United States v. Juan Rangel

Procedural entryThis page is a short order in United States v. Juan Rangel. Read the opinion of the Court — 697 F.3d 795
Court of Appeals for the Ninth Circuit·Decided October 15, 2012·No. 11-50062·Published

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

UNITED STATES OF AMERICA,  No. 11-50062 Plaintiff-Appellee, D.C. No. v. 2:10-cr-01061-

JUAN RANGEL, SJO-1 Defendant-Appellant. ORDER AMENDING

 OPINION AND

DENYING PETITION FOR REHEARING AND

SUGGESTION FOR REHEARING EN BANC AND

AMENDED

 OPINION

Appeal from the United States District Court for the Central District of California S. James Otero, District Judge, Presiding

Argued and Submitted

March 8, 2012—Pasadena, California

Filed July 20, 2012 Amended October 15, 2012

Before: Jerome Farris, Richard R. Clifton, and Sandra S. Ikuta, Circuit Judges.

Opinion by Judge Clifton

12265

UNITED STATES v. RANGEL 12267

COUNSEL

Anthony E. Colombo, Jr., San Diego, California, for the plaintiff-appellee.

James A. Bowman, Assistant United States Attorney, Los Angeles, California, for the defendant-appellant.

12268 UNITED STATES v. RANGEL ORDER

The opinion filed July 20, 2012 is AMENDED as follows:

1. At page 8360 of the slip opinion, the following sentence is deleted:

We conclude that the court did not abuse its discretion in considering the serious financial impact Rangel ’s crimes had on his victims, including the fact that they were unlikely to ever receive any compensatory payments from Rangel.

and replaced with:

We conclude that the court did not abuse its discretion in considering the serious financial impact Rangel ’s crimes had on his victims.

2. At page 8362 of the slip opinion, the following sentence is deleted:

Because Rangel was not expected to make restitution payments, the impact on the victims stood unmitigated .

3. At page 8362 of the slip opinion, the following sentence is deleted:

Consideration of the unmitigated impact on the victims was appropriate.

and replaced with:

Consideration of the impact on the victims was appropriate.

With this amendment, the panel has voted to deny the petition for rehearing. Judge Clifton and Judge Ikuta voted to

UNITED STATES v. RANGEL 12269 deny the petition for rehearing en banc and Judge Farris so recommends.

The full court has been advised of the suggestion for rehearing en banc and no active judge has requested a vote on whether to rehear the matter en banc. Fed. R. App. P. 35.

The petition for rehearing and suggestion for rehearing en banc, filed August 16, 2012, are DENIED. No further petition for rehearing and/or suggestion for rehearing en banc may be filed.

OPINION

CLIFTON, Circuit Judge:

Defendant Juan Rangel pled guilty to mail fraud and money laundering. Based on the sentencing factors set out in 18 U.S.C. § 3553(a), the district court imposed a prison sentence longer than the one proposed by the parties in the plea agreement and also in excess of the range recommended by the advisory Sentencing Guidelines. Rangel appeals his sentence, claiming both procedural error and substantive unreasonableness . Though it imposed a sentence outside of the Guidelines range, the district court did not err by failing to provide prior notice under Rule 32(h) of the Federal Rules of Criminal Procedure , as this notice is not required when varying a sentence based on § 3553(a) factors. Further, the district court did not impermissibly rely on Rangel’s inability to pay restitution by considering the financial impact his crimes had on his victims. The other challenges to Rangel’s sentence also lack merit. We affirm.

I. Background

Rangel was indicted on multiple counts of mail fraud relating to his ownership and operation of Financial Plus Invest-

12270 UNITED STATES v. RANGEL ments, a company purporting to offer investment services. Through Financial Plus, Rangel engaged in a Ponzi-type scheme whereby investors were offered a guaranteed rate of return supposedly backed by profits earned through the purchase and sale of real estate and through high interest loans to homeowners facing foreclosure. In reality, only a small fraction of the investors’ money was directed toward real estate investments. Financial Plus instead paid investors through funds deposited with the company by other investors. In addition, Rangel also engaged in a mortgage fraud scheme targeting Latino homeowners facing potential foreclosure. Through straw buyer purchases and fraudulent mortgage loan applications, Rangel directed loan proceeds into bank accounts that he controlled, causing significant losses to both the home owners and the lenders.

Rangel pled guilty to one count of mail fraud and one count of money laundering related to the mortgage fraud pursuant to a written plea agreement. The parties agreed to a Guidelines calculation that resulted in an offense level of 36 and further agreed that a sentence of 180 months in custody, which was below the lower end of the Guidelines range, would be “a reasonable and appropriate sentence.” They both filed sentencing memoranda in support of such a sentence. The plea agreement, however, acknowledged that the district court had the discretion to decide upon the sentence, up to the statutory maximum of 30 years of imprisonment; that the Sentencing Guidelines were advisory; and that Rangel could not count on receiving a sentence within the Guidelines.

During the sentencing hearing, the district court noted the reasons offered by Rangel for the proposed 180-month sentence , including his insignificant criminal history, the impact of a lengthy sentence on his family, the collateral immigration consequences, his ineligibility for certain prison benefits based on his non-citizen status, and his restrictive pretrial confinement conditions. The district court inquired into Rangel’s ability to pay restitution to his victims. The plea agreement

UNITED STATES v. RANGEL 12271 had noted Rangel’s liability for restitution to his victims, which was said to total approximately $20 million. At the sentencing hearing, the court was informed that Rangel was not in a position to pay any restitution toward the victims’ losses.

In calculating the advisory guidelines range, the court found a total offense level of 36, matching the calculation in the written plea agreement, and a criminal history category of I. The advisory guideline range for an adjusted offense level of 36, with a criminal history category I, was 188 to 235 months.

Following this determination, the court considered the factors under 18 U.S.C. § 3553(a).1 The court heard from the vic- 1 Title 18 U.S.C. § 3553(a) requires that a sentencing court consider the following factors:

(1) the nature and circumstances of the offense and the history and characteristics of the defendant; (2) the need for the sentence imposed —

(A) to reflect the seriousness of the offense, to promote respect for the law, and to provide just punishment for the offense; (B) to afford adequate deterrence to criminal conduct; (C) to protect the public from further crimes of the defendant ; and (D) to provide the defendant with needed educational or vocational training, medical care, or other correctional treatment in the most effective manner;

(3) the kinds of sentences available; (4) the kinds of sentence and the sentencing range established for —

(A) the applicable category of offense committed by the applicable category of defendant as set forth in the guidelines . . . hh

(5) any pertinent policy statement . . . (6) the need to avoid unwarranted sentence disparities among defendants with similar records who have been found guilty of similar conduct; and 7) the need to provide restitution to any victims of the offense.

12272 UNITED STATES v. RANGEL tims of Rangel’s scheme and from Rangel himself. The victims described the serious and lasting impact of Rangel’s crimes, including the loss of their homes, college funds and retirement savings, and substantial emotional turmoil.

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