United States v. Marvin Butler

Marvin Butler challenges his sentence for mail fraud, money laundering, and related tax offenses. The issue is whether, under the United States Sentencing Guidelines (USSG), as amended on November 1, 2001, counts of mail fraud in violation of 18 U.S.C. § 1341 and money laundering in violation of 18 U.S.C. § 1957 should be grouped together. We hold that the dis trict court erred in failing to consider Amendment 634 to the USSG at sentencing. This amendment provides that counts of fraud and money laundering arising from the same conduct are to be grouped together into one count. We vacate Butler’s sentence and remand for resentenc-ing.

I.

This case arises out of an elaborate fraudulent scheme involving a non-existent specialized mobile radio communications system, known as an “SMR” system. These systems are radio bases, used at fixed locations such as police dispatchers’ offices, to communicate with mobile units, like police cars. Butler’s company solicited investments in this system and misled investors with false accounts of progress in building the SMR system and obtaining customers. He hired, trained and supervised telemarketers, mailed promotional materials to prospective…