UNITED STATES of America, Plaintiff-Appellee, v. Jose CASTELLANOS, Defendant-Appellant
Opinion
Opinion
Shubb, J.
Jose Castellanos appeals from his sentence on charges of mad fraud and making a false statement to a federally insured lending institution, upon the ground that his base offense level was improperly increased by two levels based on a finding of vulnerable victim under section 3A1.1 of the Sentencing Guidelines. Because the record does not support such a finding, we vacate the sentence and remand for resentencing.
FACTS
In August 1987, Castellanos and two colleagues set up a business in the Los Ange-les area entitled Fadel Group Investment Corporation. (“FGIC”). Relying primarily upon extensive advertising in Spanish-language media, FGIC would solicit investments and then use the funds to purchase real estate. In these solicitations FGIC billed itself as a “proudly Hispanic company.” Potential investors were told that FGIC was a prestigious, well-established company that purchased, renovated, rented and resold properties, and also acquired existing profitable companies. Investors were promised a 22 percent rate of return and were assured that the investments were risk-free because their money was secured by deeds of trust in the FGIC properties.