Opinion ID: 795316
Heading Depth: 2
Heading Rank: 8

Heading: Calculation of Offense Level and Reasonableness of Sentence

Text: 88 Edelmann's final argument on appeal is that the district court committed several errors in calculating her offense level and criminal history, resulting in an unreasonable sentence. We review the district court's application of the Guidelines de novo and its findings of fact for clear error. United States v. Lindquist, 421 F.3d 751 (8th Cir.2005).
89 Edelmann first asserts that the district court erred in applying a two-level enhancement for defrauding more than one victim under § 2F1.1(b)(2)(B) of the 2000 Guidelines. 5 Section 2F1.1(b)(2)(B) of the 2000 Guidelines states that [i]f the [fraudulent] offense involved ... (B) a scheme to defraud more than one victim, increase by 2 levels. While Edelmann argues that there was not one scheme to defraud multiple victims but three separate schemes, each with one victim, the government presented evidence that Edelmann used her business as a front to swindle three different parties out of money within a very short time frame. 90 First, Edelmann used similar business records in her scheme to defraud Victor Beard, Thomas Richardson, and BNC, such as false profit and loss statements, tax records, bank statements and letters, and documents relating to her anticipated earnings from an overseas training program. Second, Edelmann perpetrated the frauds on Beard, Richardson, and BNC within a three-month period. Third, the fraud of Richardson and BNC took place within the same time frame and for the same purpose. Edelmann submitted false statements to the loan company to qualify for a home loan of $125,000. To complete the transaction, she had to bring a sum of $102,825.08 to closing on March 9, 2001. Edelmann gave excuses to the title company as to why she did not have the down payment money on the closing date. Two days later, Edelmann asked Richardson if she could borrow $250,000 from him. The next day, Richardson agreed to lend the money to Edelmann, requesting that Schwab issue a $102,825.08 check to Edelmann. Edelmann then negotiated the check on March 13, 2001, turning it into a Bank of America cashier's check that she presented to the title company on March 13, 2001, to close the loan. Therefore, we find that the schemes to defraud Richardson and the mortgage company were inextricably intertwined, establishing that Edelmann defrauded more than one victim. 91 Accordingly, we hold that the district court properly applied the two-level enhancement.
92 Next, Edelmann argues that the district court erred in applying the two-point enhancement for representing to the victims that she needed money for a charitable organization because her business was a for-profit business and none of the victims were motivated by a humanitarian desire to loan her money. 93 Section 2F1.1(b)(4)(A) of the 2000 Guidelines provides that [i]f the offense involved (A) a misrepresentation that the defendant was acting on behalf of a charitable, educational, religious or political organization, or a government agency ... increase by 2 levels. 94 Here, the government presented evidence that, in seeking bridge loans from Beard and Richardson, Edelmann represented her business as a non-profit, humanitarian project providing legal services to indigent criminal defendants. In addition, she represented to them that she was in the process of gaining primary funding for her project through another source. She promised them that if they loaned her the money, they would receive high returns on their bridge loans when her primary investment source paid out. Also, she submitted a letter to Beard and Richardson from John Contrill stating that she would receive $2,000,000 a week for 40 weeks and that part of this money would be used for humanitarian projects. 95 Based on Edelmann's representations to Beard and Richardson, we hold that the district court committed no error in applying the two-point enhancement.
96 Edelmann also contends that the district court erred in applying a two-point enhancement for using sophisticated means under § 2F1.1(b)(6)(C) under the 2000 Guidelines because she only made simple false statements in applying for loans; created false documents that were easy to generate; copied forms from the IRS website that are easily accessed; and ran a real, as opposed to fictitious, entity. In addition, she notes that she never utilized corporate shells or offshore bank accounts, indicating a lack of sophistication. 97 Section 2F1.1(b)(6)(C) of the 2000 Guidelines provides that [i]f ... (C) the offense otherwise involved sophisticated means, increase by 2 levels. A district court commits no error in applying the two-point enhancement for sophisticated means where the defendant's total scheme was undoubtably sophisticated. United States v. Halloran, 415 F.3d 940, 945 (8th Cir.2005). In Halloran, the defendant advertised on the Internet the sale of a mortgage for a piece of property that he did not own. Id. at 942. To foster the sale of the mortgage, the defendant provided a mortgage broker with fraudulent documents purporting to show that the defendant had a valid mortgage to sell. Id. The defendant had created these fraudulent documents using his typewriter. Id. The fraudulent documents included a purchase agreement, down payment check from a fabricated buyer, and a fictitious bank deposit slip. Id. The defendant appealed the district court's two-point enhancement to his sentence, arguing that his mortgage scheme did not involve the use of sophisticated means because he simply used a typewriter to forge the documents. Id. at 945. In rejecting the defendant's argument, we noted that while certain aspects of the defendant's scheme were not complex or intricate, the total scheme was sophisticated. Id. The defendant's scheme was not a single fraudulent act, but a complex series of fraudulent transactions. Id. We found that to accomplish his multi-layered plot, the defendant required the use of a corporate entity, numerous false documents and forged notary stamps. His elaborate scheme also required him to manipulate official property records by recording fictitious transfers of property and to exploit numerous individuals by forging their signatures on various fraudulent documents. Id. 98 As in Halloran, Edelmann created and used numerous false documents, including multiple years of federal tax returns, supporting federal tax documents, such as W-2 and 1099 forms, bank statements (created from whole cloth), Articles of Incorporation from the Arkansas Secretary of State, profit and loss statements, and a series of bank letters. Collectively, these false documents demonstrate that Edelmann used sophisticated means.
99 Edelmann's next argument is that the district court erred in applying a two-point enhancement for abuse of a position of trust under § 3B1.3 of the 2000 Guidelines. However, the district court never actually applied the two-level enhancement for abuse of position of trust; it merely noted that it was a close question in this case.
100 Edelmann asserts that the district court erroneously applied the obstruction of justice enhancement based on her failure to appear for sentencing on November 10, 2002, because she was not actually sentenced until July 15, 2005, a hearing at which she was present. 101 Section 3C1.1 of the 2000 Guidelines provides: 102 If (A) the defendant willfully obstructed or impeded, or attempted to obstruct or impede, the administration of justice during the course of the investigation, prosecution, or sentencing of the instant offense of conviction, and (B) the obstructive conduct related to (i) the defendant's offense of conviction and any relevant conduct; or (ii) a closely related offense, increase the offense level by 2 levels. 103 In the present case, Edelmann agreed to turn herself in to the custody of the United States Marshals Service on November 10, 2004, in exchange for the government not seeking immediate pre-trial detention on the new charges brought against her. Edelmann entered a plea to the new charges on November 9, and was instructed by the court to turn herself in on November 10, 2004. Edelmann failed to follow the district court's instructions to surrender to the United States Marshals Service by noon on November 10, 2004. As a result, the district court issued an arrest warrant. Edelmann was arrested on November 29, 2004, when she was found hiding in a closet at her residence. At sentencing, Deputy United States Marshal Patti Watson testified about the government resources required to bring Edelmann into custody on the active warrant. 104 We find that these facts constitute sufficient evidence that Edelmann willfully obstructed justice by defying the district court's instruction that she appear for sentencing on November 10, 2004, and justified enhancing Edelmann's sentence for obstruction of justice.
105 Edelmann also argues that the district court erred in adding one criminal history point for her guilty plea in a separate criminal case in the Eastern District of Arkansas. At the time of her sentencing in the instant case, Edelmann had entered a guilty plea in her other case but filed a motion to withdraw the plea. That motion has now been denied and the guilty plea stands. Therefore, the question of whether the district court erroneously applied the additional criminal history point is moot.
106 Having rejected each of Edelmann's contentions that the district court erred in applying sentencing enhancements and recognizing that Edelmann has advanced no other arguments as to why her sentence is unreasonable, we hold that Edelmann's sentence of 92 months' imprisonment is reasonable.