Opinion ID: 195935
Heading Depth: 3
Heading Rank: 2

Heading: Violation of Consent Order

Text: 59 Newman further argues that the district court erred in imposing a two-level increase under U.S.S.G. Sec. 2F1.1(b)(3)(B) for a knowing violation of the consent order. 11 Newman argues that the enhancement applies only when a defendant violates an order directed at the defendant personally or at an entity that is controlled by the defendant. Newman argues that the order was not directed at him personally nor was he a party to the order, as it was entered into prior to his purchase of the company. Newman further argues, as above, that he never legally controlled RPLIC, since the DBR never approved the sale. Accordingly, Newman argues, the enhancement could not apply to him. 60 We find no error in the district court's application of this enhancement. The commentary to the guidelines provides: If it is established that an entity the defendant controlled was a party to the prior proceeding, and the defendant had knowledge of the prior decree or order, this provision applies even if the defendant was not a specifically-named party in that prior case. U.S.S.G. Sec. 2F1.1, comment. (n. 5) (1991). Even though not a party to the order, Newman was subject to the enhancement if he controlled the company and knew of the prior order. As already said, Newman had de facto control of the company. Moreover, he was aware of the consent order and could be found to have acted in deliberate contravention of it. Newman's violation of the order was thus subject to enhancement under Sec. 2F1.1. (b)(3)(B). 12