Grabske

United States v. Grabske

Good Law

260 F. Supp. 2d 866·2002 WL 32090943·2002 U.S. Dist. LEXIS 26302

United States District Court, Northern District of CaliforniaDecember 20, 2002CR01-0324CRBCalifornia4,579 words

Opinion

Breyer, J.

SENTENCING OPINION RE: CALCULATION OF LOSS

Defendant William Grabske (“Mr.Grabske”) was the Chief Executive Officer of Indus International, Inc. (“Indus”), a publicly traded software company. On May 29, 2002, Grabske was convicted of securities fraud and other related offenses in connection with the preparation of false financial statements which overstated Indus’s revenue for the third quarter 1999.

The parties agree that under the United States Sentencing Guidelines (“the Guidelines”), the base offense level is six. See U.S.S.G. § 2Fl.l(a) (1998). They also agree that the offense level should be increased by two levels for more than minimal planning, see id. § 2Fl.l(b)(2), and an additional two levels for Grabske’s role in the offense. See id. § 3Bl.l(c). While they agree that the offense level must also be enhanced based on the amount of investor loss caused by Grabske’s fraud, see id. § 2Fl.l(b)(l), they vigorously disagree as to the amount of such loss and even the appropriate method for calculating it. Each party retained an expert to support its proposed method and critique the opposing expert’s method. Nonetheless, the parties ultimately agreed on what the out come of…

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