United States v. W. David Marcello

13 F.3d 752, 1994 U.S. App. LEXIS 360, 1994 WL 4639
CourtCourt of Appeals for the Third Circuit
DecidedJanuary 11, 1994
Docket93-7189
StatusPublished
Cited by49 cases

This text of 13 F.3d 752 (United States v. W. David Marcello) 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. W. David Marcello, 13 F.3d 752, 1994 U.S. App. LEXIS 360, 1994 WL 4639 (3d Cir. 1994).

Opinion

OPINION OF THE COURT

HUTCHINSON, Circuit Judge.

Appellant, W. David Marcello (“Marcello”), appeals a judgment and commitment order of the United States District Court for the Middle District of Pennsylvania. Marcello was convicted of structuring bank deposits in order to evade reporting requirements in violation of 31 U.S.C.A. §§ 5322(a), 5324(a)(3) (West Supp.1993). At sentencing, he argued that a downward departure in his sentence was appropriate either because his conduct did not cause the harm or evil which the statute sought to prevent, see United States Sentencing Commission, Guidelines Manual, § 5K2.11 (Nov. 1992), or because his conduct constituted “aberrant behavior,” see id. Ch. 1, Pt. A, intro, comment. ¶ 4(d). The district court refused to depart on either ground. It held that it lacked authority to depart downward under section 5K2.11 based upon United States v. Shirk, 981 F.2d 1382 (3d Cir.1992), petition for cert. filed, 61 U.S.L.W. 3805 (U.S. May 17, 1993) (No. 92-1841), and that Marcello’s conduct did not constitute aberrant behavior under the standard adopted by a majority of the courts of appeals.

While this case was pending on appeal, the applicable guideline on structuring, section 2S1.3, was amended. The amendment, if in place at the time of Marcello’s sentencing, would have provided him a chance for more lenient treatment by reducing his offense level from .eleven to nine. In such instances, it appears that § 3582(c) of the Sentencing Reform Act, at the very least, gives a district court discretion to resentenee a defendant under the later, more lenient version of this Guideline. See Sentencing Reform Act of 1984,18 U.S.C.A. § 3582 (West 1985 & Supp. 1993). We will therefore remand the ease to the district court for it to consider whether, under the November 1993 amended version of Guideline section 2S1.3, which became effective while Marcello’s appeal was pending, a reduction in Marcello’s sentence pursuant to § 3582(c)(2) and Guideline section lB1.10(d) is warranted. 1

Because the downward departure issue may still come up on remand, and especially because this Court has not yet defined what *754 constitutes “aberrant behavior,” we will consider the issues already before us for the guidance of the district court on remand. On those issues, we hold that the district'did not err in its interpretation of Shirk and that its refusal to depart under section 5K2.11 was therefore not error. On aberrant behavior, the district court adopted the standard set forth by the United States Courts of Appeals for the Fourth, Fifth and Seventh Circuits. According to the district court, Marcello’s conduct did not constitute aberrant behavior under this standard because it involved some degree of planning and thought. We believe the correct standard for determining what constitutes aberrant behavior is substantially the same as the one the district court applied.

I.

Since 1978, Marcello has been an attorney engaged in the practice of law. In 1983, he began representing Elmer Drum (“Drum”); a local businessman, in connection with establishing trusts for his children. In 1986, Mar-cello also represented Drum in a criminal tax case and continued to represent him through 1992 in an ongoing dispute with the Internal Revenue Service (“IRS”) regarding the payment of back taxes and civil penalties. -

•In November 1990, Marcello began negotiating with Drum for a loan that Marcello’s law firm wanted to use as a down payment for the purchase of an-'office building. Drum agreed to loan the firm $75,000.00 at 8% interest over fifteen years. During December 1990, Marcello received from Drum $75,-000.00 in $50 and $100 bills. This money came from a trust fund Drum had established -for his son.

Marcello took the loan money and opened a hew checking account with a $9,000.00 cash deposit. On the same date, he applied for a safe deposit box. Because the vault which contained the safe deposit boxes was locked for the day, the bank informed Marcello that the vault would not be accessible until the following day. Marcello then asked bank officials to store his attache case containing the currency in the main vault overnight. Bank officials agreed but informed him that they were required to count the currency and issue Marcello a receipt. The bank counted the currency which totalled in excess of $60,-000.00. The next day, December 20, 1990, Marcello returned to the bank, retrieved his attache case, deposited another $9,000.00 into the checking account, and placed the remaining currency in a safe deposit box. On each of five more successive working days, Mar-cello returned to the bank and deposited $9,000.00 from the safe deposit box into the account. Marcello’s cash deposits to the account totalled $63,000.00.

On October 19, 1992, a one-count criminal information filed in the United States District Court for the Middle District of Pennsylvania charged Marcello with structuring bank deposits, totalling $63,000.00, in order to evade reporting requirements in violation of 31 U.S.C.A. §§ 5322(a), 5324(3). Federal law requires that financial institutions file a Form 4789, Currency Transaction Report (“CTR”), for each deposit involving cash in excess of $10,000.00. Marcello admits that he was aware of these reporting requirements at the time he structured the funds and that by structuring the deposits in this manner, he was attempting to prevent the bank from filing the CTRs. No criminal tax evasion charges were brought.

Marcello agreed to plead guilty. At his arraignment on November 3, 1992, he attempted to enter a guilty plea but the district court refused to accept it. The court believed Marcello was not being forthright in explaining his conduct. On November 16, 1992, Marcello again appeared and entered a plea of guilty in accordance with a plea agreement. The district court accepted the plea and ordered a. presentence report. Marcello filed objections to eight paragraphs of the report. The district court scheduled a presentence hearing for February 12, 1993, to consider Marcello’s objections.

At the pre-sentence hearing, Marcello asserted two bases for a downward departure. First, he argued that under section 5K2.11 of the Sentencing Guidelines his conduct did not cause the harm or evil which 31 U.S.C.A. §§ 5322(a), 5324(3) sought to prevent. Second, he argued that his conduct- constituted aberrant behavior.

*755 By opinion and order dated March 2,1993, the district court overruled Marcello’s objections to the presentence report and denied his motion for a downward departure from the Guidelines. It believed it lacked the authority to depart downward under section 5K2.11 based upon our decision in Shirk. With respect to Marcello’s aberrant behavior argument, the district court rejected the Ninth Circuit’s standard for aberrant behavior and instead adopted that used by the Fourth, Fifth and Seventh Circuits. Under this standard, it held that Marcello’s conduct did not rise to the level of aberrant behavior.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. Shakira Martinez
137 F.4th 858 (Third Circuit, 2025)
Webb v. Gese
W.D. Washington, 2025
United States v. Daniel Rutherford
120 F.4th 360 (Third Circuit, 2024)
(PC) Johnson v. Frauenheim
E.D. California, 2021
United States v. Jones
567 F.3d 712 (D.C. Circuit, 2009)
United States v. McClain
313 F. App'x 552 (Third Circuit, 2009)
United States v. Shoemake
293 F. App'x 926 (Third Circuit, 2008)
United States v. Williams
282 F. App'x 119 (Third Circuit, 2008)
United States v. Wise
Third Circuit, 2008
United States v. Bailey
377 F. Supp. 2d 268 (D. Maine, 2005)
United States v. Booe
252 F. Supp. 2d 584 (E.D. Tennessee, 2003)
United States v. Conrado Castano-Vasquez
266 F.3d 228 (Third Circuit, 2001)
United States v. Spinello
Third Circuit, 2001
United States v. Robert Spinello
265 F.3d 150 (Third Circuit, 2001)
United States v. Coble
11 F. App'x 193 (Fourth Circuit, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
13 F.3d 752, 1994 U.S. App. LEXIS 360, 1994 WL 4639, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-w-david-marcello-ca3-1994.