Opinion ID: 708235
Heading Depth: 2
Heading Rank: 1

Heading: Nick Owens

Text: 32 Mr. Owens challenges the district court's finding he was an organizer or leader of a criminal activity that involved five or more participants or was otherwise extensive within the meaning of U.S.S.G. Sec. 3B1.1(a). We review the district court's finding only for clear error,  'giv[ing] due deference to the district court's application of the guidelines to the facts.'  United States v. Torres, 53 F.3d 1129, 1142 (10th Cir.1995) (quoting 18 U.S.C. Sec. 3742(e)), cert. denied, --- U.S. ----, 115 S.Ct. 2599, 132 L.Ed.2d 845 and --- U.S. ----, 116 S.Ct. 220, 133 L.Ed.2d 150 (1995). To determine whether a defendant was an organizer or leader, the district court should consider, among other things, 33 the exercise of decision making authority, the nature of participation in the commission of the offense, the recruitment of accomplices, the claimed right to a larger share of the fruits of the crime, the degree of participation in planning or organizing the offense, the nature and scope of the illegal activity, and the degree of control and authority exercised over others. 34 U.S.S.G. Sec. 3B1.1, comment. (n. 4); Torres, 53 F.3d at 1142. 35 Paragraph 38 of Mr. Owens' presentence report stated only that Pursuant to U.S.S.G. Sec. 3B1.1(a), the offense is increased four levels. The defendant is considered a leader in reference to his role in the conspiracy. He supplied large quantities of cocaine to others and claimed a larger share of the profits. Mr. Owens filed a written objection to paragraph 38. It stated: 36 Defendant objects to paragraph 38 of the Presentence Report. In paragraph 38, Defendant's base offense level is increased by 4 points on the ground that the Defendant was a leader in the alleged conspiracy. Paragraph 38 states that the Defendant supplied large quantities of cocaine to others and claimed a larger share of the profits. Defendant[ ] objects to this 4 point increase. There is no evidence in any of the information provided to Defendant's counsel prior to trial nor any testimony during trial that would support the conclusion that this Defendant claimed 'a larger share of the profits.' 37 In addition, Defendant objects to the conclusion that he was a leader in the conspiracy because he allegedly supplied large quantities of drugs to other individuals. Presumably, the quantity of drugs this Defendant allegedly supplied was considered in determining the base offense level and it is therefore improper to add additional points for the same quantity of drugs. 38 Lastly, there is no evidence that the Defendant exercised any decision making authority or exercised any authority or control over anyone else. In fact, testimony at trial is quite to the contrary when individuals such as Charles Watson and Ramon Cartznes testified that they did not share profits with this Defendant and did not consult with or seek his permission before engaging in any drug related activity. 39 At Mr. Owens' sentencing hearing, the district court stated: 40 Your objection to paragraph 38 is to the four-level adjustment for the role in the offense. I understand this objection and I have considered it carefully. I believe that the evidence is overwhelming that Mr. Owens was the leader of this conspiracy, the one who obtained the drugs and directed the activities of others and gained profit from 1988 until late 1991. Mr. Owens continued as a part of the conspiracy and was beginning again ... to assume a leadership role toward the end. Although he perhaps did not lead and organize an extensive conspiracy for the entire six years, he did for at least three [years]. 41 On appeal, Mr. Owens essentially concedes, and we agree, the trial evidence shows he supplied cocaine to his nephews Morris and Timothy Johnson on credit from late 1987 to November 1991; Morris and Timothy Johnson redistributed the cocaine to other retail dealers for resale in the Musgrave Addition area of Oklahoma City; and Nick Owens derived significant profits from the transactions. He contends, however, the mere fact he supplied drugs is not enough to support the district court's finding he was an organizer or supplier. 42 During oral argument, Mr. Owens' counsel compared Mr. Owens' relationship to his nephews to the relationship between Pillsbury and a local bakery. He contended, and we agree, Pillsbury could not be considered the organizer or leader of a local bakery merely because it supplied flour on credit and derived significant profits from the business relationship. There are two minor flaws in this analogy. First, when a company supplies flour, it has little interest in what happens to the flour thereafter provided it receives timely payment. However, when an individual supplies cocaine for redistribution to the public, he has a very great interest in what happens to it beyond his interest in payment. For example, the supplier will be concerned about who the distributors and retail customers are. If they are police or police informants, the supplier could be implicated, tried, and sent to prison, just like Mr. Owens. Second, it is reasonable to infer the business relationship between Nick Owens and his nephews was not the type of arms-length contractual arrangement Pillsbury would likely have with a local bakery. Nick Owens is twenty-three years older than Timothy Johnson and twenty years older than Morris Johnson, and they are all related by blood. In late 1987, when Nick Owens began supplying cocaine to his nephews, he was forty years old, Timothy Johnson was seventeen, and Morris Johnson was twenty. 43 Nevertheless, we accept Mr. Owens' analogy and agree the mere fact he supplied cocaine to his nephews, without something more, is not enough to support the district court's finding he was an organizer or leader. See Torres, 53 F.3d at 1143 (Because we believe the evidence in the record does not demonstrate how the [defendant's] relationship with the other participants amounted to something more than a wholesaler/retailer or buyer/seller relationship, we hold the government failed to carry its burden of showing that a Sec. 3B1.1(a) enhancement was proper.). Nor is it sufficient that Mr. Owens' role as a supplier may have made him an important figure who was integral to the success of [the] conspiracy. Id. [T]he gravamen of this enhancement is control, organization, and responsibility for the actions of other individuals, because Sec. 3B1.1(a) is an enhancement for organizers or leaders, not for important or essential figures. Id. at 1142 (citations and internal quotation marks omitted). 44 The government cites several parts of the trial transcript it believes directly show Mr. Owens controlled both his nephews and the other members of the conspiracy between late 1987 and November 1991, and he was reasserting himself before the conspiracy ended. Virtually all of the cited portions of the record show only Nick Owens supplied cocaine to his nephews on credit and derived profit from the transactions, which, as we have already explained, is not enough. The cited portions also show Nick Owens helped William Gaines teach Morris and Timothy Johnson to cook cocaine powder, Timothy Johnson talked to Nick Owens in order to take care of a customer's complaint about the quality of the cocaine he had supplied, Nick Owens personally delivered cocaine to Morris and Timothy Johnson at 701 83rd Street, the organization's base of operations, Timothy Johnson told Ramon Cartznes Nick Owens used to have a lot of money and used to sell dope in Oklahoma and he had made trips to pick up cocaine before. Ramon Cartznes never actually saw Nick Owens get paid for one of the trips he took to California to pick up cocaine, although it was Ramon Cartznes' understanding Nick Owens would indeed be paid, Nick Owens purchased nine ounces of cocaine from Ramon Cartznes for himself, not for Timothy Johnson, Nick Owens used his own car to pick up cocaine from Mr. Cartznes, and Ramon Cartznes cooked cocaine at Nick Owens' house at least once. At most, this evidence shows Nick Owens was deeply involved in the conspiracy, first as a supplier and later as a courier; it does not show he led or organized the conspiracy. Furthermore, contrary to the government's assertion, none of this evidence shows Nick Owens recruited or even encouraged his nephews to sell cocaine for him. 45 The record also does not contain evidence tending to show any of the other recognized indicia of leadership and control. For example, there is no evidence that Mr. Owens restricted the people to whom his nephews could sell drugs or whom they could hire to distribute drugs to their retail customers, he controlled the place of wholesale or retail delivery, or he set retail prices. See Torres, 53 F.3d at 1143. Furthermore, the record shows Nick Owens did not receive a larger share of the profits than his nephews Morris and Timothy Johnson, but they split the proceeds equally. Morris Johnson testified he retailed crack cocaine for approximately $500 per quarter ounce, and he kept $250 for himself and paid Nick Owens $250. We therefore conclude the district court's finding was clearly erroneous.