Opinion ID: 2759190
Heading Depth: 2
Heading Rank: 4

Heading: Loss Calculation at Sentencing

Text: Defendants also argue that the District Court erred in determining the appropriate loss amount. See U.S.S.G. § 2B1.1.3 The District Court found that the hospital suffered a loss from the wire fraud conspiracy, but that the precise amount of the loss could not be 3 The District Court sentenced Yaron principally to 60 months of imprisonment and Buchnik principally to 48 months of imprisonment. After Saglimbeni and Figueroa pled guilty to Counts Three and Four, they were sentenced principally to 48 months of imprisonment and 36 months of imprisonment, respectively. 4 reasonably determined. Applying Application Note 3(B) to U.S.S.G. § 2B1.1, the District Court calculated the loss using the amount of kickbacks or Defendant Saglimbeni’s gain (in the amount of $2.4 million) as an alternative measure. Defendants contend that Saglimbeni’s gain is an inappropriate loss amount because there was no evidence that the hospital lost money, i.e. that the Defendants overbilled or that the hospital contracted for work that was not performed or was not performed satisfactorily. Again, we disagree because, at trial, the Government adduced substantial evidence to the contrary. That evidence established that, inter alia, (1) the conspirators effectively passed on at least one of the kickback payments to the hospital by including it in their accounting for a construction contract; (2) the Defendants manipulated the bidding process; and (3) because of the kickbacks, Saglimbeni had an incentive to give contracts to the other Defendants without considering whether competitors would do the same quality of work for less money. Accordingly, we find no reason to disturb the District Court’s determination of the applicable loss amount.