Opinion ID: 745324
Heading Depth: 2
Heading Rank: 4

Heading: The Sentencing Calculation

Text: 26 Finally, Flanagan argues that his sentence should be vacated because the court erred in calculating his trading gains. The Sentencing Guidelines require that the base offense level for insider trading be adjusted upward, using the loss table in § 2F1.1, according to the gain resulting from the offense. U.S.S.G. § 2F1.2. The Probation Department calculated the total gain in this case to be $946,574, including: the profit from trading in NCR (Thomas Flanagan--$340,109; Sharon Seiden--$352,687; William Corrigan--$134,377); the profit from trading in Digital Microwave (Warren Smith--$39,041); and the profit from trading in Teradata (Warren Smith--$80,360). In a letter submitted to the court prior to sentencing, Flanagan objected to the Probation Department's calculation, claiming that there was an insufficient factual basis for including the trading profits of Thomas Flanagan, Sharon Seiden, William Corrigan, and Warren Smith in the gain resulting from the offense. Upon hearing argument on the issue, the district court offered to hold a hearing in which these other tippees could give sworn testimony, but defense counsel was content to rest on the testimony at trial. The court subsequently concluded that the Probation Department's calculation was appropriate, and that the preponderance of the evidence, see United States v. Concepcion, 983 F.2d 369, 388 (2d Cir.1992), cert. denied, 510 U.S. 856, 114 S.Ct. 163, 126 L.Ed.2d 124 (1993) (disputed facts relevant to sentencing, even under the Guidelines, need be established only by a preponderance of the evidence), proved that Flanagan should be held responsible for the gains by the other tippees. 7 Flanagan now renews his argument that the profits of Thomas Flanagan and William Corrigan cannot be attributed to him. 8 We disagree. 27 We will only overturn the district court's factual determination that, based on a preponderance of the evidence, Flanagan was acting in concert with or provided inside information to Corrigan and Thomas Flanagan if it is clearly erroneous, with due regard for the district court's prerogative to make credibility assessments and to choose between competing interpretations of the evidence. U.S.S.G. § 2F1.2, commentary (n. 1); see, e.g., United States v. Ruggiero, 100 F.3d 284, 291 (2d Cir.1996). 28 The district court's determination that the trading profits of Corrigan and Thomas Flanagan should be attributed to appellant was not clearly erroneous. After Flanagan agreed to buy NCR options at Alger's request, he did not make any purchases in his own name, yet swiftly thereafter his brother Thomas Flanagan, his close friend Corrigan, and his girlfriend Seiden each traded heavily in NCR in accounts held at the same brokerage firm. Corrigan opened his account the very day that he purchased the NCR call options. Further evidence that Flanagan was acting in concert with his brother was Alger's testimony that on one of his trips to the restaurant owned by the Flanagans to pick up his trading profits, Flanagan had directed him to the back of the restaurant to pick up the money from his brother. In light of all this, we cannot say that the district court clearly erred in finding it likely that Flanagan provided information to Corrigan and his brother or acted in concert with them.