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United States v. Rauso
548 F. App'x 36
3rd Cir.
2013
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Background

  • Gennaro Rauso pled guilty (2010) to multiple financial crimes (bank, credit card, tax, mortgage fraud, equity skimming) and agreed to an appellate waiver in his plea agreement.
  • Parties stipulated the loss exceeded $400,000 (14-level U.S.S.G. §2B1.1 enhancement) and there were >50 victims (4-level enhancement).
  • The plea agreement included a Government promise to "bring to the Court’s attention all facts relevant to sentencing" and to correct factual inaccuracies in the PSI.
  • The Probation Office recommended an additional 2-level identity-theft enhancement under U.S.S.G. §2B1.1(b)(10)(C)(i); the Government agreed it should not apply but the District Court imposed it over Rauso’s objection.
  • Rauso was sentenced to 160 months (within a Guidelines range of 130–162 months) and appealed, arguing the Government breached the plea agreement by failing to correct PSI errors on loss and victim counts and challenging the identity-theft enhancement.
  • The Third Circuit held the appellate waiver enforceable, concluding the Government did not breach the plea agreement; thus Rauso’s appellate challenges were barred and the conviction/sentence were affirmed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Did the Government breach the plea agreement by failing to correct PSI errors about loss amount and victim count? Rauso: Government failed to correct inaccuracies at sentencing, so waiver unenforceable. Gov: Parties had stipulated to loss and victim counts; Government had no duty to "fact-check" the PSI or probation testimony; later restitution adjustments were for restitution only. Waiver enforceable; no breach—stipulations control, so Rauso's challenge barred.
Was the 2-level identity-theft enhancement properly applied over Rauso's objection? Rauso: Enhancement inappropriate because use of inmates' identities (with permission) did not meet "unauthorized use" language. Gov: (At sentencing) conceded enhancement should not apply; court nonetheless found enhancement appropriate. Court did not reach merits because appellate waiver bars review; sentence affirmed.

Key Cases Cited

  • United States v. Moscahlaidis, 868 F.2d 1357 (3d Cir. 1989) (Government breach can void appellate waiver)
  • Puckett v. United States, 556 U.S. 129 (U.S. 2009) (plain-error review framework)
  • United States v. Baird, 218 F.3d 221 (3d Cir. 2000) (plea agreements strictly construed against Government)
  • United States v. Mastrangelo, 172 F.3d 288 (3d Cir. 1999) (defendant bound by factual stipulations in plea agreement)
  • McKeever v. Warden SCI–Graterford, 486 F.3d 81 (3d Cir. 2007) (plea agreements construed using contract principles)
  • United States v. Schwartz, 511 F.3d 403 (3d Cir. 2008) (interpret writings as a whole; no part ignored)
Read the full case

Case Details

Case Name: United States v. Rauso
Court Name: Court of Appeals for the Third Circuit
Date Published: Dec 12, 2013
Citation: 548 F. App'x 36
Docket Number: 18-1601
Court Abbreviation: 3rd Cir.