Opinion ID: 783752
Heading Depth: 1
Heading Rank: 4

Heading: The Abuse of Trust Issue.

Text: 17 In determining the total mail fraud offense level, the district court imposed a two-level increase for abuse of trust because Shevi embezzled funds from his niece's and nephew's trust. Shevi argues (1) the court erred in relying on the hearsay testimony of Agent Shoup, rather than testimony by the victims themselves, and (2) the enhancement does not apply in a family setting such as this. We disagree. 18 (1) Agent Shoup described the trust arrangement and Shevi's embezzlement of trust funds. He also testified, over Shevi's hearsay objection, to statements made by the niece and her father regarding this relationship. Shevi argues the district court erred in admitting this hearsay, which permitted the victims to avoid cross examination regarding whether they had voluntarily released their claims. 19 Reliable hearsay evidence may be considered at sentencing. See U.S.S.G. § 6A1.3(a) p.s.; United States v. Wise, 976 F.2d 393, 402 (8th Cir.1992), cert. denied, 507 U.S. 989, 113 S.Ct. 1592, 123 L.Ed.2d 157 (1993). Shevi relies on United States v. Bougie, 279 F.3d 648, 651 (8th Cir.2002), where we held that disputed facts relevant to sentencing could not be established solely through an FBI agent's affidavit. But in Bougie, the agent did not testify at the sentencing hearing. Here, Agent Shoup testified, and Shevi had ample opportunity to cross-examine him or to refute the hearsay statements with defense evidence. In addition, there was ample other evidence supporting the district court's finding that Shevi embezzled $26,813 from the trust. 20 (2) An adjustment is proper under § 3B1.3 if the defendant abused a position of public or private trust, or used a special skill, in a manner that significantly facilitated the commission or concealment of the offense. A position of public or private trust is one characterized by professional or managerial discretion. § 3B1.3, comment. (n. 1). Shevi argues that § 3B1.3 does not apply to this non-business, purely familial position, relying on United States v. Willard, 230 F.3d 1093, 1097 (9th Cir.2000), where the Ninth Circuit declined to apply § 3B1.3 in sentencing a mother who had instructed her daughter not to testify against the father. 21 In this case, however, we have more than a nonbusiness, purely familial relationship. Shevi served as trustee of social security benefits received by his minor niece and nephew. He had substantial discretion to invest or spend those funds, much like a professional trustee or a financial adviser with discretion to invest. This discretion enabled him to embezzle the funds and made the detection of his offense far more difficult. We conclude that a relative with this degree of control over finances may occupy a position of private trust, and that the district court's finding that Shevi occupied a position of private trust in this case was not clearly erroneous. See United States v. Baker, 200 F.3d 558, 564 (8th Cir.2000) (standard of review). The imposition of a § 3B1.3 adjustment is affirmed. 22