2005 Federal Sentencing Guidelines
Chapter 8 - PART C - FINES
§8C1.1. Determining the Fine
- Criminal Purpose Organizations
If, upon consideration of the nature and circumstances of the offense and
the history and characteristics of the organization, the court determines that
the organization operated primarily for a criminal purpose or primarily by
criminal means, the fine shall be set at an amount (subject to the statutory
maximum) sufficient to divest the organization of all its net assets. When
this section applies, Subpart 2 (Determining the Fine - Other Organizations)
and §8C3.4 (Fines Paid by Owners of Closely Held Organizations) do not
apply.
Commentary
Application Note:
1. "Net assets," as used in this section, means the assets remaining after
payment of all legitimate claims against assets by known innocent bona fide
creditors.
Background: This guideline
addresses the case in which the court, based upon an examination of the nature
and circumstances of the offense and the history and characteristics of the
organization, determines that the organization was operated primarily for a
criminal purpose (e.g., a front
for a scheme that was designed to commit fraud; an organization established
to participate in the illegal manufacture, importation, or distribution of
a controlled substance) or operated primarily by criminal means (e.g.,
a hazardous waste disposal business that had no legitimate means of disposing
of hazardous waste). In such a case, the fine shall be set at an amount sufficient
to remove all of the organization’s net assets. If the extent of the
assets of the organization is unknown, the maximum fine authorized by statute
should be imposed, absent innocent bona fide creditors.
Historical Note: Effective
November 1, 1991 (see Appendix
C, amendment 422).
