United States v. Spitzer

Spitzer pleaded guilty to 10 counts of mail fraud, based on a scheme that took in $106 million, which Spitzer promised to invest for clients. Less than $30 million was invested. The remainder was used to pay earlier investors or was siphoned off by Spitzer and others. The presentence report calculated a Guideline range of 292 to 365 months’ imprisonment. The base offense level was 7. A loss of approximately $34 million added 22 levels; the existence of more than 250 victims added six more. The PSR proposed two levels for use of sophisticated means, two because Spitzer personally took more than $1 million, and another four because Spitzer claimed to have acted as an investment adviser. Deducting three for acceptance of responsibility resulted in level 40. Spitzer’s lawyer asked that the loss be reduced to account for the fact that more than $70 million was returned to investors, some of whom were made whole, and $30 million was invested. The Seventh Circuit affirmed his 300-month sentence, noting that Spitzer owes restitution of $34 million to 458 people. Spitzer did not contend that the PSR was wrong in calculating the offense level to 40, so the abbreviated judicial explanation was not error. View "United States v. Spitzer" on Justia Law