Lotze

*600 MEMORANDUM **

Matthew Lotze appeals the 21-month sentence and restitution order imposed following his guilty plea conviction on seven counts of wire fraud, false statement, and mail fraud, in violation of 18 U.S.C. §§ 1343 ,1001, and 1341.

Lotze, through his wholly owned company, contracted with Chevron to destroy toy cars that contained small parts that could present a choking hazard to small children. Lotze did not destroy the toy cars, but instead resold many of the toy cars to unsuspecting buyers. The parties are familiar with the additional facts.

A. Obstruction of Justice

Lotze contends the district court erred in imposing a two-level increase under the advisory sentencing guidelines, U.S.S.G. § 3C1.1, for obstruction of justice. The district court found that Lotze did not tell the truth to inspectors from the Consumer Products Safety Commission (“Commission”), and that the Commission had to search for the toy cars on its own and launch a full scale investigation. The district court found that Lotze intended to divert the energies of the Commission. These findings are not clearly erroneous and the district court did not err in imposing an increased sentence under…