United States v. John A. Allen, Sr.

75 F.3d 439, 1996 U.S. App. LEXIS 1544, 1996 WL 44393
CourtCourt of Appeals for the Eighth Circuit
DecidedFebruary 6, 1996
Docket95-1505
StatusPublished
Cited by2 cases

This text of 75 F.3d 439 (United States v. John A. Allen, Sr.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth 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. John A. Allen, Sr., 75 F.3d 439, 1996 U.S. App. LEXIS 1544, 1996 WL 44393 (8th Cir. 1996).

Opinion

MORRIS SHEPPARD ARNOLD, Circuit Judge.

In mid-1994, John Allen was indicted in federal district court on one count of conspiracy, one count of misuse of a social security number, and multiple counts of mail fraud, wire fraud, and money laundering in connection with the establishment of four companies that collected premiums to pay for health insurance but in fact failed to provide such insurance. Pursuant to a plea agreement with the government, Mr. Allen pleaded guilty to three counts of the indictment and was sentenced in early 1995 to 36 months in prison. He appeals his sentence. We affirm the judgment of the district court. 1

I.

The presentence report on Mr. Allen calculated the loss to the victims to be $2,745,400 (all numbers are rounded) — premiums of $2,000,000 and outstanding claims of $745,-400. Under the federal sentencing guidelines, a loss to the victims of more than $2,500,000 requires an increase in base offense level of 13 levels. See U.S.S.G. § 2Fl.l(b)(l)(N). Taking into account that increase and various other adjustments not at issue for the purposes of this opinion, the district court determined that the appropriate sentencing range for Mr. Allen under the guidelines was between 41 and 51 months (level 22). Responding to a government motion for departure from the guidelines range based on substantial assistance to the government by Mr. Allen, however, see U.S.S.G. § 5Kl.l(a), the district court sentenced Mr. Allen to 36 months in prison.

Mr. Allen contends on appeal that he objected to the calculation of loss to the victims but that the district court failed to make the findings on that “controverted matter” required by Fed.R.Crim.P. 32(c)(1). Mr. Allen asserts, therefore, that his sentence should be vacated and that his case should be remanded for resentencing. See, e.g., United States v. Furst, 918 F.2d 400, 401, 408 (3d Cir.1990). The government responds, how *441 ever, that Mr. Allen failed to object clearly and specifically enough to the calculation of loss to the victims and, accordingly, that the district court was entitled to rely on the figures included in the presentence report. See, e.g., United States v. Saffeels, 39 F.3d 833, 838 (8th Cir.1994), and United States v. Toirac, 917 F.2d 11, 13 (8th Cir.1990).

Mr. Allen filed no written objections with the district court. At the sentencing hearing, Mr. Allen’s lawyer stated that he had “explained to Mr. Allen some things regarding the determination of the dollar amount used to reach ... the total offense level” and that he had “pointed out to Mr. Allen that the amount of money that had been received by the company is the determiner.” The district court then asked Mr. Allen himself if he had any “changes or corrections” to the presentence report. Mr. Allen stated that there was “no mention” of deductions for amounts legitimately paid out—for either the few health insurance policies that the companies in question did buy or the claims that were paid. The district court asked what those deductions would be. In response, Mr. Allen said that he was “guessing” but proffered a total of $132,000.

Subsequently, Mr. Allen said that he had “one other thing” and stated that he “never received anything” from two of the companies in question. “That would be my objection,” he continued, evidently concerned about whether the amounts received by those companies were included in the calculation of loss to the victims that was used in his presentence report. Those amounts were in fact included in the loss calculation, according to the government.

That inclusion was proper, as a matter of law. Mr. Allen stipulated in his plea agreement that he and two co-defendants formed both of those companies and that he was “to share equally in the profits” from both of those companies. Under the sentencing guidelines, the calculation of loss to the victims used in determining the offense level of an individual defendant who has participated in a “jointly undertaken criminal activity” is to include “all reasonably foreseeable acts ... of others ... that occurred during the commission of the offense of conviction.” See U.S.S.G. § lB1.3(a)(l)(B) and application note 2, illustration (c)(2); see also U.S.S.G. § 1B1.1, application note 1(1) (definition of “offense” is “the offense of conviction and all relevant conduct under § 1B1.3”), and U.S.S.G. § 2F1.1, application note 6 (“cumulative loss produced by a common scheme ... should be used in determining the offense level, regardless of the number of counts of conviction”).

It appears to us that Mr. Allen’s second “objection” was actually an inquiry with respect to a question of law—i.e., whether the amount of loss to the victims, for purposes of determining his offense level, depended on how much of the proceeds he personally received. Under the sentencing guidelines, the answer to that question, in light of the stipulations in Mr. Allen’s plea agreement, was that the amount of money paid by the victims to any of the four companies in question, plus the amount of money owed to the victims for outstanding claims— and not the amount of money received by Mr. Allen individually—were the critical figures. We therefore do not consider that inquiry to have concerned the type of factual dispute contemplated by Fed.R.Crim.P. 32(c)(1).

The only “objection” by Mr. Allen of the type contemplated by the rule was, then, his initial statement that there was “no mention” of deductions for legitimate expenses incurred by the companies in question. We assume, without deciding, that that statement was specific and clear enough, see, e.g., United States v. Toirac, 917 F.2d at 13, to amount to an objection under Fed.R.Crim.P. 32(c)(1). Even so, the district court’s failure to make a specific finding with respect to that objection amounted to harmless error, because a deduction of $132,000 from the previously calculated figure of $2,745,400 still leaves more than $2,500,000 as the amount of loss. In other words, even if the district court had considered Mr. Allen’s objection and had made a specific finding favorable to him on that objection, the appropriate sentencing guidelines range would have been unchanged. Indeed, the district court recognized that point, remarking that “accepting *442 [Mr. Allen’s] point of view ... would not alter the ultimate calculation of the total offense level.” Under these circumstances, we reject Mr. Allen’s argument that the district court’s failure explicitly to follow Fed. R.Crim.P. 32(c)(1) requires a remand for re-sentencing.

II.

Mr.

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Bluebook (online)
75 F.3d 439, 1996 U.S. App. LEXIS 1544, 1996 WL 44393, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-john-a-allen-sr-ca8-1996.