UNITED STATES of America, Plaintiff-Appellee, v. Sandra Denise WELCH, Defendant-Appellant

We must decide whether a sentence for conviction of bankruptcy fraud by filing fraudulent bankruptcy petitions can be enhanced for violation of a “judicial process” under the Sentencing Guidelines.

i

Defendant Sandra Denise Welch participated in a scheme to defraud the United States Bankruptcy Courts. The business in which she worked with Eugene and Karen Hawkins purported to provide relief to tenants facing eviction. They advertised that they could postpone an eviction up to six months.

After soliciting the necessary information from a tenant, Welch would prepare and file a fraudulent bankruptcy petition in the tenant’s name to invoke the “automatic stay” against eviction. The fraudulent petition would state the tenant’s correct name with a false social security number. The petition also would contain the false statement that no one had assisted the tenant in preparing the petition. The tenant would pay one-half of his or her monthly rent for each month that the fraudulent bankruptcy petition forestalled the eviction.

Welch pleaded guilty to conspiracy to defraud the United States Bankruptcy Court and to commit perjury under 18 U.S.C. § 371 , to perjury under 18 U.S.C. § 1623…