Opinion ID: 776774
Heading Depth: 3
Heading Rank: 1

Heading: More Than One Gratuity

Text: 11 The district court enhanced Canestraro's offense level by two levels, pursuant to § 2C1.2(b)(1) of the Sentencing Guidelines, which authorizes such an enhancement if the offense involved more than one gratuity. U.S. Sentencing Guidelines Manual (U.S.S.G.) § 2C1.2(b)(1) (1998). Canestraro contends that the district court erred in finding that his conduct involved multiple illegal gratuities. This Court reviews the district court's findings of fact at sentencing for clear error, while the district court's interpretations of the Sentencing Guidelines are reviewed de novo. United States v. Brown, 147 F.3d 477, 485 (6th Cir.1998). The district court's application of the Guidelines to undisputed facts, however, is reviewed deferentially. United States v. Ennenga, 263 F.3d 499, 502 (6th Cir.2001). Insofar as Canestraro challenges the district court's determination of what factors may be considered in determining multiplicity, this is a purely legal matter that inquires into the basic intent of the Guidelines for which de novo review is appropriate. Buford v. United States, 532 U.S. 59, 121 S.Ct. 1276, 1280-81, 149 L.Ed.2d 197 (2001); see also United States v. Humphrey, 279 F.3d 372, 2002 WL 112482, at  n. 4 (6th Cir.) (concluding that legal question was presented as to whether position of public trust provision in the Guidelines required showing of factors indicating a level of discretion similar to that of a fiduciary). Insofar as Canestraro challenges the district court's conclusion that the specific circumstances of his case show that he aided and abetted the receipt of more than one gratuity, we apply a deferential standard of review. 12 The commentary to § 2C1.2 states that [r]elated payments that, in essence, constitute a single gratuity ( e.g., separate payments for airfare and hotel for a single vacation trip) are to be treated as a single gratuity, even if charged in separate counts. U.S.S.G. § 2C1.2 commentary, applic. note 4. Other than the vacation trip example, the commentary provides little direction as to the kinds of circumstances that would warrant a finding that multiple related payments constitute a single gratuity. Canestraro contends that the court should look for interpretive guidance for the commentary to the bribery/extortion guideline, which suggests that courts consider whether the offense conduct involves installment payments for a single action, U.S.S.G. § 2C1.1 commentary, applic. note 6, when determining whether an offense involves more than one bribe or extortion, U.S.S.G. § 2C1.1(b)(1). We agree that this is a relevant consideration. Although a gratuity, as opposed to a bribe, does not require that the illegal payment be offered as a quid pro quo to influence an official action, the fact that a series of gratuity payments are offered in connection with multiple official acts would suggest that the individual payments are distinct benefits with different terms of payment, and should therefore be considered separately. 13 Canestraro contends that the undisputed facts show that he is responsible for the receipt of only one $3500 gratuity, paid in two installments, which was intended to influence a single action — the preparation of projections for Pine Hollow. We conclude that this objection is without merit. Canestraro pleaded guilty to aiding and abetting the receipt of illegal gratuities by public official Patsy DeLuca, not to receiving unlawful gratuities himself. 1 Whether or not Canestraro's $3500 payment for completing the projections is characterized as a single gratuity, the undisputed facts showed that multiple gratuities were paid to Foggia II, of which DeLuca was a partner, pursuant to the agreement with Vukelic. 14 In the statement of facts accompanying Canestraro's plea agreement, he admitted that his acts facilitated the agreement between Vukelic and Foggia II, pursuant to which Vukelic made twenty separate payments totaling $169,750. Canestraro contends that these payments were mere installments on a single $330,000 gratuity. We need not decide that issue, however. Even if we assume that Canestraro is correct that the $330,000 represented a single gratuity, it is undisputed that the agreement between Foggia II and RSV provided for two distinct categories of payment: a general consultancy fee and a $60,000 success fee to be paid upon Pine Hollow's receipt of an operating permit. Cf. United States v. Middlemiss, 217 F.3d 112, 124 (2d Cir.2000) (affirming finding of more than one act of extortion where separate lump sum buyout payment was made in addition to series of monthly installments). The fact that the success fee was designated separately in the agreement with Vukelic, and was subject to different conditions of payment, supports the finding that it constituted a separate gratuity, distinct from the general consultancy fee. Therefore, the district court's finding that Canestraro was responsible for more than one gratuity was not error.