United States v. Montoya

                UNITED STATES COURT OF APPEALS
                            UNITED STATES COURT OF APPEALS
                    FOR THE FIRST CIRCUIT
                                FOR THE FIRST CIRCUIT
                                         

No. 94-1666

                  UNITED STATES OF AMERICA,

                          Appellee,

                              v.

                     JOHN BERIO MONTOYA,
                  a/k/a JOHN FREDDY MONTOYA,

                    Defendant, Appellant.

                                         

No. 94-1667

                  UNITED STATES OF AMERICA,

                          Appellee,

                              v.

                       MARCO VILLEGAS,

                    Defendant, Appellant.

                                         

No. 94-1668

                  UNITED STATES OF AMERICA,

                          Appellee,

                              v.

                      GUILLERMO MONTOYA,

                    Defendant, Appellant.

                                         

        APPEALS FROM THE UNITED STATES DISTRICT COURT

              FOR THE DISTRICT OF MASSACHUSETTS

       [Hon. Nathaniel M. Gorton, U.S. District Judge]
                                                                 


                                         

                            Before

                    Selya, Cyr and Boudin,

                       Circuit Judges.
                                                 

                                         

Eileen Donoghue, by  Appointment of the Court, for appellant Marco
                           
Villegas.
Raymond  E. Gillespie, by Appointment of the  Court, for appellant
                                 
John Berio Montoya.
Diana  L.  Maldonado,  Federal  Defender's  Office,  for appellant
                                
Guillermo Montoya.
Jeffrey  A. Locke,  Assistant United  States Attorney,  with  whom
                             
Donald K. Stern, United States  Attorney, was on brief for  the United
                       
States.

                                         

                        July 27, 1995
                                         


     BOUDIN,  Circuit Judge.   The  three appellants  in this
                                       

case--Marco  Villegas,  Guillermo  Montoya  and   John  Berio

Montoya--were indicted for conspiracy to possess cocaine with

intent  to  distribute  and  for possession  with  intent  to

distribute.  21 U.S.C.    841, 846.  After guilty pleas, they

were  sentenced  to  mandatory  minimum terms  of  10  years'

imprisonment, as well as  supervised release and the ordinary

special  assessment.   They  appeal  their  sentences on  the

ground that  the government manipulated upward  the amount of

cocaine for which they were held responsible.

     The underlying facts are  largely undisputed.  In August

1992,  the FBI began a reverse sting operation in Boston, its

undercover  agent (Antonio  Dillon)  purporting to  act as  a

high-volume wholesaler of cocaine seeking new distributors in

the area.   On August 26, 1992,  Dillon met with Villegas who

on behalf  of Guillermo  Montoya and  his brother Hernan  was

seeking a  new source of supply of cocaine.  Like many of the

subsequent encounters, this meeting was taped by the FBI.  

     Villegas  said  that the  Montoyas  were,  by their  own

account, selling 15  to 25  kilograms of cocaine  a week  and

paying between  $19,500 and  $20,000 per  kilogram.   He also

said  that he  had  been in  the  cocaine business  with  the

Montoyas for six years.   Villegas made similar statements at

a  September 7  meeting, although  he there  said that  a New

Jersey   supplier  was  providing  the  brothers  cocaine  at

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$16,000-18,000 per  kilogram.  Villegas also  offered to rent

his garage to store the cocaine.

     On  September  18,  1992,  Dillon  met  with   Villegas,

Guillermo  Montoya  and  John   Berio  Montoya  at  a  Boston

restaurant.   Dillon  said that  he would  require a  minimum

purchase  of 10 kilograms, with a down payment equal to three

kilograms and payment  of the balance in 15  to 20 days after

delivery.   Dillon  requested $19,500 per kilogram; Guillermo

Montoya  balked; and  Dillon  ultimately offered  a price  of

$17,000  per  kilogram.    Guillermo Montoya  said  he  would

consider buying 10 kilograms with a down payment of $50,000.

     There were subsequent meetings  in December 1992 and the

first three months  of 1993.   Pleading a  shortage of  cash,

Guillermo Montoya  got the down  payment reduced to  a $5,000

advance for expenses (paid by John Berio Montoya  in February

1993) and a  $20,000 initial  payment on delivery  of the  10

kilograms.    In  a  March meeting,  Villegas  and  Guillermo

Montoya discussed the possibility after the first purchase of

increasing  the  sales from  10-15 kilograms  per week  to 20

kilograms.    On  March  30,  1993,  the  10  kilograms  were

delivered and the appellants were then arrested.

     At   sentencing,  each   appellant   objected   to   the

determination  in  the  pre-sentence  report  that  the  base

offense   level  should   be   premised  on   a   10-kilogram

transaction.    The  appellants   did  not  dispute  that  10

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kilograms had been ordered and delivered,  nor claim that the

$17,000 price was below the market price.  But they said that

the  government  had  manipulated  the  quantity  upward   by

reducing  the down payment from $50,000 to $25,000.  Based on

Dillon's  original proposal  of  a  one-third  down  payment,

appellants urged  that each  appellant should be  held liable

only for three or four kilograms.

     At  the close  of the  sentencing hearing,  the district

court  found that  there  was no  manipulation of  sentencing

factors.  The  district judge said  that the appellants  were

predisposed  to purchase 10 kilograms and that they could and

did purchase this amount.  Since any amount of five kilograms

or   more  triggers   a  mandatory   minimum  of   10  years'

imprisonment, 21  U.S.C.    841(b)(1)(A), the  district court

imposed this sentence.  The present appeals followed.

     At  the threshold, the government  tells us that we lack

jurisdiction over  the appeals, saying  that appellants  cast

their  claim  in the  district court  as  one for  a downward

departure.  Refusals to depart are  not reviewable unless the

district court has  mistaken its own legal authority  or made

some other mistake of law.  United States v. DeCosta, 37 F.3d
                                                                

5, 8 (1st Cir. 1994).   Appellants say that their request was

not limited to a departure from the guideline range, pointing

out that they asked the court to sentence below the statutory
                                                                         

minimum.

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     This is one of these  superficially confusing situations

in  which "jurisdiction" is  in certain  respects intertwined

with "the merits"; and "the merits" in turn depend on a still

evolving  body  of  case  law.    Under  umbrella  terms like

sentencing entrapment and sentencing factor manipulation, the

circuit courts  have provided  a certain amount  of guidance,

but there are some divisions among the circuits, and--even in

the mainstream--more  criteria  than rules.   This  is to  be

expected,  for   the  problem  arises  in   context  that  is

comparatively recent.

     Undercover agents of the state have been "plotting" with

potential  defendants since  Elizabethan times,  and probably

long  before.   But  in  federal  courts the  broad  latitude

formerly  allowed  to a  sentencing  judge  made it  easy  to

account  for  any  equity.    This  discretion  has now  been

curtailed  by sentencing  guidelines and  statutory minimums,

often keyed to amounts of drugs involved  and dollars stolen.

In turn, attention has turned to escape-hatch arguments which

might exclude from  the equation  a portion  of the  criminal

conduct.

     Our  own  cases  have concluded  that  where  government

agents  have improperly  enlarged the scope  or scale  of the
                                   

crime, the sentencing court "has ample power to deal with the

situation either  by excluding the  tainted transaction  from

the computation of  relevant conduct or by departing from the

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[guideline sentencing range]."  United States v. Connell, 960
                                                                    

F.2d  191, 195  (1st Cir. 1992).   See also  United States v.
                                                                      

Gibbens,  25 F.3d 28, 30-32 (1st Cir. 1994); United States v.
                                                                      

Brewster, 1 F.3d 51, 55 (1st Cir. 1993).  We  think that this
                    

broad principle applies  to statutory minimums as  well as to

the guidelines.

     Admittedly, there  is no  statute to  this effect.   But

there  is also no  statute enacting  the familiar  defense of

entrapment  or other defenses like duress or necessity.  1 W.

LaFave  &  A. Scott,  Substantive  Criminal  Law,     5.2-5.4
                                                            

(1986).   In creating  such  supplementary doctrines,  courts

have usually been  careful not  to insist on  much more  than

minimum  decency seems  to require.   As  this court  said in

Connell, "[c]ourts  should go very slowly  before staking out
                   

rules  that  will deter  government  agents  from the  proper

performance of their investigative duties."  960 F.2d at 196.

     It  is no accident that statements condemning sentencing

factor manipulation  are usually  dicta.  A  defendant cannot

make out a case  of undue provocation simply by  showing that

the idea originated  with the government or  that the conduct

was encouraged by  it, e.g., Brewster, 1 F.3d at  55, or that
                                                 

the crime was prolonged beyond  the first criminal act, e.g.,
                                                                        

Gibbens, 25  F.3d at 31, or  exceeded in degree  or kind what
                   

the  defendant had done before.   E.g., Connell,  960 F.2d at
                                                           

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195-96.    What the  defendant needs  in  order to  require a

reduction  are elements like  these carried to  such a degree
                                                                         

that   the   government's   conduct   must   be   viewed   as

"extraordinary misconduct."  Gibbens, 25 F.3d at 31.
                                                

     The  standard is  high because  we are  talking about  a

reduction  at  sentencing,  in  the  teeth  of  a statute  or

guideline  approved by Congress, for  a defendant who did not

raise or did not prevail upon an entrapment defense at trial.

The standard is  general because  it is designed  for a  vast

range of circumstances and of incommensurable variables.  See
                                                                         

Gibbens, 25 F.3d at 31.   The most important of these,  as we
                   

have stressed, is likely to be the conduct of the government,

including the  reasons why  its agents enlarged  or prolonged

the criminal conduct in question.  See id. at 31 & n.3.
                                                      

     In other situations,  the defendant's own predisposition

may  enter into the calculus,  see Connell, 960  F.2d at 196,
                                                      

speaking  of  conduct "overbear[ing]  the  will  of a  person

predisposed only  to committing  a lesser  crime."   But  the

analogy  at sentencing  to ordinary  entrapment is  not often

going  to  help a  defendant who  is  arguing only  about the

number  or size  of  the transactions.    Having crossed  the

reasonably bright  line between  guilt and innocence,  such a

defendant's   criminal   inclination    has   already    been

established, and the extent of the crime is more likely to be

a matter of opportunity than of scruple.

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     Because  of  the  diversity  of circumstances,  we  have

declined  to create  detailed rules as  to what is  or is not

undue manipulation, Gibbens, 25  F.3d at 31, but we  think it
                                       

is useful now to be very candid in saying that garden variety

manipulation   claims  are   largely   a   waste   of   time.

Nevertheless, where a defendant wants to argue that there has

occurred    a    sentencing    manipulation   amounting    to

"extraordinary misconduct," we think  that the claim need not

be limited to a  request for a discretionary departure,  that

it  applies  to statutory  mandatory minimums  as well  as to

guideline ranges, and that it is subject to appellate review.

     Of  course, the burden of proof is upon the defendant to

show that he is entitled to a reduction.  Gibbens, 25 F.3d at
                                                             

31-32.   The district court's fact findings on this issue, as

on other fact questions, are subject to the clearly erroneous

standard.   Id.  at 30.   Because  manipulation is  largely a
                           

fact-bound  inquiry,  even  the  district   court's  ultimate

judgment  whether the  government's conduct is  outrageous or

intolerable is not lightly to be disregarded.  Id. at 32; cf.
                                                                         

United States v. Rosen,  929 F.2d 839, 844 (1st  Cir.), cert.
                                                                         

denied, 502 U.S. 819 (1991).
                  

     Against this backdrop, we decline to dismiss this appeal

for  lack of  jurisdiction,  but affirm  on  the merits  with

little hesitation.  This  case involves a single transaction,

not a string of crimes prolonged by the government; the price

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was  within the market range; and the appellants by their own

recorded admissions  were  well established  drug dealers  or

abetters  who  had  previously  dealt  in  very   substantial

quantities.  As in  most stings, this episode began  with the

government; but  as to  pressure, there  was none,  let alone

outrageous  or  intolerable  pressure.    Nor  was  there  an

indication  of any  illegitimate motive  on the  part  of the

agents.

     All that agent Dillon did was to reduce the down payment

in the face of  claims by appellants that they  were short of

cash to make the full down payment originally proposed.  This

is so far from  government misconduct that we would  not have

written a published opinion but for two considerations.   One

is the government's jurisdictional  objection and the need to

make clear the procedural framework in which we will consider

such  claims.   And the  other is  to make very  explicit the

plain  import  of  our  previous  cases:  sentencing   factor

manipulation is  a claim  only for  the  extreme and  unusual

case.

     One qualification remains to be mentioned.  What we have

said  is directed  to  claims that  the  district court  must

disregard  at sentencing  a portion  of the  criminal conduct

because  it  was  the  product  of  impermissible  government

manipulation.    Quite  possibly--we  need  not  definitively

decide the point--a district  court may order a discretionary

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downward departure from the guideline range on something less

than extraordinary  misconduct.  Indeed, this  is made fairly

clear for one narrow  class of conduct, by U.S.S.G.    2D1.1,

comment. (n.17), which provides:

          If, in  a reverse sting  . . .  the court
          finds  that  the government  agent  set a
          price for the  controlled substance  that
          was substantially below the  market value
          of  the   controlled  substance,  thereby
          leading to the  defendant's purchase of a
          significantly  greater  quantity  of  the
          controlled  substance than  his available
          resources  would  have  allowed   him  to
          purchase except for the  artificially low
          price  set by  the  government  agent,  a
          downward departure may be warranted.

     It  is  doubtful  that  expressio unius  concepts  would
                                                        

prevent  a  defendant  from  seeking  such   a  discretionary

downward departure in other analogous circumstances--although
                                       

not literally within this application note--assuming that the

general precepts for downward  departures were met.  U.S.S.G.

   5K2.0  (not-contemplated-by-commission  test);   see  also
                                                                         

United States v. Rivera, 994 F.2d 942 (1st Cir.  1993).  But,
                                   

by  the  same   token,  a  refusal  to   depart  is  normally

unreviewable.   We mention departures to  make clear that the

stringent  standards  discussed  above  do  not  supplant the

guidelines' own rules for discretionary departures.

     That  the  same core  of facts  might  give rise  to two

related but  ultimately different  claims at sentencing  is a

complexity,  although  one not  often  likely  to affect  the

outcome.    But  in  addition  to  the  different  procedural

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framework,  there is  a difference  in emphasis.   Sentencing

manipulation, as  we  have stressed,  is primarily  concerned

with impermissible  conduct by the government.   By contrast,

the  guidelines,  and   by  extension  departures   from  the

guidelines, are  centrally concerned  with a proper  sentence

for the defendant  in light of  his own  conduct and his  own

criminal history.

     Affirmed.
                          

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