United States v. Paul Negroni, No. 10-1050 (3d Cir. 2011)Annotate this Case
Defendants pled guilty to participation in a scheme to fraudulently obtain class action settlement funds. One defendant sentenced to 15 months imprisonment and payment of $572,279 in restitution; the other was sentenced to nine months home monitoring, followed by five years probation (sentencing guidelines called for 70 to 87 months in prison), and payment of $677,805. The government appealed. The Third Circuit vacated and remanded. The district court must explain its rejection of persuasive evidence concerning one defendant's involvement in other frauds; the statutory factors underlying its dramatic variance from sentencing guidelines with respect to the other; and its determination of the relative culpability of the two defendants.