1:23-cr-00473
D.N.M.Jul 24, 2025Background
- Defendant William Badoni pled guilty to multiple counts, including conspiracy to commit federal program fraud, theft/bribery related to federal funds, and money laundering, arising from construction fraud at Kinteel Residential Campus, Inc. (KRCI).
- Badoni colluded with maintenance supervisor Elroy Harry to rig bids, submit fraudulent and inflated change orders, and perform substandard work, causing financial harm to KRCI.
- The Presentence Investigation Report (PSR) recommended a twelve-level sentencing enhancement based on a calculated loss amount of $500,000.
- Badoni objected, arguing the loss amount was exaggerated and warranted an eight-level, not twelve-level, increase.
- The government provided evidence at sentencing, including investigative reports, transcripts, and testimony from both a federal agent and the KRCI executive director, supporting a substantial loss.
- The court considered alternate loss calculations based on fraudulent charges and the actual cost of repairs to the property and found a loss amount sufficient to justify the twelve-level increase.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Proper offense level increase for loss amount | Loss exceeded $250,000, justifying 12-level increase | Loss was much lower, justifying only 8-level increase | Twelve-level increase is appropriate |
| Calculation and estimation of actual loss | Loss supported by phone call, testimony, investigative reports | Government's loss figures are speculative | Evidence supports government’s higher loss figures |
| Whether cost of repairs can determine loss amount | Cost of repairs can support loss calculation under guidelines | Disputes repair estimates as loss calculation | Use of repair costs is valid, supports 12 levels |
| Defendant’s evidence suffices to contest the PSR | Defendant provided only conclusory statements and estimates | PSR loss estimate is guesswork and unsupported | Defendant's contest is insufficient |
Key Cases Cited
- United States v. Haley, 529 F.3d 1308 (10th Cir. 2008) (sets standard for procedural reasonableness in sentencing)
- United States v. Tindall, 529 F.3d 1057 (10th Cir. 2008) (establishes burden of proof for disputed PSR facts at sentencing)
- United States v. Chee, 514 F.3d 1106 (10th Cir. 2008) (discusses court's duty to rule on disputed PSR matters)
- United States v. White, 663 F.3d 1207 (11th Cir. 2011) (court can rely on evidence presented at sentencing, undisputed PSR statements, and hearing evidence)
- United States v. Snow, 663 F.3d 1156 (10th Cir. 2011) (sentencing court may estimate loss based on available information)