Opinion ID: 721130
Heading Depth: 1
Heading Rank: 2

Heading: jeopardizing the safety of a financial institution

Text: The district court imposed a four level upward departure under § 2F1.1(b)(6)(A) on the ground that the fraudulent conduct substantially jeopardized the safety and soundness of a financial institution. Cooper, Lindley, and Jensen contend that Congress did not intend the financial institution enhancement under § 2F1.1(b)(6) to apply to financial institutions that are not federally-insured. The relevant enabling statute directed the Sentencing Commission to promulgate guidelines, or amend existing guidelines, to provide for a substantial period of incarceration for a violation ... that substantially jeopardizes the safety and soundness of a federally-insured financial institution. Pub.L. No. 101-73 § 961(m), 103 Stat. 501. The Guidelines define financial institution to include, among other things, any trust company, credit union, insurance company, investment company ... or any similar entity, whether or not insured by the federal government.  U.S.S.G. § 2F1.1, comment (n. 14). This definition of financial institution does not conflict with the enabling statute, but merely implements, in a broader form, the instruction to the Commission in Section 961(m) of Public Law 101-73. U.S.S.G. § 2F1.1, comment (background). Cooper, Lindley, and Jensen also contend that the district court factually erred in finding that Summit Trust was a trust company ... or any similar entity under § 2F1.1, Comment (n. 14). The district court did not err. Summit Trust was chartered by the Colorado State Bank Commissioner and was authorized to conduct a trust business under the laws of Colorado. Even if Summit Trust did not actually direct investments, it performed services typical of a trust company ... or any similar entity. By holding title to assets, controlling the uninvested cash deposits, and filing tax reports, Summit Trust falls within the Sentencing Guidelines' definition of a financial institution.