United States Ninth Circuit

Conviction and sentence of defendants for operating a Ponzi scheme, and for numerous other counts - including wire fraud, money laundering, and tax evasion - is affirmed in part, vacated in part, and remanded for resentencing, where: 1) Brown's 188-month sentence is not substantively unreasonable; 2) Edding's bankruptcy fraud convictions were properly grouped for sentencing with his Ponzi scheme convictions pursuant to U.S.S.G. section 3D1.2(d); 3) the application of a leadership role adjustment to Eddings's sentence was erroneous, as the record does not indicate that he controlled any other criminally responsible participant in the scheme; 4) sentencing enhancement for endangering the solvency of 100 or more victims was erroneous, as there was no evidence provided on the impact of the crimes on the requisite number of victims; and 5) Edding's sentence for having 250 or more victims was erroneous, as the district court relied on 148 victims who were not included in the loss calculation under section 2B1.1(b)(1).

Appellate Information

• Decided 11/07/2014
• Published 11/07/2014

Judges

• Hurwitz

Court

• United States Ninth Circuit

Counsel