Environmental and Wire Fraud-Sentencing Guidelines

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7^th Circuit Court of Appeals

Case Name: United States of America v. Kevin Shibilski

Case No.: 23-1410

Officials: Sykes, Chief Judge, and Hamilton and Lee, Circuit Judges.

Focus: Environmental and Wire Fraud-Sentencing Guidelines

Shibilski faced charges of environmental and wire fraud, as well as conspiracy to defraud the United States, in connection to his management of three Wisconsin-based companies engaged in electronic equipment recycling. Shibilski entered a guilty plea to a single felony charge of willful failure to pay employment taxes, leading to the dismissal of the other charges. At his sentencing, Shibilski contested the recommendations in the presentence report concerning relevant conduct under the Sentencing Guidelines, particularly disputing his responsibility for the entire sum of unpaid employment taxes across all three companies. The sentencing hearing, lasting seven hours, primarily involved the presentation of evidence, including testimony from Shibilski himself.

The district judge determined Shibilski to be accountable for the full amount of unpaid taxes and declined to grant credit for acceptance of responsibility under U.S.S.G. § 3E1.1(a), citing Shibilski’s false denial of relevant conduct. Considering the statutory sentencing factors, the judge imposed a 33-month prison sentence, the minimum within the advisory Guidelines range.

On appeal, Shibilski alleged that the judge violated Rule 32(i)(4)(A)(i) of the Federal Rules of Criminal Procedure by restricting his attorney’s presentation of evidence, erroneously denying credit for acceptance of responsibility under § 3E1.1(a), and committing procedural error by inadequately addressing the statutory sentencing factors. The Court of Appeals dismissed these contentions and upheld the district court’s ruling.

Affirmed.

Decided 06/10/24

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