Opinion ID: 733272
Heading Depth: 3
Heading Rank: 2

Heading: jeopardizing soundness of financial institution

Text: 74 Blocker contends that the district court erred in increasing his offense level by four pursuant to § 2F1.1(b)(6)(A), which provides for a such an enhancement if the defendant's offense substantially jeopardized the safety and soundness of a financial institution. 17 Blocker argues that this guideline is inapplicable because the Government's case was posited on the theory that he knew that AJL was statutorily impaired and insolvent when he took it over in 1989. He therefore argues that if AJL already was insolvent, the scheme to forestall regulatory action in order to continue operations could not have caused its insolvency. After examining the commentary to § 2F1.1, we are unpersuaded by Blocker's argument. 75 The commentary to § 2F1.1 explains that an offense shall be deemed to have substantially jeopardized the safety and soundness of a financial institution: 76 if, as a consequence of the offense, the institution became insolvent; substantially reduced benefits to pensioners or insureds; was unable on demand to refund fully any deposit, payment, or investment; was so depleted of its assets as to be forced to merge with another institution in order to continue active operations; or was placed in substantial jeopardy of any of the above. U.S.S.G. § 2F1.1, comment. (n.15). 77 At the sentencing hearing, the district court found that: 78 There is no question Mr. Blocker's offense behavior resulted in the ultimate downfall of AJL and the subsequent need to place the company in rehabilitation and finally liquidation. It is clear from investigative information that not only was AJL rendered insolvent but was also unable on demand to refund fully any deposit or investment and was also so depleted of assets as to be forced to merge with another institution. 79 Clearly, under those facts, § 2F1.1(b)(6)(A) is applicable. Because Blocker has not shown that these findings are clearly erroneous, his claim fails.