United States v. William Douglas Lomow

William Lomow pled guilty to one count of money laundering, 18 U.S.C. § 1956 (a)(1)(A)© and (B)(i), and one count of conspiracy, 18 U.S.C. § 371 , in relation to a scheme to defraud. He appeals the legality of his plea entry and various aspects of the sentence imposed on him. We affirm in part and reverse in part.

I

Central Contra Costa Sanitary District (“the District”) had the exclusive authority to award sanitation contracts within its region. Lomow was the president and a fifty percent shareholder of Orinda-Mora-ga Disposal Service (“OMDS”). In 1986, the District entered a contract with OMDS to provide sanitation services for ten years. In 1990, the District entered a franchise agreement with Lomow.

According to the franchise agreement, OMDS would collect the garbage at rates set by the District. The District calculated the rates by determining OMDS’s operation costs, chiefly by examining OMDS’s financial records and rate applications, and then allowing a profit of between five and eleven percent.

Lomow and Robert Sliepka devised a scheme to defraud the District. First, Lo-mow created eleven sham companies. Lo-mow falsely claimed that these companies provided services to…