Opinion ID: 688529
Heading Depth: 3
Heading Rank: 1

Heading: Determination of the Amount of Loss Due to Fraud

Text: 16 MacDonald contends that the court improperly computed the amount of the loss attributable to her under U.S.S.G. Sec. 2F1.1(b)(1)(M) which provides for a 12 level increase if the amount of the loss exceeds $1,500,000. The court found that the government proved a loss of $1,571,983.65. This sum was reached by adding the losses HUD incurred in foreclosing on eight of the properties ($169,727.69) with the total of the notes issued to the 38 sellers minus the amount the sellers were paid ($1,402,255.76) to total $1,571,983.65. 2 17 MacDonald maintains that she was held liable for losses attributable to acquitted conduct. The acquitted charges (Counts 1, 2, 5, and 6) relate to two properties. The total losses attributed to those properties is $59,000. However, because Counts 3 and 7 relate to these properties, and for that reason, the government argues, it included them. The point is moot, however, even if we give MacDonald credit for the $59,000, the loss still exceeds $1,500,000. [T]he loss need not be determined with precision. The court need only make a reasonable estimate of the loss, given the available information. U.S.S.G. Sec. 2F1.1, Application Note 8. 18 Additionally, MacDonald claims that there were no actual losses and that because she did not intend to cause a loss, the correct figure for the total loss should be zero. Here, the government proved the amount of the loss for the eight properties HUD foreclosed upon. We can also conclude the actual monetary loss to a victim is an appropriate basis for a guideline computation. U.S.S.G. Sec. 2F1.1, Application Note 7(b); see, United States v. Shaw, 3 F.3d 311, 312-13 (9th Cir. 1993). The figure $1,402,255.76 represents the sum the sellers lost in equity. MacDonald counters with arguments that in some cases, the balloon payments are not yet due, and in any event, she fully intended to pay the sellers for their total lost equity. The district court correctly rejected these claims given that the double-mortgaging of the properties left the MacDonald's hopelessly unable to repay any of the seller's equity. These losses are attributable to Victoria MacDonald under both an aiding and abetting theory and as foreseeable conduct of a codefendant.