Opinion ID: 545168
Heading Depth: 2
Heading Rank: 2

Heading: Dennis Ray Paden

Text: 17
18 Paden argues that the district court erred in concluding that statements made by Paden during the course of plea bargaining were admissible in the sentencing phase of his trial. Paden cites Fed.R.Crim.P. 11(e)(6)(D), which is based upon (and virtually identical to) Fed.R.Evid. 410(4). Rule 11(e)(6)(D) provides that any statement made in the course of plea discussions with an attorney for the government which do not result in a plea of guilty or which result in a plea of guilty later withdrawn is not admissible against the criminal defendant who made the statement. 19 The incriminating statements in question were made during plea negotiations in August 1988. According to Paden, the Government unilaterally ended these negotiations, and consequently cut off the Government's opportunity to use any statements Paden made during the negotiations. Paden maintains that his subsequent plea agreement with the Government in April 1989 did not resurrect the Government's opportunity to use the incriminating statements. 20 This Court disagrees. We find nothing in either Fed.R.Crim.P. 11(e)(6)(D) or Fed.R.Evid. 410(4) requiring that a particular discussion or series of discussions must produce a plea agreement. Neither do we find anything in these rules that prevents either side from discontinuing negotiations for a time. Progress toward a plea is rarely smooth and unbroken. Both rules look only to the end result of the process. Here, the end result of Paden's discussions with the Government was a guilty plea. By their express language, Fed.R.Crim.P. 11(e)(6)(D) and Fed.R.Evid. 410(4) do not prohibit statements made during plea negotiations that lead to a plea of guilty. 3 21 At sentencing, the district court may rely upon any evidence of the defendant's credibility and responsibility that is sufficiently reliable. United States v. Flores, 875 F.2d 1110, 1112 (5th Cir.1989). In this case, the statements are sufficiently reliable, because they came directly from Paden. Once it was shown that the statements were sufficiently reliable, Paden had the burden of showing that this information upon which the district court relied in sentencing was materially untrue. Flores, 875 F.2d at 1113. Paden has not satisfied this burden. He insists that the statements he made during the plea negotiations were coerced by threats from the Government prosecutors, but he has not denied on appeal that the statements he made were accurate. Even if Paden may be said to have denied the truth of his incriminating statements, he has not alleged a colorable claim that his statements were involuntary. He claims that Government prosecutors pressured him to tell the truth, and suggested that Paden might receive the death penalty or life imprisonment if he did not admit that he was the one who lit the match that sparked the Lakeland Stationers fire. Encouraging a defendant to tell the truth, however, does not render a statement involuntary. United States v. Ballard, 586 F.2d 1060, 1063 (5th Cir.1978). Neither does a recitation of the potential sentence a defendant might receive render a statement involuntary. Id. at 1062-63. 22 In this case, the district court, based on all the available evidence, reached a decision that Paden's prior incriminating statements during plea negotiations were relevant and helpful to a determination of the sentence Paden would receive. This Court cannot conclude that the district court's decision was in error.
23 Paden also argues that the district court erred in awarding a two-point increase in Paden's base offense level for an alleged leadership role in the criminal offense. As previously noted, the standard of review of the district court's application of the Sentencing Guidelines is whether the court's factual findings are clearly erroneous. Mejia-Orosco, 867 F.2d at 221. 24 In the present case, evidence available to the district court suggests that Paden made the decision to bring the two young associates to Mississippi to participate in the arson. Paden, along with Headrick, extensively planned the arson. Further, Paden himself started the fire. Because the evidence sufficiently establishes Paden's leadership role in the offense, this Court will not disturb the district court's findings.
25 Paden additionally contends that the district court erred in awarding a two level increase in Paden's base offense level because he allegedly obstructed justice. Again, the district court's determination is subject to the clearly erroneous standard of review. Mejia-Orosco, 867 F.2d at 221. 26 The district court found that Paden had obstructed justice in two instances. First, the court concluded that Paden had willfully failed to disclose material information regarding his prior criminal history. The record supports this conclusion: at one point, Paden concedes that he withheld a portion of his criminal history. Second, the court concluded that Paden had given inconsistent and unbelievable testimony under oath concerning his involvement in starting the Lakeland Stationers fire. Indeed, at the sentencing hearing, Paden's counsel acknowledged the existence of this contradictory testimony. Based upon our review of the record, this Court cannot conclude that the district court's enhancement of Paden's sentence was clearly erroneous.
27 Paden maintains that the district court erred in concluding that he was not entitled to a decrease of two points in his offense level for acceptance of responsibility. The determination of whether a defendant has accepted responsibility for his crime enjoys the protection of the 'clearly erroneous' standard. Thomas, 870 F.2d at 176. 28 There was extensive argument at Paden's sentencing hearing on the question of whether Paden was entitled to a sentence reduction for acceptance of responsibility. The court ultimately concluded that, as a matter of law, Paden was not entitled to a reduction because of his earlier obstruction of justice. Nonetheless, the court permitted Paden to explain why he should be entitled to a reduction on the basis of acceptance of responsibility. Paden explained that he was entitled to reduction because he had come before the Court and acknowledged his guilt for a very serious crime. 29 Paden claims that the district court improperly determined that it could not both enhance a sentence for obstruction of justice and reduce a sentence for acceptance of responsibility. However, at the time of Paden's sentencing hearing in July 1989, Application Note 4 of section 3E1.1 provided that an adjustment under this section is not warranted where a defendant perjures himself, suborns perjury, or otherwise obstructs the trial or the administration of justice ... regardless of other factors. Under this language, a court could not reduce a sentence for acceptance of responsibility if the defendant's sentence were enhanced for obstruction of justice. Eventually, the United States Sentencing Commission amended Application Note 4 to permit adjustments for both obstruction of justice and acceptance of responsibility, but this amendment only became effective on November 1, 1989--several months after Paden's sentencing hearing. Cf. United States v. Irabor, 894 F.2d 554, 557 n. 1 (2d Cir.1990) (refusing to apply the amended Application Note 4 to a sentencing hearing that occurred prior to the effective date of the amendment). 30 Even if the amended Application Note 4 had been effective on the date of Paden's sentencing, it is unlikely that Paden would have benefitted from its language. The new Application Note 4 suggests that adjustments for both obstruction of justice and acceptance of responsibility are permissible in extraordinary cases. This case, however, does not present extraordinary circumstances. Paden informed the district court that he had accepted responsibility by acknowledging his guilt in a serious case. Nonetheless, a guilty plea does not entitle a defendant to sentence reduction as a matter of right. Sentencing Guideline Sec. 3E1.1(c). While a guilty plea may provide some evidence of acceptance of responsibility, it does not of itself warrant a reduced sentence. Application Note 3 to Sentencing Guideline Sec. 3E1.1. Accordingly, this Court is unable to find that the district court's decision that Paden was not entitled to sentence reduction is clearly erroneous.
31 Paden argues that the district court erroneously awarded restitution to individuals or entities that were not named in the presentence report. However, by his own admission, Paden raised no objection at the sentencing hearing to the ordered restitution to the general creditors. Accordingly, Paden has failed to preserve error and cannot now complain on appeal. 32 Paden maintains that the award of restitution should be vacated, even in the absence of objection, because the award constitutes plain error. This Court has defined plain error as an error so obvious that failure to notice it would 'seriously affect the fairness, integrity, or public reputation of judicial proceedings.'  United States v. Musquiz, 445 F.2d 963, 966 (5th Cir.1971) (quoting United States v. Atkinson, 297 U.S. 157, 160, 56 S.Ct. 391, 392, 80 L.Ed. 555 (1936)). Any error committed by the district court in this case does not rise to the level of plain error. The presentence report referred to several unnamed general creditors who had accounts receivable from Lakeland Stationers. It can reasonably be assumed, at least in the absence of objection from Paden, that the restitution order includes these creditors who were not specifically named in the presentence report. 33 Paden also contends that United States v. Taylor, 868 F.2d 125 (5th Cir.1989), stands for the proposition that no objection to the restitution order was necessary. Taylor concluded merely that the appellate courts might overlook a defendant's failure to object to a sentencing guideline error, at least until the courts and counsel became more familiar with these new and complex requirements. Restitution, however, does not raise the same procedural difficulties as application of the levels of the sentencing guidelines. To preserve error, a defendant must object to any error in a restitution order. 34 In addition to his other complaint, Paden argues that the district court's restitution order should be reversed in its entirety because its ruling that Paden was capable of making restitution is unsupported by the record. The standard of review on appeal is whether the district court abused its discretion in directing the restitution as ordered. United States v. Ryan, 874 F.2d 1052, 1054 (5th Cir.1989). District courts are accorded broad discretion in ordering restitution. Id. 35 The record reflects that the district court carefully examined Paden's ability to pay restitution. The presentence report concluded that Paden's present earning ability as an electrician was approximately $500.00 per week. Based upon this and other evidence, the district court found that Paden had a viable trade and good employment prospects. Even then, the court required that Paden pay in restitution only a fraction ($14,750.00) of the total losses of $766,959.00 resulting from the Lakeland Stationers fire. Apportioned over a long period, Paden is only required to make restitution payments in the sum of $250.00 per week, well within Paden's earning potential. Therefore, this Court is unable to find that the district court abused its discretion in its restitution order.