F I L E D
United States Court of Appeals
Tenth Circuit
PUBLISH
DEC 15 2000
UNITED STATES COURT OF APPEALS
PATRICK FISHER
Clerk
TENTH CIRCUIT
UNITED STATES OF AMERICA,
Plaintiff - Appellee,
vs. No. 99-6209
DON ALAN KEELING, also known
as D. A. Keeling,
Defendant - Appellant.
APPEAL FROM THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF OKLAHOMA
(D.C. No. CR-98-99-M)
Richard D. Biggs (and Marcia G. Shein, with him on the briefs), Shein & Biggs,
Atlanta, Georgia, for Plaintiff - Appellee.
M. Jay Farber, Assistant United States Attorney (and Patrick M. Ryan, United
States Attorney and Daniel G. Webber, Jr., United States Attorney, on the briefs),
Oklahoma City, Oklahoma, for Defendant - Appellant.
Before SEYMOUR, Chief Judge, KELLY, and HENRY, Circuit Judges.
KELLY, Circuit Judge.
Defendant-Appellant, Don Alan Keeling, appeals his sentence for
possession with intent to distribute approximately 150 pounds of marijuana
(“Count 6”), 21 U.S.C. § 841(a)(1), and use of a communication facility to
facilitate a conspiracy to possess with intent to distribute marijuana (“Counts 8-21
and 23-31”), 21 U.S.C. § 843(b). In a jury trial, Mr. Keeling was acquitted of
five other possession with intent to distribute counts, alleging various quantities,
and a conspiracy count, 21 U.S.C. § 846. He was sentenced to 121 months as to
Count 6 and 48 months for each of Counts 8-21 and 23-31, to be served
concurrently, and a fine of $5000 with a special assessment of $2400. Moreover,
in accord with the jury’s verdict, Mr. Keeling is required to forfeit $240,000. The
district court also imposed a supervised release term of five years on Count 6 and
one year on Counts 8-21 and 23-31, to be served concurrently.
On appeal, Mr. Keeling argues that he is entitled to re-sentencing on the
grounds that the district court (1) improperly imposed a five year term of
supervised release, based on its erroneous conclusion that 21 U.S.C. §
841(b)(1)(C) was inapplicable to his ultimate punishment; (2) improperly
calculated relevant conduct in fashioning his sentence by including (i) a quantity
(2,494) of marijuana plants that were outside the scope of his involvement in the
underlying crimes, and (ii) drug amounts from acquitted counts, using an
improper standard; and (3) improperly adjusted his sentence upward for
obstruction of justice, U.S.S.G. § 3C1.1, given that his actions did not impede the
government’s access to forfeitable assets. Additionally, Mr. Keeling (4)
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challenges the forfeiture amount on the grounds that the amount should have been
calculated according to his profit rather than the purchase price, and (5) contends
that in light of Apprendi v. New Jersey , 120 S. Ct. 2348 (2000), his sentence must
be vacated and the case remanded for a sentence on Count 6 of not more than 60
months.
1. Supervised Release
The government advises that in light of United States v. Santos , 195 F.3d
549, 552-53 (10th Cir. 1999) (holding that mandatory sentencing provisions of
§ 841(b) are to be calculated solely with respect to the drug quantities involved in
the offense of conviction), the statutory minimum term of supervised release for
Mr. Keeling for Count 6 is three years. Thus, the parties agree that Mr. Keeling’s
sentence is incorrect in this regard, and a limited remand must be made.
2. Calculation of Base Offense Level
a. Inclusion of 2,494 Plants in Relevant Conduct Calculation
Mr. Keeling argues that the district court impermissibly included 2,494
plants from a crop grown by a third party (“Mr. Hodges”) as relevant conduct in
determining his sentence. Mr. Keeling contends that the district court relied on
incredible evidence, namely, Mr. Hodges’ testimony, to determine that this crop
was grown with Mr. Keeling in mind, and was intended for his receipt. Mr.
Keeling argues that the district court relied improperly on the representation of
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Special Agent Creson to evaluate Mr. Hodges’ credibility. Moreover, Mr.
Keeling claims that Mr. Hodges’ testimony was fraught with inconsistency. Thus,
Mr. Keeling argues that the quantity of marijuana in question is not attributable to
him for purposes of relevant conduct.
“We review questions of law regarding application of the Sentencing
Guidelines de novo. . . . [and] findings of fact under the clearly erroneous
standard, mindful of our obligation to give ‘due regard’ to the district judge’s
determinations of the credibility of witnesses.” United States v. Wiseman, 172
F.3d 1196, 1217-18 (10th Cir.) (citation omitted), cert. denied, 120 S. Ct. 211
(1999). Moreover, “[w]e will not disturb a sentencing court’s factual findings
unless they are ‘without factual support in the record, or if after reviewing all the
evidence we are left with the definite and firm conviction that a mistake has been
made.’” United States v. Moore, 130 F.3d 1414, 1416 (10th Cir. 1997) (citation
omitted). The government must prove, by a preponderance of the evidence, the
amount of drugs attributable for purposes of the Sentencing Guidelines. See id.
Under present law, a sentencing court may consider drug quantities from
uncharged or acquitted conduct. In order to constitute relevant conduct under
U.S.S.G. § 1B1.3(a)(2), the court must find (1) the offense in question included
conduct set forth by §§ 1B1.3(a)(1)(A) and (B); (2) the offense must be groupable
with the offense of conviction; and (3) the offense must be “‘part of the same
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course of conduct or common scheme or plan.’” United States v. Taylor, 97 F.3d
1360, 1363 (10th Cir. 1996) (quoting U.S.S.G. § 1B1.3(a)(2)). In the instant case,
these factors are all satisfied. The trial court explicitly found that the 2,494
plants were grown by Mr. Hodges to be received by Mr. Keeling. See Aplt. App.
at 151-152. The court made this determination on the strength of the testimony at
trial and the statements by Special Agent Creson. While Mr. Keeling challenges
the credibility of Mr. Hodges, who testified that the crop was for Mr. Keeling, we
must defer to the district court’s findings. See Wiseman, 172 F.3d at 1218.
Despite the fact that Mr. Keeling was acquitted of conspiracy, the trial court is
empowered to determine, as it did, by a preponderance of the evidence, that the
marijuana from the 1997 crop was reasonably foreseeable by Mr. Keeling and
“part of the conspiratorial objectives in furtherance of the conspiracy.” Aplt.
App. at 150; see also, Moore 130 F.3d at 1416 (noting that acquitted conduct may
be evaluated as relevant conduct for sentencing purposes). Thus, Mr. Keeling’s
claim fails.
b. Inclusion of Drug Quantities from Dismissed Counts
We likewise reject Mr. Keeling’s claim that the trial court was not entitled
to consider drug quantities from acquitted counts on the ground that the jury
evaluated the amount of drugs involved under both a reasonable doubt and
preponderance standard for purposes of determining forfeiture. A review of the
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record shows that the trial court was correct in finding that the jury was properly
instructed only to consider drug quantities from convicted counts for purposes of
forfeiture. See Aplt. App. 152-153. Additionally, the government’s contention
that it is for the sentencing court, not the jury, to determine relevant conduct
remains true after Apprendi, provided that an enhanced penalty based upon
additional relevant conduct quantity does not exceed the range authorized by the
count of conviction. See United States v. Doggett, 230 F.3d 160, 166 (5th Cir.
2000) United States v. Meshack, 225 F.3d 556, 576 (5th Cir. 2000); United States
v. Aguayo-Delgado, 220 F.3d 926, 933 (8th Cir. 2000), cert. denied,__ S. Ct. __,
(U.S. Nov. 27, 2000) (No. 00-6746).
3. Obstruction of Justice Enhancement
Mr. Keeling next argues that the trial court erroneously assessed a two-
level increase for obstruction of justice, U.S.S.G. § 3C1.1, because he executed
various quitclaim deeds and mortgaged a property, all of which were designated
as substitute assets for purposes of forfeiture. He claims that his actions were not
calculated to circumvent the government’s potential collection of forfeiture.
Moreover, Mr. Keeling notes that his actions could not have had this effect, given
that the government’s interest in the property would be superior to subsequent
purchasers because of the previously filed notice of lis pendens.
Mr. Keeling argues that he undertook these actions to raise funds to pay the
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forfeiture that he anticipated would result from his conviction. The district court,
noting the closeness of the question, ultimately did not find Mr. Keeling’s
arguments persuasive. The timing of the conveyances, the fact that the
transactions involved Mr. Keeling’s girlfriend and father, and Mr. Keeling’s
incomplete explanation as to how simple quitclaims would raise the anticipated
forfeiture amount, persuaded the district court to find obstruction of justice.
While reasonable minds could differ on the import of these facts, given the
deferential standard of review, we conclude that the district court did not clearly
err. See United States v. Hankins, 127 F.3d 932, 934 (10th Cir. 1997). As to Mr.
Keeling’s remaining argument, we reiterate our holding in Hankins that factual
impossibility is no defense to § 3C1.1. See id.
4. Forfeiture
Mr. Keeling argues that he should only be responsible in forfeiture for the
amount of the profits rather than the gross proceeds of his narcotics enterprise.
He contends that the majority of the gross proceeds went to his supplier. Because
Mr. Keeling did not properly preserve this issue for review, we evaluate his claim
according to a plain error standard of review. Under any standard of review,
however, Mr. Keeling’s claim is utterly without merit. As the Fourth Circuit
noted after surveying the legislative history and policies undergirding 21 U.S.C. §
853:
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Were we to read proceeds in § 853 to mean only
profits, . . . we would create perverse incentives for
criminals to employ complicated accounting measures to
shelter the profits of their illegal enterprises. The purpose
of forfeiture is to remove property facilitating crime or
property produced by crime – all of which is tainted by the
illegal activity.
United States v. McHan, 101 F.3d 1027, 1042 (4th Cir. 1996). We agree with this
analysis and conclude that for purposes of § 853, “proceeds” contemplates gross
proceeds and not merely profits. Accordingly, Mr. Keeling’s claim for relief on
this ground fails.
5. Apprendi Challenge
At oral argument, Mr. Keeling raised the issue of the applicability of the
Apprendi decision and we requested supplemental briefs. Under § 841(b)(1)(C)
and Santos, the statutory range of punishment for Count 6 based upon a quantity
of 150 pounds (68.18 kilograms) is up to 20 years imprisonment, a fine not to
exceed $1,000,000, and not less than 3 years supervised release. Section
841(b)(1)(C) applies to quantities of marijuana of at least 50, but less than 100
kilograms. In the absence of a jury-determined quantity, Mr. Keeling argues that
the appropriate statutory range for an undetermined amount of marijuana should
apply, specifically, § 841(b)(1)(D)--up to 5 years imprisonment, a fine not to
exceed $250,000, and at least 2 years supervised release.
In Apprendi, the Supreme Court held, based upon the Sixth and Fourteenth
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Amendments that “[o]ther than the fact of a prior conviction, any fact that
increases the penalty for a crime beyond the prescribed statutory maximum must
be submitted to a jury, and proved beyond a reasonable doubt.” 120 S. Ct. at
2362-63. The Court invalidated a procedure required by a New Jersey statute that
increased the maximum term authorized by certain offenses from 10 to 20 years if
the sentencing judge found, by a preponderance of the evidence, that the
defendant “‘acted with a purpose to intimidate an individual or group of
individuals because of race, color, gender, handicap, religion, sexual orientation
or ethnicity.’” Apprendi, 120 S. Ct. at 2351 (quoting N.J. Stat. Ann. § 2C:44-3(e)
(West Supp. 2000)).
Apprendi was influenced by Jones v. United States, 526 U.S. 227 (1999),
which determined, based upon statutory intent, that a finding of “serious bodily
injury,” required to impose a certain penalty under the federal carjacking statute,
18 U.S.C. § 2119, was an element of the offense, not merely an enhancement.
Jones, 526 U.S. at 252. As an element, it “must be charged by indictment, proven
beyond a reasonable doubt, and submitted to a jury for its verdict.” Id. After
Jones, we adhered to our position that the quantity determination associated with
various penalties under § 841(b) was entirely a matter for the sentencing judge.
See United States v. Jones, 194 F.3d 1178, 1183-84 (10th Cir. 1999). However,
the Supreme Court granted certiorari, vacated the judgment and remanded in light
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of Apprendi. See Jones v. United States, 120 S. Ct. 2739 (2000).
The government concedes that Apprendi applies to the drug quantities used
to determine punishment in § 841(b), and to this case because it is pending on
direct review and not yet final. See Griffith v. Kentucky, 479 U.S. 314, 321 n.6,
328 (1987). We agree with our sister circuits that Apprendi applies to § 841(b).
See United States v. Angle, 230 F.3d 113, 123 (4th Cir. 2000); Doggett, 230 F.3d
at 164 (5th Cir.); United States v. Rogers, 228 F.3d 1318, 1326-27 (11th Cir.
2000); United States v. Nordby, 225 F.3d 1053, 1059 (9th Cir. 2000); Aguayo-
Delgado, 220 F.3d at 932-33 (8th Cir.). As noted, Count 6 of the indictment
charged “approximately 150 pounds,” however, the government concedes that
drug quantity was not presented to the jury as an element of the offense with the
requirement of proof beyond a reasonable doubt. Mr. Keeling did not object to
the instruction given. Because drug quantity matters, this case cannot be resolved
on the principle that Apprendi does not require reversal where a defendant is
sentenced to less than the maximum sentence supported by the jury verdict
without reference to drug quantity.
To notice plain error under Fed. R. Crim. P. 52(b), the error must (1) be an
actual error that was forfeited; (2) be plain or obvious; and (3) affect substantial
rights, in other words, in most cases the error must be prejudicial, i.e. it must
have affected the outcome of the trial. See United States v. Olano, 507 U.S. 725,
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733-34 (1993). Where the law was settled at the time of trial and clearly contrary
to the law on appeal, it is sufficient if the error is plain on appeal. See Johnson v.
United States, 520 U.S. 461, 468 (1997). Given plain error that affects
substantial rights, an appellate court should exercise its discretion and notice such
error where it either (a) results in the conviction of one actually innocent, or (b)
“‘seriously affect[s] the fairness, integrity or public reputation of judicial
proceedings.’” Olano, 507 U.S. at 736 (quoting United States v. Atkinson, 297
U.S. 157, 160 (1936)). Even if the first three elements of the plain error test are
satisfied, where the evidence on a misdescribed or omitted element of the offense
is overwhelming, the fourth element, that the error seriously affects the fairness,
integrity, or public reputation of judicial proceedings, is not. See Johnson, 520
U.S. at 470.
Plain error cases have been steadfast in the requirement that the error be
judged against a complete record. See United States v. Young, 470 U.S. 1, 16
(1985). Accordingly, we exercised our discretion and obtained the complete
record, rather than rely upon the excerpts contained in the appendix. A review of
that record confirms that the jury was not instructed that quantity was an element
of Count 6, I R. doc. 59, Instr. 37. The jury was instructed that the government
was not required to prove the particular amount of controlled substance alleged in
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the indictment. 1
Given the applicability of Apprendi to § 841(b), the first two requirements
for plain error are met. A jury instruction which omitted quantity as an element
in these circumstances is actual error that is now plain and obvious. Although the
government urges us to assess plain error in light of various admissions by the
Defendant in the course of his sentencing, we decline to do so as did the court in
Nordby , 225 F.3d at 1061 n.6, because the assessment of prejudice must focus on
whether the error affected the jury’s verdict. Likewise, we decline to consider the
forfeiture proceeding in assessing prejudice with its focus on quantification of a
forfeiture amount and different standard of proof, i.e. preponderance of the
evidence.
Where the jury has not found quantity beyond a reasonable doubt and
quantity is integral to punishment, a defendant can demonstrate prejudice if the
evidence suggests a reasonable doubt on quantity. See Nordby , 225 F.3d at 1061.
1
Amount of Controlled Substance Involved
Certain counts of the Indictment allege that a
particular amount of controlled substance was involved.
The evidence in the case need not establish that the
amount or quantity of controlled substance was as
alleged in the indictment, but only that a measurable
amount of the controlled substance was in fact the
subject of the acts charged in the indictment.
I R. Doc. 59, Instr. 23.
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This case does not require us to decide the precise contours of the the third
element of the plain error test given this record.
In pertinent part, the indictment charged Mr. Keeling with possession with
intent to distribute three loads of marijuana with different quantities (Count 5, 80
pounds; Count 6, 150 pounds; and Count 7, 30 pounds), all in October 1996. As
noted, he was acquitted of Counts 5 and 7. Mr. Hodges’ trial testimony places the
quantity of the pertinent marijuana shipment in Count 6 at 150 pounds based upon
his notes that were seized by the government during a search of his residence
after his arrest. See Aplee. Supp. App. 29, 45-46 (Trial Tr. at 532, 548-49); Trial
Tr. at 528. The notes were held in the custody of the FBI and admitted at trial.
Trial Tr. at 527-29.
Mr. Keeling argues that Mr. Hodges’ testimony is uncorroborated, and that
it is not worthy of belief because it was inconsistent with a smaller quantity stated
at Mr. Hodges’ debriefing after his arrest. At trial, Mr. Keeling attempted to
impeach the testimony on the latter basis, however, Mr. Hodges testified that he
did not have access to his notes at the debriefing because they had been seized.
See Aplee. Supp. App. 46 (Trial Tr. at 549). Moreover, at trial, Mr. Hodges
explained his system and the entries associated with Mr. Keeling.
One Mr. Anderson testified that between 1991 and 1994 he transported
seven loads of marijuana for Mr. Keeling and continued to transport for him in
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1996 when Mr. Hodges was the supplier. Trial Tr. at 476, 484. Although Mr.
Anderson could not remember the quantities associated with the marijuana loads
he transported claiming it was of little concern to him, he guessed the most recent
trip he made in October 1996 could have been 70 pounds, but “30 pounds was
way too small.” Id. at 491-92. Mr. Anderson testified that Mr. Keeling gave him
the money to buy and helped him select a small pickup truck as a marijuana
transport vehicle. Id. at 486. In 1996, Mr. Keeling partially subsidized the
acquisition of a larger truck for the same purpose. Id. at 487. Over objection, a
tape was played containing admissions by Mr. Keeling that he had been dealing
marijuana since high school; he was 45 at the time of trial. See Trial Tr. at 369-
72.
In view of the record, it is doubtful that Mr. Keeling can satisfy his burden
of persuasion with respect to prejudice, see Olano, 507 U.S. at 734.
Notwithstanding that Mr. Keeling argued for a judgment of acquittal and before
the jury that there was no credible proof as to the 150-pound quantity contained in
Count 6, Trial Tr. at 593-95, 635, 639-40, the evidence of Mr. Keeling’s
involvement with Mr. Hodges’ growing operation over time was overwhelming.
The explanation Mr. Hodges gave for the discrepancy between an amount
mentioned in his debriefing and the 150 pounds based upon his notes that he later
obtained, went unchallenged. Moreover, Mr. Anderson’s testimony is highly
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corroborative of Mr. Hodges’ testimony about the relationship between Mr.
Hodges and Mr. Keeling. Because the evidence is overwhelming, we hold that
the fourth element of the plain error test cannot be satisfied. Although we
acknowledge that we have found plain error in circumstances where an
intervening Supreme Court decision changed the definition of an element, we did
so based upon a conclusion that the evidence was not overwhelming, and the jury
instruction given did not focus the jury’s attention on a part of the instruction that
would have supported the conviction. See United States v. Spring, 80 F.3d 1450,
1466 (10th Cir. 1996). The former cannot be said of this case.
AFFIRMED in part; REMANDED in part for limited resentencing on the
issue of supervised release.
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