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from:
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<A HREF="http://www.aci.net/kalliste/hayes970725.htm">Charles S. Hayes
Sentencing Transcript</A>
--[1]--
Charles S. Hayes Sentencing Transcript

Jump to:

1. Judge Jenny places presentencing investigation report under seal!
(Was this because the presentencing report recommended Hayes be released
immediately?)

2. Martin Hatfield says it doesn't matter if government witnesses lied!
(Does David Keller still think Orlin Grabbe is a pen name for Chuck
Hayes?)

3. The CIA always tells the truth!
(Twist slowly, slowly in the wind, baby.)

4. No Ted Gunderson!
(After all, it might prove our search of the records was a sham.)

5. Even more on the lies of Lawrence Myers!
(But who cares? After all, he testified for the government.)





------------------------------------------------------------------------


1                    UNITED STATES DISTRICT COURT
                     EASTERN DISTRICT OF KENTUCKY
2                              LONDON

3

4     UNITED STATES OF AMERICA,
                                    CRIMINAL #96-00060
5               PLAINTIFF,

6     VERSUS                        LONDON, KENTUCKY
                                    JULY 25, 1997
7                                   1:55 P.M.

8     CHALMER C. HAYES,

9               DEFENDANT.

10
                 TRANSCRIPT OF SENTENCING PROCEEDINGS
11             BEFORE THE HONORABLE JENNIFER B. COFFMAN
                     UNITED STATES DISTRICT JUDGE
12

13     APPEARANCES:

14          FOR THE PLAINTIFF:       MR. PATRICK MOLLOY
                                     MR. MARTIN HATFIELD
15                                   ASSISTANT U.S. ATTORNEYS
                                     110 WEST VINE ST.
16                                   LEXINGTON, KY  40507

17          FOR THE DEFENDANT:       MR. MARVIN MILLER
                                     ATTORNEY AT LAW
18                                   120 DUKE STREET
                                     ALEXANDRIA, VA  22314
19
                                     MR. MICHAEL DEAN
20                                   ATTORNEY AT LAW
                                     105 SOUTH BROAD STREET
21                                   LONDON, KY  40741
       NATHAN F. PERKINS
22     OFFICIAL COURT REPORTER
       P.O. BOX 5161
23     LONDON, KY  40745
       (606) 878-8450
24
       PROCEEDINGS RECORDED BY MECHANICAL STENOGRAPHY, TRANSCRIPT
25     PRODUCED BY COMPUTER.


                                                 Page 1



 1                                             FRIDAY



 2                                             JULY 25, 1997



 3                                             1:55 P.M.



 4               THE CLERK:  London criminal number 96-60, United



 5     States of America versus Chalmer C. Hayes.



 6               THE COURT:  All right.  Let me see.  Let the



 7     record reflect that the defendant is present.  He is



 8     represented by his attorneys Mike Dean and Marvin Miller.



 9         The United States is represented by Assistant United



10     States Attorney Martin Hatfield and Assistant United States



11     Attorney Pat Molloy.



12         First of all, before we start the sentencing, just a



13     couple of notes.



14         Mr. Miller, I note that you've filed what you've called



15     objections to the Court's not having a hearing or canceling



16     the hearing that I had scheduled.  You had, of course, filed



17     some post-trial motions.  I held a hearing on those, I think



18     it was April 10th of this year.  You - I'm not sure you had



19     a right to a hearing, but I held it anyway.  We held that in



20     London.  You then renewed that motion and, frankly, I



21     scheduled a hearing on it before I ever read the papers.



22     And when I read the papers I realized that there was no need



23     for a new hearing because, as I said in the order, in terms



24     of quantity, there was more there, but qualitatively there



25     was no difference in what you were saying from what we had






                                                 Page 2



 1     seen before.  So that's why I canceled the hearing.



 2         I'm not going to be preparing an order in response to



 3     your objections.  They are in the record.  You have



 4     everything there in the record.



 5         I had scheduled your hearing, I guess, at the 16th, and



 6     at your motion it was scheduled for the 18th before it was



 7     canceled.



 8         With regard to this sentencing, of course, this was



 9     originally scheduled May the 2nd or thereabouts.



10     Again, the defendant's attorney asked that it be changed



11     because of the - I think that was for conducting an



12     examination of the defendant.  It was rescheduled to July



13     25th in London, which is today.  I - I changed the location



14     of that to Lexington for personal reasons.  And I guess



15     that's - that's where we are now.



16         With regard to your - your motions, your post-trial



17     motions, I had made a ruling on those.  So as far as I know,



18     there are no outstanding motions.



19         You are standing, Mr. Miller.



20               MR. MILLER:  Yes.



21               THE COURT:  Is there some disagreement?  Is there



22     a pending motion?



23               MR. MILLER:  No, Your Honor, just something I -



24     when you have completed, there is something I need to have



25     an opportunity to address to you before the Court proceeds






                                                 Page 3



 1     to sentencing.



 2               THE COURT:  And that's with regard to what?  With



 3     regard to the sentencing?



 4               MR. MILLER:  No, ma'am.



 5               THE COURT:  All right.  What does it regard?



 6               MR. MILLER:  You made the statement that we have



 7     put in the record everything that we want, and that's



 8     inaccurate.  And I don't --



 9               THE COURT:  Well, I will tell you, I'm not going



10     to get into your motions further.  The record contains what



11     it contains.  I see that you have filed a - some objections,



12     and as far as I am concerned, I am overruling your motions,



13     and that's the subject of this.



14               MR. MILLER:  I'm not here to argue that, I just



15     have a question to ask.



16               THE COURT:  All right.  What's your question?



17               MR. MILLER:  My question is this.  We had intended



18     to present evidence relative to the motion.



19               THE COURT:  Your objection states that.



20               MR. MILLER:  And without arguing that point or



21     trying to create a hassle around that, how would you prefer



22     that we proffer, or can we proffer --



23               THE COURT:  Your objections state the categories



24     of evidence you intend to present.  If you want to take it



25     to the Court of Appeals, you will just have to take it on






                                                 Page 4



 1     the record as it exists now.



 2               MR. MILLER:  All right, Your Honor.



 3               THE COURT:  All right.  Now, so that's against



 4     that background.  I guess we are here today on this



 5     sentencing.



 6         Mr. Hayes, would you stand, please?



 7         Mr. Hayes, I have here a copy of the presentence



 8     investigation report that was prepared in your case by the



 9     probation office.  Have you received and reviewed a copy of



10     that report?



11               DEFENDANT HAYES:  Yes, I have.



12               THE COURT:  And have you discussed it with your



13     attorneys to your satisfaction?



14               DEFENDANT HAYES:  Yes, we have.



15               THE COURT:  Do you believe you understand what's



16     in the presentence investigation report?



17               DEFENDANT HAYES:  I understand what's in the



18     report, yes.



19               THE COURT:  All right.  Mr. Miller, have you



20     reviewed it on his behalf, discussed it with him, and are



21     satisfied that he understands?



22               MR. MILLER:  Yes.



23               THE COURT:  Mr. Dean, do you agree?



24               MR. DEAN:  Yes, I do, Your Honor.



25               THE COURT:  All right.  Thank you.  On behalf of






                                                 Page 5



 1     the United States, Mr. Hatfield, Mr. Molloy, have you



 2     received it and reviewed it on behalf of the United States?



 3               MR. HATFIELD:  Yes, we have, Your Honor.


 4               THE COURT:  All right.  I will direct that this



 5     presentence investigation report be placed in the record



 6     under seal.



 7         You may be seated now, if you wish.  I will direct that



 8     it be placed in the record under seal.  If there is an



 9     appeal in this case, the attorneys have will have access to



10     all portions of the report except that portion that includes



11     a recommendation from the probation office as to the



12     sentence.



13         Okay.  Issues to resolve here today.



14         Mr. Miller, I have, I think, two issues to resolve.  The



15     one has to do with whether two levels should be added for



16     obstruction of justice, one; and the other issue has to do



17     with whether the maximum statutory sentence applies in light



18     of the guidelines being higher than the maximum statutory



19     sentence.



20         So I will hear your arguments on both those objections,



21     if would you.



22               MR. MILLER:  All right, Your Honor.  Do you have a



23     preference?  I have my stuff here, wherever you prefer.



24               THE COURT:  I can hear you from there.  And if the



25     court reporter begins to be unable to hear you, you will






                                                 Page 6



 1     have to move to the microphone.  But I can hear from you



 2     there.



 3               MR. MILLER:  All right.  I have never had anybody



 4     say they couldn't hear me.



 5         The basic paragraphs, I will give you the numbers first



 6     so everything is clearer for the record, to make objections.



 7     On paragraph 21, which addresses the obstruction, the



 8     offense level first in number 24, the added adjustment on



 9     the obstruction is 28.  The total level comes down to



10     paragraph number 33.



11         Factually, the only factual dispute we have is the



12     paragraph regarding his former wife and statements that she



13     made at the bail hearing which were objected to then and are



14     objected now regarding threats.



15         Dealing directly with the legal issues that we have



16     regarding the offense level which the probation officer puts



17     at level 33, which is 121 to 151 months under the



18     guidelines, for a violation of 18 USC, 1958, which is the



19     only count in this case.



20         That statute provides in a noninjury case, which is this



21     case, that the penalty shall be a fine or a period of



22     incarceration from zero to a maximum of 10, with no



23     minimums, either or both.



24         Now, when Congress passed 28 USC 994, which was part and



25     parcel of the statutory creation of the Sentencing






                                                 Page 7



 1     Commission - and 994 is the expression of their authority



 2     and duties, so to speak, and sentencing range, et cetera -



 3     they said in section A that the commission was to do their



 4     work consistent with all pertinent portions of Title 18.



 5     And in section B, they said that the ranges, and they



 6     required them to do ranges, not to recalculate and reenact



 7     sentences on behalf of Congress, but to do ranges that are



 8     consistent with all pertinent provisions of Title 18, and



 9     that if there was going to be a term of imprisonment in a



10     guideline that they were going to promulgate, that the



11     maximum range could not exceed the minimum by more than six



12     months or 25 percent.



13         Over in section G, they make reference specifically to



14     3553, which is the imposition of section - in Title 18, the



15     sentencing section of the code.  And in subsection H, they



16     talk about the situations in which the commission is allowed



17     to put a guideline range at or near the maximum sentence.



18         They say that they may, if they feel appropriate, put a



19     sentence at or near the maximum range if certain conditions



20     are met.  And they are given very tight rein, which is why



21     the statute is considered constitutional in the first place.



22         And the criteria that have to be met before they can put



23     a sentence at that range as a guideline are as follows:



24     Under (h), it has to be a felony, a crime of violence or a



25     drug offense, and - and this is conjunctive - the second set






                                                 Page 8



 1     of criteria, without which they may not do that, are that



 2     the defendant has to have previously been convicted of two



 3     or more prior felonies which were also either related to



 4     violence or drugs.



 5         Now, the Sentencing Commission elsewhere was put into



 6     the judicial range.  That led from the Lastrada(?) case.  In



 7     the Lastrada(?) case the Supreme Court was asked to look at



 8     whether or not it was an unlawful, that is an



 9     unconstitutional, delegation of the legislative function to



10     a judicial entity.  And in Lastrada(?), the Court was very



11     careful to do an amazing analysis of the guidelines and the



12     enabling delegation and the history of delegation of



13     authority.  And they said in there that - and this is at



14     page 372 - that Congress generally cannot delegate it's



15     legislative powers to another, citing Field versus Clark, a



16     1892 case at 143 US 649.  And so long as Congress shall lay



17     down by legislative act the principles and designate



18     authority where the person so designated is directed to



19     conform with the Congressional dictates, then they may



20     designate authority and Congress has to clearly delineate



21     the boundaries of the delegated authority.  And that's in



22     Lastrada(?) at pages - excuse me, these internal pages, I



23     sometimes miss my pagination.  At page 373, Your Honor.



24         Now, at pages 374 and 75 of that opinion, it says:



25     Congress instructed the commission - and this is the reason






                                                 Page 9



 1     why it was held constitutional - that these sentencing



 2     ranges must be consistent with pertinent provisions of Title



 3     18 and do not include sentences in excess of a statutory



 4     maximum.



 5         It's nice to see that they use Latin there.



 6         Now, the sentence here is in section 2E1.4 of the



 7     guidelines, and it exceeds the statutory maximum.  And the



 8     pertinent part of Title 18 for this case is 1958, where it's



 9     10.  The other pertinent parts are subsection (h) of 994 in



10     Title 28, because it has to conform with both that section



11     and Title 18.



12         We do not have an individual before the Court with a



13     prior conviction of felonies involving either drugs or



14     violence, let alone two.  So therefore, there is no basis to



15     set a guideline range at or near the max, which they are



16     authorized to do in (h)(1), but they have to meet the



17     criteria of (h)(2), which they do not.



18         Now, in the Sixth Circuit, in the Thomas case decided in



19     March '95, they talk about the constitutionality of the



20     guidelines, among other things, and adopted Lastrada(?).  So



21     there is no aberrant countervailing opinion in this circuit.



22     And that's a '95 case.



23         Another '95 case is cited is in Re Bankers Trust



24     Company.  There was a writ of mandamus.  It had to do with



25     delegation of regulatory authority to the Federal Reserve.






                                                 Page 10



 1     And in that decision, they found that the particular



 2     regulation, which isn't necessarily important to us, was



 3     something that was contrary to another law and they couldn't



 4     have delegated the authority to promulgate a regulation that



 5     was in contravention of the law.  Therefore that delegation



 6     was excized out.  And in this case they talk about standard



 7     language, which is through Lastrada(?) also.  If you have an



 8     unconstitutional portion of the law, you don't throw the



 9     whole statute out, you take the unconstitutional portion or



10     the offending portion and take it, strike it out and put it



11     on the side.



12         And in this case which is before you today, that is what



13     it's clear you would be required to do, because the



14     guideline excees the maximums, and there is no authority for



15     it.  The guideline criteria in 994 and the criteria in 3553



16     of Title 18 talk about the idea that you have two things:



17     You have an offense with variables, and you have an offender



18     with variables.  The offense with variables in a case like



19     this might be whether or not it was an intended official



20     victim or an especially vulnerable victim as defined.  We



21     don't have those here, but those are the kinds of offense



22     characteristics that could apply.  Or multiple intended



23     victims are the kinds of things that could go to the



24     offense, even when there is no injury, but they still would



25     fit under 1958 and be applicable under various portions of






                                                 Page 11



 1     the guidelines.



 2         The other offender specific characteristics would go to



 3     criminal history.



 4         So in this case, for example, if the defendant before



 5     the Court were on state parole for first degree murder, had



 6     two prior convictions for assault with intent to kill within



 7     five years of the state case that put him on parole, all of



 8     that within the last eight years, had intended multiple



 9     victims, all of whom were vulnerable, they would receive no



10     different sentence than a man of a cloth who in despair and



11     grief went to hire someone to slay somebody who had killed a



12     whole bunch of people in his community and had had an



13     unblemished record.  They would be in the same position:



14     10, that's it, no place to go.



15         So the commission in this particular guideline did not



16     comply with their mandates from Congress to have offense



17     specific variables available, because there is nowhere to



18     go; or offender specific variables available, because there



19     is no way to go, regardless, in the example I'm selecting,



20     of criminal history.



21         It would appear that the guideline as a whole survive.



22     This one does not, under Lastrada(?) and under the cases



23     cited in there.  Which leaves us then, in our view, to a



24     sentence under 18 USC, 3553 and the factors that they set



25     forth there which talk about what happens when there is no






                                                 Page 12



 1     applicable guideline.



 2         Your Honor, I don't know - that issue as a whole, the



 3     integrated issue, if we prevail on it, we never address



 4     obstruction, because it wouldn't apply.  And I don't know



 5     how you wish me to proceed on the issue of obstruction.



 6               THE COURT:  I think you should argue it factually



 7     or perhaps alternatively, but I think you need to address it



 8     on its merits.



 9               MR. MILLER:  All right, Your Honor.



10               THE COURT:  In the context, of course, of the



11     defendant's testimony.



12               MR. MILLER:  Yes, ma'am.  There are two bases



13     offered by the probation for the obstruction.  And this is



14     aside from the fact that there is no range.  If the Court



15     finds that there is a range --  And the basis for it is



16     pretty much in paragraph 21 where they state that Mr. Hayes



17     claimed that he did not contact Mr. Myers and did not hire



18     the FBI undercover for the purposes of a murder for hire,



19     and that that conflicts with the tapes.



20         I have read the portions of the record and am not aware



21     of - and have read Mr. Myers' testimony, and I am not aware



22     of any evidence of any tapes regarding Mr. Myers'



23     conversations with Mr. Hayes.  I did not try the case.  If



24     I'm in error, I apologize.  I have read Mr. Hayes'



25     testimony, and in reading Mr. Hayes' testimony, I have not






                                                 Page 13



 1     seen him contradict the statements contained in the tape



 2     recordings.



 3         And it would seem that if the United States intends to



 4     rely on an obstruction enhancement, then they have the



 5     burden to go forward in this and establish it.  And I don't



 6     see the tapes, the conversations with Mr. Myers or



 7     Mr. Hayes's testimony conflicting with saying I didn't say



 8     that or it's a ginned tape or it's one of these electronic



 9     kind of marvel thing that people do with tapes these days,



10     that somebody played these kinds of games like that with it.



11     I didn't see that in his testimony anywhere, what I have



12     read of it.  I believe that I may have had all of his trial



13     testimony.



14         I also don't know, from talking with Mr. Galbraith, that



15     there were any tapes of Mr. Myers in the case.  If there



16     are, then I need to be corrected on that misapprehension on



17     my part.  But I don't know that there were any introduced



18     into trial and don't know that there is any testimony that



19     he contradicted the contents of the tapes that were



20     presented.



21               THE COURT:  All right.  Thank you.



22         On behalf of the government, who is going to argue in



23     response to these objections?  Mr. Hatfield?



24               MR. HATFIELD:  Yes, Your Honor.  Your Honor, if it



25     please, with regard to the instruction, we believe that the






                                                 Page 14



 1     probation office was correct in their assessment.



 2         Mr. Hayes was asked on at least two occasions, that I



 3     can recall, by myself whether or not he ever had any



 4     conversations with Lawrence Myers concerning having his son



 5     murdered.  Both of those questions he asked answered in the



 6     negative.  And the Court at some point in time during the



 7     trial, I don't know if it was on motion for directed verdict



 8     or motion for judgment of acquittal or not, but the Court



 9     picked up on the fact that if Mr. Hayes had ever had a



10     conversation concerning that with Mr. Myers, then how did -



11     when Don, the undercover agent, first contacted Mr. Hayes,



12     how did Mr. Hayes know to immediately start discussing



13     Personal information about his son with Don and agree to



14     send Don a picture of him and driver's license numbers and



15     that sort of thing, when he had never talked to or met Don



16     before.



17         So that, Your Honor, was absolutely contrary and was



18     perjurous testimony.



19         Also, Mr. Hayes' defense throughout this whole thing is



20     that he knew that this was all a setup and that he was



21     merely playing with the government or trying to set the



22     government up or catch the FBI.  I think Mr. Galbraith used



23     the words, kicking the government's shins and tweaking their



24     noses.



25         Along those lines, and to - what I felt like to attempt






                                                 Page 15



 1     to compel the jury to believe that he knew - that he had



 2     reasons and ways to know who Don actually was, the



 3     undercover agent, he got up on the witness stand and he



 4     testified at length about his days with the CIA; how long he



 5     had been employed by the CIA; what he and these other



 6     members of some sort of an elite group that owned a computer



 7     had done; how they had caused numerous members of Congress



 8     and senators to either resign from office or not run for



 9     re-election; how he knew something about - about the Vincent



10     Foster murder or homicide or suicide or whatever it was, and



11     that that - that the - that Mr. Foster's death was directly



12     related to Mr. Hayes and his group of ex-CIA agents



13     releaving Mr. Foster of a large sum of money in a Swiss bank



14     account.



15         We then presented evidence that - that Mr. Hayes had



16     never been affiliated with the CIA.  And that wasn't good



17     enough for Mr. Hayes.  He then retook the stand again, and



18     said that if the government had looked in the right place,



19     that - or had asked the right questions, then we would have



20     found that he did work for the CIA.  And Mr. Hayes from the



21     witness stand gave the Court and the jury information



22     concerning what his CIA name was and what his number with



23     the CIA was.



24         Along those lines, we contacted the CIA again, and we've



25     procured a letter from them that I would like to enter into






                                                 Page 16



 1     the record as government exhibit S 1 today, stating that



 2     they searched the records under Charles S. Lawson, which is



 3     what Mr. Hayes testified to, and Mr. Hayes' control number



 4     that he gave from the witness stand, 602367, under oath.



 5     And they again said that they found that this individual had



 6     no relationship with the CIA, either employment, contractual



 7     or operational.



 8         So there again, this was the crux of Mr. Hayes' defense,



 9     I thought, in that he could convince the jury that he was



10     this super top secret agent that had caused numerous high



11     level officials within the government to step down from



12     their positions, so therefore leaving the impression with



13     the jury that if I can do that, I know - I should have known



14     that this little FBI agent from somewhere in Alabama was an



15     FBI agent.



16         And so I would like to introduce this --



17               MR. MILLER:  I haven't seen that, Your Honor.  I



18     don't think it's permissible.  If we're going to put in an



19     exhibit under Rule 16, which --



20               THE COURT:  Show it to me.



21               MR. MILLER:  - which I haven't --



22               THE COURT:  Show it to him.  I can hear hearsay.



23               (A document was shown to counsel)



24               MR. MILLER:  I will address that at the



25     appropriate time, Your Honor.






                                                 Page 17



 1               THE COURT:  All right.



 2               MR. MILLER:  When it's our turn for...



 3               (The document was shown to the Court.)



 4               MR. HATFIELD:  Finally, Your Honor -- I am sorry.



 5               (A pause was had in the proceedings)



 6               THE COURT:  That's all right.  Go ahead.



 7               MR. HATFIELD:  Finally, Your Honor, under the



 8     instruction under 3C1.1, one of the nonexhaustive examples,



 9     that is a nonexhaustive limit in one of the examples, when



10     someone subornes or attempts to suborne perjury.  And I



11     don't think the false matter that someone testifies about, I



12     don't think there is any question that it has to be material



13     to the charge.  And I would submit to the Court, Your Honor,



14     that the testimony that I have just outlined regarding



15     Mr. Hayes, as well as specifically the fact that he denied



16     ever discussing this with Lawrence Myers, I think the



17     probation office is correct in their assessment of the



18     situation in giving Mr. Hayes two points for obstruction of



19     justice.



20               THE COURT:  All right.  Thank you.



21         Now, the other objection --



22               MR. MILLER:  Your Honor, I'm sorry.



23               THE COURT:  Wait just a minute, Mr. Miller, I'll



24     come back to you.



25         The other objection was the statutory maximum versus the






                                                 Page 18



 1     guideline range being on top of that.  I need you to address



 2     that as well.



 3               MR. HATFIELD:  All right, Your Honor.  Of course,



 4     that, I would first refer the Court to section 5G1.1, which



 5     is sentencing on a single count of conviction.  It's 5G1.1.



 6     That specifically addresses where there is a statutorily



 7     authorized maximum sentence that is less than the minimum of



 8     the applicable guideline range.



 9         And that addresses the situation we've got here.  You've



10     got a statutory authorized maximum sentence of 10 years.



11     And that is less than the minimum of the applicable



12     guideline range, which is 121 months, I believe, without



13     looking back at the presentence report.  No, I'm sorry, 151.



14               THE COURT:  One fifty-one to --



15               MR. HATFIELD:  It says the statutorily authorized



16     maximum shall be the guideline sentence.  So - and then it



17     goes on down in the commentary --  And this guideline has



18     been in effect since 1987, and there is no other commentary



19     to it except the little paragraph that's listed.  And the



20     second sentence of that paragraph specifically deals with



21     our situation here.



22         It says:  For example, if the applicable guideline range



23     is 51 to 63 months and the maximum sentence authorized by



24     statute for the offense of conviction is 48 months, the



25     sentence required by the guidelines under section A is 48






                                                 Page 19



 1     months.



 2         Subsection A is what we're dealing with.  A sentence



 3     less than 48 months would be a departure.



 4         And I think what this - what this section of the



 5     guidelines is saying, is that we are adopting this - whether



 6     you want to call it the statutory sentence or the guideline



 7     sentence - we're adopting, anywhere there is a statutory



 8     sentence in the guidelines that's less - I am sorry,



 9     anywhere there is a statutory sentence that's less than the



10     guideline sentence, we are hereby adopting the statutory



11     sentence as the guideline sentence.  And that gives the



12     Court direction on - on where an individual should be



13     sentenced.



14         And I would also point out in this particular case, that



15     even though the offense level is a 32 under the applicable



16     guidelines, there are other adjustments that can go into



17     that, downward adjustments that would make it fall within



18     the - or below the 10-year range.  Those are adjustments



19     that Mr. Hayes obviously didn't get, but such things as - as



20     acceptance of responsibility, which can be anywhere from one



21     to three points, and there could also be some sort of



22     adjustment for role in the offense which would bring it down



23     even further.  And if you took those into account, and a



24     person with a criminal history score of 1, that would bring



25     it down below the 10-year maximum as prescribed by the






                                                 Page 20



 1     statute.



 2         Also, this guideline has the alternative where you can



 3     use either the 32 or the level that would be applicable to



 4     the underlying offense conduct.  And in this particular



 5     case, the 32 happens to be one that we used, because I think



 6     it says use the highest of the two.



 7         But I think, clearly, the commission has said here, if -



 8     if the guidelines are higher, then we're adopting the



 9     statutory maximum as our guideline sentence.  And I think



10     that addresses the issue, unless the Court had any



11     questions.



12               THE COURT:  No, I just wanted to be sure you



13     addressed it.



14               MR. HATFIELD:  Yes, sir.



15               THE COURT:  Thank you, Mr. Hatfield.



16               THE COURT:  All right.  Any reply to either of



17     those arguments, Mr. Miller?.



18               MR. MILLER:  Yes, Your Honor.  Very briefly on the



19     guideline applicability.  That section in section 5 of the



20     guidelines is for those cases that fit within subsection (h)



21     of 994 and had to be there for that reason, where they could



22     put at or near the maximum if it fits a certain criteria,



23     which is not this case.  So that argument does not address



24     this case, because this case --



25               THE COURT:  Do you have a case that says that?  Or






                                                 Page 21



 1     can you point to something in the guidelines?



 2               MR. MILLER:  I can point to 994 which says when



 3     you can put at or near.  And the only time you can do it is



 4     under those criteria and it's nowhere else.  And I could



 5     point to Lastrada, which I presented to the Court earlier.



 6               THE COURT:  But Lastrada(?) doesn't expressly



 7     address 5G1.1(a).



 8               MR. MILLER:  No case I ever found said that -



 9     looked at 2E1.4, looked at a violation like this of 18 USC,



10     1958.  I don't know of - if it's because of the rarity of



11     the type of prosecution not in conjunction with other things



12     or not, but I know that in the guidelines other than



13     subsection (a)(8), there is another provision that deals



14     with multiple offenses, which is not this, or multiple



15     counts or multiple indictments or a group, if you have cases



16     in a couple jurisdictions or something.



17         That doesn't apply here.  So I can't see that it's been



18     raised and I'm not going to tell you that it has been raised



19     or decided.  All I can say is that in looking at what they



20     did in Lastrada and the cases that they dealt with it, the



21     Sixth Circuit said it's fine, good, went on.  Other circuits



22     which looked at it in greater detail talk about, and as they



23     did in the banking regulation case, delegation, of what the



24     delegatee can and can't do.



25         And I can't see any way that this can fit within the






                                                 Page 22



 1     law, even though I can't say a case has already said that.



 2         Now, they have the burden, and they put in an exhibit,



 3     and I have a few that I would like to tender to you that



 4     address this issue.  And I have copies also for the



 5     government.



 6               THE COURT:  All right.
--[cont]--
Aloha, He'Ping,
Om, Shalom, Salaam.
Em Hotep, Peace Be,
Omnia Bona Bonis,
All My Relations.
Adieu, Adios, Aloha.
Amen.
Roads End
Kris

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