United States v. Rodney Robert Kimbrew, A.K.A. Carlton Cochran

Rodney Kimbrew, a.k.a. Carlton Cochran, appeals his conviction and sentence for conspiracy to commit money laundering. In an issue of first impression, we must decide whether the sentencing enhancement for being in the business of receiving and selling stolen property can apply to a defendant who sells only property that he himself has obtained by fraud. We agree with the overwhelming majority of circuits that it cannot. We affirm Kim-brew’s conviction, but vacate his sentence and remand for resentencing.

FACTS AND PROCEDURAL HISTORY

Beginning in 1996, Kimbrew and several co-conspirators, including Dayne Williams and Damien Springs, began a scheme to defraud computer suppliers: they set up fake corporations and then established lines of credit with wholesale computer supply companies using phony references and falsified credit information.

The fraudulent companies used telephone answering services in San Jose, California, which would forward calls to the companies’ shell offices elsewhere. The co-conspirators would then return the calls, posing as the phony trade and bank references. After establishing credit, the companies would place orders for comput ers, and then resell the…