Opinion ID: 558096
Heading Depth: 3
Heading Rank: 1

Heading: Blunt's Apartment

Text: 30 The Government argues that the cocaine from Blunt's apartment constitutes relevant conduct under U.S.S.G. Sec. 1B1.3(a)(2). Under that section, which applies to drug distribution offenses, relevant conduct encompasses all such acts and omissions that were part of the same course of conduct or common scheme or plan as the offense of conviction. U.S.S.G. Sec. 1B1.3(a)(2) & comment. (backg'd.). From the Government's viewpoint, the Blunt cocaine comprised part of a common scheme or plan, because: (1) the confidential informant asserted that both Blunt's and Townley's apartments housed drugs or drug proceeds, (2) both apartments actually contained cocaine and Blunt's apartment contained cash, (3) both apartments housed identical lock boxes containing either cocaine or cocaine traces, and (4) Townley and Blunt corresponded about Jaguar Productions. We remain unconvinced. 31 At a minimum, the Government must prove the factual prerequisites to a sentence enhancement by a preponderance of the evidence. See United States v. Malbrough, 922 F.2d 458, 464 (8th Cir.1990); United States v. Streeter, 907 F.2d 781, 792 (8th Cir.1990). In this case, the Government must show that Townley possessed a personal interest in or responsibility for the Blunt cocaine. Under the Guidelines, this requirement could be satisfied by proof that Townley aided, abetted, counseled, commanded, induced, procured or willfully caused the presence or processing of the cocaine in Blunt's apartment. See U.S.S.G. Sec. 1B1.3, comment. (nn. 1-2). Alternatively, the Government could show that the Blunt cocaine fell within the scope of criminal activity jointly undertaken by Townley and reasonably foreseeable to him. Id. 32 The Government does not contend that its evidence satisfies the first alternative. As to the second alternative, we note that the Government elected not to charge this case as a conspiracy. Although not dispositive, we pause to question whether the Government itself believed that it possessed probable cause to charge joint criminal activity, much less a preponderance of proof. Cf. United States v. Byrd, 898 F.2d 450, 453 (5th Cir.1990) (An indictment is a conclusive finding that there is probable cause to believe that the allegations in the indictment took place). 33 We further observe that the Government, in attempting to associate Townley with the Blunt cocaine, relies heavily on the hearsay allegations of a still-undisclosed informant. Our prior cases indicate our concern about the reliability of hearsay statements in the sentencing context. See, e.g., United States v. Cammisano, 917 F.2d 1057, 1062 (8th Cir.1990); United States v. Fortier, 911 F.2d 100, 103-04 (8th Cir.1990). Such misgivings are especially fitting here. 34 We have previously noted the inconclusive nature of the informant's statements in this case. See supra note 3. Additionally, the fact that the police investigation failed to corroborate critical aspects of the informant's story amplifies our concerns. Most significantly, the police search of Townley's apartment failed to produce the alleged drug proceeds. These drug proceeds formed the sole objective means of verifying the informant's accusations with respect to Townley. They also formed the only direct link between Townley and the purported drug dealings between Blunt and Townley's half-brother. Moreover, the Government never called the informant, or any other knowledgeable person, to explain the absence of the proceeds or to delineate the connections now alleged between these three individuals. Cf. United States v. Winfrey, 900 F.2d 1225, 1228 (8th Cir.1990) (co-conspirator testifies at trial about defendant's participation); United States v. Mann, 877 F.2d 688, 690 (8th Cir.1989) (DEA agent observes working relationship between defendant and cocaine supplier). 35 The remainder of the Government's evidence renders us no more certain. The Government produced no chemical evidence to establish that the cocaine found in Townley's and Blunt's apartments came from the same source. 5 Moreover, the lock box from Townley's apartment creates negligible grounds for suspicion--particularly in the absence of testimony from the informant identifying the lock box as one of the aluminum containers earlier observed in Blunt's apartment. Lastly, we point out that the Government failed to present one iota of evidence connecting Jaguar Productions to drug activity. Cf. United States v. Koonce, 884 F.2d 349, 352 (8th Cir.1989) (defendant's correspondence contained explicit reference to continuing criminal enterprise). The Government nowhere contradicted Townley's testimony that Jaguar Productions constituted a legitimate business enterprise and sought no details about its records or operations. 36 Under the circumstances, we conclude that the Government failed to prove that Townley joined his half-brother and Blunt in a cocaine distribution scheme. We therefore hold that the district court erred in sentencing Townley for the cocaine from Blunt's apartment. See United States v. North, 900 F.2d 131, 133 (8th Cir.1990).