Opinion ID: 166425
Heading Depth: 3
Heading Rank: 1

Heading: Defining the Error

Text: In Booker, the Supreme Court extended its holding in Blakely to the federal sentencing guidelines, holding that the Sixth Amendment requires “[a]ny fact (other than a prior conviction) which is necessary to support a sentence exceeding the maximum authorized by the facts established by a plea of guilty or a jury verdict [to] be admitted by the defendant or proved to a jury beyond a reasonable doubt.” Booker, 125 S.Ct. at 756. To remedy the constitutional infirmity of the guidelines, Booker invalidated their mandatory nature, requiring the district court to consult them in an advisory fashion. Id. at 756-57 (severing and excising 18 U.S.C. §§ 3553(b)(1), 3742(e)). In Gonzalez-Huerta, we determined there were two types of error a district court could commit prior to Booker. 403 F.3d at 731. The first, referred to as “constitutional Booker error,” occurs when the district court relies upon judge-found facts (other than a prior conviction) to enhance a defendant’s sentence mandatorily, a practice proscribed by the Sixth Amendment. Id. The second type of error, referred to as “non-constitutional Booker error,” results when the district court applies the guidelines in a mandatory rather than advisory fashion, even though the resulting sentence was calculated based solely upon facts admitted by the defendant or found by a jury. Id. at 731-32. Because the parties dispute what type of error was committed below, we must first define the error. Kregas asserts the error in this case was “constitutional Booker error” because -13- his sentence was enhanced based on the district court’s fact-finding, specifically that the amount of loss was between $200,000 and $350,000 and the offense involved more than minimal planning. The government contends no Sixth Amendment violation occurred. It alleges the amount of loss was a legal determination, specifically, whether Kregas could be held responsible under the guidelines’ relevant conduct provision (USSG §1B1.3) for those losses caused by the wire transfer authorizations signed by his co-workers. As to the enhancement for more than minimal planning, the government contends Kregas waived any Blakely argument by failing to make any objection to the enhancement at sentencing and not challenging it on appeal. In his reply brief, Kregas disagrees with the government’s assertion that the amount of loss issue was a legal determination. He contends that in ascertaining the amount of loss under USSG §2F1.1, the district court was required to decide whether the actions of his co-workers in forging his signature to the wire transfer authorizations were “reasonably foreseeable” to him under the relevant conduct provision of USSG §1B1.3. Because “reasonable foreseeab[ility]” is a fact question, not a legal one, Kregas maintains the amount of loss enhancement was the result of judicial fact-finding and therefore, in violation of the Sixth Amendment. As to the amount of loss enhancement, we agree with the government that no Sixth Amendment violation occurred. Kregas’ objection at sentencing to the amount -14- of loss was based on his argument that he could only be held responsible for the amount of loss resulting from the wire transfer authorizations he signed. His argument was rejected based on the district court’s legal interpretation of USSG §2F1.1 and §1B1.3. Specifically, the court determined it was “the existence of the account that resulted in the losses, whether he sent the wire transfer authorizations or not.” (R. Vol. IX at 8.) Although Kregas attempts to rely on the “reasonable foreseeab[ility]” language in the guidelines’ relevant conduct provision, this language pertains to cases involving jointly undertaken criminal activity. See USSG §1B1.3(a)(1)(B) (“[I]n the case of a jointly undertaken criminal activity . . . [relevant conduct includes] all reasonably foreseeable acts and omissions of others in furtherance of the jointly undertaken criminal activity.”). However, as the Commentary to §1B1.3 states: “The requirement of reasonable foreseeability applies only in respect to the conduct . . . of others under subsection (a)(1)(B). It does not apply to conduct that the defendant personally undertakes, aids, abets, counsels, commands, induces, procures, or willfully causes; such conduct is addressed under subsection (a)(1)(A).” USSG §1B1.3, comment. (n. 2). Here, Kregas was convicted of personally aiding and abetting the submission of the false application to Chittenden. Therefore, as the district court legally concluded, §1B1.3(a)(1)(A), rather than §1B1.3(a)(1)(B), was the pertinent “relevant conduct” provision and Kregas was responsible for the total amount of loss to Chittenden -15- resulting from the merchant account, which was obtained solely due to the submission of the false application. Kregas admitted this loss was $320,785.64. (See R. Vol. I, Doc. 68 at 3; Vol. IX at 7.) Consequently, no Sixth Amendment violation resulted concerning the amount of loss because an eight-level enhancement under USSG §2F1.1(b)(1)(I) was authorized by the guilty verdict and Kregas’ admissions. Additionally, no Sixth Amendment violation occurred as to the more than minimal planning enhancement. 19 In this case, if the two-level enhancement for more than minimal planning had been omitted from the court’s guideline calculations, the applicable offense level would have been 14, resulting in a guideline range of fifteen to twenty-one months imprisonment. Kregas received a twenty-one month sentence—a sentence the district court could have imposed without the more than minimal planning enhancement. Therefore, no constitutional error occurred as a result of this enhancement. See United States v. Yazzie, 407 F.3d 1139, 1144 (10th Cir. 2005) (en banc) (“Booker made clear that it is the actual sentence, not the sentencing range, that must not be increased based upon judge- 19 Contrary to the government’s argument, Kregas has not waived a Blakely/Booker challenge to the more than minimal planning enhancement. That he failed to object to this enhancement at sentencing based on the Sixth Amendment does not constitute a waiver; rather, his failure to preserve the issue at the district court limits our review to plain error. Also, Kregas’ Blakely argument on appeal applied to both the amount of loss and more than minimal planning enhancements. -16- found facts in order to violate the Sixth Amendment . . . .”). Although there was no Sixth Amendment violation in this case with respect to the amount of loss and more than minimal planning enhancements, the district court did apply the guidelines in a mandatory fashion. Therefore, the district court committed “non-constitutional Booker error” at sentencing. Having defined the error, we now proceed with the plain error analysis.