UNITED STATES OF AMERICA v. MATTHEW NORMAN SIMPSON
No. 14-10932
United States Court of Appeals for the Fifth Circuit
August 12, 2015
PRISCILLA R. OWEN, Circuit Judge:
Our court previously remanded this case to the district court after reversing one of Matthew Simpson‘s convictions.1 Simpson was resentenced and now appeals that sentence on several grounds, asserting, among other claims, that
I
Simpson and 18 co-defendants were indicted in 2009 in a complex conspiracy. While most of Simpson‘s co-conspirators pleaded guilty, Simpson and three others proceeded to trial.2 As set forth in this court‘s prior opinion:
[t]rial evidence showed that the defendants and their co-conspirators conspired to defraud various telecommunications companies, lessors, creditors, credit reporting agencies, and various other service providers, of goоds and services. Evidence showed that beginning in 2003, the co-conspirators were involved in the creation and/or operation of a series of corporate entities which defrauded telecommunications companies, including, inter alia: American Discount Telecom (ADT), a company that promulgated a method of using routing codes that made long distance or toll-free calls appear to be local calls, thus avoiding paying larger telephone service providers for use of their networks; TxLink, a wholesale dialup internet company which Simpson used to steal network capacity and divert customer payments from one of his employers, CommPartners; camophone.com, a spoofing service that allowed customers to disguise the number [from which] they were calling . . . , which allowed spoofed calls to be routed locally through toll-free lines, thereby avoiding paying fees for the calls; ColoExchange, a colocation company that Simpson used to engage in both lease fraud and insurance fraud; Aston Technology, a сompany that Michael Faulkner, a co-conspirator, pretended to control to obtain network capacity without paying for it; and Union Datacom (UDC), Premier Voice, Lone Star Power, Incavox, and several other corporate entities that entered into contracts for commercial telecommunications services, leases, and other agreements for goods and services, which were not paid for. The companies were then abandoned or renamed by the co-conspirators tо avoid the debts. Evidence showed that the defendants provided false identity information and postal addresses; provided false credit histories, bills, invoices, financial statements, and credit references; and used assumed identities in applications and contracts in order to hide their association with the shell corporate entities and with each other.3
The jury convicted Simpson of conspiracy to commit mail and wire fraud under
Simpson was sentenced to a term of 480 months in prison. Specifically, the district court sentencеd Simpson to 240 months for the conspiracy conviction and 240 months for the obstruction of justice conviction, to be served consecutively. For Simpson‘s other two convictions, the district court imposed sentences to run concurrently: thirty-six months of imprisonment for aiding and abetting the transmission of spam and eighty-four months of imprisonment for falsely registering a domain name.
In his first appeal, Simpson challenged his convictions and sentences. Although we affirmed three of Simpson‘s convictions and a two-level sentence enhancement basеd on Simpson‘s perjured testimony,4 we reversed the false-registration conviction because it was not supported by sufficient evidence.5 We accordingly vacated Simpson‘s sentence and remanded for resentencing.6
On remand, the district court reimposed the 480-month sentence consisting of consecutive sentences of 240 months each for Simpson‘s conspiracy and obstruction of justice convictions and a concurrent sentence of thirty-six months for aiding and abetting the transmission of spam. Simpson again appeals to this court arguing that the district court committed procedural errors and that the sentence is substantively unreasonable. The Government contends that several of Simpson‘s arguments, which were not raised in his first appeal, are waived under the “mandate rule.” We do not address the applicability of the mandate rule but proceed to the merits of the issues raised because there was no sentencing error.7
II
After this court reversed Simpson‘s false-registration conviction, an addendum to Simpson‘s original Presentence Report (PSR) reflеcted that, “[b]ased on a Criminal History Category of I and a Total Offense Level of 43,” an advisory guidelines sentence of life imprisonment would result. However, because the combined statutory maximums for his three affirmed convictions was less than a life sentence, the guidelines range was reduced to reflect the statutory maximum of 516 months.8 The district court imposed a sentence that included 480 months of imprisonment.
III
We first address Simpson‘s arguments that the district court committed procedural error during resentencing.
A
The statutes under which Simpson was convicted for obstruction of justice and for conspiracy to commit wire and mail fraud expressly provide that the maximum sentence for each of these convictions is twenty years.9
Nonetheless,
Simpson‘s argument relies on the interaction between sections 3559(a) and 3581 of Title 18 of the United States Code. Under
But Simpson‘s argument overlooks other statutory provisions. Section 3559(b) provides that an offense assigned a letter grade “carries all the incidents assigned to the applicable letter designation, except that the maximum term of imprisonment is the term authorized by the law describing the offense.”14 Section 3551 indicates that the sentencing provisions in chapter 227 of Title 18, which include
Our court has not yet analyzed, in a published opinion, the interplay between
B
Simpson‘s offense level was increased by two points under
Simpson argues that
Simpson posits that this sentence enhancement should not apply to him because buying and selling stolen telecommunications services was not a significant enough proportion of his business. The sole authority he cites for this proposition is United States v. Sutton, in which we upheld the imposition of this sentence enhancement when the defendant made far more money over a five-month span from selling stolen cars than from his legitimate dealership.23 But Sutton nonetheless rejected the contention that Simpson asserts in this appeal. The defendant in Sutton argued that the sentence enhancement for receiving and selling stolen property should only apply to “those who make their living from selling stolen goods.”24 This court disagreed, noting that “[w]e have repeatedly stated that a person can receive the ‘in the business’ enhancement when the only goods he has fenced are those for which he is convicted.”25 The evidence establishes that Simpson bought and sold stolen telecommunications services, and the district court did not clearly err in finding that Simpson was in the business of receiving and selling stolen property, even assuming a larger proportion of Simpson‘s business was legitimate.
C
The district court imposed a two-level enhancement under what is now
Simpson first challenges the application of this sentence enhancement on the basis that by the time of resentencing, he had already served the entirety of the thirty-six-month sentence for his
Simpson asserts in the alternative that the second prong of the sentence enhancement, that the offense involved improperly obtaining e-mail addresses, is not supported by evidence in the record. But Simpson was convicted under
D
Simpson challenges the district court‘s imposition of a two-level enhancement under
Simpson argues that notwithstanding the evidence, his sentence cannot be enhanced for any misrepresentations made
E
The district court imposed a two-level enhancement under
The district court did not clearly err when it imposed the sentence enhancement for ten or more victims.
F
Simpson argues, citing the Supreme Court‘s decisions in Alleyne v. United States40 and Burrage v. United States,41 that the sentence enhancements increased his guidelines calculation above the statutory maximum penalty and must have been supported by facts found by a jury beyond a reasonable doubt. But the guidelines calculation did not “expose”42 Simpson to a sentence that exceeded the
G
In imposing the original sentence, the district court applied a two-level enhancement under
IV
Having determined the district court did not commit a procedural error, we address Simpson‘s argument that his sentence to 480 months of imprisonment is substantively unreasonable. We review the substantive reasonableness of the sentence under an abuse-of-discretion standard.48 Our review is “highly deferential as the sentencing judge is in a superior position to find facts and judge their import under
We presume sentences within or below the calculated guidelines range are reasonable.51 The district court concluded
During resentencing, the district court explained the reasons for imposing the 480-month sentence, including the district court‘s assessment that since the first sentencing hearing, Simpson had still not accepted responsibility or expressed remorse for his criminal activity:
[T]he jury found that [Simpson] committed the crime of obstruction in count 4 and I found that Mr. Simpson committed perjury during his trial testimony. And I was looking today to see whether Mr. Simpson would say to me, judge, now that all of my convictions except seven have been affirmed I want to admit to you what I have done, I want to admit the crime, I want to admit what I did. And he still has not.
The court then turned to a letter Simpson had sent to the court expressing some remorse, but the court determined that it was “almost the bare minimum” because Simpson did not accept criminal responsibility.
Simpson asserts that the district court gave undue weight to his lack of remorse and failure to accept responsibility because these factors were already taken into account by the sentencing guidelines. Specifically, Simpson did not receive a two-level reduction for acceptance of responsibility under
Simpson also asserts that the district court punished him for denying his guilt and exercising his Sixth Amendment right to a trial. But the record reflects that the district court focused on (1) Simpson‘s refusal to accept his criminal responsibility after his convictions had been affirmed by this court and (2) the fact that Simpson committed perjury during the trial. Simpson has not established that he was punished for exercising his right to a trial.
Simpson contends that the court‘s emphasis on his lack of remorse “appears to suggest that only his confinement for most of his life can achieve correction and rehabilitation,” an impermissible basis for his sentence.56 Simpson does not identify any
In fact, the district court explained at length each of its considerations for the sentence with specific references to the
Simpson notes that the 480-month sentence far exceeds the seventy-five-month average sentence for fraud in the same loss category. But Simpson has not demonstrated that the seventy-five-month average involves similarly situated defendants. It is unclear whether those defendants, like Simpson, had also been convicted of two additional offenses or found to have committed perjury during trial. As the district court noted, uniformity is important, but sentencing is “individualized.”62 Moreover, Simpson‘s additional arguments pertaining to the district court‘s consideration of the
The district court found that the loss amount was in excess of $20,000,000. Simpson contends that this loss amount,
Simpson asserts that use of the loss amount under the Guidelines should not be given the same deference as guideline provisions developed by the Sentencing Commission based on empirical research. We have rejected this and similar arguments. The issue is foreclosed in this circuit.65
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The judgment of the district court is AFFIRMED.
