Big Third Circuit ruling on post-Booker practices

Today, the Third Circuit has issued a very sizable and seemingly quite significant opinion in US v. Ali, No. 05-2098 (3d Cir. Nov. 27, 2007) (available here), reversing lenient sentences given to two defendants found guilty of fraud.  Here’s how the 47-page opinion starts:

The Government appeals the sentencing calculations and downward departures from the Sentencing Guidelines ranges for defendants found guilty of fraud. A criminal jury convicted Faridah Ali (also known as Rita Spicer) and her daughter Lakiha Spicer (together, “defendants”) for using a school to obtain federal funds for classes that were never conducted.

At sentencing, the District Court applied a reasonable-doubt standard to determine loss amounts far below the ones the Government had urged under a preponderance-of-the-evidence standard. The Court then looked to good works and community support along with other factors to depart downward from the suggested Guidelines ranges.  Defendants received no prison time. Instead, the Court sentenced each defendant to some term of probation with periods of in-home confinement and restitution payments in line with its determination of the loss amounts. 

The issues presented to us are whether the Court erred in its initial Guidelines calculations, whether it relied on inappropriate factors for its downward departures, and whether the resulting sentences were unreasonable.  We conclude yes for all three issues and remand for further proceedings.