Lead Opinion
David C. Wittig appeals — for the third time — from his sentence for conspiracy, bank fraud and money laundering. We vacated his first two sentences (51 months imprisonment and 60 months imprisonment). United States v. Weidner,
I. BACKGROUND
We will not repeat all of the facts underlying Wittig’s appeal, as they are set forth in detail in our two previous decisions. See Wittig I,
Wittig and Weidner were convicted of one count of conspiracy to submit false entries to a federally insured bank and to launder money in violation of 18 U.S.C. § 371; four counts of making a false bank entry in violation of 18 U.S.C. § 1005; and one count of money laundering in violation of 18 U.S.C. § 1957. Wittig was sentenced to 51 months imprisonment.
In Wittig I, we affirmed Wittig’s conviction but vacated his sentence and remanded for resentencing.
On remand, the court again used the intended loss and gross receipts enhancements to calculate Wittig’s offense level. In justifying its use of the intended loss enhancement, the court acknowledged some credit should be given to the collateral pledged by Wittig, but discounted the value of the collateral, finding it was not “secured in a very secure fashion.” Wittig II,
In Wittig II, we held: “[T]he district court again erred in computing Mr. Wit-tig’s offense level under the Guidelines. The base offense level for Mr. Wittig’s crime was 6. The only potential grounds for increasing it would be the gross receipts enhancement or the intended loss enhancement. Neither ground applies.”
The court has now sentenced Wittig to 24 months imprisonment. In arriving at this sentence, the court recognized “Wittig II clearly ruled that the applicable Guidelines range in this case is 0-6 months.... ”
II. DISCUSSION
A. The Sentence
Since Booker, this Court has reviewed sentences for reasonableness, guided by the factors set forth in 18 U.S.C. § 3553(a). United States v. Kristi,
1. Procedural Error
In arriving at a sentence, a district court must consider “the nature and circumstances of the offense and the history and characteristics of the defendant” and “the need for the sentence imposed — [ ] to reflect the seriousness of the offense, to promote respect for the law, and to provide just punishment for the offense.” 18 U.S.C. § 3553(a)(1), (a)(2)(A). The district court determined the advisory guideline range (0 to 6 months) did not adequately account for these factors because Wittig was involved in a fraudulent scheme involving a financial institution; he intended to profit (and did profit) from the fraud; and the fraud involved $1.5 million in gross receipts. See Wittig III,
A sentencing court must consider “the need to avoid unwarranted sentence disparities among defendants with similar records who have been found guilty of similar conduct.” 18 U.S.C. § 3553(a)(6). While the district court acknowledged the dissimilarities between Wittig and Weidner, it noted they were convicted of the same crimes and had the same criminal histories. Wittig III,
2. Substantive Error
Wittig contends the sentence imposed is substantively unreasonable and not supported by the § 3553(a) factors. The court stated the sentence was appropriatе because of the “dramatic” facts. Wittig III,
[W]e must give due deference to the district court’s decision that the § 3553(a) factors, on a whole, justify the extent of the variance.... It is not for the Court of Appeals to dеcide de novo whether the justification for a variance is sufficient or the sentence reasonable, and we must therefore defer not only to a district court’s factual findings but also to its determinations of the weight to be afforded to such findings.
Though a 24 month sentence was certainly not the only reasonable sentence the district court could have arrived at, we discern nо abuse of discretion. The court determined the variance “is necessary to afford adequate deterrence to bank customers who are aiders and abettors to nominee loans with bank officers.... ” Wittig III,
B. The Occupational Restriction
Over Wittig’s objection, the district court imposed an occupational restriction as a special condition of supervised release. The restriction prohibits Wittig from being employed as an executive and engaging in any financial agreements or negotiations in a professional capacity without first obtaining court approval. “The district court generally enjoys broad discretion in setting a condition of supervised release.” United States v. Erwin,
Wittig contends the court abused its discretion in imposing this “sweeping employment restriction.” (Appellant’s Opening Br. at 35.) Wittig claims this condition renders him virtually unemployable as an executive because of the judicial oversight it entails. He asserts the restriction bears no reasonable relation to the conduct for which he was convicted and is not narrowly tailored to achieve its objective. The government contends the restriction is reasonable because it does not аbsolutely prohibit Wittig from engaging in financial agreements or negotiations but merely requires he obtain court approval before doing so. The government asserts the restriction is reasonably related to the conduct for which Wittig was convicted because, inter alia, Wittig “was involved in this transaction and carried out aspects of the conspiracy while the chief executive of a utility.” (Appellee’s Br. at 22.)
The district court has discretion to impose an occupational restriction as a special condition of supervised release, but its discretion must be exercised in accordance with 18 U.S.C. §§ 3583(d) and 3563(b) and USSG § 5F1.5. Section 3583(d) provides in pertinent part:
The court may order, as a further condition of supervised release, to the extent that such condition—
(1) is reasonably related to the factors set forth in section 3553(a)(1), (a)(2)(B), (a)(2)(C), and (a)(2)(D);
(2) involves no greater deprivation of liberty than is reasonably necessary for the purposes set forth in section 3553(a)(2)(B), (a)(2)(C), and (a)(2)(D); and
(3) is consistent with any pertinent policy statements issued by the Sentencing Commission pursuant to 28 U.S.C. 994(a);
any condition set forth as a discretionary condition of probation in section 3563(b)(1) through (b)(10) and (b)(12) through (b)(20)----
Section 3563(b)(5) sets forth occupational restrictions as a discretionary condition of probation. This section states:
The court may provide, as further conditions of a sentence of probation, to the extent that such conditions are reasonably related to the factors set forth in section 3553(a)(1) and (a)(2) and to the extent that such conditions involve only such deprivations of liberty or property as are reasonably necessary for the purposes indicated in section 3553(a)(2), that the defendant ... refrain ... from engaging in a specified occupation, business, or profession bearing a reasonably direct relationship to the conduct constituting the offense, or engage in such a specified occupation, business, or profession only to a stated degree or under stated circumstances.
USSG § 5F1.5 implements § 3583(d). Subsection (a) states that a sentencing court may impose an occupational restriction “only if it determines”:
(1) a reasonably direct relationship existed between the defendant’s occupation, business or profession and the conduct relevant to the offense of conviction; and
(2) imposition of such a restriction is reasonably necessary to protect the public because there is reason to believe that, absent such restriction, the defendant will continue to engage in unlawful conduct similar to that for which the defendant was convicted.
Moreover, an occupational restriction “shall [be] impose[d] ... for the minimum time and to the minimum extent necessary to protect the public.” USSG § 5F1.5(b).
[The] conditions of supervision are directly connected to the underlying offenses for which defendant Wittig was convicted. Defendant Wittig was convicted of fraud and conspiracy to commit fraud that involved financial transactions. Specifically, he was found guilty in a scheme that involved false and misleading statements made on financial documents. If defendant Wittig were to have executive authority, or conduct financial transactions on behalf of a business entity, he would be responsible for a multitude of financial documents. As a result, the conditions are reasonably related to the nature and circumstances of the offense and the history and characteristics of this defendant.
First, in order for an occupational restriction to be warranted, there must be a “reasonably direct relationship ... between the defendant’s ... profession and the conduct relevant to the offense of conviction.” USSG § 5F1.5(a)(l); see also 18 U.S.C. 3563(b)(5) (requiring that the occupational rеstriction “bear[] a reasonably direct relationship to the conduct constituting the offense”). Where, as here, the restriction relates to a management position, the “disqualification must bear a reasonable relationship to an abuse of the management position for a criminal purpose.” S. Rep. No. 98-225, at 96 (1983), as reprinted in 1984 U.S.C.C.A.N. 3182, 3279. The court did not explain how the restriction was connected to Wittig’s abuse of a management position for a criminal purpose. The offense of conviction was based on Wittig’s personal conduct, not his conduct as an executive. Wittig used his personal line of credit to effect a nominee loan to a bank employee and failed to disclose the loan to the bank. The mere fact Wit-tig engaged in such conduct while employed as an executive does not establish the necessary connection between the conduct and his management/executive positions.
Second, an occupational restriction must be “reasonably necessary to proteсt the public,” which requires a finding that, in the absence of the restriction, “the defendant will continue to engage in unlawful conduct similar to that for which the defendant was convicted.” USSG § 5F1.5(a)(2); see Erwin,
Third, an occupational restriction “shall [be] impose[d] ... for the minimum time and to the minimum extent necessary to protect the public.” USSG § 5F1.5(b); see also United States v. Souser,
On these facts, an occupational restriction cannot satisfy the requirements of 18 U.S.C. §§ 3583(d) and 3563(b) and USSG § 5F1.5. We REVERSE the fourth special condition of supervised release and remand with instructions to eliminate that condition. In all other respects, we AFFIRM.
Notes
. Wittig made over $90,000 on the loan, based on the difference between the interest charged to Wittig by the bank and the interest Wittig charged to Weidner. Wittig also obtained an increase in his line of credit.
. Weidner was originally sentenced to 78 months imprisonment. We vacated that sentence. Wittig I,
. This provision was renumbered as USSG § 2Bl.l(b)(13)(A) in the 2005 version of the guidelines.
. In a separate case, Wittig was prosecuted for thirty-nine counts of wire fraud, money laundering, conspiracy and circumvention of internal financial controls in relation to his position as presidеnt, chief executive officer and chairman of the board of Westar Energy, Inc. His first trial ended in a hung jury. He was convicted on all counts in his second trial but we reversed. See United States v. Lake,
. Section 3553(a) provides in pertinent part:
The court shall impose a sentence sufficient, but not greater than necessary, to comply with the purposes set forth in ... this subsection. The court, in determining the particular sentence to be imposed, shall consider—
(1)the nature and circumstances of the offense and the history and characteristics of the defendant;
(2) the need for the sentence imposed—
(A) to reflect the seriousnеss of the offense, to promote respect for the law, and to provide just punishment for the offense;
(B) to afford adequate deterrence to criminal conduct;
(C) to protect the public from further crimes of the defendant; and
(D) to provide the defendant with needed educational or vocational training, medical care, or other correctional treatment in the most effective manner;
(3) the kinds of sentences available;
(4) the kinds of sentence and the sentenc-
ing range established for— (A) the applicable category of offense committed by the applicable category of defendant as set forth in the guidelinеs
(5) any pertinent policy statement ... ;
(6) the need to avoid unwarranted sentence disparities among defendants with similar records who have been found guilty of similar conduct; and
(7) the need to provide restitution to any victims of the offense.
. "When a court enhances or detracts from the recommended [guideline] range through application of § 3553(a) factors ... the increase or decrease is called a ‘variance.’ " United. States v. Atencio,
. Wittig was released from custody on February 12, 2007, pending our resolution of this appeal. At the time of his release, he had sеrved over 12 months in prison.
. It is clear the court did not actually apply these enhancements. Had the court applied only the intended loss enhancement, the guideline range would have been 41 to 51 months imprisonment. See
. Prior to Gall, we reviewed sentences outside the calculated guideline range on a sliding scale, requiring a more compelling justification the farther the sentence diverged from that range. See, e.g., Mateo,
Concurrence Opinion
concurring:
I join fully in Judge O’Brien’s opinion. I write separately only to express my disagreement with this court’s recent jurisprudence regarding substantive reasonableness of sentences.
This court’s present approach appears to be that a sentence is substantively reasonable if the sentencing judge provides reasons for the length of the sentence. See United States v. Muñoz-Nava,
I think that а different approach is appropriate. Sentencing judges are required to consider the factors set forth in 18 U.S.C. § 3553(a). Some of those factors do not seriously constrain the judge’s discretion. Every judge will unavoidably consider “the nature and circumstances of the offense and the history and characteristics of the defendant,” id. § 3553(a)(1); yet we all know that reasonable people can reach strikingly different conclusions regarding what sentence is proper in light of those considerations. Two of the factors, however, have real teeth, and should be a matter of concern to appellate courts that wish to effectuate congressional intent that we be a nation of equal justice under law, in which the length of time that a defendant is deprived of liberty does not depend primarily and significantly on who the sentencing judge happens to be. These two factors are the sentencing range in the Sentencing Guidelines, id. § 3553(a)(4), and “the need to avoid unwarranted sentence disparities among defendants with similar rеcords who have been found guilty of similar conduct,” id. § 3553(a)(6).
In my view, a sentence is substantively unreasonable if the only reason that the length is outside the range of what judges ordinarily impose for “defendants with similar records who have been found guilty of similar conduct” is that the sentencing judge has an idiosyncratic view of the seriousness of the offense, the significance of the defendant’s criminal history and personal qualities, or the role of incarceration in the criminal-justice system. Determining whether a particular judge has idiosyncratic views could be problematic, except that the United States Sentencing Commission has, in large part, developed its Sentencing Guidelines by studying the sentences being handed down by district judges throughout the country. See Kim-brough v. United States, — U.S. -,
