Pleas & Sentencing

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7^th Circuit Court of Appeals

Case Name: United States of America v. Christina Peterson

Case No.: 14-3716

Officials: FLAUM, KANNE, and SYKES, Circuit Judges

Focus: Pleas & Sentencing

Judge correctly calculated gross receipts derived from fraud and provided no instructional error. However, appellant provided repayment to government prior to fraud being detected, warranting update of total loss calculation and resentencing.

“Under U.S.S.G. § 2B1.1(b)(1)(I), a 16-level enhancement applies to a fraud that results in total loss of more than $1 million. Application note 3(E)(i) explains that “[t]he money returned … by the defendant or other persons acting jointly with the defendant, to the victim before the offense was detected” should be subtracted from the total loss amount. See also United States v. Hausmann, 345 F.3d 952, 960 (7th Cir. 2003). The judge applied the 16-level enhancement based on a total loss amount of $1,116,169—again, the sum of the $300,000 loss from the M&I wire transfer and the $816,169 loss from the Greenwoods loan. Peterson argues that the $300,000 wire transfer should not have been included because he repaid that amount in full prior to detection of his fraud.”

Vacated and Remanded

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.