CHAPTER EIGHT - SENTENCING OF ORGANIZATIONS


PART C - FINES


2.      DETERMINING THE FINE - OTHER ORGANIZATIONS


§8C2.4.     Base Fine

(a)       The base fine is the greatest of:

(1)       the amount from the table in subsection (d) below corresponding to the offense level determined under §8C2.3 (Offense Level); or

(2)       the pecuniary gain to the organization from the offense; or

(3)       the pecuniary loss from the offense caused by the organization, to the extent the loss was caused intentionally, knowingly, or recklessly.

(b)      Provided, that if the applicable offense guideline in Chapter Two includes a special instruction for organizational fines, that special instruction shall be applied, as appropriate.

(c)       Provided, further, that to the extent the calculation of either pecuniary gain or pecuniary loss would unduly complicate or prolong the sentencing process, that amount, i.e., gain or loss as appropriate, shall not be used for the determination of the base fine.

(d)                                Offense Level Fine Table

Offense Level  Amount  
6 or less $5,000  
7    $7,500  
8 $10,000  
9 $15,000  
10 $20,000  
11 $30,000  
12 $40,000  
13 $60,000  
14 $85,000  
15 $125,000  
16 $175,000  
17 $250,000  
18 $350,000  
19 $500,000  
20 $650,000  
21 $910,000  
22 $1,200,000  
23 $1,600,000  
24 $2,100,000  
25 $2,800,000  
26 $3,700,000  
27 $4,800,000  
28 $6,300,000  
29 $8,100,000  
30  $10,500,000  
31 $13,500,000  
32 $17,500,000  
33 $22,000,000  
34  $28,500,000  
35 $36,000,000  
36  $45,500,000  
37  $57,500,000  
38 or more $72,500,000.  

Commentary

Application Notes:

1.      "Pecuniary gain," "pecuniary loss," and "offense" are defined in the Commentary to §8A1.2 (Application Instructions - Organizations).  Note that subsections (a)(2) and (a)(3) contain certain limitations as to the use of pecuniary gain and pecuniary loss in determining the base fine.  Under subsection (a)(2), the pecuniary gain used to determine the base fine is the pecuniary gain to the organization from the offense.  Under subsection (a)(3), the pecuniary loss used to determine the base fine is the pecuniary loss from the offense caused by the organization, to the extent that such loss was caused intentionally, knowingly, or recklessly.

2.      Under 18 U.S.C. § 3571(d), the court is not required to calculate pecuniary loss or pecuniary gain to the extent that determination of loss or gain would unduly complicate or prolong the sentencing process.  Nevertheless, the court may need to approximate loss in order to calculate offense levels under Chapter Two.  See Commentary to §2B1.1 (Theft, Property Destruction, and Fraud).  If loss is approximated for purposes of determining the applicable offense level, the court should use that approximation as the starting point for calculating pecuniary loss under this section.

3.      In a case of an attempted offense or a conspiracy to commit an offense, pecuniary loss and pecuniary gain are to be determined in accordance with the principles stated in §2X1.1 (Attempt, Solicitation, or Conspiracy).

4.      In a case involving multiple participants (i.e., multiple organizations, or the organization and individual(s) unassociated with the organization), the applicable offense level is to be determined without regard to apportionment of the gain from or loss caused by the offense.  See §1B1.3 (Relevant Conduct).  However, if the base fine is determined under subsections (a)(2) or (a)(3), the court may, as appropriate, apportion gain or loss considering the defendant's relative culpability and other pertinent factors.  Note also that under §2R1.1(d)(1), the volume of commerce, which is used in determining a proxy for loss under §8C2.4(a)(3), is limited to the volume of commerce attributable to the defendant.

5.      Special instructions regarding the determination of the base fine are contained in §§2B4.1 (Bribery in Procurement of Bank Loan and Other Commercial Bribery); 2C1.1 (Offering, Giving, Soliciting, or Receiving a Bribe; Extortion Under Color of Official Right; Fraud Involving the Deprivation of the Intangible Right to Honest Services of Public Officials; Conspiracy to Defraud by Interference with Governmental Functions); 2C1.2 (Offering, Giving, Soliciting, or Receiving a Gratuity); 2E5.1 (Offering, Accepting, or Soliciting a Bribe or Gratuity Affecting the Operation of an Employee Welfare or Pension Benefit Plan; Prohibited Payments or Lending of Money by Employer or Agent to Employees, Representatives, or Labor Organizations); and 2R1.1 (Bid-Rigging, Price-Fixing or Market-Allocation Agreements Among Competitors).

Background:  Under this section, the base fine is determined in one of three ways: (1) by the amount, based on the offense level, from the table in subsection (d); (2) by the pecuniary gain to the organization from the offense; and (3) by the pecuniary loss caused by the organization, to the extent that such loss was caused intentionally, knowingly, or recklessly.  In certain cases, special instructions for determining the loss or offense level amount apply.  As a general rule, the base fine measures the seriousness of the offense.  The determinants of the base fine are selected so that, in conjunction with the multipliers derived from the culpability score in §8C2.5 (Culpability Score), they will result in guideline fine ranges appropriate to deter organizational criminal conduct and to provide incentives for organizations to maintain internal mechanisms for preventing, detecting, and reporting criminal conduct.  In order to deter organizations from seeking to obtain financial reward through criminal conduct, this section provides that, when greatest, pecuniary gain to the organization is used to determine the base fine.  In order to ensure that organizations will seek to prevent losses intentionally, knowingly, or recklessly caused by their agents, this section provides that, when greatest, pecuniary loss is used to determine the base fine in such circumstances.  Chapter Two provides special instructions for fines that include specific rules for determining the base fine in connection with certain types of offenses in which the calculation of loss or gain is difficult, e.g., price-fixing.  For these offenses, the special instructions tailor the base fine to circumstances that occur in connection with such offenses and that generally relate to the magnitude of loss or gain resulting from such offenses.

Historical Note:  Effective November 1, 1991 (see Appendix C, amendment 422).  Amended effective November 1, 1993 (see Appendix C, amendment 496); November 1, 1995 (see Appendix C, amendment 534); November 1, 2001 (see Appendix C, amendment 634); November 1, 2004 (see Appendix C, amendments 666 and 673).