United States v. John Terrell Greene

279 F. App'x 902
CourtCourt of Appeals for the Eleventh Circuit
DecidedMay 30, 2008
Docket07-12315
StatusUnpublished
Cited by2 cases

This text of 279 F. App'x 902 (United States v. John Terrell Greene) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh 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 Terrell Greene, 279 F. App'x 902 (11th Cir. 2008).

Opinion

PER CURIAM:

John Terrell Greene appeals his 70-month sentence which was imposed after he entered a plea of guilty to conspiracy to make false statements on loan applications, in violation of 18 U.S.C. § 371, and to making false statements on loan applications, in violation of 18 U.S.C. § 1014. On appeal, Greene argues that the district court clearly erred by (1) finding that the loss amount from the mortgage fraud exceeded $1,000,000, (2) imposing a four-level sentencing enhancement based upon Greene’s role in the offense, and (3) sentencing him to a 70-month term of imprisonment, which is unreasonable based upon his medical condition. Upon review of the record and the parties’ briefs, we discern no error, and we AFFIRM.

I. BACKGROUND

From June 2004 until January 2006, Greene participated in a conspiracy to procure loan proceeds and defraud mortgage lenders by falsifying information to assist unqualified borrowers in securing loans at inflated prices. Greene recruited Dick Smith, Charles Gould, Bobby White, Sean McLaughlin, and others into the conspiracy. Greene was responsible for establishing shell companies to use in furtherance of the scheme, creating fraudulent documents to support the loan application, and obtaining inflated appraisals for the properties. Greene recruited Smith to locate properties and straw buyers, and Smith received a commission at each closing. Greene recruited Gould to locate properties in South Carolina, and Gould was also paid a commission. To obtain the loans, *904 Greene used the personal and credit information of the straw buyers, as well as manufactured employment and asset information. At least ten different properties were purchased through this scheme.

After Greene pled guilty, the Probation Office prepared a Presentence Investigation Report and calculated the range of prison sentences available to Greene under the United States Sentencing Guidelines (“U.S.S.G.”). Greene was assigned a base offense level of seven, pursuant to U.S.S.G. § 2B1.1. Pursuant to U.S.S.G. § 2Bl.l(b)(l)(I), sixteen levels were added to the offense level because the loss amount exceeded $1,000,000 but was less than $2,500,000. Because the offense involved the use of sophisticated means, an additional two levels were added under U.S.S.G. § 2Bl.l(b)(9)(C). Greene received a four-level enhancement pursuant to U.S.S.G. § 3Bl.l(a), because he was found to be an organizer or leader of a criminal activity that involved five or more participants or was otherwise extensive. This resulted in an adjusted offense level of 29. Then, pursuant to U.S.S.G. § 3El.l(a), Greene received a two-level downward adjustment for acceptance of responsibility, establishing a total offense level of 27. Greene’s prior convictions gave him one criminal history point, so he was assigned a criminal history category of I. Based on his criminal history category of I and total offense level of 27, Greene’s guideline sentencing range was 70 to 87 months of imprisonment. The statutory maximum for violating 18 U.S.C. § 371 is 5 years of imprisonment, and the statutory maximum for violating 18 U.S.C. § 1014 is 30 years of imprisonment.

Greene filed several objections to the PSI recommendations. Greene objected to several factual issues, stating: (1) the banks and mortgage companies obtained the appraisals on the properties, not Greene; (2) Greene did not direct Gould to locate houses; Gould contacted Greene to assist in transactions when he found a property to purchase; and (3) Synchro Technologies was a shell company established by Smith, not Greene. Greene objected to the 16-level enhancement resulting from the loss calculation. Greene argued that he should receive only a 14-level enhancement because, according to his calculations, the total loss amount did not exceed $1,000,000. Finally, Greene objected to the four-level enhancement for being an organizer or leader, asserting that many of the individuals involved in the transactions worked independently in their roles in the scheme.

At Greene’s sentencing hearing, the government called Joseph Stites, a Special Agent with the Federal Bureau of Investigation, to testify and establish the loss amount for the contested properties based on his investigation of the fraud and his review of documents related to each transaction. Regarding the property located at 6503 Ocean Boulevard, Special Agent Stites testified that Greene’s shell company purchased the property for $549,000 and then the company sold the property to White, the straw buyer recruited by Greene. White purchased the property using a mortgage acquired in the amount of $775,000. Special Agent Stites testified that the original purchase price reflected the fair market value, so the intended loss was $226,000, which was the difference between the mortgage amount and the purchase price. On cross-examination, Stites testified that when the property sold for $837,000 in foreclosure eighteen months later, so the mortgage company actually made a profit. Based on this testimony, the government argued that, according to the Guidelines, the district court should use the greater of actual or intended loss. The court expressed concern that the numbers were “soft” as to the real value of the property when pur *905 chased. R4 at 42. Agent Stites testified that, according to South Carolina’s property tax website, in August 2006, the fair market value was appraised at $512,300. Id. at 46. The court then found that the amount of loss was $226,000 based on the difference between the purchase price and the loan amount. Id. at 47.

With respect to the property located at 39 Cayman Loop, Special Agent Stites testified that he had discussed the transaction with Gould because Gould had been friends with the property owner, had brought the property to Greene’s attention, and had collaborated on the sale. According to Gould, the seller obtained an appraisal on the property in the amount of $485,000. However, for the transaction with Greene, they used a purchase price of $585,000 and obtained a mortgage for $585,000. On cross-examination, Special Agent Stites testified that although a foreclosure price would be the most reliable evidence of the property’s fair market value, the property had been foreclosed upon. The court found that the loss amount was $100,000 based on the difference between the appraisal value and the inflated loan amount.

Regarding the property located at 91 Windy Lane, Special Agent Stites testified that a straw buyer recruited by Smith purchased the property for $798,000 using a mortgage for the entire value. Subsequently, the property went into foreclosure and was listed at a sale price of $573,800. Based on the difference between the loan amount and the list price, Special Agent Stites determined an estimated loss amount of $224,200. After the PSI had been prepared, Special Agent Stites contacted the listing agent for the property who informed him that the property actually sold in foreclosure for $557,000, so the actual loss amount was $241,000.

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Related

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565 F.3d 528 (Eighth Circuit, 2009)

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Bluebook (online)
279 F. App'x 902, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-john-terrell-greene-ca11-2008.