Bakhit

LOSS CALCULATION IN RE SENTENCING

Before the Court is an issue raised during the sentencing of Defendant Osamah S. Bakhit on eighteen counts of securities fraud, bank fraud and related violations in connection with the accounting practices of his company, Aviation Distributers, Inc. (ADI). The Government and the United States Probation Officer have put forth two separate theories for calculating the loss attributable to Defendant’s fraudulent activity and Defendant counters with his own theory and expert testimony.

The base offense level for fraud is fixed at 6, but can increase by as much as three times, to 24, when loss is taken into account. See generally U.S.S.G. § 2F1.1 (Nov.1997). Under this offense level range, Defendant’s sentence could vary by as much as five years. Yet, the basis for this vast disparity in sentence is governed only by the United States Sentencing Commission Guideline’s (Guidelines) vague standards of loss. This Court’s order illustrates the myriad approaches to, and the numerous obstacles that come with, finding the loss attributable to harm at the sentencing stage.

After reviewing the papers submitted in this matter, and for the reasons set forth…