Opinion ID: 706022
Heading Depth: 2
Heading Rank: 2

Heading: Organizer/manager adjustment for the Sec. 1956 offenses.

Text: 48 The district court increased the base offense level for the Sec. 1956 convictions by 4 levels under U.S.S.G. Sec. 3B1.1(a), which provides for this increase [i]f the defendant was an organizer or leader of a criminal activity that involved five or more participants or was otherwise extensive. The court stated: 49 Again, for the adjustment for role in the offense, Mr. Savage was the organizer. He was the moving factor behind the entire scheme. There were more than five people involved in it that he used. 50 [Sentencing Transcript (ST) at 57] (Emphasis added). These remarks indicate that the district court relied on Savage's role in the Savage program as a whole, rather than solely on his role in the international money laundering. Savage does not dispute that this enhancement was appropriately applied to increase the base level on the underlying mail and wire fraud convictions. However, he argues that it was improperly applied to increase the base level on the money laundering convictions. 51 The district court was applying the 1987 guidelines. Prior to the 1990 amendment to the Sec. 3B1.1 introductory commentary, we indicated that adjustment for aggravating role should be based solely on the defendant's role in the offense of conviction. United States v. Zweber, 913 F.2d 705, 708 (9th Cir.1990). The 1990 amendment to the introductory commentary explains that the adjustment for role is based on all relevant conduct, as defined in U.S.S.G. Sec. 1B1.3, and not solely on the defendant's role in the offense of conviction. After this 1990 commentary amendment came into effect, we concluded that the amendment clarified the relationship between Sec. 1B1.3, governing relevant conduct, and Sec. 3B1.1. United States v. Lillard, 929 F.2d 500, 503 (9th Cir.1991). We distinguished the discussion on Sec. 3B1.1 in Zweber as dicta. Lillard, 929 F.2d at 503. 52 Lillard thus indicates that even in pre-1990 application of the guidelines, the adjustment for role could be based on the defendants' role in all relevant conduct, which includes acts committed or aided or abetted by the defendant in preparation for the offense. U.S.S.G. Sec. 1B1.3(a)(1). Savage's role in the entire mail and wire fraud scheme is relevant conduct for purposes of determining his aggravating role in money laundering. Thus, the district court did not err in considering his role in the entire scheme.The district court also correctly concluded that Savage orchestrated the efforts of well over five participants to perform the wire and mail fraud that provided the monetary proceeds laundered in violation of Sec. 1956. A 'participant' is a person who is criminally responsible for the offense, but need not have been convicted. Commentary note 1 to Sec. 3B1.1(a). William Tankersley helped bring other people into the Savage program. [21 RT 3199] Pat Cross handled Savage program paperwork and phone calls from investors. [4 RT 229] Marlin Harris opened accounts in which investors deposited their money, and he transferred funds to bank accounts he opened for Savage in the Austrian bank. [12 RT 1299, 1304] Dave Buck performed a similar role. [12 RT 1464-66] Steve Fink and James Peterson arranged to utilize one of Peterson's accounts for deposit of Savage program funds. [11 RT 1161-65] Fink and Savage also instructed Peterson on when to wire funds from this account to other banks. [11 RT 1165-66] Pat Garner opened yet another account to receive and transfer Savage program funds. [14 RT 1790-1794] 53