St. John's Law Review

White-Collar Crime, Social Harm, and Punishment: A Critique and Modification of the Sixth Circuit's Ruling in United States V. Davis

By: Matthew A. Ford

The Supreme Court, in United States v. Booker, found the United States Sentencing Guidelines unconstitutional, uprooting nearly twenty years of structured sentencing in federal courts. As a result of this uprooting, judges now have much greater discretion in sentencing. Appellate review of sentencing decisions, however, limits this discretion by requiring district courts to impose only reasonable sentences.  This comment considers reasonableness review in the context of white-collar crime by analyzing a recent circuit court decision, United States v. Davis, 458 F.3d 491 (6th Cir. 2006). 

In Davis, the Court of Appeals for the Sixth Circuit vacated a one-day prison sentence imposed on a defendant convicted of two counts of bank fraud where the recommended Sentencing Guidelines range was thirty to thirty-seven months, because it found the sentence unreasonable.  In finding the sentence unreasonable, the court relied primarily on (1) the numerical variance between the sentence imposed and the recommended Guideline Sentence and (2) the unlikelihood that the sentence would deter others from committing similar crimes.  The court’s reliance on numerical variance and deterrence represents an unhealthy trend in post-Booker sentencing, because such reliance tends to shift the balance of power towards the legislature and prosecutors and away from judges in the unique position to give individualized sentences.
 
This comment urges courts to refrain from this mode of analysis and to rely more heavily on the social harm caused by white-collar crimes as a basis for finding nominal sentences of white-collar criminals unreasonable.  Reliance on social harm as a justification for punishment reflects the criminal nature of white-collar crimes.  It also helps strike a balance between prosecutorial power and judicial discretion.