United States v. Juan Paz

                                                                        [PUBLISH]


              IN THE UNITED STATES COURT OF APPEALS

                       FOR THE ELEVENTH CIRCUIT
                                                                  FILED
                         ________________________ U.S. COURT OF APPEALS
                                                            ELEVENTH CIRCUIT
                                                                 April 5, 2005
                                No. 04-14829
                                                             THOMAS K. KAHN
                            Non-Argument Calendar                CLERK
                          ________________________

                      D. C. Docket No. 04-20225-CR-JEM

UNITED STATES OF AMERICA,


                                                                 Plaintiff-Appellee,

                                     versus

JUAN PAZ,

                                                             Defendant-Appellant.


                          ________________________

                  Appeal from the United States District Court
                      for the Southern District of Florida
                        _________________________

                                 (April 5, 2005)

Before TJOFLAT, ANDERSON, and PRYOR, Circuit Judges.

PER CURIAM:

     This appeal presents the first opportunity, after United States v. Booker, 543
U.S. __, 125 S. Ct. 738 (2005), for this Court to address the application of harmless

error to a sentence imposed using extra-verdict enhancements in a mandatory

guideline system. Juan Paz appeals his sentence entered after he pleaded guilty to

producing, using, and trafficking in one or more counterfeit access devices with

intent to defraud, in violation of 18 U.S.C. section 1029(a)(1). Paz’s sentence was

determined with a six-level enhancement based on a finding, not admitted by Paz,

that the amount of loss was between $30,000 and $70,000. Paz objected to the

enhancement as a violation of the Sixth Amendment as interpreted in Blakely v.

Washington, 542 U.S. __, 124 S. Ct. 2531 (2004). Because the district court stated

that it would have imposed a lesser sentence had the guidelines not been

mandatory, we conclude that the government cannot show that the application of

the extra-verdict enhancement was harmless error. We, therefore, vacate Paz’s

sentence and remand to the district court for resentencing.

                                 I. BACKGROUND

      In March 2004, Paz offered a confidential government informant the

opportunity to make money using a skimming device, which could be used to make

counterfeit credit cards, counterfeit bills, and counterfeit satellite cards. The

confidential informant then contacted the Secret Service. A few days later, Paz

gave the confidential informant the skimming device. Paz told the informant that



                                            2
Paz would pay thirty dollars for each credit card number that was obtained using

the device.

       The Secret Service downloaded nineteen spurious credit card numbers on

the skimming device, and the confidential informant met with Paz, who agreed to

count the downloaded credit card numbers and pay the informant accordingly. Paz

was then arrested. In Paz’s truck, agents found a laptop computer with a skimming

device attached, handguns, and 69 grams of sham drugs. The agents also found

multiple satellite dishes, satellite receivers, and two memory sticks, instruments

consistent with devices used to obtain information without authorization.

       A federal grand jury returned a three-count indictment against Paz. The

government moved to dismiss Counts 1 and 2, and, in accord with a written plea

agreement, Paz pleaded guilty to Count 3, which charged Paz with producing,

using, and trafficking in one or more counterfeit access devices with intent to

defraud, in violation of 18 U.S.C. section 1029(a)(1). No facts were submitted by

the government or admitted by Paz to establish the amount of loss caused by Paz’s

illegal activity.

       In the presentence investigation report, the probation officer set Paz’s base

offense level at six under United States Sentencing Guidelines section 2B1.1(a)(2).

The probation officer then increased the offense by six levels, under Guidelines



                                           3
section 2B1.1(b)(1)(D), based on a determination that the amount of loss was more

than $30,000 but not more than $70,000. With a total offense level of 12 and a

criminal history category of I, the guideline range was 10 to 16 months’

imprisonment. Paz objected to the six-level enhancement for the amount of loss

because it was based on facts neither charged in the indictment nor admitted by

him in his plea agreement.

      At the sentencing hearing, at which Paz again objected to the six-level

enhancement, the district court noted that this Court had held in United States v.

Reese, 382 F.3d 1308 (11th Cir. 2004), vacated by 125 S. Ct. 1089 (2005), that

Blakely did not apply to the federal sentencing guidelines. Consistent with the

guidelines, therefore, the district court imposed a sentence of ten months’

imprisonment. The district court also stated, however, that in the event the

guidelines were found unconstitutional, in whole or in part, it would have

sentenced Paz to a total of six months’ imprisonment. Paz appealed his sentence.

                          II. STANDARD OF REVIEW

      Because Paz objected to the enhancements to his sentence in the district

court, we review the sentence de novo. United States v. Sanchez, 269 F.3d 1250,

1272 (11th Cir. 2002) (en banc). We will reverse the district court only if any error

was harmful. Id.



                                          4
                                   III. DISCUSSION

       In United States v.Rodriguez, we stated that under Booker “the Sixth

Amendment right to trial by jury is violated where under a mandatory guidelines

system a sentence is increased because of an enhancement based on facts found by

the judge that were neither admitted by the defendant nor found by the jury.” 398

F.3d 1291, 1297 (11th Cir. 2005). Because Paz’s sentence was enhanced, under a

mandatory guidelines system, based on facts found by the judge and not admitted

by him, Paz’s right to trial by jury was violated. We must disregard this error,

however, if the error was harmless. Fed. R. Crim. P. 52(a).

       “To find harmless error, we must determine that the error did not affect the

substantial rights of the parties.” United States v. Hernandez, 160 F.3d 661, 670

(11th Cir. 1998). “A constitutional error, such as [a Booker] error, must be

disregarded as not ‘affect[ing] substantial rights,’ . . . if the error is ‘harmless

beyond a reasonable doubt[.]’ . . . This standard is only met where it is clear

‘beyond a reasonable doubt that the error complained of did not contribute to the

[sentence] obtained.’” United States v. Candelario, 240 F.3d 1300, 1307 (11th Cir.

2001) (citations omitted). The burden is on the government to show that the error

did not affect the defendant’s substantial rights. See United States v. Olano, 507

U.S. 725, 741, 113 S. Ct. 1770, 1781 (1993).



                                             5
      The government cannot meet its burden. The error committed in sentencing

Paz was not harmless beyond a reasonable doubt. On the contrary, it is evident

from the sentencing transcript that, had the district court used the guidelines in an

advisory fashion, Paz’s sentence would have been shorter. Paz was sentenced to

ten months’ imprisonment, but the district court stated that, if the guidelines had

been declared unconstitutional, he would have sentenced Paz to a term of six

months’ imprisonment. The constitutional error, therefore, was not harmless

beyond a reasonable doubt, and Paz must be resentenced under the advisory

guidelines system. On remand, the district court, “while not bound to apply the

Guidelines, must consult those Guidelines and take them into account when

sentencing.” Booker, 125 S. Ct. at 767.

                                 IV. CONCLUSION

      Because Paz’s sentence was erroneously based in part on extra-verdict

enhancements, under a mandatory guidelines system, and this error was not

harmless, we VACATE Paz’s sentence and REMAND for resentencing consistent

with this opinion.




                                           6
TJOFLAT, Circuit Judge, specially concurring:

      I concur in the court’s judgment.




                                          7