Maurice Isabel v. United States

USCA1 Opinion









November 25, 1992
UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT
_____________________

No. 92-1421

MAURICE ISABEL,

Petitioner, Appellant,

v.

UNITED STATES OF AMERICA,

Respondent, Appellee.

__________________


APPEAL FROM THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF NEW HAMPSHIRE

____________________

[Hon. Shane Devine, U.S. District Judge]
___________________

____________________

Before

Selya, Cyr and Boudin,
Circuit Judges.
______________

____________________

Maurice Isabel on brief pro se.
______________
Jeffrey R. Howard, United States Attorney, and Peter E. Papps,
__________________ _______________
First Assistant United States Attorney, on Motion for Summary
Disposition, for appellee.


____________________


____________________






















BOUDIN, Circuit Judge. Appellant Maurice Isabel was convicted
_____________

on April 30, 1990 of conspiring to file false tax documents and

conspiring to launder drug trafficking proceeds, in violation of

18 U.S.C. 371, 1956(a)(1)(B)(i). On July 23, 1990, he was

sentenced to fifty-seven months' imprisonment. On appeal, his

conviction was affirmed. United States v. Isabel, 945 F.2d 1193
_____________ ______

(1st Cir. 1991). Isabel then filed a motion under 28 U.S.C.

2255 seeking to have his sentence vacated, set aside or

corrected. The district court denied relief, and Isabel filed

the present appeal.

On this appeal, Isabel argues that the district court erred at

sentencing by enhancing his sentence for obstruction of justice

and by failing to reduce his base offense level to reflect

acceptance of responsibility. He also says that he received

ineffective assistance of counsel at sentencing and that findings

required by Fed. R. Crim. P. 32(c)(3)(D) were not made.* We

affirm in part and remand in part.

I. THE OBSTRUCTION ENHANCEMENT
I. THE OBSTRUCTION ENHANCEMENT

Isabel's primary claim on the appeal is a challenge to an

obstruction of justice enhancement that the district court made

in originally sentencing him. The court enhanced his base




____________________

*In his reply brief, Isabel makes several arguments that were not
presented to the district court and which we, therefore, do not
consider. See United States v. Valencia-Copete, 792 F.2d 4, 5 (1st
___ ______________ _______________
Cir. 1986); Porcaro v. United States, 784 F.2d 38, 39 (1st Cir.),
_______ _____________
cert. denied, 479 U.S. 916 (1986). In particular, Isabel alleges in
____ ______
his reply brief that his counsel failed to represent him effectively
in his direct appeal, but his section 2255 motion alleged only that
his counsel had been ineffective at sentencing.














offense level under section 3C1.1 of the Sentencing Guidelines

because Isabel made false statements to investigators after his

arrest. The guideline in effect at the time of sentencing reads

as follows: "If the defendant willfully impeded or obstructed,

or attempted to impede or obstruct, the administration of justice

during the investigation or prosecution of the instant offense,

increase the offense level by 2 levels." U.S.S.G. 3C1.1

(1989). It was Isabel's position at sentencing, as now, that any

false or misleading statements he made at the time of his arrest

did not in fact hamper the investigation.

In his section 2255 motion, Isabel argued to the district

court that an amendment to the commentary to section 3C1.1, which

occurred after his sentencing, made clear that the court should

not have applied the enhancement in his case.** The version of

the commentary in effect when he was sentenced did not explicitly

address the question whether false or misleading statements that

fail to mislead still merit the enhancement. It did, however,

contain general language stating that the section 3C1.1

enhancement applied to "a defendant who engages in conduct

calculated to mislead or deceive authorities . . . in respect to

the instant offense." U.S.S.G. 3C1.1, intro. comment. (1989).


____________________

**Isabel was sentenced in July, 1990, and the new commentary amendment
became effective on November 1, 1990. We reject the government's
claim, mysteriously presented under a heading relating to
"relitigat[ion] [of] an issue already decided," that Isabel waived
this argument by not raising it in his direct appeal. Since the
amendment did not become effective until after Isabel had been
sentenced and after his direct appeal had been docketed and briefed,
he could not readily have raised that issue on appeal.

3














Based on the guideline's language, the pre-sentence report

recommended an enhancement for obstruction which, after a

sentencing hearing, the district court found to be justified.

Several months after Isabel was sentenced, the commentary to

section 3C1.1 was amended. It now states that materially false

statements to law enforcement officers "that significantly

obstructed or impeded the official investigation or prosecution

of the instant offense" warrant an enhancement, but other "false

statements, not under oath," to law enforcement officers do not.

U.S.S.G. 3C1.1, application notes 3(g) and 4(b) (1992). We

have interpreted that provision to mean precisely what it says:

that an enhancement may be made for unsworn, false statements to

law enforcement officers only if the government shows that the

statements significantly obstructed or impeded the official

investigation or prosecution of the offense. See United States
___ _____________

v. Manning, 955 F.2d 770, 774-75 & n.5 (1st Cir. 1992). Isabel
_______

argues that his statements did not obstruct the government's

investigation or prosecution, and that thus the district court

erred in enhancing the base offense level used in calculating his

sentence.

In rejecting the section 2255 motion, the district court

found that Isabel's argument had no "legal merit" because the

sentencing court was required to apply the law in effect at the

time of sentencing. The court also stated that its findings at

the time of sentencing meant that it would necessarily have

enhanced Isabel's sentence even under the amended commentary. We


4














think that the district judge's original decision to enhance was

entirely understandable in light of the general language of the

1989 guideline and commentary. But we conclude for the reasons

stated below that the new and explicit commentary language

favoring Isabel, contained in the subsequent amendment, is

properly treated as a clarification rather than a substantive

change. The pertinent language, as we noted at the outset, makes

the guideline inapplicable to an unsworn lie to law enforcement

officials that does not in fact hinder an investigation. Giving

Isabel the benefit of that clarification, we do not believe that

the district court's findings to date, either at sentencing or in

the section 2255 proceeding, show that the enhancement was

warranted.

It is true that a sentencing court applies the law in effect

at the date of sentencing. Nevertheless, in interpreting an

applicable guideline virtually all circuits have found or stated

that it is appropriate to consider post-sentencing amendments

that clarify but do not substantively change the guideline.

Among numerous cases to this effect are United States v. Perdomo,
_____________ _______

927 F.2d 111, 116-17 (2d Cir. 1991), United States v. Howard, 923
_____________ ______

F.2d 1500, 1504 & n.4 (11th Cir. 1991), and United States v.
______________

Caballero, 936 F.2d 1292, 1299 n.8 (D.C. Cir. 1991), cert.
_________ ____

denied, 112 S. Ct. 943 (1992), but many more could be cited. We
______

readily follow this uniform approach and turn to the guideline

and amendment at issue in this case.




5














It is a close question whether the commentary amendment here

in issue should be treated as a "clarification" or instead as a

substantive "revision" of the guideline. These are not clear-cut

categories. Where the line is to be drawn may well reflect not

only language and intent but also implicit judgments as to the

Sentencing Commission's function and the role of guideline

commentary. In this case, the language of the guideline itself,

unqualified by any contrary commentary prior to the 1990

amendment, provides an enhancement for a defendant who "attempted

to impede or obstruct" an investigation. This language surely

permits--even encourages--one to think that a deliberate material

lie, although unsuccessful, might qualify as attempted

obstruction. Indeed, a number of circuits so held prior to the

1990 amendment. See e.g., United States v. Blackman, 904 F.2d
___ ___ _____________ ________

1250, 1259 (8th Cir. 1990); United States v. Irabor, 894 F.2d
_____________ ______

554, 556 (2d. Cir. 1990).

Nevertheless, the Sentencing Commission regards its amended

commentary on the obstruction issue as a clarification, for the

Commission stated that "[t]his amendment clarifies the operation

of 3C1.1 . . . ." U.S.S.G. App. C at 166 (1992). The amended

commentary does not in any sense read the term "attempted" out of

the guideline, nor prevent all attempted but unsuccessful

obstructions from triggering an enhancement. Rather, it

modulates the guideline by excluding some actions that could

literally be described as attempts (and indeed some actions that

could literally be described as obstructions), presumably on the


6














ground that they are not significant enough to warrant

enhancement.*** We give due weight to the Commission's view

not merely as the drafter of the guideline and the amendment but

as the expert entity with on-going responsibility for clarifying

and amending the guidelines.****

One sister circuit has already held that the 1990 amendment

to the section 3C1.1 commentary, insofar as it dealt with an

attempt to obstruct, was a clarifying amendment and should be

applied to a defendant who was sentenced before the amendment.

United States v. Fiala, 929 F.2d 285, 290 (7th Cir. 1991). This
_____________ _____

court, without directly ruling on the present issue (a post-

amendment sentence was involved), has described that language as

"clarify[ing]" the guideline. United States v. Moreno, 947 F.2d
_____________ ______

7, 10 (1st Cir. 1991). Finally, although sentencing policy is a

matter primarily for Congress and the Commission, the amendment

offers a realistic and lenient solution for the defendant who

blurts out false answers at the time of arrest but does not in



____________________

***For example, a threat to a witness qualifies for an enhancement
even if unsuccessful whereas "fleeing from arrest" does not even if
the flight is (temporarily) successful. See application notes 3(a),
___
4(d). Excluded conduct, such as an unsworn unsuccessful lie or
successful flight, can still affect the choice of sentence "within the
otherwise applicable guideline range." Application note 4.

****The Sentencing Commission has authority to recommend that a
reduction in the guideline range be made retroactive (see 28 U.S.C.
994(o), (u); 18 U.S.C. 3582(c)(2)), but we do not rely on that point
here. The Sentencing Commission did not invoke that authority
(compare U.S.S.G. 1B1.10 listing specific amendments to be applied
retroactively) and, in any case, its authority extends only to
permitting, not compelling, the district court to give retroactive
effect to an admitted substantive change. 18 U.S.C. 3582(c)(2).

7














fact hinder the inquiry. Thus, we follow Fiala and hold that the
_____

amendment applies in this case.

In its section 2255 decision, the district court concluded

that Isabel's conduct would constitute an obstruction of justice

even under the amended commentary, but the court's explanation

seems to us to be flawed. The district court's memorandum on

this point briefly referred to the government's statement at

sentencing, citing to specific pages of the transcript. These

pages, however, show that the prosecutor at sentencing took the

view that "the success or lack of success of Mr. Isabel's lies"

should not be the test, an understandable position in light of

then existing guideline language and commentary. Nor does

anything in the evidence described in the prosecutor's statement

show an actual obstructive effect. The facts available to us,

admittedly not complete, suggest that Isabel's lies may well not

have hindered the investigation.

Under these circumstances, we think the issue of enhancement

for obstruction of justice needs to be remanded to the district

court for a new determination under the clarified guideline. If

the government can show that Isabel's statements significantly

obstructed the inquiry, the enhancement will stand; otherwise,

resentencing will be required based on a reduced offense level.

On remand, assuming the government believes that it can make the

obstruction showing that Manning requires, the procedural course
_______

to follow is a matter for the district court to decide in the

first instance.


8














II. ACCEPTANCE OF RESPONSIBILITY
II. ACCEPTANCE OF RESPONSIBILITY

In his second claim of error, Isabel argues that the

district court should have reduced his base offense level by two

points for acceptance of responsibility under section 3E1.1 of

the guidelines. As already noted, at his original sentencing

Isabel was found to have obstructed justice. He claims that

under guideline commentary in effect then and now, the

determination of obstruction precluded the court from granting

him any reduction for acceptance of responsibility. See U.S.S.G.
___

3E1.1, application note 4 (1989) (obstruction finding precludes

acceptance finding except in "extraordinary" case); id. (1992)
__

(same). Because the district court reaffirmed the obstruction

finding in deciding the present section 2255 motion, the court

had no occasion to revisit the question whether, absent the

obstruction finding, a reduction might be warranted for

acceptance of responsibility.

The government claims that Isabel waived this acceptance of

responsibility claim by not raising it on direct appeal and that,

in order to raise the issue now, he must show cause and prejudice

under the Frady standard. United States v. Frady, 456 U.S. 152,
_____ _____________ _____

168 (1982). In the draft pre-sentence report, the probation

officer apparently recommended against an adjustment for

acceptance of responsibility. Isabel's counsel sought an

adjustment of the wording in the report on the acceptance issue,

but he did not challenge the denial outright. The probation

officer then revised the report language but continued to


9














recommend a denial of any adjustment on the ground that Isabel

had admitted to tax evasion but denied involvement in money

laundering, thereby failing to accept full responsibility for

"his criminal conduct" under U.S.S.G. 3E1.1(a) (1989). At

sentencing, Isabel's counsel did not pursue the matter.

This sequence suggests that defense counsel had concluded

that the acceptance of responsibility claim could not succeed "on

the merits," independent of any bar presented by an obstruction

finding. As we explain below, the failure to raise the issue was

certainly not ineffective assistance of counsel. Assuming that

counsel had deliberately abandoned the claim because he thought

it hopeless on the merits, this would ordinarily constitute a

waiver, and prevent its resurrection in a section 2255

proceeding. Clauson v. Smith, 823 F.2d 660, 666 (1st Cir. 1987).
________ _____

What gives us pause is the district court's suggestion, in

ruling on the section 2255 motion, that Isabel's counsel may not

have pursued the acceptance issue precisely because counsel

believed--in the district court's words--that "having lost the

battle over the issue of obstruction of justice, he [counsel]

could not possibly win the war with respect to acceptance of

responsibility." If counsel did not pursue the acceptance issue

because the obstruction finding made him believe that pursuit to
_______

be hopeless, then we think that sufficient "cause" would exist

for not raising the issue at sentencing. Cf. United States v. Di
___ _____________ __

Bernardo, 880 F.2d 1216, 1227 (11th Cir. 1989). There is
________

arguably prejudice as well since, if he succeeded on both the


10














obstruction and enhancement issues, Isabel's sentencing range

would be reduced.

Under these circumstances, we believe that the just and

proper course is a contingent remand on the acceptance of

responsibility issue. If the district court finds that

obstruction is established even under the clarified guideline,

that will dispose of any ground for reexamining the acceptance of

responsibility issue. Should the court instead find that

obstruction is not proved, then we believe the district court

should determine whether the acceptance of responsibility claim

was waived and, if it was not, then it should determine that

claim on the merits. The probation officer may have been

entirely correct in urging, without reference to the obstruction

issue, a denial of any adjustment for acceptance of

responsibility.***** But we prefer this evaluation to be

made by a court familiar with the trial record and the defendant,

especially given the "great deference" accorded to the trial

judge in appraising acceptance of responsibility. U.S.S.G.

3E1.1, application note 5 (1989 and 1992).

III. THE INEFFECTIVE ASSISTANCE CLAIM
III. THE INEFFECTIVE ASSISTANCE CLAIM

Isabel's third argument on appeal is a challenge to the

district court's determination that he had received effective

assistance of counsel at sentencing. Such a determination by the



____________________

*****It goes almost without saying that, if the court agrees with the
probation officer on the merits, then the waiver issue need not be
resolved.

11














fact-finder may be overturned only for clear error. McCarthy v.
________

United States, 764 F.2d 28, 30 (1st Cir. 1985). The burden is on
_____________

Isabel to show that counsel failed to render effective

assistance. See Panzardi-Alvarez v. United States, 879 F.2d 975,
___ ________________ _____________

983 (1st Cir. 1989) (citing Strickland v. Washington, 466 U.S.
__________ ___________

668, 689 (1984)), cert. denied, 493 U.S. 1082 (1990). We have
_____ ______

reviewed the record carefully, and have not found any clear error

in the district court's determination.

Counsel's arguments on the obstruction of justice issue at

sentencing were vigorous, as his defense of the entire case

appears to have been. He obtained the dismissal of three counts

of the indictment after opening statements were made, and the

jury acquitted Isabel of other counts. Counsel also filed

several motions challenging the jury's verdict. Although the

court ultimately denied those motions, it noted that "[t]he

instant cases were well tried and hard fought." Furthermore,

after hearing counsel's argument on the obstruction of justice

issue at sentencing, the court enhanced Isabel's offense level

for obstruction of justice but acknowledged that it had been a

"close question." In a post-sentence memorandum, the court said

that Isabel's counsel had argued "ably and earnestly" for a

downward departure.

In this court, Isabel points to his counsel's failure to

object at sentencing to a "possible erroneous enhancement" of

three points under section 2S1.1(b)(2) of the guidelines or argue

for a "possible reduction" of two to four points under section


12














3B1.2. The evidence submitted at trial showed that Isabel knew

that the funds he laundered came from unlawful dealing in

narcotics. United States v. Isabel, 945 F.2d at 1196, 1202.
______________ ______

Consequently, we do not see how counsel could reasonably have

argued that Isabel should not have received a three-point

increase under section 2S1.1(b)(1) (the subsection to which

Isabel apparently means to refer), which requires the increase

where the defendant knows the laundered funds were the proceeds

of narcotics trafficking. U.S.S.G. 2S 1.1(b)(1) (1989 and

1992).

Likewise, it would have made no sense for counsel to argue

that Isabel was a minor or minimal participant in the conspiracy

to launder drug money and file false tax returns, meriting a base

offense level reduction under section 3B1.2. Isabel was a direct

and essential party to that conspiracy. The recitation of

evidence in our prior decision amply bears out that point, 945

F.2d at 1195-96, and we need not repeat the facts. It is beside

the point that Isabel played no role in the narcotics

trafficking. The "offense" for which he was sentenced concerned

only the laundering and tax reporting scheme, and in that scheme

his "role" was that of a central player. U.S.S.G. 3B1.2 (1989

and 1992). See United States v. Richardson, 925 F.2d 112, 115
___ _____________ __________

(5th Cir.), cert. denied, 111 S. Ct. 2868 (1991).
____ ______

Finally, although counsel did not argue for an acceptance of

responsibility reduction, any such argument had little chance of

succeeding. As the district court noted, Isabel was found to


13














have obstructed justice. For that reason, a reduction for

acceptance of responsibility was highly unlikely. See U.S.S.G.
___

3E1.1, application note 4 ("[c]onduct resulting in an enhancement

under 3C1.1 . . . ordinarily indicates that the defendant has

not accepted responsibility for his criminal conduct" and

adjustments under both sections should be made only in

"extraordinary cases"); United States v. Aymelek, 926 F.2d 64, 69
_____________ _______

(1st Cir. 1991) (the defendant who obstructs justice "will

thereby effectively forfeit a credit for acceptance of

responsibility" under the guidelines); United States v. Mata-
______________ _____

Grullon, 887 F.2d 23, 24 (1st Cir. 1989) (defendant's falsehoods
_______

"militate against" a reduction for acceptance of responsibility).

Isabel suggests that an adjustment in his case was

nevertheless warranted under U.S.S.G. 3E1.1, application note 2

(1992). That note says that a defendant who goes to trial

instead of pleading guilty is ordinarily not accepting

responsibility but, as a supposedly "rare" exception, the note

cites the case of a defendant who goes to trial to challenge the

legal applicability of a statute to his conduct. Isabel asserts

that he did admit to his actual conduct and denied only that it

constituted money laundering under the relevant statute. If so,

this circumstance might avoid the effect of the not-guilty plea

as a bar to the reduction, but it does nothing to remove the bar

interposed by the obstruction finding. Isabel's counsel could

reasonably have concluded that so long as the obstruction finding




14














stood, the court would refuse any reduction for acceptance of

responsibility.

As the district court said, with such little likelihood of

success in challenging the computations, counsel reasonably could

have decided that it made more sense to seek a downward

departure, as he did. Isabel concedes that counsel argued

"eloquently" for the downward departure. We affirm the district

court's finding that Isabel received effective assistance of

counsel at sentencing. See Barrett v. United States, 965 F.2d
___ _______ _____________

1184, 1193 & n.18 (1st Cir. 1992) ("[W]e may not find a deficient

professional performance in the constitutional sense unless the

challenged decisions were not `plausible options.'") (citation

omitted). Nor did the court err in failing to hold an

evidentiary hearing on this issue, for Isabel has pointed to no

material fact that has remained unresolved by the record. See
___

Ouellette v. United States, 862 F.2d 371, 377-78 (1st Cir. 1988).
_________ _____________

IV. RULE 32(3)(D)
IV. RULE 32(3)(D)

Finally, Isabel contends that the district court violated

Fed. R. Crim. P. 32(c)(3)(D) by omitting to make findings on

unresolved controverted issues posed by the pre-sentence report.

We will assume arguendo that this issue may be considered. See
________ ___

United States v. Gattas, 862 F.2d 1432, 1433, 1434 & n.4 (10th
_____________ ______

Cir. 1988) (Section 2255 relief is available for Rule 32(c)(3)(D)

violations where the failure to comply with the rule was not

discovered until after the time for direct appeal and for a Rule

35 motion had expired). However, at the sentencing hearing the


15














district court did resolve the only open factual issue presented

to it, relating to the obstruction of justice issue. The court

also recorded its finding on this issue in a memorandum issued

after the sentencing hearing.

Rule 32(c)(3)(D) provides that the district court's

resolution of disputed issues at sentencing shall be appended to

the pre-sentence report made available to the Bureau. In his

reply filed in this court, responding to the government's motion

for summary affirmance, Isabel says (possibly for the first time)

that the Bureau of Prisons has advised him that this memorandum

of sentencing hearing is not in its records. The district

court's disposition of the obstruction issue on remand will

presumably supersede its earlier finding, whether the court

reaches its original conclusion or the opposite one. We assume

that in due course the district court will transmit the record of

its disposition to the Bureau of Prisons.

The district court's order denying Isabel's section 2255

motion is affirmed in part and remanded in part for further
______________________________________________________

proceedings in accordance with this opinion.
___________________________________________
















16