UNITED STATES of America, Plaintiff-Appellee, v. Bruce Randolph BORJESSON, Defendant-Appellant

We are called on to decide if debarment from participation in government programs is punishment for purposes of the double jeopardy clause.

Randy Borjesson preyed on innocent homeowners. He offered to assume their HUD- or VA-insured mortgages; in exchange, they paid him rent. Borjesson spent the rent money but didn’t make the mortgage payments, causing 33 defaults. After his crimes were discovered, he tried to evade the authorities — first by fleeing, then by changing his appearance.

Borjesson was eventually convicted of equity skimming and mail fraud. 12 U.S.C. § 1709-2 ; 18 U.S.C. § 1341 . While awaiting sentencing, he was indefinitely excluded from participation in HUD programs, pursuant to a regulation that permits debarment “for a period commensurate with the seriousness of the cause(s).” 24 C.F.R. § 24.320 (a). He was later sentenced to 38 months in prison.

Borjesson claims that debarment qualifies as punishment for double jeopardy purposes and that his subsequent criminal sentence therefore should be set aside. In arguing that the HUD sanctions were punitive, he points to the indefinite term of the debarment, HUD’s one-sided proceedings and the speed with which HUD acted…