Federal Criminal Defense Law Firm:
The Severity of the Federal Sentencing Guidelines

Part of fighting for our clients is being brutally honest with them. A federal case, even a white collar fraud case, is no laughing matter, and your problem will not go away by throwing money at it. Even making a payment for the alleged loss won't cause the federal government to leave you alone. The government takes white collar crime extremely seriously now, and there certainly are no more slaps on the wrists for corporate executives who lose their cases. To the extent that a "Club Fed" ever existed, it certainly does not now. This is serious business.

Looking at the Federal Sentencing Guidelines and the corresponding sentencing table shows just how serious it has become. The Sentencing Guidelines were significantly amended in November, 2001, again in January, 2002, still again in November, 2003, and each year thereafter. Each amendment significantly increased the punishment for offenses that occurred on or after the amendment date. The maximum total offense level on the sentencing table is 43. An individual with a total offense level of 43 or higher, with no prior criminal history, must be sentenced to mandatory life. There is no parole in the federal system. There is no good time reduction in the federal system for a sentence of life. They literally carry you out in a box.

To determine one's sentence upon conviction, a series of calculations are made to determine the total offense level. One factor of the calculations is the amount of the loss, either actual or intended, whichever is greater. With regard to publicly traded companies, the court can, in determining the amount of the loss, factor in the reduction in the value of the equity security or other corporate assets resulting from the offense. Other factors that are considered are the number of victims, the sophistication of the scheme, and whether you are an organizer or leader.

To give an example of how the commission of some sort of corporate fraud might be punished, look at the following calculation of the sentencing exposure:

6 (Base sentencing level)
+28 (loss between $200mil-$400mil)
34
+6 (more than 250 victims)
40
+2 (sophisticated means)
42
+4 (organizer or leader)
46
+4 (securities law: officer-director/broker-dealer/
    investment adviser)
50 Total Offence Level

The total offense level is literally off the chart (See Federal Sentencing Guidelines Chart). This defendant would be sentenced to life in prison, even if he has no prior criminal history.

Clearly, the Sentencing Guidelines require attorneys who are willing to fight passionately for their clients. McNabb Associates is proud that it has earned such a reputation. We know the way the government works, and we do whatever we can within the legal and ethical bounds to make sure our clients get treated in the fairest possible way.