Source: https://m.openjurist.org/989/f2d/438
Timestamp: 2020-04-01 02:34:06
Document Index: 9374013

Matched Legal Cases: ['§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2', '§ 2']

989 F. 2d 438 - United States v. Menichino
989 F2d 438 United States v. Menichino
989 F.2d 438
Andrew MENICHINO, Defendant-Appellant.
So long as a defendant, in order to cause a bank to take some action, makes a misrepresentation that a reasonable bank would consider important in deciding whether to act as the defendant wishes, and intends by this representation to "deceive the [b]ank, in the furtherance of fraud," id., the misrepresentation is material, even if the bank does not act as the defendant desires or does not actually rely on the misrepresentation in so acting, id.; [U.S. v.] Scott, 701 F.2d [1340,] 1345 [ (11th Cir., 1983) ]; "[i]t does not lie with one knowingly making false statements with intent to mislead ... to say that the statements were not influential or the information not important," id. (quoting Kay v. United States, 303 U.S. 1, 5-6, 58 S.Ct. 468, 471, 82 L.Ed. 607 (1938)).
The district court imposed four 33-month sentences, to run concurrently. This sentence was based on a total offense level of 12, consisting in part of a 4-level increase for an intended loss of $40,000 under § 2F1.1(b)(1)(E). The court calculated the amount of intended loss by taking the difference between $280,000, the amount of the loan that Menichino thought Carroll would obtain based on the inflated appraisal, and the sale price of $240,000. Menichino contends that this calculation is unsupported by the record and a misinterpretation of the Guidelines.
The calculation of the amount of loss under U.S.S.G. § 2F1.1 is a factual determination reviewed for clear error. See U.S. v. Shriver, 967 F.2d 572, 574 (11th Cir.1992); see also U.S. v. Smith, 951 F.2d 1164, 1166 (10th Cir.1991). The district court's interpretation of the Guidelines is reviewed de novo. U.S. v. Odedina, 980 F.2d 705, 707 (11th Cir.1993).
Loss (Apply the Greatest)                                  Increase in
(E) More than $20,000                                           add 4
(F) More than $40,000                                           add 5
U.S.S.G. § 2F1.1(b)(1). "Loss," as used in § 2F1.1, has been defined consistently as the greater of the value of the property the defendant actually took or the property he intended to take. But, subsequent to Menichino's sentencing, application note 7(b) was added to § 2F1.1's commentary.3 That note clarifies that, in a loan application case involving misrepresentation of assets, the loss is the amount of the loan not repaid at the time the offense is discovered, reduced by the amount the lender could recover from the collateral. Id. § 2F1.1, comment. (n. 7(b)); see also U.S. v. Baum, 974 F.2d 496, 499 (4th Cir.1992); U.S. v. Kopp, 951 F.2d 521, 534 (3d Cir.1991); Smith, 951 F.2d at 1167-68. Prior to the new commentary some courts had held that, in a fraudulent loan application case, the loss under § 2F1.1 should be the entire amount of the loan because that was the amount put at risk of default by the defendant's fraud. See, e.g., U.S. v. Brach, 942 F.2d 141, 143 (2d Cir.1991); U.S. v. Johnson, 908 F.2d 396, 398 (8th Cir.1990).
Menichino was sentenced July 25, 1991, prior to the Nov. 1, 1991 addition of application note 7(b). He contends, however, that this court should consider the new commentary because it does no more than clarify § 2F1.1. The government contends that the amendments should not be considered because they are not designated as a clarification. This court has held that a clarifying amendment should be considered even if it becomes effective after the defendant was sentenced. U.S. v. Louis, 967 F.2d 1550, 1553 (11th Cir.1992); U.S. v. Shores, 966 F.2d 1383, 1388 n. 2 (11th Cir.), cert. denied, --- U.S. ----, 113 S.Ct. 353, 121 L.Ed.2d 268 (1992); U.S. v. Gardiner, 955 F.2d 1492, 1499 (11th Cir.1992); U.S. v. Howard, 923 F.2d 1500, 1504 (11th Cir.1991). A new clarifying amendment to the commentary should not be considered, however, if this court has already addressed and decided how the guideline should be interpreted. Louis, 967 F.2d at 1554; U.S. v. Stinson, 957 F.2d 813, 815 (11th Cir.), cert. granted, --- U.S. ----, 113 S.Ct. 459, 121 L.Ed.2d 368 (1992). Because this court has not previously decided how loss should be calculated in the context of fraudulent loan applications, the amendments to the commentary should be considered if they merely clarify how § 2F1.1 should be interpreted.
This court has stated that most amendments to the commentary do not effect a substantive change but rather are meant only to clarify a particular guideline. U.S. v. Scroggins, 880 F.2d 1204, 1215 (11th Cir.1989), cert. denied, 494 U.S. 1083, 110 S.Ct. 1816, 108 L.Ed.2d 946 (1990). The amendments to § 2F1.1's commentary are consistent with this pattern. Application note 7(b) does not change the definition of "loss" but rather is intended to clarify how that definition should be applied in the context of fraudulent loan applications. Baum, 974 F.2d at 499. Because application note 7(b) only clarifies how loss should be calculated under § 2F1.1, we may consider it as we interpret the version of § 2F1.1 in effect at Menichino's sentencing.
clarif[y] that interest is not included in the determination of loss. In addition, it clarifies that in fraudulent loan application cases, as in other types of fraud, if the intended loss is greater than the actual loss, the intended loss is used. Finally, it makes an editorial improvement in this commentary by deleting an unnecessary phrase.