Judging Federal White-Collar Fraud Sentencing: An Empirical Study Revealing the Need for Further Reform

53 Pages Posted: 22 Feb 2016  

Mark W. Bennett

U.S. District Court (Northern District of Iowa); Independent

Justin D. Levinson

University of Hawaii - William S. Richardson School of Law

Koichi Hioki

Kobe University - Graduate School of Business Administration

Date Written: February 21, 2016

Abstract

White-collar federal fraud sentencing has long been fraught with controversy and criticism. As a result, the U.S. Sentencing Commission’s intensive multi-year examination of sentencing for fraud crimes generated tremendous interest among the Department of Justice, criminal defense organizations, the academy, and a wide-range of advocacy groups. In November 2015, the Commission’s publicly announced proposed amendments became law without Congressional change. These amendments, while commendable in process and purpose, fall short of sorely needed reforms that would serve to realign white-collar fraud punishments with legitimate penal justifications. This Article portrays the recent historical tension between the Federal Sentencing Commission and federal judges, and presents the results of an original empirical study that demonstrates clearly the continuing need for significant reforms.

The Article begins by framing the problem of fraud sentencing within modern criminal law, and examines the statistical reality of economic crime sentencing since the 1980s, which has been increasingly characterized by downward departures from harsh recommend minimum sentences. It then details an original empirical study we conducted on 240 sitting federal and state judges, just as the new sentencing guideline amendments were passing untouched through Congress. This study presented judges with a realistic pre-sentence report for a multimillion-dollar economic crime, and asked judges to sentence the defendant. We found that a remarkable 75% of federal district court judges sentenced the defendant to the precise minimum sentence of a possible seven year range. The study further compared the judges’ sentences across judicial cohorts and evaluated the role of judges’ individual sentencing philosophies, age, religion, and the political party of the appointing president. Despite a range of interesting differences in sentencing philosophy and self-reported attitudes found based on these factors, federal judges’ overwhelming agreement regarding minimum sentencing largely transcended their other differences.

The Article considers the results of the study in the context of the revised guidelines as well as scholarly reform suggestions, and offers five specific proposals to reform the guidelines, beginning with significant cuts to the so-called “loss table” as well as the specific offense characteristics that frequently lead to near-nonsensical sentencing guidelines.

Suggested Citation

Bennett, Mark W. and Levinson, Justin D. and Hioki, Koichi, Judging Federal White-Collar Fraud Sentencing: An Empirical Study Revealing the Need for Further Reform (February 21, 2016). Iowa Law Review, Vol. 102, 2016. Available at SSRN: https://ssrn.com/abstract=2735864 or http://dx.doi.org/10.2139/ssrn.2735864

Mark W. Bennett (Contact Author)

U.S. District Court (Northern District of Iowa) ( email )

320 6th St.
Sioux City, IA 51101
United States
712-233-3909 (Phone)

Independent ( email )

No Address Available

Justin D. Levinson

University of Hawaii - William S. Richardson School of Law ( email )

2515 Dole Street
Honolulu, HI 96822-2350
United States

Koichi Hioki

Kobe University - Graduate School of Business Administration ( email )

3-7-2 Shimiyoshiyamate
Higashinada-ku
Kobe, Hyogo 658-0063, Hyogo 657-8501
Japan

Paper statistics

Downloads
196
Rank
127,095
Abstract Views
519