Rоbert Hauptman pleaded guilty to conspiracy to transport in interstate commerce securities and money worth more than $5,000 that he knew had been taken by fraud. 18 U.S.C. §§ 371, 2314. Sentenced to serve 21 months in prison and to pay rеstitution of $10,000 to his victim’s insurer, he challenges the prison sentence. With the assistance of an employee, codefendant Sisti, Hauptman had bribed codefendant Sommers, a purchasing agent for the Leo Burnett advertising firm, tо purchase hundreds of thousands of dollars worth of unneeded cleaning supplies, at exorbitant prices, from a company controlled by Hauptman. Hauptman had offered the bribes to Sommers, a total of at
The plea agreement recites that the proper guidеline to be used in calculating the base offense level is section 2B4.1, the guideline for commercial bribery, yielding (since the total bribes are assumed to have been between $5,000 and $10,000, though they may have been higher) an offense level of 10. See §§ 2B4.1(b)(l), 2Fl.l(b)(l)(C). Given Haupt-man’s criminal history and a further adjustment for acceptance of responsibility, the use of the commercial-bribery guideline put him in a sentencing range of only 4 to 10 months. But the plea agrеement was emphatic that its validity was not contingent on the court’s concurring with the parties’ calculation of the sentencing range; that the probation service would conduct its own investigation and the judge would make his own calculation of the guidelines range; and that the maximum sentence for Hauptman’s offense was five years, not 10 months.
Hauptman pleaded guilty pursuant to the plea agreement, and the probation service then conducted its investigation, on the basis of which the judge determined at the sentencing hearing that Hauptman had caused Leo Burnett to lose between $120,000 and $200,000. This determination led the judge to conclude that the proрer guideline for sentencing Hauptman was not the commercial-bribery guideline, but the fraud guideline, U.S.S.G. § 2F1.1, under which the offense level (given the amount of the loss, § 2Fl.l(b)(l)(H)) was (after a further adjustment) 14, and the sentencing range 18 to 24 months. Entitled as he wаs to consider the facts developed in the probation service’s investigation as well as the stipulated facts, U.S.S.G. § 6B1.4(d) (policy statement and commentary);
United States v. Sandies,
We think the judge was right that fraud describes Hauptman’s offense better than bribery. Indeed we cannot fathom the government’s thinking in acceding in the plea agreement to the use of the bribery guideline instead. (Inquiry at argument did not elicit a coherent explanation.) In the usual case of commercial bribery (on which see, e.g,
Mantelo Division v. Share Corp.,
The judge also committed no error in raising the offense level because the defendant was the organizer or leader of a criminal activity involving more than one participant. See U.S.S.G. § 3Bl.l(c). The scheme to defraud Leo Burnett had threе participants. Hauptman was the organizer of the trio. He approached Sommers, who, it is true, was known as a “taker”; but it was Hauptman who initiated and led the scheme. Sommers was his agent, receiving a relatively mоdest compensation for steering business Hauptman’s way, and Sisti was Hauptman’s tool.
Hauptman argues that the judge violated Fed.R.Crim.P. 11(e)(2) by failing to advise him during the guilty-plea hearing that if the judge disagreed with the sentencing recommendаtions in the plea agreement the defendant would not be free to withdraw his guilty plea. It’s true; the judge didn’t advise him; this was a violation of the rule. (We do not understand the government’s failure to acknowledge this outright. The rule is clear; it was violated.) But as in
United States v. Bennett,
We do not think the government violated the agreement when, just after the judge told the parties that the plea agreement was not in the interest of justice, the prosecutor remarked that the defendant had acknowledged in the plea agreement that he had engaged in fraud as well as in bribery. This was a simple statement of fact, and if it contained a hint that the prosecutor would not be brokеn-hearted if the judge jacked up the sentence, it was not followed up by any suggestion that the judge use the fraud guideline. The prosecutor repeated several times that the government was standing by its agreement to reсommend the use of the bribery guideline and urged that Hauptman be sentenced in a range of only 4, to 10 months. The defendant is wrong that the prosecutor supplied the judge with the calculation of Leo Burnett’s loss that was used to apply the fraud guideline. The loss was calculated by Leo Burnett’s insurance company and furnished by the company directly to the probation service. The government opined to the judge that the loss was only $9,000.
The government is not permitted to pull the rug out from under a defendant who has negotiated a plea agreement, by taking steps to induce the judge to give a higher sentence.
Santobello v. New York,
There is an air of unreality about Haupt-man’s argument. If the government did violate the plea agreement, Hauptman’s remedy is rescission,
United States v. Walker,
We note in closing our puzzlement at the government’s handling of this case. A person who should have known better — who is not ignorant, impoverished, desperate, deranged, or otherwise on the margins of society — steals hundreds of thousands of dollars. The government’s response is to negotiate a plea agreement, based on a misreading of the federal sentencing guidelines, that if rubber-stamped by the judge might have resulted in a nominal punishment of a serious crime. To compound its insouciance, the govеrnment acquiesced in nominal restitution and no fine. At argument we were told that the government did not press for an order of full restitution because the defendant has children. The needs of his children are a legitimate concern, but as a businessman who will be released from prison in a short time this defendant has a potential earning capacity some part of which ought to be devoted to making whole the victim of his fraud (or the victim’s insurer, if insurancе shifted the loss to the insurer). The government’s handling of this case might lead one (and not for the first time; see
United States v. Walker,
supra,
Affirmed.
