United States v. Michael Milchin

U.S. Court of Appeals for the Third Circuit

United States v. Michael Milchin

Opinion

                                                                 NOT PRECEDENTIAL

                       UNITED STATES COURT OF APPEALS
                            FOR THE THIRD CIRCUIT
                                _______________

                                      No. 24-1484
                                    _______________

                            UNITED STATES OF AMERICA

                                             v.

                                  MICHAEL MILCHIN,
                                       Appellant
                                   _______________

                     On Appeal from the United States District Court
                        for the Eastern District of Pennsylvania
                             (D.C. No. 2-17-cr-00284-001)
                      District Judge: Honorable Gerald J. Pappert
                                   _______________

                      Submitted Under Third Circuit L.A.R. 34.1(a):
                                  September 6, 2024
                                  _______________

                     Before: JORDAN, HARDIMAN, and PORTER
                                  Circuit Judges.

                                 (Filed: October 8, 2024)
                                     ______________

                                        OPINION ∗
                                     ______________




∗
 This disposition is not an opinion of the full Court and pursuant to I.O.P. 5.7 does not
constitute binding precedent.
PORTER, Circuit Judge.

       Michael Milchin pleaded guilty to several criminal charges in connection with his

leadership role in a conspiracy to illegally distribute opioids. He unsuccessfully sought a

retroactive application of the new offense-level reduction under U.S.S.G. § 4C1.1 for

“zero-point offenders.” But Milchin is not eligible for application of the zero-point

offender reduction, so we will affirm.

                                              I

       On February 9, 2018, Michael Milchin pleaded guilty to charges of healthcare

fraud, conspiracy to commit healthcare fraud, conspiracy to distribute oxycodone, and

possession of oxycodone with intent to distribute. He was sentenced to a total term of 168

months of imprisonment, and three years of supervised release. Milchin unsuccessfully

sought relief from his sentence, filing numerous motions for compassionate release and

motions based on his health, his mother’s health, his purported rehabilitation, and the

threat of COVID-19 in prison.

       This appeal concerns Milchin’s motion for a sentence reduction pursuant to 
18 U.S.C. § 3582
(c)(2) based on United States Sentencing Guideline § 4C1.1. Effective

November 1, 2023, § 4C1.1 allows an offense-level reduction for certain offenders with

zero criminal history points at the time of their sentencing. USSG § 4C1.1.

       The District Court first concluded that Milchin was not eligible for the reduction

on November 13, 2023, but dismissed his motion without prejudice based on a stay of

motions seeking retroactive application of § 4C1.1. Milchin then requested appointment

of counsel for assistance in litigating his eligibility for relief under § 4C1.1. The Court


                                              2
denied that request on March 1, 2024, determining that “Milchin does not qualify for a

sentence reduction.” Order at 1–2 n.1, United States v. Milchin, No. 17-284-1 (E.D. Pa.

Mar. 1, 2024), ECF No. 531. On March 4, 2024, Milchin filed an “Emergency Motion for

Sentence Reduction” repeating his claim for relief under § 4C1.1. Emergency Motion for

Sentence Reduction at 1, United States v. Milchin, No. 17-284-1 (E.D. Pa. Mar. 4, 2024),

ECF No. 532. The District Court denied that motion, citing its earlier orders. Milchin

appealed.

                                             II

       The District Court had jurisdiction under 
18 U.S.C. § 3231
. We have jurisdiction

under 
28 U.S.C. § 1291
.

       We review de novo a criminal defendant’s eligibility for consideration of a

reduced sentence based on a retroactive guideline amendment. United States v. McBride,

283 F.3d 612, 614
 (3d Cir. 2002).

                                            III 1

       Section 3582 of Title 18 of the United States Code authorizes prisoners to seek a

reduction of their term of imprisonment in cases where the defendant had “been

sentenced to a term of imprisonment based on a sentencing range that has subsequently



1
 Milchin also faults the District Court for “not providing any meaningful consideration
of the Appellant’s 3553(a) factors.” Appellant’s Br. 4. But courts are only required to
consider the factors set forth in 
18 U.S.C. § 3553
(a) if the Defendant has a valid basis for
seeking a reduction in his term of imprisonment. See 
18 U.S.C. § 3582
(c). Because the
District Court held that Milchin had not “been sentenced to a term of imprisonment based
on a sentencing range that has subsequently been lowered by the Sentencing
Commission,” it was not required to consider the § 3553(a) factors.

                                             3
been lowered.” 
18 U.S.C. § 3582
(c)(2). The issue presented on appeal is whether Milchin

was in fact sentenced under a sentencing range that was subsequently lowered. Milchin

argues that § 4C1.1 of the Sentencing Guidelines, which became effective on November

1, 2023, lowered the sentencing range under which he had originally been sentenced in

2018.

        Section 4C1.1 reduces the offense-level for certain offenders that had zero

criminal history points at the time of their sentencing. USSG § 4C1.1. Several types of

offenders and offenses are excluded from eligibility for an offense-level reduction under

§ 4C1.1. If, for example, the defendant’s offense “result[ed] in death or serious bodily

injury,” the offense was “a sex offense,” or he “use[d] violence or credible threats of

violence in connection with the offense,” then § 4C1.1 provides no relief. USSG

§ 4C1.1(a)(3)–(5).

        Relevant here, § 4C1.1 requires that an offender “did not receive an adjustment

under § 3B1.1 (Aggravating Role) and was not engaged in a continuing criminal

enterprise, as defined in 
21 U.S.C. § 848
.” USSG § 4C1.1(a)(10) (emphasis added).

Milchin received an aggravating role adjustment, but was not engaged in a “continuing

criminal enterprise” as that term is defined.

        Milchin argues that because he did not both receive an aggravating role

adjustment, and engage in a continuing criminal enterprise, he is eligible for § 4C1.1’s

offense-level reduction. We disagree and hold that § 4C1.1 makes ineligible any

defendant that either received an aggravating role adjustment or was engaged in a

continuing criminal enterprise.


                                                4
       The Supreme Court’s recent decision in Pulsifer v. United States guides our

analysis. 
601 U.S. 124
 (2024). There, the Court considered how a similarly phrased

provision applied to defendants with “(A) more than 4 criminal history points . . . (B) a

prior 3-point offense . . . and (C) a prior 2-point violent offense.” 
18 U.S.C. § 3553
(f)(1)

(emphasis added); Pulsifer, 601 U.S. at 129.

       The arguments in this case trace those in Pulsifer. There, the defendant argued that

the provision at issue applied only to defendants that satisfied all of Subsection (f)’s

subparagraphs. Id. at 130. The government countered that the provision applied to

defendants that satisfied any of Subsection (f)’s subparagraphs. Id. at 133–34.

Recognizing that both interpretations are “grammatically possible,” the Court looked to

the provision’s “legal context”—the contents of the provision and how the provision

“fit[s] with other pertinent law.” Id. at 140–41. We adopt a similar approach.

       As a first step, we note that both conjunctive and disjunctive readings of

§ 4C1.1(a)(10) are “grammatically permissible” in the abstract. Id. at 133. “No

grammatical principle precludes” reading Subsection (10) to apply only to defendants

that both received an aggravating role adjustment and were not engaged in a continuing

criminal enterprise. Id. at 137. But the same can be said of the disjunctive reading. See

United States Sentencing Commission, Amendments to the Sentencing Guidelines 42

(2024) (noting that “several stakeholders have questioned whether either condition in

subsection (a)(10) is disqualifying or whether only the combination of both conditions is

disqualifying”).




                                               5
       Situating Subsection (10) within its legal context makes clear that “and” operates

disjunctively. Subsection (10), if read conjunctively, would be superfluous because it is

impossible for a defendant to have both received an aggravating role adjustment and to

have been found engaged in a continuing criminal enterprise in the same case.

       Start with § 2D1.5, which is the section dealing with Continuing Criminal

Enterprise. USSG § 2D1.5. Application Note 1 of that section directs users to “not apply

any adjustment from Chapter Three, Part B (Role in the Offense).” USSG § 2D1.5,

comment. (n.1). And an aggravating role adjustment is just that—an “adjustment[] from

Chapter Three, Part B.” USSG § 4C1.1(a)(10); see USSG § 3B1.1. Putting this together,

a defendant found to have engaged in a continuing criminal enterprise, will never

“receive an adjustment under § 3B1.1.” 2 Id. The upshot is that Subsection (10) would be

a nullity under a conjunctive interpretation.

       The canon against surplusage counsels against adopting interpretations that render

a statute “superfluous, void, or insignificant.” TRW Inc. v. Andrews, 
534 U.S. 19, 31

(2001) (quoting Duncan v. Walker, 
533 U.S. 167, 174
 (2001)). And “[w]hen a statutory

construction ‘render[s] an entire subparagraph meaningless’ . . . the canon against

surplusage applies with special force.” Pulsifer, 601 U.S. at 143 (quoting Nat’l Ass’n of

Mfrs. v. Dep’t of Defense, 
583 U.S. 109, 128
 (2018)). Milchin’s proffered interpretation

would do just that.



2
 The Sentencing Guidelines’ Applications Notes are controlling so long as “the guideline
which the commentary interprets will bear the construction.” United States v. Nasir, 
17 F.4th 459, 470
 (3d Cir. 2021) (quoting Stinson v. United States, 
508 U.S. 36, 46
 (1993)).

                                                6
       The Supreme Court in Pulsifer similarly relied on the “statutory difficult[y]”

created by an interpretation that deprived Subparagraph (A) of the criminal history

requirement in the safety-valve provision of “any operative significance.” Pulsifer, 601

U.S. at 141. Recall that the provision at issue in Pulsifer permitted sentencing “without

regard to any statutory minimum sentence” so long as the defendant did not have “(A)

more than 4 criminal history points . . . (B) a prior 3-point offense . . . and (C) a prior 2-

point violent offense.” 
18 U.S.C. § 3553
(f) (emphasis added). The Court recognized that,

if read conjunctively, Subparagraph (A) would be superfluous since a defendant with

both “a prior 3-point offense” and “a prior 2-point violent offense” would always have

5—“more than 4”—criminal history points. Id.; Pulsifer, 601 U.S. at 142.

       Thus far, every court to have considered the question has adopted the disjunctive

reading of “and” in U.S.S.G. § 4C1.1(a)(10). See United States v. Arroyo-Mata, 
2024 WL 1367796
 at *2 n.6 (N.D. Ga. Apr. 1, 2024) (collecting district court cases). We agree.

                                    *      *       *

       For these reasons, we will affirm the District Court’s judgment.




                                               7


Reference

Status
Unpublished