United States v. Austin

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Austin was charged, based on an eight‐year mortgage‐fraud scheme, with bank fraud, 18 U.S.C. 1344; wire fraud, section 1343; aggravated identity theft, section 1028A(a)(l); and obstruction of justice, section 1512(c)(2). Austin allegedly participated in 52 fraudulent mortgage loans, with losses of over $8 million. Nine co-defendants pleaded guilty. On the sixth day of his jury trial, Austin changed his plea. The court confirmed that it was “an oral blind plea” to three counts, confirmed Austin's understanding of the maximum penalties and fines, asked questions to determine Austin’s competence, and explained trial rights that Austin would be waiving. Austin admitted the factual basis for his plea and confirmed that he had spoken to his attorney about the Sentencing Guidelines. The court did not discuss forfeiture. The PSR indicated a Guidelines range of 188–235 months, with enhancements for the number of victims, role in the offense, obstruction of justice, and loss amount of over $8.6 million per the 2014 version of U.S.S.G. 2B1.1(b)(1)(K) although the 2015 manual that was then in effect. There was no adjustment for acceptance of responsibility. Austin did not object to the loss chart. The court imposed a sentence of 144 months, entered an order of forfeiture ($4,374,070), and ordered restitution. The Seventh Circuit affirmed acceptance of the plea but vacated the sentence. While Austin did not provide any evidence he would not have pleaded guilty had the court advised him concerning forfeiture, restitution was improperly calculated. View "United States v. Austin" on Justia Law