UNITED STATES of America, Plaintiff-Appellee, v. EUREKA LABORATORIES, INC., Defendant-Appellant

Good Law
103 F.3d 908·96 Daily Journal DAR 15521·1996 WL 734769·44 ERC (BNA) 1188·1996 U.S. App. LEXIS 33540
United States Court of Appeals for the Ninth CircuitDecember 26, 199696-10006California3,000 words

Opinion

Opinion

Thompson, J.

Defendant Eureka Laboratories, Inc. (ELI) and two of its managers were charged in an eight-count superseding information with conspiracy to defraud the United States and other crimes arising from-ELI’s alleged fraudulent manipulations of analytical tests, in violation of 18 U.S.C. §§ 287 , 371, and 1001. After the trial began, ELI pleaded guilty to all counts.

During sentencing, the district court imposed a $1.5 million fine on ELI. The district court also ordered ELI to pay both restitution in the amount of $322,442 and a special assessment of $1600.

ELI appeals its sentence. ELI contends the district court erred: (1) in its factual determination that ELI would be able to pay the fine; and (2) as a matter of law when it imposed a fine that would jeopardize ELI’s continued viability, a violation according to ELI of Guideline Section 8C3.3. We have jurisdiction pursuant to 18 U.S.C. § 3742 , and we affirm.

FACTS

ELI is an analytical testing laboratory engaged in analyzing soil, air, and water samples provided by governmental and private clients. Between February 1991, and August 1993, ELI was awarded contracts with the United States Environmental Protection Agency (EPA), the…

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