United States v. John Lee

Court of Appeals for the Eleventh Circuit·Decided January 6, 2026·No. 24-11596·Unpublished

Opinion

NOT FOR PUBLICATION

In the

United States Court of Appeals For the Eleventh Circuit

No. 24-11596

Non-Argument Calendar

UNITED STATES OF AMERICA, Plaintiff-Appellee,

versus

JOHN LEE, a.k.a Giovanni,

Defendant-Appellant.

Appeal from the United States District Court for the Middle District of Florida D.C. Docket No. 8:22-cr-00437-WFJ-SPF-1

Before JORDAN, JILL PRYOR, and KIDD, Circuit Judges. PER CURIAM:

John Lee devised a fraudulent scheme to acquire over $90 million worth of jewelry from a victim in Qatar. He now appeals

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his 17-year sentence of imprisonment for mail fraud and interstate transfer of stolen property. Lee argues that his sentence, which was a 107-month upward variance from the advisory guideline range, is unreasonable. Based on our caselaw and the reasons the district court articulated for his sentence, Lee is correct. So we vacate his sentence and remand for resentencing.

I. BACKGROUND

In April 2019, Lee, who billed himself as a “master psychic and love and relationship advisor,” began working with M.S., a client who lived in Qatar. After more than three years as M.S.’s spiritual advisor, Lee directed her to send him some of her personal belongings to be “cleanse[d] . . . of bad spirits.” M.S. complied. But when the “cleansing” proved ineffective to remedy M.S.’s “negative feelings,” Lee convinced her to send her employer’s items for similar cleansing.

M.S. accessed her employer’s safe without permission and took, among other things, a 12.20-carat diamond ring, a 75.42-carat diamond necklace, and a Rolex watch. She then mailed these luxury items via Fedex to Lee at addresses in Florida and New Jersey. Not surprisingly, Lee did not “cleanse” and return these valuable items to M.S. Instead, Lee sold or traded the pieces in New York and New Jersey. By persuading M.S. to participate in this scheme, Lee fraudulently procured, in total, over 40 pieces of jewelry that were collectively worth over $90 million. He brokered the sale of these stolen goods and acquired numerous luxury items from the proceeds.

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In November 2022, Lee was indicted for mail fraud, in violation of 18 U.S.C. §§ 1341 and 2 (Counts One through Four), and interstate transportation of stolen property, in violation of 18 U.S.C. §§ 2314 and 2 (Counts Five through Seven). Pursuant to a written agreement, Lee pleaded guilty to Counts Four and Seven in exchange for the dismissal of the remaining counts of the indictment and the promise that he would not face additional federal charges in relation to this scheme.

Lee’s Presentence Investigation Report (“PSI”) provided a base offense level of 7, United States Sentencing Guidelines Manual § 2B1.1(a)(1) (Nov. 2023), but applied a 24-level enhancement because the loss amount was approximately $90,000,000, id. § 2B1.1(b)(1)(M), and a 2-level enhancement because “the offense involved received stolen property, and [Lee] was a person in the business of receiving and selling stolen property,” id. § 2B1.1(b)(4). The PSI further applied a 2-level reduction because Lee was a zeropoint offender, id. § 4C1.1(a), a 2-level reduction for acceptance of responsibility, id. § 3E1.1(a), and a 1-level reduction because Lee timely notified the government of his intention to plead guilty, id. § 3E1.1(b). Lee’s total offense level was 28. The PSI also placed Lee in criminal history category I because he did not have any previous qualifying convictions. With a total offense level of 28 and a criminal history category of I, the PSI provided an advisory guideline range of 78 to 97 months of imprisonment.

At sentencing, the district court determined that an additional 2-level enhancement was appropriate because a significant

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portion of the offense occurred abroad. See id. § 2B1.1(b)(10) The court also granted the government’s motion for a downward departure based upon Lee’s substantial assistance, which lowered his offense level back to 28 and allowed his advisory guideline range to remain 78 to 97 months of imprisonment. See id. § 5K1.1. After announcing the revised calculations, however, the court cautioned that this guideline range “should create no comfort for [Lee’s counsel ] because he’s going to need to talk to me [about] why I don’t need to vary upward.”

Following the government’s argument in favor of a within-guideline sentence, the district court shared its thoughts with Lee’s counsel so that he would not be “surprised.” The court first explained that M.S.’s employer was “technically” the only victim under the guidelines, but Lee’s conduct hurt “a lot of people,” including M.S., who received a ten-year sentence in Qatar for her involvement in this fraud, and Joseph Grunberg, a New York City jeweler who lost almost $3,000,000 after unknowingly holding a stolen diamond as collateral for a loan.

The district court described the fraud as “really shocking”

because it involved an “unbelievable” amount of money and a perceived “personal, emotional” trust between M.S. and Lee prior to their relationship’s deterioration. It also found Lee’s conduct to be “remarkably bold” and “reckless,” as highly valuable jewelry was being sent internationally through commercial mail carriers. The court appreciated Lee’s cooperation with the government and noted that Lee “was going to get a lot more time” had this not been

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a factor. However, it expressed concern over uncharged conduct and stated that, in its view, “there [were] just a ton of collateral crimes that” were being forgiven or ignored, including (1) state and federal “fencing crimes,” (2) money laundering, which “has [a] higher punishment under the guidelines,” (3) Travel Act violations, and (4) RICO violations.

Lee’s counsel then argued in favor of a within-guideline sentence . He asserted, in relevant part, that Lee was unaware of the significance of the stolen jewelry, including an extremely rare 20-carat pink diamond ring, and suggested that M.S. was not truly a victim, as she and her boyfriend were likely stealing from her employer before she met Lee. Lee also allocuted, taking responsibility for his actions and contending that he committed the instant offenses while under the influence of drugs.

Noting its consideration of only the PSI and plea agreement, the court sentenced Lee to concurrent terms of imprisonment of 17 years on Count 4 and the statutory maximum of 10 years on Count 7, followed by 3 years of supervised release. Although the court indicated that it had already justified the imposed sentence, it added that an upward variance was appropriate because: (1) Lee had committed “at least 10, 12 other major felonies” that went uncharged , (2) this offense was a “transnational massive fraud” that “involved a lot of people, [and] left a lot of collateral damage,” and (3) the imposed sentence avoided unwarranted sentence disparities in “the hundred million dollars range of a fraud.” In closing, the district court stated that this above-guideline sentence was

USCA11 Case: 24-11596 Document: 43-1 Date Filed: 01/06/2026 Page: 6 of 11

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sufficient but not greater than necessary given the “seriousness of the offense behavior.” Lee now appeals.

II. STANDARD OF REVIEW

When reviewing the reasonableness of a sentence, we consider the totality of the circumstances under a deferential abuse-of-discretion standard. Gall v. United States, 552 U.S. 38, 51 (2007).

III. DISCUSSION

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