5th Cir. 2002) (same); Johnson, 246 F.3d 749. Because the factual basis presented to the district court fails to establish the essential interstate commerce element of 18 U.S.C. § 513(a) we must vacate the convictions of Ms. Reasor under this statute.
The Government can not use the appellate courts to reconstruct a new record for its losing case. An appellate court reviews the district court finding that there was a factual basis for a guilty plea according to a clear error standard. Compare United States v. Hall, 110 F.3d 1155, 1162 (5th Cir. 1997) with United States v. Briggs, 920 F.2d 287, 294-295 (5th Cir. 1991). Consequently, the function of a court of appeals in such a review does not allow it to amend or alter the record presented to the district court.
Further, the argument that the Government would raise here for the first time is based on two false premises: first, that the deficiency in its indictment and factual basis can be disregarded as a harmless variance in proof from the terms of the indictment; and, second, that United States v. Chappell, 6 F.3d 1095 (5th Cir. 1993) supports this argument.
Neither the courts nor the prosecutor may change the charge in the indictment put forward by the grand jury, because the Fifth Amendment guarantees that no person shall be held to answer for a capital or infamous crime unless on presentment or indictment of a grand jury.8 If it were within the power of a court to change the charging part of an indictment to suit its own notions the great importance that the common law and the Constitution attach to an indictment by a grand jury "may be frittered away until its value is almost destroyed." Ex parte Bain, 121 U.S. 1, 10, 7 S. Ct. 781, 30 L. Ed. 849 (1887).
This court continues to adhere to these principles and to the rules or tests set down by the Supreme Court in Stirone v. United States, 361 U.S. 212, 80 S. Ct. 270, 4 L. Ed. 2d 252 (1960).
United States v. Chambers, 408 F.3d 237 (5th Cir. 2005) (quoting United States v. Adams, 778 F.2d 1117, 1123 (5th Cir. 1985)).
Consequently, only a grand jury can amend an indictment to broaden it; and such broadening need not be explicit to constitute reversible error, but may be implicit or constructive. See United States v. Doucet, 994 F.2d 169, 172 (5th Cir. 1993). An implicit or constructive amendment of the indictment, constituting reversible error, occurs when it permits the defendant to be convicted upon a factual basis that effectively modifies an essential element of the offense charged or permits the government to convict the defendant on a materially different theory or set of facts than that with which she was charged. See Chambers, 408 F.3d 237 (reversing a conviction for being a felon in possession of ammunition, where the indictment charged possession of whole ammunition "in or affecting commerce" and the jury was allowed to convict based on the travel of component parts, rather than the whole, of the ammunition in interstate commerce); Adams, 778 F.2d at 1123 (reversing a conviction for making a false statement and providing false identification in connection with the purchase of a firearm, where the indictment charged Adams with using a false name, but the jury was allowed to convict based on his use of a false address); United States v. Salinas, 601 F.2d 1279, 1287-91 (5th Cir. 1979) (reversing a conviction for misapplication of bank funds where the indictment charged that the defendant was a bank director, but the jury was allowed to convict if it found that he was an officer, director, agent, or employee); United States v. Salinas, 654 F.2d 319, 324 (5th Cir. 1981) (reversing a conviction for aiding and abetting the misapplication of bank funds where the indictment charged that the defendant aided and abetted a named officer where the jury was allowed to convict on proof that he aided and abetted a different officer); Doucet, 994 F.2d at 172 (reversing a conviction for possession of an unregistered firearm modified to fire as a machine gun, where the indictment charged possession of the modified gun and the jury was allowed to convict on possession of the unassembled component parts); See, e.g., United States v. Nunez, 180 F.3d 227 (5th Cir. 1999).
The other cases upon which the government relies, United States v. Wade, 266 F.3d 574 (6th Cir. 2001) and United States v. Jackson, 155 F.3d 942, 945-46 (8th Cir. 1998) are distinguishable because the indictments in those cases charged the defendants using broad general terms similar to the provisions of § 513(a).
In Wade, the defendant argued both that the evidence was insufficient to convict him under § 513(a) and that a reversible constructive amendment had occurred. 226 F.3d 574. The Wade indictment charged the defendant with violations of § 513(a) largely in generic terms. Id. Wade was thus alleged to have made and possessed "counterfeit securities of an organization with intent to deceive and defraud other persons and organizations. . . ." Id. The counterfeit checks were drawn upon accounts at Key Bank and Metropolitan Bank, which were named in the indictment. Id. at 582, 583, n. 2. The court, in effect, held that the checks were securities of the banks and that the banks were inherently "organizations" for § 513(a) purposes, and concluded that " [b]ecause the checks . . . purported to be drawn on accounts at Key Bank and Metropolitan Bank, real entities that are organizations under 18 U.S.C. § 513(c) (4), there was sufficient evidence to convict Wade under Counts 17, 18 and 20." Id. at 582 (citing Chappell). The court in Wade found "it doubtful that Wade's complaints even rise to the level of a variance. . . . The checks. . . listed . . . the names of the banks on their face. Thus, the evidence at trial proved that the checks listed in the indictment counts were counterfeit securities of an organization." Id. at 583.
In Jackson, the defendant was convicted of, inter alia, conspiracy to possess or utter counterfeit securities under § 513. 155 F.3d 942. On appeal the defendant argued that the Government had failed to prove that the object of the alleged conspiracy was to violate § 513. Jackson, 155 F.3d at 944. The defendant contended that the government's case depended on whether a bank can be an "organization" as referred to in § 513. Jackson, 155 F.3d at 946. The court held that it could, saying it agreed with the reasoning in Chappell. Jackson, 155 F.3d at 946 (citing Chappell, 6 F.3d at 1099). (" [S]ection 513 does not expressly or impliedly state that a document may be a security of only one person.")
Ms. Reasor seeks reversal of all of her convictions, alleging that her guilty pleas were not voluntary, as they were coerced by the trial judge, and that they were obtained in violation of Federal Rule of Criminal Procedure 11. A plea must be voluntary and intelligent to be valid. Hill v. Lockhart, 474 U.S. 52, 56, 106 S. Ct. 366, 88 L. Ed. 2d 203 (1985). Furthermore, Federal Rule of Criminal Procedure 11(c) (1) prohibits the court from "participat [ing] in any discussions between the parties concerning any such plea agreement." United States v. Rodriguez, 197 F.3d 156, 158 (5th Cir. 1999).10 This Court reviews the validity of guilty pleas de novo. United States v. Bustos-Useche, 273 F.3d 622, 625 (5th Cir. 2001). However, by the express terms of the statute, Rule ll violations are subject to harmless error analysis. Fed. R. Crim. P. 11(h); United States v. Miles, 10 F.3d 1135, 1140-41 (5th Cir. 1993).
As the guidelines group offenses like these for purposes of calculating offense level the vacated convictions should affect the calculation of all thirty-three of Ms. Reasor's forty-two-month concurrent sentences. See former U.S.S.G. § 2F1.1 (1998). In addition, the application of former U.S.S.G § 2F1.1(b) (5) (c) (I) of the 2000 version of the Sentencing Guidelines to Ms. Reasor's sentences violated the Ex Post Facto Clause. The ex post facto violation is clear and conceded by the government. Ms. Reasor should be re-sentenced with consideration given to the appropriate version of the guidelines.12
See Fed. R. Crim. P. 11(b) (3).
We note that the Ninth Circuit has held otherwise in two published opinions United States v. Nukida, 8 F.3d 665 (9th Cir. 1993) (holding that the interstate commerce nexus requirement in 18 U.S.C. § 1365(a) (tampering with a consumer product) is both an element of the offense and a requirement affecting the subject matter jurisdiction of the court intertwined together such that the issue must be resolved by the jury); United States v. Barone, 71 F.3d 1442, 1444 n. 4 (9th Cir. 1995) (applying the holding in Nukida to § 513). We must respectfully disagree. Neither Barone nor Nukida explains why the essential interstate commerce nexus element of the crime should be read to double as a prerequisite to judicial jurisdiction in the absence of any plain words to this effect. The language and structure of the statute indicate that the requirement is merely an element of the crime. 18 U.S.C. § 513.
It is the courts that have the power to determine whether Congress has exceeded the powers granted it under the Commerce Clause. "It is emphatically the province and duty of the judicial department to say what the law is."Marbury v. Madison, 1 Cranch 137, 5 U.S. 137, 2 L. Ed. 60 (1803).
The interstate commerce element of § 513 is markedly different from that contained in many other federal crime statutes. "The phrasing of the jurisdictional element of § 513 stands in clear contrast to the language Congress used in defining a number of other federal crimes, which base federal jurisdiction on the interstate effects of the offense conduct." United States v. Barone, 71 F.3d 1442, 1445 (9th Cir. 1995). Instead, § 513 requires proof that the forged securities were those of an organization which was operating in or whose activities were affecting interstate commerce. "By drafting the statute in this manner instead of using the broader language included in other statutes, Congress evinced a clear intent that the organization whose securities are forged, and not just the forgery, be in or affecting commerce." Id.
Also, in Jones, a prosecution involving the arson of an owner-occupied private residence, the Supreme Court analyzed the arson statute which reads, in pertinent part, " [w]hoever maliciously damages or destroys, or attempts to damage or destroy, by means of fire or an explosive, any building, vehicle, or other real or personal property used in interstate or foreign commerce or in any activity affecting interstate or foreign commerce shall be imprisoned. . . ." Jones v. United States, 529 U.S. 848, 120 S. Ct. 1904, 146 L. Ed. 2d 902 (2000); 18 U.S.C.A. § 844. In Jones, the Court rejected the government's argument that this language should be read broadly as invoking the full reach of the commerce clause. Jones, 529 U.S. at 854, 120 S. Ct. 1904. The Supreme Court disagreed noting that the statute contained the qualifying words "used in" and found that the proper inquiry "is into the function of the building itself, and then a determination of whether that function affects interstate commerce." Id. at 854-55, 120 S. Ct. 1904 (citing United States v. Ryan, 9 F.3d 660, 675 (8th Cir. 1993)). Consequently, the proper inquiry in Ms. Reasor's case is into the "operations" and "activities" of the "organization" whose securities the defendant is charged with forging or counterfeiting, and then into whether those operations or activities were in or affecting interstate commerce. Thus, unlike the statutes which require that the offense conduct itself affect commerce, in both the arson statute, § 844(i), and the forgery statute, § 513, the interstate commerce element is removed from and must be charged and proved separately from the criminal act of arson or forgery.
In light of Jones, this Circuit in Johnson, 246 F.3d at 752, reconsidered and reaffirmed its previous decision in United States v. Johnson, 194 F.3d 657 (5th Cir. 1999), concluding that the factual basis for the plea as shown by the record did not suffice to show that at the relevant time the church building in Johnson was being actually employed for commercial purposes as to be within the terms of § 844(i). Id. at 752 (citing United States v. Rea, 223 F.3d 741 (8th Cir. 2000)).
See 1 Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 127 (2d ed.1984) (citing, inter alia, Stirone v. United States, 361 U.S. 212, 80 S. Ct. 270, 4 L. Ed. 2d 252 (1960); Ex parte Bain, 121 U.S. 1, 7 S. Ct. 781, 30 L. Ed. 849 (1887); Russell v. U.S., 369 U.S. 749, 82 S. Ct. 1038, 8 L. Ed. 2d 240 (1962)).
The defendants made a very limited argument that the government constructively amended the indictment by arguing in closing that Trustmark would have been the ultimate victim of the defendants' fraud if it had succeeded Chappell, 6 F.3d at 1099. The court rejected this argument without assigning reasons. Id.
Federal Rule of Criminal Procedure 11 was amended in 2002, moving this restriction on the trial court from 11(e) (1) (c) to 11(C) (1), but the relevant amendment did not change the law. Fed. R. Crim. P. 11 advisory committee's note
Ms. Reasor also asserted error in the loss calculation used in determining the applicable sentencing range under the guidelines. Because we remand for re-sentencing this issue is not yet ripe. Ms. Reasor has also raised claims under Blakely v. Washington, 542 U.S. 296, 124 S. Ct. 2531, 159 L. Ed. 2d 403 (2004) and now United States v. Booker, ___ U.S. ___, 125 S. Ct. 738, 160 L. Ed. 2d 621 (2005). As we are vacating Ms. Reasor's sentences these claims are moot. Re-sentencing, of course, will take place in accord with Booker.