United States v. Shawn Hughes

813 F.3d 1007, 421 U.S. App. D.C. 206, 2016 U.S. App. LEXIS 3094, 2016 WL 703929
CourtCourt of Appeals for the D.C. Circuit
DecidedFebruary 23, 2016
Docket13-3073
StatusPublished
Cited by8 cases

This text of 813 F.3d 1007 (United States v. Shawn Hughes) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. 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. Shawn Hughes, 813 F.3d 1007, 421 U.S. App. D.C. 206, 2016 U.S. App. LEXIS 3094, 2016 WL 703929 (D.C. Cir. 2016).

Opinions

Opinion for the Court filed by Senior Circuit Judge WILLIAMS. •

Concurring opinion filed by Circuit Judge BROWN.

WILLIAMS, Senior Circuit Judge:

Shawn Hughes’s managers at Black-hawk, Inc., a government contractor for security guard services, told her to certify [1008]*1008that Blackhawk guards had received training that they had not in fact received, thereby enabling Blackhawk to charge more for each guard’s services. Relying primarily on false training records from DB Training Services, Hughes complied. On October 29, 2009 she pleaded guilty to making false statements to government authorities, in violation of 18 U.S.C. § 1001(a)(2).

On December 20, 2011 the district court sentenced Hughes to 30 days in prison and 24 months of supervised release. More importantly, the court’s sentencing judgment made Hughes and her co-defendant Douglas Brown, the owner of DB Training, jointly and severally liable for $442,330 ,in restitution. But, critically, the district court also expressed a clear intention that the actual restitution amount should be much smaller, perhaps as little as $0. A federal court had already entered judgment against Blackhawk, Inc. for more than $1 million. And the district court said, in sentencing Hughes, that she would not be on the hook at all if Blackhawk paid its fíne. Even in the absence of such a payment, Hughes would only have to pay “at a rate of not less than $50 each month.” Transcript of Sentence at 38-40. Hughes did not appeal, presumably in the entirely logical belief that the sentence required her to pay restitution of only $50 each month — if any.

Then her ordeal began.

In early 2013 Hughes found out that the Treasury Department had seized tax refunds due her amounting to $10,159. The Department had purported to act under the Treasury Offset Program (“TOP”), 31 U.S.C. §§ 3716 & 3720A, which authorizes the government, when it owes a person payment, to offset the amounts otherwise due with any “past-due, legally enforceable debt” to the government by withholding the payments. Because of her disqualification from work in security services (which reduced her income and largely explains her entitlement to a tax refund), Hughes was in precarious economic circumstances even before the tax seizure, with her home already on the verge of foreclosure.

On February 22, 2013 Hughes filed a Motion for Clarification or Modification of Supervised Release in the sentencing court, asking that the tax refunds be returned and future seizures stopped. Between April 23 and July 18, 2013, the court held four hearings on the matter. Simultaneously with the first hearing, the government filed a “Notice of Restitution Payments and Accounting,” which indicated that Hughes had in effect contributed over $11,000 in restitution payments (including the TOP offset), and that Douglas Brown had paid $500. The Notice also indicated that not a cent had been received from Blackhawk, that the government’s default judgment against it was exempt from bankruptcy discharge, and that the government “continue[d] to search for assets in satisfaction of this judgment.” The Notice made no reference, however, to the assets in the Blackhawk bankruptcy estate, the status of the government’s claims to those assets, government proceedings if any against principals or shareholders of Blackhawk, or any pursuit of Brown, DB Training or their assets.

At the first hearing, the court vacated Hughes’s sentence, stating that it had not anticipated or intended that Hughes be subject to such a harsh sentence. Transcript of Motion Hearing, Apr. 23, 2013, at 13. At the second and third hearings, the court entertained further arguments about the resentencing. At the fourth hearing, the court reimposed its original sentence, saying that it had no authority to modify Hughes’s sentence. The court did not order the government to return Hughes’s tax [1009]*1009refunds or stop withholding future government payments otherwise due to Hughes.

The case poses two issues for us. First, should the district court have recognized and corrected a clerical error in its judgment? We hold that the sentence manifested such an error, which the district court should have corrected. Second, did the district court correctly refuse to order the return to Hughes of the funds seized by Treasury? In light of the necessary corrections in the sentence, we hold that the court’s refusal to remedy the TOP collection was error, and we remand for the court to require the government to return Hughes’s tax refunds and to cease withholding payments.

Hughes argues, correctly, that the district court should have applied Rule 36 of the Federal Rules of Criminal Procedure, under which a “court may at any time correct a clerical error in a judgment, order, or other part of the record, or correct an error in the record arising from oversight or omission.” In interpreting Rule 36, we have said that a court is bound by what it “plainly intended” and cannot modify a “sentence on the basis that it was unlawfully imposed.” United States v. Arrington, 763 F.3d 17, 25 (D.C.Cir.2014). Here there are clerical errors correctable under Rule 36 because the judgment did not reflect what was “plainly intended.” First, the oral record says that “the balance of any restitution [is] owed at a rate of not less than $50 each month,” and the written judgment has similar language. (The oral recitations control over the written ones, United States v. Lewis, 626 F.2d 940, 953 (D.C.Cir.1980), but here there are no meaningful differences between the two.) That statement, however, must mean that a rate of not less or more than $50 each month was required. Otherwise, given the wide range between $50 and $440,000, the judgment would be virtually meaningless. (Of course, the court can still adjust its payment schedule if the defendant’s economic circumstances change. 18 U.S.C. § 3572(d)(3).) The intent to limit the payment to $50 a month is especially clear in light of the court’s plain expression of intent that the Blackhawk fine could offset the entirety of Hughes’s restitution.

Second, the district court said “that payment of restitution shall begin after the adjustment is figured where the fine for [Blackhawk] will be applied,” and later added that Hughes was to pay “the balance of any restitution owed at a rate of not less than $50 each month ... if it turns out that ... there is an amount outstanding that [Hughes] owe[s]” after Blackhawk’s fine is subtracted. Transcript of Sentence at 38-40. Although the wording may be inartful, the only reasonable meaning that can be assigned these words is that payment is due only after such time as Blackhawk’s contribution should be determined.

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Cite This Page — Counsel Stack

Bluebook (online)
813 F.3d 1007, 421 U.S. App. D.C. 206, 2016 U.S. App. LEXIS 3094, 2016 WL 703929, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-shawn-hughes-cadc-2016.