U.S. v. Castaldi

Dist. Ct. did not err in sentencing defendant to 23-year term of incarceration on mail fraud and corrupt impediment of IRS charges stemming from defendant’s Ponzi scheme that involved net losses to investors and IRS of approximately $40 million. While defendant argued that new sentencing hearing was required where Dist. Ct. failed to explicitly state why his mitigation evidence that concerned the fact that he entered into guilty plea and had assisted govt. in exposing instant scheme did not warrant lower sentence, Dist. Ct. could hold reasonable belief that devastating financial harm to victims, that averaged approximately $100,00 per victim, overwhelmed all of defendant’s arguments in mitigation. Moreover, although instant sentence was longest possible under instant plea agreement, remand was not required where record otherwise indicated that Dist. Ct. was aware of defendant’s mitigation arguments, but did not find them convincing. Also, downward departure under section 5K2.16 of USSG did not apply even though defendant had voluntarily disclosed existence of scheme, since Dist. Ct. could properly find that defendant’s disclosure was motivated by fact that discovery of scheme was imminent. (Dissent filed.)