United States v. Luis Mercado

81 F.4th 352
CourtCourt of Appeals for the Third Circuit
DecidedAugust 29, 2023
Docket22-1947
StatusPublished
Cited by12 cases

This text of 81 F.4th 352 (United States v. Luis Mercado) 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. Luis Mercado, 81 F.4th 352 (3d Cir. 2023).

Opinion

PRECEDENTIAL

UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT ________________

No. 22-1947 ________________

UNITED STATES OF AMERICA

v.

LUIS D. MERCADO, Appellant ________________

On Appeal from the United States District Court for the Middle District of Pennsylvania (D. C. No. 1-21-cr-00337-001) District Judge: Sylvia H. Rambo ________________

Argued on June 29, 2023

Before: JORDAN, KRAUSE and SMITH, Circuit Judges

(Opinion filed: August 29, 2023)

Ronald A. Krauss, Esq. Jason F. Ullman, Esq. [ARGUED] Office of Federal Public Defender 100 Chestnut Street Suite 306 Harrisburg, PA 17101

Counsel for Appellant

Christian T. Haugsby, Esq. [ARGUED] Paul J. Miovas, Jr., Esq. Carlo D. Marchioli, Esq. Office of United States Attorney Middle District of Pennsylvania 1501 N 6th Street, 2nd Floor P.O. Box 202 Harrisburg, PA 17102

Counsel for Appellee

________________

OPINION ________________

KRAUSE, Circuit Judge.

Actions speak louder than words. So when a defendant continues to engage in criminal activity following a guilty plea, that post-plea conduct may bear on whether he has genuinely accepted responsibility for his crime of conviction. In this case, Appellant Luis Mercado asks us to conclude precisely the opposite. He asserts that § 3E1.1(a) of the Sentencing Guidelines, which permits a district court to reduce a defendant’s sentence if he can “clearly demonstrate[] acceptance of responsibility for his offense,” U.S.S.G. § 3E1.1(a), unambiguously precludes a district court from considering post-plea conduct “unrelated” to that pled-out offense. Opening Br. 7.

Yet the plain text of § 3E1.1(a) contains no such limiting principle. Instead, the commentary to this provision sets forth a list of “appropriate considerations,” several of which expressly sweep in post-plea conduct. U.S.S.G. § 3E1.1 cmt. n.1(A)–(H). And where, as here, commentary helps to clarify a Guideline’s “genuinely ambiguous” text, that commentary may serve as an authoritative delimiting mechanism, provided that it is both “reasonable” and invokes the Sentencing Commission’s “substantive experience.” United States v. Nasir, 17 F.4th 459, 471 (3d Cir. 2021) (en banc). For the reasons explained below, the commentary to § 3E1.1(a) satisfies these criteria, and the District Court did not clearly err in relying on Mercado’s post-plea misconduct to deny his request for a § 3E1.1(a) reduction. We will therefore affirm.

2 I. Background

For a full year starting in August 2020, Mercado filed fraudulent Pandemic Unemployment Assistance claims on a weekly basis, collecting a total of $37,555 in fraudulent benefits. When the Government caught on a few months later, it opened discussions with Mercado, who waived indictment and entered into an agreement to plead guilty to an Information the Government filed the same day, charging him with wire fraud in violation of 18 U.S.C. § 1343. Among other things, that plea agreement endorsed the possibility of a downward adjustment under § 3E1.1(a) if Mercado could “adequately demonstrate recognition and affirmative acceptance of responsibility [for his offense].” App. 28–29.

Mercado entered his guilty plea a few weeks later. At the plea hearing, Mercado “apologize[d] for what [he had] done,” id. at 57, and the District Court continued his bail pending sentencing, including several conditions of bail relevant to this appeal. Specifically, the District Court required, in relevant part, that Mercado “refrain from use or unlawful possession of a narcotic drug or other controlled substance”; “submit to substance abuse testing”; “complete a substance abuse evaluation and treatment if deemed appropriate by pretrial services”; and “get medical and psychiatric treatment if directed by pretrial services.” Id. at 58.

Mercado’s compliance proved problematic from the start. On the same day he pleaded guilty, Mercado tested positive for cocaine. Probation referred him for intensive outpatient treatment, but he never reported for his counseling sessions and was terminated without having completed the program. In January 2022, Mercado admitted to using cocaine again, and two months later, he refused to take a follow-up drug test. When he finally submitted to testing in April, he again tested positive.

In its Presentence Investigation Report, the Probation Office calculated an offense level of 11 and a Criminal History Category of II, resulting in an applicable Guideline range of 10 to 16 months’ imprisonment. A two-point downward adjustment for acceptance of responsibility under § 3E1.1(a) would have produced a Guideline range of 6 to 12 months’

3 imprisonment. But the Probation Office recommended against it. While the Probation Office recognized that Mercado had expressed remorse for committing the instant offense, it concluded that he had not clearly demonstrated acceptance of responsibility for the offense in view of his post-plea conduct, including cocaine use and failure to complete substance abuse treatment.

In response to Mercado’s objection, the Probation Office also issued an addendum, adhering to its original recommendation. Relying largely on the commentary to § 3E1.1(a), the addendum explained that a defendant who enters a guilty plea is not entitled to an adjustment based on acceptance of responsibility as a matter of right, see U.S.S.G. § 3E1.1 cmt. n.3, and that courts can consider a defendant’s “voluntary termination or withdrawal from criminal conduct or associations,” id. cmt. n.1(B), and “post-offensive rehabilitative efforts,” id. cmt. n.1(G), in determining whether a defendant qualifies for a reduction for acceptance of responsibility.

The District Court held a sentencing hearing in May 2022. When given the opportunity to address the Court, Mercado again expressed remorse for his actions:

I want to apologize for what I’ve done first. Right now I have motive for life to continue living . . . . I have a new partner, a new friend, and I want to give everything that I can to her. I have a good job. . . . And I want to work hard to get out of this darkness if I can get a chance to do that. Something else, I watch out for my mother. My sister and myself are the ones that are in charge of taking care of my mother. I know I can do it, and I trust in God that I can do it if I have the opportunity.

App. 61. The District Court, however, was not persuaded and declined the two-point adjustment. By way of reasoning, the Court referred to the “ongoing episode” of Mercado’s drug use and referenced a memo from Mercado’s Probation Officer confirming Mercado’s most recent positive drug test. Id. at 60. Ultimately, the Court sentenced Mercado to the bottom of the

4 applicable range, 10 months’ imprisonment, and strongly recommended that he receive all available drug treatment while incarcerated. Mercado now brings this timely appeal.

II. Discussion 1

Mercado raises only one argument on appeal: that the District Court erred by denying him a § 3E1.1(a) adjustment based on the “irrelevant post-plea conduct” of his continued drug use. Opening Br. 2. According to Mercado, the operative language of § 3E1.1(a)—requiring a defendant to “clearly demonstrate[] acceptance of responsibility for his offense”— unambiguously precludes a district court from considering such conduct. The Government, on the other hand, contends this language is genuinely ambiguous, enabling courts to consult the list of “appropriate considerations” in the commentary, including “voluntary termination or withdrawal from criminal conduct or associations,” U.S.S.G. § 3E1.1 cmt. n.1(B), and “post-offense rehabilitative efforts (e.g., counseling or drug treatment),” id. cmt. n.1(G).

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Cite This Page — Counsel Stack

Bluebook (online)
81 F.4th 352, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-luis-mercado-ca3-2023.