United States v. Herrera-Martinez

             United States Court of Appeals
                        For the First Circuit

No. 07-1363

                       UNITED STATES OF AMERICA,

                               Appellee,

                                  v.

                     ELSA ODINA HERRERA-MARTINEZ,
                     a/k/a ROSANA ROLON-ALVARADO,
                       a/k/a ROSANA R. ALVARADO,
                           a/k/a ROSANA ROLON,
                         a/k/a ROSANA A. ROLON,

                         Defendant, Appellant.


             APPEAL FROM THE UNITED STATES DISTRICT COURT

                   FOR THE DISTRICT OF MASSACHUSETTS

              [Hon. Patti B. Saris, U.S. District Judge]


                                Before

                   Lipez and Howard, Circuit Judges,

                 and DiClerico,* Senior District Judge.



     Jeffrey B. Rubin for appellant.
     Randall E. Kromm, Assistant United States Attorney, with whom
Michael J. Sullivan, United States Attorney, was on brief, for
appellee.


                            April 30, 2008



*
    Of the District of New Hampshire, sitting by designation.
          HOWARD,    Circuit   Judge.      Elsa   Odina   Herrera-Martinez

("Herrera") was convicted by a jury of three counts stemming from

her use of personal information, including a Social Security

number, that did not belong to her in order to secure subsidized

housing under a federal program.        She maintains that she cannot be

guilty of these offenses because her behavior does not constitute

a crime under the three statutes at issue.           We do not read the

statutes as she does, and we affirm.

                                I. Facts

          We rehearse the facts in the light most favorable to the

jury's verdict.     United States v. Girouard, 2008 U.S. App. LEXIS

6481, at *7 (1st Cir. Mar. 28, 2008); United States v. Richardson,

515 F.3d 74, 76 (1st Cir. 2008).          When defendants challenge the

denial of a motion for a judgment of acquittal, "we review the

evidence and all legitimate inferences which may be drawn therefrom

in the light most favorable to the government."1          United States v.

Olivo-Infante, 938 F.2d 1406, 1408 (1st Cir. 1991).

          High Point Village, a housing development in Roslindale,

Massachusetts, provided low-income housing in two ways.          First, it

operated a tier system providing below-market rent that varied

according to the tenant's income.       Second, it operated a federally

funded rent subsidy program often referred to as Section 8 housing.



1
     In this case, the facts are not much disputed.

                                  -2-
See 42 U.S.C. §§ 1437 et seq.       There was a waiting list for this

second program because there were more income-eligible tenants than

Section 8 vouchers available.       Tenants in the tier program were

automatically added to the waiting list for the Section 8 program

when their income qualified them for it.          High Point Village then

automatically distributed vouchers, as they came available, to

tenants on the waiting list.

           Herrera, an undocumented immigrant from the Dominican

Republic, took up residence at High Point Village, using the name

and identifying information (including the Social Security number)

of one Rosana Rolon Alvarado.       Herrera also used a Massachusetts

identification    card   bearing   her     own    picture    but    Alvarado's

information.     When Herrera reported a drop in her income, she

became eligible for the Section 8 subsidy, but only because she was

using the identity of Alvarado, an American citizen.                   (As an

undocumented   alien,    Herrera   could    not    qualify    for    federally

subsidized housing under her real identity, regardless of her

income.)

           In April 2005, a Section 8 voucher was automatically

assigned to Herrera.     In honoring the voucher, the United States

Department of Housing and Urban Development paid more than 85% of

her rent for the next thirteen months.       Soon after HUD began paying

part of Herrera's rent, a federal official became suspicious that

Herrera was not who she claimed to be.             In January 2006 a HUD


                                   -3-
special agent attended, undercover, a "recertification" proceeding

conducted by High Point Village; he observed Herrera filling out

forms   certifying   she   was   a   United   States   citizen   and   using

Alvarado's information.

            Herrera was arrested in May 2006, after she moved out of

High Point Village.     The three-count indictment charged her with

use of another's Social Security number, 42 U.S.C. § 408(a)(7)(B);

knowingly converting public money or property, 18 U.S.C. § 641; and

aggravated identity theft, 18 U.S.C. § 1028A. Herrera consistently

asserted that her conduct did not fall under any of these three

statutes.    She moved to quash the indictment and dismiss the case

before trial and moved for directed verdict after presentation of

the government's evidence.       She raises the same issues on appeal.

                        II. Standard of Review

            In reviewing a motion for directed verdict, we resolve

legal questions de novo.    United States v. Jimenez, 507 F.3d 13, 19

(1st Cir. 2007).     Delineating the scope of the elements of a given

offense presents such legal questions.            Id. (whether deceased

persons are encompassed in the word "person" as used in 18 U.S.C.

§ 1028A reviewed de novo); United States v. McFarland, 445 F.3d 29,

31 (1st Cir. 2006) (definition of "actual physical control" of a

motor vehicle in 36 C.F.R. § 4.23(a) subject to de novo review).




                                     -4-
                           III. Discussion

           Herrera claims that none of the three statutes under

which she was convicted apply to the conduct of which she was

accused.   First, she claims that conviction under 18 U.S.C. § 641

requires proof of elements not present in her case.            Next, she

claims that 42 U.S.C. § 408(a)(7)(B) prohibits the use of a false

Social Security number only to obtain a Social Security payment,

not to obtain other benefits.    Finally, she says that because she

is innocent of the first two charges as a matter of law, she must

be acquitted of aggravated identity theft because it requires as a

predicate one of the other two offenses.        We address the arguments

pertaining to each statute in turn.

A. 18 U.S.C. § 641

           Section 641 of Title 182 was drafted "to collect from

scattered sources crimes so kindred as to belong in one category":

those   that   prohibit   unlawful     taking    from   the   government.

Morissette v. United States, 342 U.S. 246, 266-67 (1952).        Herrera



2
     The relevant portion reads:
          Whoever   embezzles,   steals,  purloins,   or
          knowingly converts to his use or the use of
          another, or without authority, sells, conveys
          or disposes of any record, voucher, money, or
          thing of value of the United States or of any
          department or agency thereof, or any property
          made or being made under contract for the
          United States or any department or agency
          thereof . . . Shall be fined under this title,
          or imprisoned . . . or both . . . .
18 U.S.C. § 641.

                                 -5-
levels three challenges at her conviction under this statute.

First, she argues that the statute requires the government to prove

"asportation," the carrying-away element of common law larceny.

Next, she claims that in order to obtain a conviction under § 641,

the government is required to prove an actual loss, and here it did

not.   Finally,    Herrera   argues   that   what   she   obtained    was    a

residential lease, not a "thing of value of the United States."             We

find none of these arguments persuasive.

          Herrera argues that each of the older crimes from which

§ 641 was forged contained as an element asportation, a physical

carrying away, and that she has not carried anything away from the

government.   But the enactment of § 641 did more than aggregate

existing crimes.   The statute also added "knowingly converts," to

the list of proscribed activities, as well as "steals," words that

do not implicate the common law definition of larceny.               See id.

This, Justice Jackson wrote for the Court, was an attempt to close

gaps between the original common law offenses.

          What   has   concerned    codifiers   of   the
          larceny-type offense is that gaps or crevices
          have separated particular crimes of this
          general class and guilty men have escaped
          through the breaches.    The books contain a
          surfeit of cases drawing fine distinctions
          between slightly different circumstances under
          which one may obtain wrongful advantages from
          another's property. The codifiers wanted to
          reach all such instances.

Id.; see also United States v. Crutchley, 502 F.2d 1195, 1201 (3d

Cir. 1974) (citing Morissette and holding that larceny by trick is

                                  -6-
encompassed within § 641).       Where Congress has gone beyond the

common law terms used to define a crime, we will not presume the

crime is limited to its common law contours.

          Moreover, reading the statute to require asportation

would perforce limit § 641 to tangible property, as intangibles

cannot be carried away.      This reading of the statute is too narrow

and is contradicted by the great weight of authority.            See United

States v. Barger, 931 F.2d 359, 368 (6th Cir. 1991) ("[I]nformation

itself is enough to meet the 'thing of value' element of the

statute."); United States v. May, 625 F.2d 186, 192 (8th Cir. 1980)

("'thing of value' . . . was the flight time itself" where National

Guard planes were used for personal flights); United States v.

Girard, 601 F.2d 69, 71 (2d Cir. 1979) ("Although the content of a

writing is an intangible, it is nonetheless a thing of value.");

see also United States v. Collins, 56 F.3d 1416, 1419 (D.C. Cir.

1995) ("Congress intended to enact a broad prohibition against the

misappropriation of anything belonging to the national government,

unrestrained by the fine and technical distinctions of the common

law.").   We   hold   that   asportation   is   not   required    in   every

conviction under 18 U.S.C. § 641.

          Herrera also contends that § 641 requires the government

to prove an actual loss.        We disagree.     For this proposition,

Herrera cites United States v. Collins, 464 F.2d 1163 (9th Cir.




                                   -7-
1972)   (2-1).3   That   case   concerned   a   warrant   drawn   up   by   a

municipal agency, and cashed by someone who stole it; the Ninth

Circuit determined that since the funds released by the bank were

bank funds, not government funds, and the warrant itself was not

the property of the government, the government had failed to prove

a loss and the defendant was entitled to acquittal. First, Collins

is inapplicable to the facts of this case; here, the payments made

by HUD were government funds. But more importantly, Collins is not

the law of this circuit.    See United States v. Santiago, 729 F.2d

38, 40 (1st Cir. 1984) ("The statute, however, does not require a

showing that the United States was prejudiced.       It merely requires

the government to show that a 'thing of value of the United States'

has been knowingly received, concealed or retained by the accused

with improper intent . . . ." (quoting 18 U.S.C. § 641)).         Nor, for

that matter, has Collins been followed by any other circuit.            See

United States v. Milton, 8 F.3d 39, 44 (D.C. Cir. 1993); United

States v. Scott, 784 F.2d 787, 791 (7th Cir. 1986) (per curiam)

(collecting cases in the Seventh Circuit); Barnes, 761 F.2d at 1036




3
     Herrera also cites United States v. Evans, 572 F.2d 455 (5th
Cir. 1978), despite the fact that the Fifth Circuit later expressly
repudiated that case's position that proof of actual loss is
required under § 641. See United States v. Barnes, 761 F.2d 1026,
1036 (5th Cir. 1985) ("The legislative history of section 641 as
well as the purpose of the statute both lead us to hold that the
government need not prove it suffered an actual property loss in
order to establish a violation of section 641.").

                                   -8-
(Fifth Circuit).    We doubt that we are free to revisit this

determination, and in any event decline to do so.4

           Finally, Herrera argues that obtaining subsidized housing

is not a violation of 18 U.S.C. § 641 because the residential lease

she received for her deception was not "property of the United

States."   But this argument is a facade.       Another perspective

allows us to pierce the illusion.     Through her deception, Herrera

caused HUD to pay her landlord many thousands of dollars.      As a

consequence of these payments, Herrera received a thing of value to

her -- a place to live.     We need not decide whether the lease

constitutes property of the United States; the payments certainly



4
     Even were we to accept Herrera's contention and require proof
of loss, it would be easy to come by.      First, the funds here,
unlike those in Collins, were paid from government accounts.
Second, the government introduced evidence that there was a waiting
list for the vouchers, and that the vouchers were automatically
assigned as they became available to those on the waiting list.
The government, then, suffered a loss because it was not able to
pass those benefits on to the next qualified applicant on the
waiting list. This case, then, is different than United States v.
Kueneman, 94 F.3d 653 (9th Cir. 1996), which Herrera cites in
support of her proposition that the government has failed to prove
actual loss. In an unpublished memorandum disposition, 1996 WL
473690, the Kuneman panel vacated defendant's conviction under §
641, reasoning that the government had failed to introduce evidence
that, but for the misuse complained of, the property would have
been put to its intended use. In other words, Kueneman had let his
daughter stay briefly in a vacant unit intended for the homeless,
but the government had introduced no evidence that the unit would
otherwise have been occupied by a homeless person.          We are
therefore not called upon to determine whether we find Kueneman
persuasive, as it is distinguishable on its facts. We reiterate
that Kueneman rests on the proposition that the government must
show an actual loss to prevail under § 641, a proposition only the
Ninth Circuit has embraced.

                                -9-
were government funds, converted under false pretenses either to

Herrera's use or to the use of her landlord.       The statute requires

no more.      See In re Petition for Disclosure of Evidence Taken

Before the Special Grand Jury Convened on May 8, 1978, 662 F.2d

362, 369 (5th Cir. 1981) (direct benefit to defendants need not be

shown where direct beneficiary was a corporation closely held by

defendants and indirect benefit to defendants was obvious).

             Herrera's challenges to her conviction under 18 U.S.C. §

641   rest    on   unduly   narrow    interpretations   of   the   law   or

mischaracterization of the facts, and therefore fail.5

B. 42 U.S.C. § 408(a)(7)(B)

             Section 408(a)(7)(B) of Title 42 of the United States

Code criminalizes the use of a false Social Security number to

obtain payments from the government.           Herrera claims that the

proscription only applies when the payment is made pursuant to the

Social Security Act. If she were correct, then the housing subsidy

she received through the use of a false Social Security number



5
     Herrera briefly adverts to the rule of lenity, claiming that
at least the statute is ambiguous in scope and ought to be
construed in her favor. A mere assertion that the rule of lenity
ought to mandate acquittal cannot be said to have preserved the
issue.   See United States v. Zannino, 895 F.2d 1, 17 (1st Cir.
1990) ("[I]ssues adverted to in a perfunctory manner, unaccompanied
by some effort at developed argumentation, are deemed waived.").
We note only that the rule of lenity applies in the case of
"grievous ambiguity" that persists even after resort to statutory
interpretation. Jimenez, 507 F.3d at 20-21 (quoting United States
v. Councilman, 418 F.3d 67, 83 (1st Cir. 2005) (discussing
application of rule of lenity)).

                                     -10-
would not be within the ambit of the statute, and she would be

entitled to an acquittal on this charge as a matter of law.          She is

mistaken.

              When asked to construe a statute we begin with its text.

Jimenez, 507 F.3d at 19.        Section 408 is the "Penalties" section of

the Social Security Act.            Subsection (a) denotes as felonies

several activities.         Subsection (a)(7) provides, in relevant part:

                     [Whoever] for the purpose of causing an
              increase in any payment authorized under this
              title (or any other program financed in whole
              or in part from Federal funds), or for the
              purpose of causing a payment under this title
              (or any such other program) to be made when no
              payment is authorized thereunder, or for the
              purpose of obtaining (for himself or any other
              person) any payment or any other benefit to
              which he (or such other person) is not
              entitled, or for the purpose of obtaining
              anything of value from any person, or for any
              other purpose . . .
                       (B) with intent to deceive, falsely
              represents a number to be the social security
              account number assigned by the Commissioner of
              Social Security to him or to another person,
              when in fact such number is not the social
              security account number assigned by the
              Commissioner of Social Security to him or to
              such other person [shall be guilty of a
              felony].

42   U.S.C.    §   408(a)    (emphasis   added).   The   inclusion   of   the

parenthetical "or any other program financed in whole or in part

from Federal funds" plainly implicates payments such as those paid

by HUD to Herrera's landlord for her benefit.6


6
     The second parenthetical in subsection (a)(7) refers back to
the first for the meaning of "such other program."       Thus the

                                     -11-
           Not only does subsection (a)(7) apply specifically to

causing an unauthorized payment from any federally funded program,

but it also applies to using a Social Security number for the

purpose of obtaining "any payment or any other benefit" to which

the defendant is not entitled, "or for the purpose of obtaining

anything of value from any person, or for any other purpose."           In

United States v. McGauley, 279 F.3d 62 (1st Cir. 2002), we held

that the "any other purpose" language reached a situation where a

Social Security number was used as part of a scheme to defraud

retail stores.     Id. at 69.     Even if the earlier language in the

subsection were not specifically applicable to this case, under

McGauley, the catch-all provision "any other purpose" does apply.

           Herrera argues that the rest of the activities listed in

§ 408(a)(1)-(6) all relate to payments under the Social Security

Act itself, and that therefore the parenthetical must be read as

implicitly limited to that sort of payment.         Quite the contrary:

the drafters of this section were indicating that they wished to

cast a wider net with this provision than with the others.             The

subsections have different foci. The first six subsections concern

misrepresentations of fact and omissions of fact material to

payments   under   the   Social   Security   Act.   But   subsection   (7)

punishes activities related to the Social Security card and number


statute, by its plain terms, reaches the conduct of causing a
payment to be made under any program financed in whole or in part
from federal funds.

                                   -12-
themselves.         Id. § 408(a)(7)(A) (use of a Social Security account

number that has been assigned on the basis of false information);

Id. § 408(a)(7)(B) (use of a Social Security number not one's own);

Id. § 408(a)(7)(C) (alteration or counterfeiting of Social Security

card).

               Put more plainly, the subsections Herrera relies on are

concerned with lying to the Social Security Administration, but the

subsection      under    which   she   was    convicted   concerns     misuse    of

credentials or identifying information provided by the Social

Security Administration.           It is not surprising then that the

statute would allow prosecution of a person who thereby receives

any federal funds, not just those provided for by the Social

Security Act.        The reach of the criminal statute is as broad as it

is because of the interest the Social Security Administration has

in protecting the integrity of its identification and recordkeeping

system.   Further examination provides more evidence that all eight

subsections in § 408(a) are not limited to the same scope.               Indeed,

subsection (8) does not require any payment at all of any kind,

making    it    a    felony   simply   to    disclose,    use,   or   compel    the

disclosure or use of a Social Security number in violation of

United States law.        Id. § 408(a)(8).

               The cases Herrera cites in support of her narrow reading

of the statute are inapposite.                They do not concern the same

subsection, or even similar language.            See United States v. Gomez,


                                       -13-
969 F.2d 1290, 1293 (1st Cir. 1992) (reversing conviction because

blank Social Security cards did not meet legal definition of

counterfeit); United States v. Phillips, 600 F.2d 535, 536-37 (5th

Cir. 1979) (requiring the government to prove "fraudulent intent"

in accordance with the explicit language of § 408(d)); see also

United States v. Cormier, 639 F.2d 1177 (5th Cir. 1981) (same).

The plain language of § 408(a)(7)(B) encompasses payments from

other government programs; Herrera's claim to the contrary is

unavailing.7

C. 18 U.S.C. § 1028A

          Herrera's only challenge to her conviction under 18

U.S.C. § 1028A is that she was entitled to a judgment of acquittal

on the two possible predicate offenses.   Because we find no reason

to set aside those convictions, we also uphold the conviction for

aggravated identity theft.

          Affirmed.




7
     When the statute's text is      clear we need go no further.
United States v. Roberson, 459      F.3d 39, 51 (1st Cir. 2006).
Likewise, Herrera's appeal to the   rule of lenity would fail at the
first step because the statute is   not ambiguous.

                              -14-