United States v. Angel Puentes
803 F.3d 597
| 11th Cir. | 2015Background
- Puentes led a mortgage-fraud conspiracy (2004–2007) causing over $7 million in lender losses; he pled guilty to conspiracy to commit wire and bank fraud.
- At sentencing the district court ordered Puentes to pay $4,445,305.94 in restitution, jointly and severally with certain co-conspirators, and sentenced him to 97 months imprisonment.
- While incarcerated Puentes provided substantial assistance in an unrelated prosecution; the government moved under Fed. R. Crim. P. 35(b) to reduce his sentence.
- At a Rule 35(b) hearing the district court reduced Puentes’ prison term to 42 months and, sua sponte, eliminated his restitution obligation entirely, reasoning victims’ recovery was unaffected because co-defendants remained liable.
- The United States objected, moved for reconsideration arguing the MVRA mandates restitution and § 3664(o) limits modification methods; the district court denied reconsideration. The government appealed.
Issues
| Issue | Plaintiff's Argument (United States) | Defendant's Argument (Puentes) | Held |
|---|---|---|---|
| Whether a district court may eliminate a mandatory restitution order under Rule 35(b) as a reward for substantial assistance | MVRA makes restitution mandatory “notwithstanding any other provision of law”; § 3664(o) lists exclusive methods to modify restitution and does not authorize Rule 35(b) reductions | Rule 35(b) authorizes reduction of any part of a sentence, including restitution; the court reasonably exercised discretion | Court held MVRA bars reducing/eliminating mandatory restitution under Rule 35(b); reinstated restitution obligation |
| Whether the Government may appeal the Rule 35(b) order | Govt may appeal a sentence imposed "in violation of law" under 18 U.S.C. § 3742; elimination of restitution was unlawful | Reduction and amount were discretionary and thus unreviewable | Court held appeal proper under § 3742 because claim alleges a legal lack of authority, not mere merits of reduction |
| Whether the Government waived appellate challenge by not contemporaneously objecting at the hearing | Govt adequately objected during hearing and filed timely motion for reconsideration specifying legal grounds (MVRA, § 3664(o)) | Govt failed to preserve issue by not making a specific contemporaneous legal objection | Court found no waiver: prosecutor repeatedly objected and timely moved for reconsideration, preserving appellate review |
| Whether the Government invited the error by its Rule 35(b) motion | Govt requested a sentence reduction for imprisonment only and never sought elimination of restitution; it promptly objected when court acted | Gov's Rule 35(b) motion was broad/boilerplate and thus invited the court to act | Court held invited-error doctrine inapplicable — government did not induce the restitution elimination and actively objected |
Key Cases Cited
- United States v. Manella, 86 F.3d 201 (11th Cir. 1996) (Rule 35(b) reduction is generally discretionary but government may appeal sentences imposed "in violation of law")
- United States v. Chavarria-Herrara, 15 F.3d 1033 (11th Cir. 1994) (government may appeal Rule 35(b) determinations that result in sentences violating law)
- United States v. Roper, 462 F.3d 336 (4th Cir. 2006) (allowing district courts to remit mandatory restitution would nullify MVRA; MVRA limits court authority to modify mandatory restitution)
- United States v. Spallone, 399 F.3d 415 (2d Cir. 2005) (Rule 35(b) can reduce non‑statutory restitution orders but not those mandated by statute)
- United States v. Wyss, 744 F.3d 1214 (10th Cir. 2014) (§ 3664(o) provides the exclusive means to alter a restitution order; other statutory modification attempts fail)
- United States v. Grant, 715 F.3d 552 (4th Cir. 2013) (skeptical that general probation‑modification authority can bypass MVRA’s specific scheme for restitution modification)
- United States v. Robertson, 493 F.3d 1322 (11th Cir. 2007) (MVRA requires defendants convicted of covered fraud offenses to make restitution to victims)