Opinion ID: 2709408
Heading Depth: 3
Heading Rank: 1

Heading: Intended Loss Calculation

Text: We review a district court’s calculation of loss for clear error. United States v. Green, 648 F.3d 569, 583 (7th Cir. 2011). However, threshold questions concerning the meaning of “loss” and the methodology to be used in measuring that loss present questions of law that call for de novo review. United States v. Wasz, 450 F.3d 720, 726 (7th Cir. 2006). The Sentencing Guidelines provide for an increase in offense level based upon 12 No. 12‐2101 the amount of loss resulting from the offense. U.S.S.G. § 2B1.1(b). A loss is defined as either the actual or intended loss, whichever is greater. § 2B1.1, cmt. n.3 (A). Further, “intended loss” refers to the pecuniary harm that was intended to result from the offense, including that which would have been impossible or unlikely to occur. § 2B1.1, cmt. n.3 (A)(i‐ii) (2011). In determining the loss amount in this case, the district court found that the intended loss was $1,924,810, which was the amount of public funding the City earmarked for Rosen’s affordable housing project. Rosen argues using the amount of public funding as the intended loss amount was an error that expands the Guidelines’ definition of “intended loss” because it requires a presumption that he would have taken additional affirmative steps in furtherance of the fraud. In support of this claim, Rosen points out that he was never actually eligible to receive any public funds because he did not meet the condition of his agreement with the City that he obtain private financing. Rosen argues that the “intended loss” amount set by the district court is based on speculation as to the harm the defendant might have caused had his scheme persisted to its intended conclusion. We disagree that the calculated intended loss amount was based on speculation. Rather it was based upon the amount Rosen was eligible to receive from the City had his scheme been successful. As we noted in United States v. Schneider, 930 F.2d 555, 558 (7th Cir. 1991), “‘loss’ within the meaning of the Guidelines includes intended, probable, or otherwise expected loss, a qualification of vital importance in a case … where fraud is discovered or otherwise interrupted before the victim No. 12‐2101 13 has been fleeced.” Rosen qualifies as a “true con artist.” Id. He had no intention of upholding his end of the agreement with the City, and clearly had no qualms about doing whatever he deemed necessary in order to carry out his fraudulent scheme to its most lucrative end. Accordingly, we find that the district court did not err in its determination of the appropriate intended loss amount.