Opinion ID: 76149
Heading Depth: 3
Heading Rank: 1

Heading: Proper guideline for count two

Text: 65 Both parties agree that § 2X1.1 was the proper starting point for analyzing Count Two. Section 2X1.1 is the general attempt, solicitation, or conspiracy guideline, and it provides that the base offense level from the guideline should be applied for the substantive offense. Anderson and the Government disagree, however, whether § 2F1.1 or § 2R1.1 is the proper guideline for the substantive offense. 66 The district court determined Anderson's sentence by grouping Count One (Sherman Act) and Count Two (§ 371) under USSG § 3D1.2. The court then applied § 2F1.1 (1995) 3 , granted a downward departure pursuant to Application Note 13, and imposed a sentence of 36 months. Anderson argues the court erred by applying § 2F1.1, the fraud guideline, rather than § 2R1.1, the bid rigging guideline. The Government responds that the district court chose the proper guideline for two reasons: first, § 2X1.1 guides the court to § 2F1.1, and second, bid rigging was merely a means to commit fraud here, not the object of the conspiracy itself. 67 Anderson asserts that § 2F1.1 applies to the first part of 18 U.S.C § 371, in which the Government must prove an agreement to commit a separate substantive offense, but not to the second part, which simply makes it a crime to conspire to defraud the United States. Because Anderson was prosecuted under the second part, he argues § 2F1.1 should not apply. This is a torturous reading of the guidelines. Anderson fails to establish that the Sentencing Commission intended to distinguish between the two parts of § 371. If they intended to do so, they would have made their intent clear. Because they did not do so, we must assume § 2F1.1 applies to both parts of § 371. Furthermore, § 2X1.1(c) does not require the use of § 2R1.1 in this case because § 2R1.1 is not listed in Application Note 1 as a guideline that expressly covers conspiracy. The substantive offense in this case was fraud, so § 2F1.1 applies. 4 68 There is no question Anderson engaged in bid rigging. There is also no question the purpose of the bid rigging was to defraud the Government. Anderson fails to make a compelling argument why the Government must charge him with fraud and gain a conviction for fraud in order for § 2F1.1 to apply. The conviction in this case assumes Anderson committed fraud. Bid-rigging was merely a means to an end. Anderson relies on United States v. Rubin, 999 F.2d 194, 196-97 (7th Cir.1993), for the proposition that where the fraud and the anti-competitive activity are inseparable (i.e., the purpose of the fraud was merely to conceal the anti-competitive activity), § 2F1.1 should not apply. Anderson mistakes the purpose of the fraud in this case. Unlike Rubin, the purpose of Anderson's bid rigging was to commit fraud. The object was fraud, not bid-rigging. Section 2F1.1 was the proper guideline to apply.