United States v. Cohen, No. 12-10240 (9th Cir. 2013)
Annotate this CaseDefendant was convicted of fifteen counts of wire fraud, eleven counts of money laundering, and three counts of tax evasion. At issue on appeal was whether the district court correctly applied U.S.S.G. 2B1.1(b)(9)(A) because his offense involved "a misrepresentation that the defendant was acting on behalf of a charitable...organization." The court concluded that, under the reasoning of United States v. Treadwell, defendant's offense fits easily within the ambit of charitable enhancement even though his scheme involved the sham sale of shares in a for-profit company; the applicability of his sentencing enhancement did not change because he purported to act in the interest of a charitable organization but not as its agent or representative; and it was not significant that defendant's investor's could have been motivated, in part, by a desire to profit personally. By presenting the investment opportunity as his means of donating to the charitable organization, defendant misrepresented that he was acting "to obtain a benefit on behalf of" the organization. Accordingly, the district court did not abuse its discretion in applying the enhancement and the court affirmed the sentence.
Court Description: Criminal Law. The panel affirmed the district court’s application of a sentencing enhancement under U.S.S.G. § 2B1.1(b)(9)(A) for an offense involving “a misrepresentation that the defendant was acting on behalf of a charitable organization . . .” in a case in which the defendant induced patrons of a charitable organization to purchase his shares in a for-profit company by misrepresenting that the value of the shares would soon skyrocket, enabling the patrons to make large charitable contributions. The panel held that the applicability of the enhancement does not change because the defendant purported to act in the interest of the charitable organization but not as its agent or representative. The panel added that it is also not significant that the defendant’s investors may have been motivated, in part, by a desire to profit personally. The panel explained that the defendant’s conduct qualifies for the enhancement because, by presenting the investment opportunity as his means of donating to the charitable organization, the defendant misrepresented that he was acting “to obtain a benefit on behalf of” the organization.
The court issued a subsequent related opinion or order on October 7, 2013.
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.