Opinion ID: 2671506
Heading Depth: 3
Heading Rank: 2

Heading: The individual jobs at issue

Text: The counts of conviction at issue in these appeals stem from the following restoration jobs performed by DRI between 2005 and 2006.
In 2005, DRI performed restoration work on a property in Longmont, Colorado, owned by Belterra Inc. and insured by Travelers Insurance (Travelers). DRI employee Mark Troudt provided Travelers with a revised estimate that included two subcontractor line items: one in the amount of $62,430.01 for “ELECTRICAL” and another in the amount of $1,976.10 for “PLUMBING.” Supp. ROA at 32. The line item for the electrical work stated “[t]he line item above represents the electrical repairs per detailed invoices from Master Electrician (A/C Electric).” Id. The line item for the plumbing work stated that the amount listed was “per the detailed break down [sic] from D&H Plumbing and Heating.” Id. In fact, however, DRI paid only $45,486.96 to its subcontractor for 5 the electrical work and $1,580.88 to its subcontractor for the plumbing work.
In 2005, DRI performed restoration work on a property in Broomfield, Colorado, owned by John Benaglio and insured by The Hartford Insurance Company (The Hartford). Troudt sent The Hartford a DRI estimate that included seven line items for vinyl windows that included the following language: “The line item above represents the actual cost of the window for installation and material per the invoice from Professional Window Service.” Id. at 79, 83, 88, 91, 93, 94, 96. These seven line items in DRI’s estimate totaled $4,084.72. But DRI paid its subcontractor, Professional Window Service, only $3,568.44 for the work. On this same DRI estimate, Troudt also listed three subcontractor line items for “ELECTRICAL” work. Id. at 108-09. Each of these line items stated that the amounts were “[p]er invoice from Ruby Electric.” Id. However, DRI actually paid Ruby Electric 20% less for each line item than was listed on its estimate to The Hartford.
In 2005, DRI performed restoration work on a property in Broomfield, Colorado, owned by Rosemary Cahall and insured by the Kemper Insurance Company (Kemper). DRI employee Justin Blackburn submitted to Kemper a DRI estimate that included two subcontractor line items, one in the 6 amount of $8,009 and the other in the amount of $5,550, for work performed by subcontractor D&H. Id. at 184-85. Each of these line items included the wording “per estimate from D&H Heating and Air.” Id. DRI, however, paid D&H only $6,407 for this work. On the same DRI estimate, Blackburn also listed a subcontractor line item for “Electrical repairs - per estimate from H&H Electrical” in the amount of $4,180. Id. at 184. The actual work, however, was performed by Ruby Electric and DRI paid Ruby Electric only $2,686.40 for the work.
In 2005, DRI performed restoration work on a property in Empire, Colorado, owned by Clear Creek Investments and insured by State Farm Insurance Company (State Farm). Troudt sent State Farm a DRI estimate that listed a single subcontractor line item in the amount of $6,231.90 for “HEAT, VENT & PLUMBING” work performed by D&H. Id. at 226. Written below the line item was the phrase “per the the [sic] invoice and breakdown from D&H Heating in the amount of 5193.25 x contractor overhead and profit of 20% = the cost of $6231.90.” Id. Troudt also sent a cover letter that stated, in pertinent part, “The break down [sic] is per invoice received from D&H Heating for labor and material completed to date.” Id. at 225. In fact, however, D&H had agreed to perform the work for $3,879.60 and invoiced DRI for that amount.
7 In 2005, DRI performed restoration work on a property in Boulder, Colorado, owned by Kent and Marilyn Evans and insured by State Farm. DRI employee Jason Cain sent State Farm a DRI estimate that included a subcontractor line item in the amount of $267.52 for “Electronics Cleaning per RescueTech.” Id. at 336. Included with the line item was the following statement: “Electronics cleaning includes 20% O&P.” Id. Rescue Tech provided DRI with an estimate in the amount of $223.03, but ultimately agreed to accept $178.42 from DRI for the work. Cain also sent State Farm a DRI supplemental estimate that included subcontractor line items in the amount of $3,550 for “PAINTING . . . Per CertaPro Painting,” id. at 347, and in the amount of $5,899.85 for “CONCRETE - garage slab,” id. at 348. Along with the supplemental estimate, Cain sent State Farm the false proposals from these subcontractors that matched the dollar figures listed on the supplemental estimate. In fact, however, CertaPro charged DRI $1,760, and TBD (the subcontractor that performed the concrete work) charged DRI $4,719.88. 1 1 Cain’s supplemental estimate also included a subcontractor line item for “Electrical Rewire - per proposal from Ruby Electric” in the amount of $1,678.63. Supp. ROA at 348. According to the government, Ruby Electric actually charged DRI less than this amount. Unfortunately, however, the exhibits included in the record on appeal do not fully substantiate the government’s assertion on this point, and thus we do not rely on it for purposes of our analysis. Relatedly, we note that the exhibits included in the record suggest, but do (continued...) 8
In 2006, DRI performed restoration work on a property in Boulder, Colorado, owned by David Jones and insured by American Family Insurance (American Family). Blackburn sent American Family a DRI estimate that contained two subcontractor line items: one in the amount of $4,995.98 for “Plumbing repairs - per invoice from Broomhall Brothers Plumbing,” and another in the amount of $4,456 for “Electrical repairs - per invoice from Ruby Electrical.” Id. at 710. In fact, however, DRI paid both of these subcontractors 20% less than the amounts listed on DRI’s estimate.
In 2005, DRI performed restoration work on a property in Lakewood, Colorado, owned by Kathleen Justen and insured by Amica Insurance (Amica). Blackburn sent Amica a DRI estimate with a subcontractor line item in the amount of $5,700 for “Asbestos abatement - per estimate from Rocky Mountain Abatement.” Id. at 739. Together with the DRI estimate, Blackburn sent Amica a proposal from Rocky Mountain that listed a contract price of $5,750. However, DRI actually paid Rocky Mountain $4,025 for the work.
1 (...continued) not fully establish, that DRI’s estimate and supplemental estimate included a total of $3,375 in subcontractor line items from Ruby Electric, and that DRI actually paid Ruby Electric a total of $2,700 for its work. Id. at 354, 356. 9 In 2005, DRI performed restoration work on a property in Niwot, Colorado, owned by Don List and insured by Allstate Insurance Company (Allstate). Blackburn sent Allstate a DRI estimate that included a subcontractor line item in the amount of $8,551.22 for “Electronics cleaning - per invoice from ICC Technical Loss Consultants of $7,126.02 plus ten and ten.” Id. at 779. ICC provided DRI with an inflated invoice that matched the $7,126.02 figure. But DRI actually paid ICC $5,700.60 for the work.
In 2006, DRI performed restoration work on a property in Morrison, Colorado, owned by Charles Lusman and insured by Sentry Insurance (Sentry). Blackburn sent to James Lynch, an independent adjuster who was working for Sentry, a falsely inflated Rocky Mountain Abatement proposal for $4,038 plus a $450 inspection fee. Id. at 803-05. Lynch relied on the false Rocky Mountain Abatement proposal and incorporated it as a line item in the claim estimate that he created for Sentry on the Lusman job. Unbeknownst to Lynch and Sentry, Rocky Mountain Abatement had agreed to perform the work for $3,250 plus a $450 inspection fee. j. The Taddonio job (basis for Count 53) In 2005, DRI performed restoration work on a property in Lakewood, Colorado, owned by Louise Taddonio and insured by Ohio Casualty. Id. at 1047. Blackburn sent Ohio Casualty a DRI estimate that included a subcontractor line 10 item in the amount of $4,293.44 for “Motorized shades - per proposal from Ananda and Suns.” Id. at 1048. Ananda and Suns provided DRI with two invoices: one in the amount of $4,293.44, and another in the amount of $3,484.32. Id. at 1055-56. DRI provided Ohio Casualty with a copy of the higher invoice, but actually paid Ananda and Suns the lower of these two amounts.