Opinion ID: 196212
Heading Depth: 2
Heading Rank: 1

Heading: Factual Background and Initial Sentencing

Text: 5 Appellee Bennett abused positions of trust with Daniel Webster Mortgage Company, Inc. (Daniel Webster), by obtaining more than ten fraudulent real estate loans based on Daniel Webster's lines of credit with Plymouth Federal Savings Bank (Plymouth Federal) and New Bedford Institution for Savings, which Bennett applied toward the development of real properties held in trust for the benefit of himself and his wife. The fraudulent borrowing scheme involved aliases, false loan documents and concealment. Following its discovery by the Federal Deposit Insurance Corporation during the spring of 1990, Daniel Webster and Plymouth Federal sued Bennett. On February 1, 1991, the parties entered into a settlement agreement, requiring Bennett to turn over cash and other property, including certain improved properties which remained in his possession. 6 In late 1991, Bennett was indicted on nine felony counts for fraudulently obtaining $900,000 from a financial institution, see 18 U.S.C. Sec. 20 (1988) (defining financial institution), between August 1988 and October 1989. See 18 U.S.C. Sec. 1344. Following his trial and conviction on all charges, the district court calculated the total loss occasioned by Bennett at $900,000, see U.S.S.G. Sec. 2F1.1(b), rejecting the government's contention that the total loss should include, as relevant conduct, amounts fraudulently borrowed but not charged in the indictment. The district court then deducted (1) the $589,000 Bennett had repaid on the indictment loans prior to the discovery of his crimes, and (2) the value to Daniel Webster--at least $660,000--of the civil suit settlement agreement entered into after Bennett's crimes had been discovered. 7 Having determined that no loss had been occasioned by Bennett's fraud, the district court ruled that Bennett merited a two-level downward adjustment, see U.S.S.G. Sec. 3E1.1, for acceptance of responsibility by agreeing to settle the indictment loans in full. The resulting Total Offense Level (TOL) of 8, 1 together with a Criminal History Category of I, produced a GSR of from 2 to 8 months' imprisonment, 24 to 36 months' supervised release, and a $5,000 to $50,000 fine. The district court sentenced Bennett to 24 months' probation and six months' home detention, special assessments totaling $450, and no fine.