Tag Archives: stinson

SCOTUS Adds Guidelines Case to Docket – Update for April 30, 2026

We post news and comment on federal criminal justice issues, focused primarily on trial and post-conviction matters, legislative initiatives, and sentencing issues.

PRIME TIME AT SCOTUS

The Supreme Court is entering the busy season, with cases yet to be decided on compassionate release, § 922(g), venue, appeal waivers and suits for prison violation of the Religious Land Use and Institutionalized Persons Act of 2000, still to go.

Add to that a grant of certiorari last week to examine to what degree guideline commentary should be applied when sentencing criminal defendants — a question that has caused confusion among the circuit courts and led to unreasonable discrepancies in punishments. Specifically, the Court asks whether Stinson v. United States “still correctly states the rule for the deference that courts must give the commentary to the Sentencing Guidelines.”

In Stinson, the Supreme Court held that commentary issued by the United States Sentencing Commission that interprets or explains a guideline is authoritative and binding on federal courts unless it violates the Constitution or a federal statute, or is plainly erroneous.

The Sentencing Commission’s guidelines commentary advises judges on how to calculate an appropriate sentence based on the nature of the crime and the defendant’s criminal history. The commentary clarifies the guidelines through application notes, conclusions and background information. But unlike the Guidelines themselves, the commentary is not subject to Congressional review.

The petitioner claims his sentencing was wrongly calculated to include an enhanced base offense level for unlawful firearm possession by counting a 17-round magazine attached to the firearm as a “large-capacity magazine.”

The sentencing guideline itself applies an enhancement where the firearm has a “large-capacity magazine,” but it does not expressly define what that means.

The Sentencing Commission’s official commentary defines the term to include a semiautomatic firearm that “had attached to it a magazine or similar device that could accept more than 15 rounds of ammunition.” The defendant argues that the commentary improperly expands the scope of the guideline. In his view, the enhancement was intended to target weapons that are exceptionally dangerous or inherently illegal, not industry-standard semiautomatic firearms.

The case will not be argued until the fall and decided early in 2027.

Ohio State University law professor Doug Berman wrote last week that the issue is an important one that transcends gun possession enhancements: I will likely need a series of future posts (and likely also some Substack essays) to fully explain the backstory and possible impacts of this case for federal sentencing law and also perhaps administrative law. For now, I will… wonder[] aloud if the Justices’ ongoing work on the still-pending federal compassionate release cases might have gotten them ever more focused on the law-making activities of the US Sentencing Commission.”

Beaird v. United States, Case No. 25-5343 (certiorari granted April 20, 2026)

Stinson v. United States, 508 U.S. 36 (1993)

Courthouse News Service, Justices to reconsider power of federal sentencing advice (April 20, 2027)

Sentencing Law and Policy, Supreme Court grants cert on long simmering issue of whether federal sentencing guideline commentary should still garner deference from courts (April 20, 2026)

~ Thomas L. Root

A Year Later, Banks May Have Started What Chevron Could Finish – Update for November 10, 2023

We post news and comment on federal criminal justice issues, focused primarily on trial and post-conviction matters, legislative initiatives, and sentencing issues.

FRAUD STORM BREWING OVER 3RD CIRCUIT BANKS RULING?

A defense attorney calls it “really a potential sea change in federal sentencing,” Bloomberg Law reported last week.

Fraud170406A year ago, the 3rd Circuit held in United States v. Banks that the loss enhancement under USSG § 2B1.1(b)(1) – the linchpin of economic crimes sentencing – is limited to actual loss. Relying on the 2019 Supreme Court Kisor v. Wilkie decision, the 3rd applied the ordinary meaning of “loss” to determine that § 2B1.1 includes only what was lost because the word “intended” is only mentioned in the § 2B1.1 commentary. The Circuit held that “the loss enhancement in the Guideline’s application notes impermissibly expands the word ‘loss’ to include both intended loss and actual loss.”

Bloomberg reported that the ruling has sparked a debate on how much deference to give the Sentencing Commission’s interpretation of its own Guidelines, including the loss scale that can dramatically increase the sentencing range in fraud crimes. The Guideline suggests in the commentary using the greater of actual or intended loss when determining sentences. But the 3rd said the USSC lacked authority to expand the meaning of “loss” to include what was intended but did not happen.

“We are getting these absurd results where nonviolent criminals are getting extraordinary sentences,” one defense attorney told Bloomberg.

loss210312Bloomberg said Banks “could significantly reduce prison time for defendants in securities and commodities cases since it is difficult to figure out actual losses in those situations… It could also impact charging decisions, especially in 3rd Circuit territory, where prosecutors may think twice about devoting resources to cases with small actual losses.”

But in the year since Banks was decided, defense attorneys have had limited success using the decision outside of the 3rd Circuit. In December, an Eastern District of _ichigan court in United States v. McKinney sided with the Banks ruling in a case involving a defendant who pleaded guilty to fraud against JPMorgan Chase. The judge reasoned that she didn’t have to defer to the Sentencing Commission because the definition of loss isn’t “genuinely ambiguous.” Later, the 6th Circuit cast some shade on relying on Banks in United States v. Xiaorong You, holding in a trade secrets theft case that “Banks’s attempt to impose a one-size-fits-all definition is not persuasive” and that the Guidelines commentary is entitled to deference.

Two other circuits, the 1st and 4th Circuits, have declined to take a position. In United States v. Limbaugh, the 4th declined to apply F.R.Crim.P. 52(b) “plain error” to an “intended loss” sentence, holding that the Banks holding “is a new and fast-developing area of the law, and as of now, we do not have the kind of robust consensus in other circuits that would allow us to label as “plain” any error committed here.” The 1st Circuit did the same in United States v. Gadson.

The issue is tied up with a 1993 SCOTUS ruling in Stinson v. United States that held Guidelines commentary is authoritative unless it violates the Constitution, violates a federal statute, or is inconsistent with, or a plainly erroneous reading of, the applicable Guideline. The 4th, 6th, 9th, and 11th Circuits all agree with the 3rd’s position that the Supreme Court in Kisor v. Willkie replaced Stinson’s highly deferential standard — to guideline commentary, at least — with a less deferential one.

conspiracy160606However, some other circuit courts have taken the opposite view. The 5th Circuit is the latest, ruling in the en banc United States v. Vargas decision that while the Guidelines are silent on the treatment of conspiracies, its commentary includes them and thus subjects a defendant to increased prison time. In deferring to the commentary, the 5th held that it is bound to follow Stinson, “like night follows day.” Under Stinson, the court went on to explain, the commentary is authoritative unless it is inconsistent with, or a plainly erroneous reading of, the applicable guideline.

Some commentators believe the Supreme Court will need to decide the issue. While SCOTUS has not taken up the issue, it will address Chevron deference this term, and the outcome of that could presage, if not settle, the Banks issue.

Bloomberg Law, Wall Street Fraudsters Rush to Cut Prison Terms With New Ruling (November 1, 2023)

United States v. Banks, 55 F.4th 246 (3d Cir, Nov 30, 2022)

United States v. McKinney, 645 F. Supp. 3d 709 (E.D. Mich. 2022)

United States v. Xiaorong You, 74 F.4th 378 (6th Cir. 2023)

United States v. Limbaugh, No. 21-4449, 2023 U.S. App. LEXIS 317 (4th Cir., Jan. 6, 2023)

United States v. Gadson, 77 F.4th 16 (1st Cir. 2023)

Kisor v. Wilkie, 588 U.S. —, 139 S. Ct. 2400, 204 L. Ed. 2d 841 (2019)

Stinson v. United States, 508 U.S. 36 (1993)

United States v. Vargas77 F.3d 673 (5th Cir. 2023) (en banc)

Federalist Society, How Much Should Courts Defer to U.S. Sentencing Guidelines Commentary? (August 9, 2023)

– Thomas L. Root