United States v. Delyle Augare
2015 U.S. App. LEXIS 16001
| 9th Cir. | 2015Background
- Delyle Shanny Augare pleaded guilty to four federal offenses arising from misuse of funds at the Po’Ka Project, including conspiracy, False Claims Act conspiracy, theft from a tribe, and tax evasion.
- Augare transferred Po’Ka Project funds to a co-defendant, who purportedly returned part as charitable “donations” that were deposited into and controlled by a children’s charity account overseen by Augare.
- Augare then withdrew those funds into his personal bank account, concealing the transfers through coordinated steps and guarded paperwork at the Project’s offices.
- The district court applied the U.S.S.G. § 2B1.1(b)(10)(C) “sophisticated means” enhancement to his sentence.
- Augare appealed, arguing his conduct was unsophisticated (simple lies, routine transfers, no shell companies/offshore accounts) and comparable to conduct in United States v. Montano.
- The Ninth Circuit reviewed for abuse of discretion and affirmed the enhancement as properly applied to financial-fraud conduct involving coordinated, repetitive steps to execute and conceal the scheme.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the § 2B1.1(b)(10)(C) “sophisticated means” enhancement applies | Augare: conduct was simple, routine transfers and lies, not an especially complex scheme | Government: coordinated, repetitive steps to move and conceal funds satisfy the enhancement under § 2B1.1 and relevant precedent | Affirmed: district court did not abuse its discretion; coordinated transfers and concealment supported enhancement |
Key Cases Cited
- United States v. Jennings, 711 F.3d 1144 (9th Cir.) (upholding sophisticated-means enhancement for deceptive bank-account use)
- United States v. Tanke, 743 F.3d 1296 (9th Cir.) (enhancement supported by multiple acts falsifying documents and concealing payments)
- United States v. Montano, 250 F.3d 709 (9th Cir.) (sophisticated-means analysis in smuggling context; distinguished)
- United States v. Horob, 735 F.3d 866 (9th Cir.) (enhancement affirmed where defendant created complicated fabricated paper trail)
- United States v. Ghertler, 605 F.3d 1256 (11th Cir.) (totality of scheme, including forged documents and unwitting third parties, justified enhancement)
- United States v. Jackson, 346 F.3d 22 (2d Cir.) (linked, coordinated steps exploiting multiple system vulnerabilities can be sophisticated)
- United States v. Finck, 407 F.3d 908 (8th Cir.) (repetitive, coordinated conduct can constitute sophisticated means)