United States v. Dugan

127 F. App'x 58
CourtCourt of Appeals for the Third Circuit
DecidedApril 1, 2005
DocketNo. 04-2103
StatusPublished

This text of 127 F. App'x 58 (United States v. Dugan) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Dugan, 127 F. App'x 58 (3d Cir. 2005).

Opinion

OPINION OF THE COURT

ROSENN, Circuit Judge.

A jury in the United States District Court for the Western District of Pennsylvania found Steven Dugan, Chief of the Isabella Volunteer Fire Department (“Fire Department”), guilty of violating the federal mail fraud statute, 18 U.S.C. § 1341, for submitting through the mail an insurance claim containing false representations. The insurance claim was part of a scheme by members of the Fire Department to torch the department’s deteriorating social hall and defraud the Selective Insurance Company into paying out fire insurance proceeds to build a new hall. Dugan moved for, but was denied, judgment of acquittal pursuant to Rule 29 of the Federal Rules of Criminal Procedure. At sentencing, Dugan requested a two-level downward adjustment under U.S.S.G. § 3B1.2 based on his alleged “minor role” in the offense. This, too, was denied. The District Court ultimately imposed a sentence of 35 months, along with three years of supervised release.

Dugan timely appealed, arguing there was insufficient evidence to prove that he knowingly aided and abetted the scheme to defraud the insurance company. Dugan also claims that the District Court made a factual error by concluding that he was more than a minor participant in the scheme and therefore unworthy of a “minor role” adjustment. Finally, Dugan challenges his sentence based on the Supreme Court’s intervening decision in United States v. Booker, 543 U.S. -, 125 S.Ct. 738, 160 L.Ed.2d 621 (2005).1 We affirm the conviction. However, in light of Booker, — U.S.-, 125 S.Ct. 738, 160 L.Ed.2d 621, which determined that the federal sentencing guidelines are no longer mandatory but advisory in nature, we will vacate Dugan’s sentence and remand to the District Court for resentencing in accordance with Booker.

I

As we write solely for the parties, we include only those facts relevant to the issues presented on appeal. On the morning of June 26, 2002, a fire damaged the social hall of the Fire Department. Four days later, on June 30, 2002, a second fire completely destroyed the building. Both fires were committed by members of the Fire Department who wanted to destroy the social hall so that a new one could be built -with the proceeds from the Department’s $500,000 insurance policy. The first fire was solicited by Assistant Fire Chief Thomas Baker (“Baker”) and set by Fire Department Vice-President Jerry Booker (“Booker”). The second fire was started by Booker and two other members of the Fire Department, William Robison and Dan Smith.

Prior to the fires, burning the hall had been a recurring topic of conversation among several firemen. Baker, Booker, and Fire Department Chief Engineer Tom Cooper (“Cooper”) advocated on more than one occasion that the hall should be burned down. Furthermore, Baker reportedly stated in the presence of Dugan, Cooper, Booker, and others that the Department would be better off if the social hall burned down. In addition, approximately two months before the fires, Baker and Booker reportedly stated, again in the presence of Dugan, that if anything hap[60]*60pened to the social hall they would be able to build a better one.

Dugan, present for many of the arson discussions, would respond to the comments by merely shaking his head and walking away. Other times, however, he would remain in the conversation or even suggest burning down the hall himself. At one point, Dugan reportedly stated that the social hall was too small and if it burned down it could be rebuilt so as to attract more business. On another occasion, around Easter 2001, Dugan suggested burning down the hall in retaliation for the disrespect patrons of the social hall were showing his father, a former Fire Chief.

Following the first fire on June 26, 2002, the Fire Department submitted a claim for coverage under the insurance policy. In response, the insurance company dispatched insurance adjuster John Marfinetz to assess the damage. While giving Marfinetz a tour of the fire-damaged hall, Dugan pointed to the deteriorating floor and claimed that the fire had warped it. As Dugan well knew, however, the floor had been warped prior to the fire. Indeed, long before the fire, Dugan had openly complained about the warping.

Following the second fire, the Fire Department submitted another claim for coverage. This time, the insurance company dispatched special investigator Pierre Khoury (“Khoury”) to the scene. Upon his arrival, Khoury interviewed Dugan. In response to Khoury’s interrogation, Dugan stated that he believed the fires were arson, but claimed that he had never heard anyone discuss burning the building.

On September 5, 2002, the Fire Department mailed a fraudulent affidavit of loss to the insurance company in an effort to collect on the $500,000 insurance policy. On the basis of this act, a grand jury indicted Dugan, along with fellow firemen Baker, Booker, and Robison, with mail fraud and aiding and abetting mail fraud, in violation of the federal statute. Baker, Booker, and Robison pled guilty.

Dugan argued in his motion for judgment of acquittal under Fed.R.Crim.P. 29 that there was insufficient evidence that he knowingly aided and abetted the mail fraud scheme. The District Court denied the motion. In addition, the District Court denied Dugan’s motion for a “minor role” adjustment under U.S.S.G. § 3B1.2, citing his position as the Chief of the Fire Department, his failure to discourage others from burning the hall, his encouragement of the same, his misrepresentations to the insurance company, and his awareness of the nature and scope of the scheme. The District Court sentenced Dugan to 35 months in prison, followed by three years of supervised release. Dugan timely appealed.

II

Dugan raises three issues on appeal. First, he claims there was insufficient evidence to prove that he knowingly aided and abetted the scheme to defraud the insurance company. Second, Dugan contends that the District Court made a factual error by concluding that he was more than a minor participant in the scheme and therefore unworthy of a “minor role” adjustment. Third, Dugan challenges his sentence under Booker, 125 S.Ct. 738.

A. Evidence of mail fraud

In reviewing the sufficiency of evidence in support of a conviction, we apply a particularly deferential standard of review. United States v. Dent, 149 F.3d 180, 187 (3d Cir.1998). We view the evidence in the light most favorable to the Government and indulge all reasonable inferences in favor of sustaining the jury’s verdict. [61]*61United States v. Pearlstein, 576 F.2d 531, 534 (3d Cir.1978) (internal citations omitted). Viewing the record in this light, we must determine whether there is substantial evidence to support the conviction before us. Id.

The federal mail fraud statute, 18 U.S.C. § 1341

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127 F. App'x 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-dugan-ca3-2005.