Sentencing — fraud — amount of loss

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U.S. Court of Appeals
For the Seventh Circuit

Criminal

Sentencing — fraud; amount of loss

Where the defendants were convicted for fraudulently obtaining government contracts as a minority owned business, the sentence was properly calculated based on the entire amount of the government contracts.

“As the district court noted during Potter’s sentencing hearing, Application Note 3(F)(v) of § 2B1.1 appears to contemplate the scheme here. Application Note 3(F)(v) provides that where regulatory approval by a government agency is obtained by fraud, the ‘loss shall include the amount paid for the property, services, or goods transferred, rendered, or misrepresented, with no credit provided for the value of those items or services.’United States Sentencing Commission Guidelines Manual § 2B1.1 cmt. n.3(F)(v) (2013). It is undisputed that ICS obtained MBE certification from the City of Chicago through fraud, putting Potter’s conduct squarely within the scheme considered by Application Note 3(F)(v). It is also undisputed that RCN paid $8.3 million for ICS’s services. Taken together, RCN’s $8.3 million expenditure is within the ambit of Application Note 3(F)(v).”

Affirmed.

13-3283 & 13-3537 U.S. v. Giovenco

Appeals from the United States District Court for the Northern District of Illinois, Pallmeyer, J., Bauer, J.

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