United States v. Smith

                                                                       F I L E D
                                                                United States Court of Appeals
                                                                        Tenth Circuit
                                   PUBLISH
                                                                        AUG 29 2001
                  UNITED STATES COURT OF APPEALS
                                                                    PATRICK FISHER
                                                                            Clerk
                              TENTH CIRCUIT



 UNITED STATES OF AMERICA,

       Plaintiff-Appellee,
 v.
                                                      No. 00-3321
 JOHN P. SMITH,

       Defendant-Appellant.


                 Appeal from the United States District Court
                          for the District of Kansas
                        (D.C. No. 99-CR-20059-KHV)


Michael Lewis Harris, Assistant Federal Public Defender, Kansas City, Kansas,
for Defendant-Appellant.

Robin D. Fowler, Assistant United States Attorney (Jackie N. Williams, United
States Attorney, and Nancy Landis Caplinger, Assistant United States Attorney,
with him on the brief), Topeka, Kansas, for Plaintiff-Appellee.


Before EBEL, HOLLOWAY and LUCERO, Circuit Judges.


EBEL, Circuit Judge.


      Defendant-Appellant John Smith pleaded guilty to possession of

pseudoephedrine, one of the ingredients that may be used to make

methamphetamine, and was sentenced under the guideline for attempt to
manufacture methamphetamine. He argues that there was insufficient evidence

that he had attempted to manufacture methamphetamine. We uphold the district

court’s finding and therefore AFFIRM.



                                  BACKGROUND

      The underlying facts in this case are not disputed. John Smith’s girlfriend

was in a car accident. The towing company reported a possible methamphetamine

lab in the vehicle. DEA agents searched the car and found several jugs full of a

milky substance with white sediment at the bottom, two glass cooking pans, a

bottle of butane, coffee filters, and a digital scale. The milky substance contained

more than 194 grams of pseudoephedrine, one of the main ingredients needed to

manufacture methamphetamine using the ephedrine reduction method. 1 One step




      1
          The Eighth Circuit recently summarized this method:

      Through a number of chemical reactions, the pseudoephedrine is
      extracted from the binding material of [] cold medicines, then
      chemically altered to become meth. Other chemicals are also
      employed at each stage of the reactions (including methanol, acetone,
      muriatic acid, lye, etc.), but iodine, phosphorous and
      pseudoephedrine are the key components necessary to the ephedrine
      reduction method.

United States v. Hollingsworth, — F.3d —, — n.2, 2001 WL 849208 (8th Cir.
2001).

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in this manufacturing process is to crush pseudoephedrine pills and soak them in

water.

         Also in the car were sales receipts for distilled water, fuel, solvent, filters,

aluminum foil, acetone, and pickles. On the basis of these receipts, DEA agents

obtained a surveillance video from a local Wal-Mart showing Smith buying the

aluminum foil, a gallon of Coleman camp fuel, and a jar of pickles. All of these

products have a role in the manufacturing process for methamphetamine. Even

pickle jars have a role; they are commonly used as “improvised glassware.”

         DEA agents also found a handwritten note with telephone numbers for

Brookside and Kalo, two businesses that distribute chemicals. Brookside sells

iodine and red phosphorus, the other principle ingredients needed to make

methamphetamine; it is unknown whether Kalo sells these products, as well. The

note also contained a list of “need[s]” and “want[s]” that seemed unrelated to

manufacturing methamphetamine, including, for example, mascara, throwing

knives, and a dart board.

         The agents did not find any evidence in the car of iodine, red phosphorus,

sodium hydroxide, hydrochloric acid, or siphoning equipment, all of which are

used in the ephedrine-reduction method of manufacturing methamphetamine.

There is also no evidence that Smith had a recipe for manufacturing

methamphetamine. In 1998, however, Smith was arrested for running a


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methamphetamine lab and was caught with red phosphorus, iodine, sodium

hydroxide, and rubber tubing.

      Smith pleaded guilty in this case to possessing pseudoephedrine (a “listed

chemical”) knowing or having reasonable cause to believe that it would be used to

manufacture methamphetamine, in violation of 21 U.S.C. § 841(c)(2). The

relevant Sentencing Guideline for possessing a listed chemical (such as

pseudoephedrine) is § 2D1.11. In Smith’s case, his base offense level under

§ 2D1.11 for 194 grams of pseudoephedrine would be 18. That guideline

provides, however, that “[i]f the offense involved . . . attempting to manufacture a

controlled substance unlawfully, apply § 2D1.1 . . . if the resulting offense level

is greater than” the level under § 2D1.11. See U.S.S.G. § 2D1.11(c)(1) &

application note 2. The PSR determined that Smith was attempting to

manufacture methamphetamine, a controlled substance, and therefore applied the

cross-reference to § 2D1.1. Using a conservative 50% conversion rate, the PSR

found that Smith could have produced 89.7 grams of pure methamphetamine from

the pseudoephedrine found in Smith’s car, for a base offense level of 30 under the

Sentencing Guidelines in effect at the time of Smith’s crime.

      Smith objected to the application of § 2D1.1 instead of § 2D1.11. The

district court overruled this objection and sentenced him to 92 months’

imprisonment. On appeal, Smith argues that his actions were not an attempt to


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manufacture methamphetamine and therefore the application of § 2D1.1 was

incorrect.



                                  DISCUSSION

      The district court had jurisdiction under 18 U.S.C. § 3231. We have

jurisdiction to review the sentence under 18 U.S.C. § 3742(a). We review the

district court’s interpretation and application of the Sentencing Guidelines de

novo and its factual findings for clear error. United States v. Arevalo, 242 F.3d

925, 927 (10th Cir. 2001). We must “give due deference to the district court’s

application of the guidelines to the facts.” 18 U.S.C. § 3742(e).

      To prove an attempt to manufacture methamphetamine, the government

must show “(1) intent to manufacture methamphetamine, and (2) commission of

an act which constitutes a substantial step towards commission of the substantive

offense.” United States v. Becker, 230 F.3d 1224, 1234 (10th Cir. 2000), cert.

denied, 121 S. Ct. 1666 (2001). Because the main dispute on appeal is whether

Smith’s actions constituted a substantial step toward manufacturing

methamphetamine, we discuss that prong first.




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A. Substantial Step

      The “substantial step” question appears to be a factual one, or at least one

regarding the application of the guidelines to a particular set of facts. See United

States v. Neal, 78 F.3d 901, 906 (4th Cir. 1996) (“Whether conduct represents a

substantial step depends on the surrounding factual circumstances and, therefore,

such determinations are necessarily fact specific.” (quotation marks omitted));

United States v. Montanye, 996 F.2d 190, 191 (8th Cir. 1993) (“Whether a

defendant’s conduct amounts to a substantial step necessarily depends on the facts

of each case.”).

      The “substantial step” required to establish an attempt must be
      something beyond mere preparation. It must be an act adapted to,
      approximating, and which in the ordinary and likely course of things
      will result in, the commission of the particular crime. A substantial
      step is an appreciable fragment of a crime and an action of such
      substantiality that, unless frustrated, the crime would have occurred.
      The step must be strongly corroborative of the firmness of the
      defendant's criminal intent and must unequivocally mark the
      defendant’s acts as criminal. It should evidence commitment to the
      criminal venture. However, it is not necessary that the evidence
      exclude every reasonable hypothesis of innocence or be wholly
      inconsistent with every conclusion except that of guilt . . . .
             The dividing line between preparation and attempt is not clear
      and depends to a high degree on the surrounding factual
      circumstances.

United States v. DeSantiago-Flores, 107 F.3d 1472, 1478-79 (10th Cir. 1997)

(quotation marks, alterations, and citations omitted), overruled on other grounds

by United States v. Holland, 116 F.3d 1353 (10th Cir. 1997).


                                         -6-
      We have stressed that a defendant need not possess a full “working lab” to

be convicted of attempting to manufacture methamphetamine. United States v.

Leopard, 936 F.2d 1138, 1141 (10th Cir. 1991). Thus, in Leopard, we affirmed a

conviction for attempting to manufacture methamphetamine even though the

defendant did not have heat, aluminum foil, and distillation equipment, “items

that are relatively generic and easily available when compared to the extensive

array of sophisticated chemicals and equipment” that the defendant did have. Id.

In United States v. Becker, 230 F.3d 1224 (10th Cir. 2000), the defendant

possessed a recipe for the “hot” method of making methamphetamine and some

(but not all) of the ingredients for that process, as well as most of the ingredients

(but not a recipe) for the “cold” method. Id. at 1234. We found this evidence

sufficient to support a conviction for attempting to manufacture

methamphetamine, because “[m]any of the materials necessary for manufacturing

methamphetamine were present, and it is not necessary for every chemical

matching each recipe to be present.” Id.

      Becker and Leopard hold that assembling some (but not all) of the

necessary equipment and ingredients can support a conviction for attempting to

manufacture methamphetamine, depending on the degree of such assembly. Here,

in addition to assembly, the first step of the manufacturing process, i.e., soaking

the ground-up pseudoephedrine tablets in water, had already begun. Although


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Smith had yet to acquire some of the ingredients he would need later in the

process, the evidence indicated that these additional items were not difficult to

obtain, and that Smith had telephone numbers for two places where he might have

been able to purchase them. In Becker, we also found it significant that there was

evidence contradicting the defendant’s proffered justification for possessing the

materials. 230 F.3d at 1234. Here, likewise, it was reasonable for the district

court to reject Smith’s contention that he was merely making pure

pseudoephedrine to sell to some other manufacturer of methamphetamine. In

particular, the receipt for Coleman fuel, which is used near the end of the

ephedrine-reduction process, casts doubt on this assertion. Although there are

numerous legitimate uses for Coleman fuel, it provides some evidence that in the

“likely course of things” Smith would have manufactured methamphetamine.

Giving deference to the district court’s determinations, we conclude the court did

not err in finding that Smith had taken a substantial step toward manufacturing

methamphetamine.

      At oral argument, the Assistant Federal Public Defender asked us to

establish a bright-line rule as to what constitutes a substantial step toward

manufacturing methamphetamine. While we are sympathetic to his desire to be

better able to counsel clients about their expected sentences, we do not believe a

bright-line rule is appropriate. Whether the defendant has taken a substantial step


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is a heavily fact-specific question. Here, we hold only that it is not necessary as a

matter of law to show that the defendant actually possessed all the needed

precursor chemicals and that the district court did not err in finding a substantial

step on the facts of this case.



B. Intent

      Smith also objects that there was insufficient evidence that he intended to

manufacture methamphetamine. “Intent and knowledge, however, can be inferred

from surrounding circumstances.” Leopard, 936 F.2d at 1141. Thus, in Leopard,

the defendant’s attempt to purchase most of the necessary ingredients was enough

to allow a jury to infer beyond a reasonable doubt that he intended to manufacture

methamphetamine. The evidence discussed above could give rise to an inference

that Smith intended to manufacture methamphetamine. The district court did not

clearly err in so finding.



                                  CONCLUSION

      We AFFIRM Smith’s sentence.




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