United States v. Charles Oliver
United States v. Charles Oliver
Opinion
Defendant-Appellant Charles Oliver appeals his sentence of 210 months of imprisonment for distribution of child pornography. Oliver asserts that the district court erred when it applied a five-level enhancement under USSG § 2G2.2(b)(3)(B) (2016) for distributing child pornography in exchange for valuable consideration. Because we articulate, for the first time, the essential elements for applying the enhancement under the 2016 version of § 2G2.2(b)(3)(B), and because the district court did not fully consider these elements when applying the enhancement, we VACATE Oliver's sentence and REMAND for resentencing consistent with this opinion.
I. BACKGROUND 1
In April 2017, an informant contacted the Federal Bureau of Investigation ("FBI") and explained that, during an internet chat, Oliver had requested contact information for someone who could facilitate a meeting between Oliver and a minor for the purposes of engaging in sexual activity. R. 28 (PSR ¶5) (Page ID #56). An FBI agent instructed the informant to provide Oliver with an email and Kik account 2 through which Oliver could contact the agent. Id. On April 7, 2017, Oliver sent the agent an email message containing an image of child pornography. Id. (PSR ¶ 6) (Page ID #56). The message did not contain any additional content or statement by Oliver. See R. 30 (Gov't Sent'g Mem. at 3) (Page ID #86). Between April 9, 2017 and July 26, 2017, Oliver and the agent exchanged various text messages focusing on Oliver's interest in having sexual intercourse with the agent's purported minor daughter. See R. 28 (PSR ¶¶ 6, 8-9) (Page *396 ID #56-57). Oliver also sent the agent additional sexually explicit images and videos of prepubescent minors. Id. In these text exchanges, Oliver explained in explicit detail what sexual activities he planned to perform on the agent's daughter when they met in person. R. 30 (Gov't Sent'g Mem. at 7-9, 12-13) (Page ID #90-92, 95-96). In one exchange, Oliver sent a picture of his penis to the agent and asked to see a "pic or vid" of the agent's daughter. Id. at 8-9 (Page ID #91-92). When the agent stated that he had to "be careful" and that he was not sure whether Oliver was "real and not a wanker or cops," Oliver responded by sending a picture of child pornography and stated, "I'm real and not a cop. A cop wouldn't be sending this." Id. at 9 (Page ID #92).
On September 13, 2017, Oliver was indicted on two counts of distributing child pornography in violation of
Although Oliver did not object to the facts set forth in the PSR, Oliver did file an objection to the five-level enhancement. R. 33 (Def. Sent'g Mem. at 1-2) (Page ID #182-83). Oliver asserted that pursuant to the guidelines, which had been amended in 2016, the enhancement did not apply to him because he had never "agreed" to distribute child pornography "in exchange" for any valuable consideration.
At sentencing on April 24, 2018, Oliver's counsel reiterated the same argument and also explained that even if § 2G2.2(b)(3)(B) encompassed implicit, rather than explicit, agreements, the facts did not support a finding that there was an implicit agreement for distribution. R. 43 (Sent'g Hr'g Tr. at 11) (Page ID #261). The district court agreed that "without a doubt, Mr. Oliver never said explicitly, I'm going to send you this and I expect that in return."
Having determined that the enhancement applied, the district court calculated Oliver's total offense level at 37 and his criminal history category as I, leading to a guideline range of 210 to 262 months.
II. STANDARD OF REVIEW
We review a district court's "legal conclusions regarding application of the [g]uidelines de novo" and any findings of fact for clear error.
United States v. Holcomb
,
III. DISCUSSION
The sole issue on appeal is whether the district court erred in applying the five-level enhancement under § 2G2.2(b)(3)(B).
See
Appellant Brief at 18. A sentencing court commits procedural error if, among other things, the district court fails to calculate properly the advisory guideline range, including the application of particular enhancements.
United States v. Mabee
,
A. 2016 Guideline Amendments
To understand fully the scope of this enhancement, we first examine the evolution of the enhancement leading up to the 2016 amendment. Prior to November 1, 2016, individuals convicted of violating
Following the amendment in 2016, defendants are subjected to the same enhancement if they distribute child pornography "in exchange for any valuable consideration but not for pecuniary gain." § 2G2.2(b)(3)(B). The Application Note to the 2016 guideline explains that " 'distribut[ion] in exchange for any valuable
*398
consideration' means the defendant agreed to an exchange with another person under which the defendant knowingly distributed to that other person for the specific purpose of obtaining something of valuable consideration from that other person, such as other child pornographic material, preferential access to child pornographic material, or access to a child."
As the government correctly notes, the amendment was primarily focused on resolving a circuit split concerning the intent requirement under § 2G2.2(b)(3)(B) as it applied "frequently, although not exclusively, [to] cases involving the use of peer-to-peer file-sharing programs or networks."
See
2016 Amendments to the Sent'g Guidelines at 10. Peer-to-peer programs are "file-sharing application[s which] allow[ ] two or more users to essentially have access [to] each other's computers and to directly swap files from their computers."
As the Sentencing Commission explained, Circuit courts were split on the mental state required for the enhancement in the context of peer-to-peer programs.
Compare
United States v. Groce
,
B. Necessary Elements Under USSG § 2G2.2(b)(3)(B)
In attempting to formulate the necessary elements of the enhancement, the government contends that the amendment does not impact the applicability of the enhancement to Oliver's conduct because (1) the purpose of the amendment was focused primarily on peer-to-peer programs, which are not implicated in Oliver's case, and (2) courts have found the enhancement applicable in cases similar to Oliver's despite the absence of an explicit *399 agreement. Appellee Brief at 16-21. In response, Oliver concedes that either explicit or implicit agreements may trigger the application of the enhancement. Reply Brief at 8. Oliver asserts, however, that in finding that an implicit agreement existed in his case, the district court improperly focused on Oliver's purpose in distributing the child pornography. Id. at 10-14.
As explained below, because the amendment supersedes the cases relied upon by the government and because the plain language of the enhancement and application Note necessitates an implicit or explicit agreement and understanding between two parties, we conclude that, in order for the enhancement to apply, the government must show that the defendant: (1) agreed--either explicitly or implicitly--to an exchange with another person and then (2) knowingly distributed child pornography to that person (3) for the specific purpose of obtaining something of valuable consideration (4) from that same person.
1. Pre-Amendment Cases
The government asserts that, in applying § 2G2.2(b)(3)(B), courts have never required an explicit agreement between a defendant and a third party, whereby the defendant distributes child pornography only on the condition that he receive something of value in exchange from that third party. Appellee Brief at 16-21. As Oliver points out, however, those decisions relied upon the now-removed "expectation of receipt" language from the pre-2016 enhancement.
For instance, in
United States v. Maneri
, an undercover agent posed as an underaged girl and discussed meeting with the defendant to engage in sexual activity.
Similarly, in
United States v. Whited
, the Seventh Circuit endorsed the
Maneri
court's reasoning when it determined that "expectation of receipt" under the former enhancement "does not require an explicit agreement or precise bargain [because d]istribution of child pornography in the reasonable
anticipation
or reasonable
belief
of receiving a thing of value is
*400
enough."
Finally, in
United States v. Geiner
, the Tenth Circuit agreed that although the former application Note used terms based in contract law, because the enhancement applied if the defendant merely "expected" to receive something, the expectation did not "need [to] arise from an underlying agreement to exchange child pornography ...."
Admittedly, these cases are a relatively close factual match to Oliver's, as they all involve defendants distributing child pornography in an attempt to secure something of value. Because these cases uniformly rely upon the now-removed "expectation of receipt" language, however, the government's reliance on them is misplaced. Therefore, absent controlling authority on the amended enhancement, we now turn to the plain language of the guideline.
2. Plain Language of USSG § 2G2.2(b)(3)(B)
When interpreting the sentencing guidelines, we are mindful that "[t]he Guidelines should be interpreted as if they were a statute," meaning that we must "follow the clear, unambiguous language if there is no manifestation of a contrary intent."
United States v. Hayter Oil Co.
,
After the 2016 amendment, a defendant is subject to the five-level enhancement under § 2G2.2(b)(3)(B) if he "distributed [child pornography] in exchange for any valuable consideration, but not for pecuniary gain." The Application Note further explains:
"The defendant distributed in exchange for any valuable consideration" means the defendant agreed to an exchange with another person under which the defendant knowingly distributed to that *401 other person for the specific purpose of obtaining something of valuable consideration from that other person, such as other child pornographic material, preferential access to child pornographic material, or access to a child.
§ 2G2.2 cmt. n.1. The government asserts that because Oliver sent child pornography to the undercover agent for the "specific purpose" of gaining access to the child or to receive pictures or videos of the child, Oliver is highly culpable, and, therefore, the enhancement must apply to him. See Appellee Brief at 17-18 (arguing that the Commission intended for the enhancement to apply to individuals who illustrated a "higher level of culpability"). By focusing on Oliver's "specific purpose" and culpability, however, the government ignores the other, unambiguous requirements of the enhancement.
The enhancement requires that "the defendant distributed in exchange for any valuable consideration." § 2G2.2(b)(3)(B) (emphasis added). Unlike the previous "expectation of receipt" language, which imposes a forward-looking requirement and includes a unilateral understanding by the defendant that, were he to distribute the child pornography, he would reasonably anticipate receiving something of value in return, the new enhancement uses the phrase "in exchange for." An "exchange" is more exacting than a mere "expectation of receipt" and, at the very least, requires an agreement or mutual understanding between two parties, rather than the defendant's personal belief or expectation. See Exchange , Oxford English Dictionary (3d ed. 2018) (defining the noun as "[t]he action, or an act, of reciprocal giving and receiving" and the verb as "to give, relinquish, or lose (something) whilst receiving something else in return " (emphasis added)).
Similarly, the 2016 Application Note explains that
in addition
to showing that the defendant distributed the child pornography with the "specific purpose" of obtaining something of value, the defendant must also "
agree
[ ]
to an exchange with
another person under which the defendant knowingly distributed" child pornography. § 2G2.2 cmt. n.1 (emphasis added). Thus, in order for the enhancement to apply, the defendant must have (1) formed an agreement with another person to an exchange (2) "under which the defendant knowingly distributed" child pornography "to that other person" (3) "for the specific purpose of obtaining something of valuable consideration" in return.
Moreover, the Application Note explains that the agreement must be "with another person" and that the valuable consideration comes "from that other person." Such a requirement necessarily includes some kind of discussion or understanding between the defendant and the "other person" regarding the contours--whether implicit or explicit--of the agreement. Without any statement or action from the "other person" from which the defendant could reasonably extrapolate--even incorrectly--that the defendant's distribution was part of the agreement, the defendant has not "agreed to an exchange" with that "other person."
See
United States v. Milligan
,
This interpretation is not undermined by the fact that the 2016 amendment was primarily focused on the intent requirement for defendants using peer-to-peer programs. First, as the Sentencing Commission noted, the Circuit split at issue did not arise "exclusively" in the peer-to-peer context. See 2016 Amendments to the Sent'g Guidelines at 10. Second, to the extent that courts have previously applied the enhancement to factual scenarios outside the peer-to-peer context, as noted above, those cases uniformly relied upon the "expectation of receipt" language in the pre-2016 enhancement. With that phrase removed, we are required to look at the enhancement anew. As written, the enhancement makes no distinction between defendants who use peer-to-peer programs and defendants who directly engage with agents or other individuals. Instead, if either defendant "distribute[s] in exchange" for something of value, the five-level enhancement applies, even if one defendant's distribution illustrates a "higher culpability" than the other defendant's distribution.
Finally, although there are very few cases interpreting the amended enhancement, they largely support the more exacting interpretation of § 2G2.2(b)(3)(B) discussed above. In
United States v. Taylor
, the District Court for the Eastern District of Tennessee interpreted the amendment to require an "agreement" between the defendant and a third party and concluded that by entering a chatroom labeled "young Taboo trade" and then distributing child pornography in response to another user's request to trade, the enhancement should apply. No. 2:18-CR-7,
Oliver also points us to the recent Fifth Circuit opinion in
United States v. Halverson
,
We agree with the Fifth Circuit that the amended enhancement requires proof that the defendant "agreed to an exchange with another person." The fourth requirement that "the valuable consideration came from" the person with whom the defendant agreed to exchange, however, gives us pause. On the one hand, the plain language of the Application Note supports a requirement that the "valuable consideration" the defendant expects to receive come from the "other person" with whom the defendant has made the agreement to exchange. See § 2G2.2 cmt. n.1 (requiring that the defendant distribute "for the specific purpose of obtaining something of valuable consideration from that other person " (emphasis added)). Put differently, if the defendant's distribution is to a party other than the party from whom he expects to receive "valuable consideration," the distribution is not part of an agreement "to exchange" as articulated by the enhancement. 5
To the extent that Halverson 's fourth element requires proof that the defendant actually receive the thing of value, however, we cannot accept this requirement. Not only does the plain language of the enhancement and application Note fail to support such an element, but a requirement that the defendant actually receive the thing of value (be it additional child pornography or access to the child) would undoubtedly lead to the very action the enhancement strives to prevent: further distribution of child pornography and the continued victimization of children. This would be a particularly perverse requirement when the "other person" forming the agreement with the defendant is an undercover agent who is unable to comply with the defendant's request. Thus, to the extent that the rule articulated in Halverson may be interpreted to require that the defendant actually receive the valuable consideration, we reject this enhanced and unsupported element.
Consequently, and for the reasons set forth above, we conclude that in order to apply the five-level enhancement under amended § 2G2.2(b)(3)(B), the government must show that the defendant: (1) agreed--either explicitly or implicitly--to an exchange with another person under which (2) the defendant knowingly distributed child pornography to that other person (3) for the specific purpose of obtaining something of valuable consideration (4) from that same other person. The distribution must be part of that explicit or implicit agreement, i.e., the defendant understands or believes--even if incorrectly--that his distribution is in pursuance of his obligation under the agreement. Additionally, the defendant's distribution must be for the "specific purpose" of receiving the valuable consideration. And finally, although the distribution must be to the "other person" with whom the defendant has "agreed to an exchange," the defendant *404 need not have received the valuable consideration in order for the enhancement to apply. Having established the necessary elements for imposing the new enhancement, we now consider whether the district court properly applied these elements in Oliver's case.
C. Enhancement as Applied to Oliver
In its ruling, the district court primarily relied upon a text exchange between Oliver and the agent. Oliver sent a picture of his own penis and asked "Do you mind if I see[ ] her." R. 30 (Gov't Sent'g Mem. at 8) (Page ID #91); see also R. 43 (Sent'g Hr'g Tr. at 25-27) (Page ID #275-77). When the agent asked "What u mean?" Oliver responded that the picture of his penis was "what I have for her" and again asked for "[a] pic or vid of her." R. 30 (Gov't Sent'g Mem. at 8-9) (Page ID #91-92). The agent then stated "I gotta be careful still not sure bout u if your real and not a wanker or cops." Id. at 9 (Page ID #91). In response, Oliver sent an image of child pornography and stated: "I'm real and not a cop. A cop wouldn't be sending this." Id.
In examining the applicability of the enhancement, the district court correctly concluded that although this exchange did not evidence any
explicit
agreement, the enhancement could nonetheless apply if there were evidence of an implicit agreement to exchange for valuable consideration. R. 43 (Sent'g Hr'g Tr. at 24) (Page ID #274) ("[W]ithout a doubt, Mr. Oliver never said explicitly, I'm going to send you this and I expect that in return, but the way I read the guidelines and the application note in the case law, that's not required."). Based on the evidence before it, the district court concluded "that an implicit agreement can certainly be found from the evidence in the record."
Id.
Because there was sufficient evidence supporting this factual finding, the government contends that we must affirm the district court's application of the enhancement. This argument ignores, however, the plain requirements of § 2G2.2(b)(3)(B) and, albeit understandably, the particular elements we have just enumerated above. Specifically, although the district court concluded that there was an implicit agreement, it is less than clear to us that the district court applied the correct legal factors to make that determination.
See
Holcomb
,
Certainly, the defendant's specific purpose is an important factor to consider when determining whether there was an implicit agreement and, specifically, whether the defendant's distribution of child pornography was in support of that agreement. Indeed, because an implicit agreement is, necessarily, inferred from the parties' actions or comments, the defendant's intention is a significant indicator that he understood that an agreement was in place. However, the defendant's purpose cannot be the
only
factor a court considers. As noted above, the amended enhancement requires that the defendant's distribution
*405
be for the "specific purpose" of receiving something of valuable consideration
and
that the defendant "agreed to an exchange with another person." § 2G2.2 cmt. n.1. If a defendant's specific purpose could definitely and exclusively show an implicit agreement, there would be very little reason to require both elements.
See
In re City of Detroit
,
IV. CONCLUSION
For the reasons set forth above, we VACATE Oliver's sentence and REMAND for resentencing consistent with this opinion.
The following information is contained in the presentence investigation report ("PSR") and the government's sentencing memorandum. Oliver did not object to the factual allegations contained in either document, and the text exchanges referenced below were entered into the record as exhibits at sentencing. See R. 33 (Def. Sentencing Mem. at 1) (Page ID #182); R. 43 (Sent'g Hr'g Tr. at 32-37) (Page ID #282-87); R. 38 (Exhibit List); R. 38-1 (Exhibit List).
Kik is a messaging application. R. 28 (PSR ¶ 6) (Page ID #56).
The Application Note to the 2016 amendment not only replaced the word "transaction" with the phrase " agreed to an exchange," but as the Second Circuit noted, the word "agreement" has a more limited meaning than the definition of "transaction" cited in Maneri . See Agreement , Oxford English Dictionary (3d ed. 2018) (defining "agreement" as "[a]n arrangement ... made between two or more parties and agreed by mutual consent").
Although the Eighth Circuit has likewise noted that its previous rulings regarding the peer-to-peer programs have been superseded by statute, it did not reach the issue of what the new enhancement required.
See
United States v. Hansen
,
This interpretation is consistent with the other cases interpreting the enhancement, as both
Cameron
and
Taylor
involved defendants who distributed to a third party after discussing the possibility of trading with that third party.
See
Cameron
,
Reference
- Full Case Name
- UNITED STATES of America, Plaintiff-Appellee, v. Charles OLIVER, Defendant-Appellant.
- Cited By
- 17 cases
- Status
- Published