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No. 10357172
United States Court of Appeals for the Ninth Circuit
United States v. Paige Thompson
No. 10357172 · Decided March 17, 2025
No. 10357172·Ninth Circuit · 2025·
FlawFinder last updated this page Apr. 2, 2026
Case Details
Court
United States Court of Appeals for the Ninth Circuit
Decided
March 17, 2025
Citation
No. 10357172
Disposition
See opinion text.
Full Opinion
FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
UNITED STATES OF AMERICA, No. 22-30179
Plaintiff-Appellant, D.C. Nos.
2:19-cr-00159-
v. RSL-1
2:19-cr-00159-
PAIGE A. THOMPSON, RSL
Defendant-Appellee. OPINION
Appeal from the United States District Court
for the Western District of Washington
Robert S. Lasnik, District Judge, Presiding
Argued and Submitted June 5, 2024
Portland, Oregon
Filed March 17, 2025
Before: Johnnie B. Rawlinson, Danielle J. Forrest, and
Jennifer Sung, Circuit Judges.
Opinion by Judge Forrest;
Dissent by Judge Sung
2 USA V. THOMPSON
SUMMARY *
Criminal Law
The panel vacated Paige Thompson’s sentence and
remanded for resentencing in a case in which Thompson
committed the second largest data breach in the United
States at the time, causing tens of millions of dollars in
damage and emotional and reputational harm to numerous
individuals and entities.
The district court correctly calculated Thompson’s
sentencing range under the Federal Sentencing Guidelines to
be 168 to 210 months of imprisonment. It then granted a
roughly 98% downward variance to time served
(approximately 100 days) and five years of probation.
The panel held that the district court overemphasized
Thompson’s personal story and committed a clear error of
judgment in weighing several of the factors set forth in 18
U.S.C. § 3553(a), which resulted in a substantively
unreasonable sentence.
The panel held that it was clear error for the district court
to conclude that Thompson’s actions were not “malicious,”
that Thompson did not do anything “bad” before she was
caught, and that Thompson was “tortured and tormented
about what she did,” given that these findings were not
supported by the record.
Noting that the district court considered that Thompson
is transgender and autistic, and has suffered prior trauma in
*
This summary constitutes no part of the opinion of the court. It has
been prepared by court staff for the convenience of the reader.
USA V. THOMPSON 3
her life, the panel explained that Thompson’s personal
background and characteristics are proper considerations at
sentencing, but they may not be the sole basis for the chosen
sentence.
The panel explained that fraud crimes typically are
calculated and, as a result, are particularly amenable to
general deterrence. The district court’s failure to give this
factor meaningful weight was a clear error of judgment. As
for specific deterrence, the district court’s failure to consider
highly relevant evidence of Thompson’ risk of recidivism
was an abuse of discretion.
Beyond the district court’s general acknowledgment that
the Guidelines help avoid sentencing disparities, nothing in
the record indicates that the district court weighed the risk of
unwarranted disparity in choosing the sentence. Given the
district court’s unsupported findings on some of the relevant
facts, the panel concluded that the district court’s
explanation for the sentence it imposed is inadequate to
justify the resulting disparity between Thompson’s sentence
and the sentences imposed in other cases, which is a weighty
consideration given the extent of the district court’s
variance.
Dissenting, Judge Sung concluded that the sentence is
substantively reasonable under an abuse of discretion
standard. She wrote that while the majority clearly disagrees
with the district judge’s conclusion that consideration of
the § 3553(a) factors justified a sentence of probation and
believes that the circumstances presented here were
insufficient to sustain such a marked deviation from the
Guidelines range, it is not for the Court of Appeals to
decide de novo whether the justification for a variance is
sufficient or the sentence reasonable.
4 USA V. THOMPSON
COUNSEL
Tania M. Culbertson (argued) and Andrew C. Friedman,
Assistant United States Attorneys; Jessica M. Manca,
Special Assistant United States Attorney; Tessa M. Gorman,
Acting United States Attorney; Office of the United States
Attorney, United States Department of Justice, Seattle,
Washington; for Plaintiff-Appellant.
Ann K. Wagner (argued) and Nancy Tenney, Assistant
Federal Public Defenders; Vicki W.W. Lai, Chief Appellate
Federal Public Defender; Office of the Federal Public
Defender, Seattle, Washington; Mohammad A. Hamoudi,
Stritmatter Kessler Koehler Moore, Seattle, Washington; for
Defendant-Appellee.
Tyler G. Welti, Venable LLP, San Francisco, California;
Matthew D. Field and Harley L. Geiger, Venable LLP,
Washington, D.C.; for Amicus Curiae The Center for
Cybersecurity Policy and Law.
USA V. THOMPSON 5
OPINION
FORREST, Circuit Judge:
Paige Thompson committed the second largest data
breach in United States history at the time, causing tens of
millions of dollars in damage and emotional and reputational
harm to numerous individuals and entities. The district court
correctly calculated Thompson’s sentencing range under the
Federal Sentencing Guidelines (the Guidelines) to be 168 to
210 months of imprisonment. It then granted a roughly 98%
downward variance to time served (approximately 100 days)
and five years of probation. Because the district court made
clearly erroneous findings and did not properly weigh the 18
U.S.C. § 3553(a) sentencing factors, we conclude that the
sentence it imposed is substantively unreasonable, and we
vacate and remand for resentencing.
I. BACKGROUND
A. The Crime
Before the events at issue, Thompson worked as a
Systems Engineer at Amazon Simple Storage Service (S3).
S3 is “an object storage service” offered to businesses by
Amazon Web Services (AWS). Amazon S3, Amazon Web
Servs., https://aws.amazon.com/s3/ [https://perma.cc/L74B-
8GXY] (last visited Dec. 2, 2024). Over two years after her
employment at Amazon ended, Thompson began hacking
AWS customers’ accounts. She used a virtual private
network service and The Onion Router network to
anonymize her activity. Using a programming script, she
scanned millions of publicly available IP addresses
associated with AWS for vulnerabilities in their systems.
6 USA V. THOMPSON
When Thompson found vulnerable accounts, she queried
them for security credentials and saved those credentials on
her computer. The credentials allowed Thompson to
authenticate directly into AWS customers’ cloud-
computing 1 environments. Once inside, if the credentials
permitted, Thompson ran a “sync” command to download
data from customers’ cloud storage. In total, Thompson got
credentials from at least 200 entities and stole data from at
least 30 of them. For example, Thompson obtained Capital
One’s security credentials and downloaded personally
identifying information (PII) of 98 million Americans.
Thompson then compressed and stored the data stolen from
AWS customers on her computer, and she researched
additional storage options. While Thompson did not sell or
distribute any stolen information, she did research ways to
profit from the data, bragged about possessing it, and
encouraged others to hack vulnerable accounts. She also
blamed her breaches on the companies’ inadequate
cybersecurity.
In addition to downloading private data, Thompson used
AWS customers’ computing power to mine
cryptocurrency 2—a cyberattack known as “cryptojacking.”
1
Cloud computing allows customers to “access technology services,
such as computing power, storage, and databases, [over the internet] . . .
from a cloud provider” “[i]nstead of buying, owning, and maintaining
physical data centers and servers.” What is cloud computing?, Amazon
Web Servs., https://aws.amazon.com/what-is-cloud-computing/
[https://perma.cc/XJ7F-ABA8] (last visited Dec. 2, 2024).
2
Cryptocurrency “is the general term for encrypted, decentralized digital
money based on blockchain technology.” Bielski v. Coinbase, Inc., 87
F.4th 1003, 1007 (9th Cir. 2023). Mining cryptocurrency involves a
“puzzle-solving process” in which high-powered computers solve
USA V. THOMPSON 7
Using the stolen security credentials, Thompson created new
virtual servers in customers’ cloud environments. She
deployed cryptocurrency miners inside the virtual servers
and mined cryptocurrency into her own virtual wallet.
Cryptomining is expensive because it requires significant
computer power. AWS customers were billed for the
electricity used by Thompson’s cryptojacking, while
Thompson received the cryptocurrency payments.
Thompson deleted the evidence of her cryptojacking from
the companies’ computer logs.
B. Arrest and Trial
In June 2019, Thompson decided to “dox” 3 herself by
sending unsolicited private Twitter messages about her data
theft to cybersecurity professional Kat Valentine. The
messages included links to the data and threats to distribute
it. Valentine reported the data breach to Capital One. Capital
One confirmed that its customers’ data had been stolen, and
it contacted the FBI. Less than two weeks later, the FBI
searched Thompson’s house and arrested her.
The Government charged Thompson with one count of
wire fraud, seven counts of computer fraud and abuse, one
count of access-device fraud, and one count of aggravated
identity theft. A magistrate judge detained Thompson
pending trial, finding that she “pose[d] a risk of
nonappearance and a risk of physical . . . and financial and
economic danger.” The district judge later placed Thompson
“difficult mathematical puzzle[s]” to win cryptocurrency. E. Ohman J v.
NVIDIA Corp., 81 F.4th 918, 924 (9th Cir. 2023).
3
“Doxing” is the act of revealing a person’s private information online—
often without consent.
8 USA V. THOMPSON
on pretrial release. Thompson spent approximately 100 days
in custody.
Thompson went to trial in June 2022. The jury convicted
her on one count of wire fraud (felony) and six counts of
computer fraud and abuse (four felonies and two
misdemeanors). She remained on release pending
sentencing.
C. Sentencing
Before the sentencing hearing, U.S. Probation and
Pretrial Services (Probation) calculated Thompson’s
Guideline range as 210 to 262 months, but it recommended
a 24-month custody sentence. At the district judge’s request,
Probation outlined a potential alternative sentence of “time
served and 5 years of probation, to include 36 months of
home incarceration.” At the sentencing hearing, the
Government also argued for a substantial downward
variance from the Guidelines calculation to 84-months
custody followed by five years of supervised release. The
Government primarily argued that a prison sentence was
warranted given the seriousness of the crime, Thompson’s
lack of remorse and her violations of her release conditions,4
4
The Government presented evidence that Thompson violated her
release conditions by withdrawing approximately $40,000 of
cryptocurrency from one of her virtual wallets and using computers for
unauthorized purposes and lying about it. Even though Thompson’s
release violations had not previously been presented to the district court,
it was properly considered at sentencing. See 18 U.S.C. § 3661 (“No
limitation shall be placed on the information concerning the background,
character, and conduct of a person convicted of an offense which a court
of the United States may receive and consider for the purpose of
imposing an appropriate sentence.”) cf. Pepper v. United States, 562 U.S.
476, 487–93 (2011) (discussing the evidence that may be considered at
USA V. THOMPSON 9
and general deterrent effect. The Government also addressed
the concerns raised about the treatment of transgender
women in federal prison, noting that there are “just shy of
1,500 transgender inmates in the Bureau of Prisons” (BOP)
and that the BOP has substantially amended its policies and
“will look at all [the] factors about an inmate” before
designating a facility.
Thompson argued for a greater downward variance—
time served and three years of supervised release. Through
counsel, Thompson emphasized the hardships of being
prosecuted and convicted; how her childhood and personal
trauma contributed to her crimes; and her willingness to be
rehabilitated and become a productive member of society.
Defense counsel asserted that prison would be “an unsafe,
unsupportive environment” that would surround Thompson
with “individuals keen on objectifying and marginalizing
her,” and that BOP did not have “the capacity to keep
[Thompson] safe, given her unique vulnerabilities.”
Thompson herself also briefly addressed the court. She
reported that she was recently diagnosed with autism and
that she “would like to be gainfully employed again, and
contribute something meaningful to the world.” The district
court stated that it had expected to receive an acceptance-of-
responsibility letter from Thompson. Thompson’s counsel
explained that Thompson wanted to address the court orally,
sentencing); United States v. Fitch, 659 F.3d 788, 795 (9th Cir. 2011)
(explaining that district courts may consider uncharged and acquitted
conduct at sentencing). The Government discovered Thompson’s
additional cryptocurrency wallet shortly before trial and did not present
evidence about it in its case-in-chief. And Thompson’s pretrial
supervisor declined to file a violation based on Thompson’s
unauthorized computer use because the incident occurred just two weeks
before sentencing.
10 USA V. THOMPSON
and, after the prompting, Thompson stated: “I am very sorry
about this.”
At the outset of the sentencing hearing the district court
noted the significance of this case and gave the sentencing
hearing a theme, stating: “[M]y theme is that, ‘The arc of the
moral universe is long, but it bends towards justice.’” After
commenting at length about his career and the evolution of
the criminal justice system, the district judge calculated
Thompson’s offense level as 35 and her Criminal History
Category as I, resulting in a Guidelines range of 168 to 210
months. Noting that it had considered Thompson’s offenses,
the Guidelines, and the § 3553(a) factors, the court then
imposed the requested alternative sentence offered by
Probation—time-served and five years of probation, with
three of those years being home detention. 5 The court also
ordered Thompson to complete 50 hours of community
service per year while she was on probation. 6
The district court stated that “the question of what is
justice here is a really, really hard question.” It agreed with
the Government that others considering the costs and
benefits of committing crimes like Thompson’s might
decide that “if [they] can get away with credit for time served
of 100 days, with the possibility of making a couple hundred
million dollars . . . to take the chance.” The court also found
that Thompson committed “a terrible crime” but that she did
“not do[] it in [a] malicious manner,” such “as somebody
5
The district court stated that home detention was “more of a location
monitoring than home incarceration, which is a real lockdown kind of
thing.”
6
At a separate hearing, the district court ordered Thompson to pay over
$40 million in restitution and to forfeit money and property associated
with her crimes.
USA V. THOMPSON 11
who gets th[e] information and immediately turns to
monetizing it.” The court further found that Thompson “was
tortured and tormented about what she did” and “was caught
before she did anything bad, or anything good.”
The district court also discussed the treatment of
transgender individuals in federal prison. While it praised
BOP’s policy changes as evidence of “[t]he arc of the moral
universe bend[ing] towards justice,” it voiced concerns
about transgender women who have not had reconstructive
surgery being housed in women’s prisons and the possibility
that BOP policies might change in future presidential
administrations. The court determined that Thompson’s
mental health and trauma provided some explanation for her
behavior, and it observed that Thompson’s case might be
“one of those rare times when a person’s involvement with
the criminal justice system may have actually saved their
life.” The court proclaimed that it did not believe Thompson
would reoffend. Indeed, the district court encouraged
Thompson to take a day of reflection to “think about what
you have to atone for, and what you’ve achieved.” The
Government appeals Thompson’s sentence. 7
II. DISCUSSION
Appellate courts engage in a two-step review of criminal
sentences and must ask: (1) whether the district court
committed a significant procedural error, and (2) whether
the district court imposed a substantively reasonable
sentence. Gall v. United States, 552 U.S. 38, 51 (2007).
Neither party raises a procedural challenge in this case.
7
Thompson appealed first in October 2022, but we granted her motion
to voluntarily dismiss her appeal.
12 USA V. THOMPSON
Regarding the substance of the sentence, district courts
must “consider . . . the [18 U.S.C.] § 3553(a) factors,” United
States v Ressam, 679 F.3d 1069, 1089 (9th Cir. 2012) (en
banc), and “make an individualized determination based on
the facts,” United States v. Carty, 520 F.3d 984, 991 (9th Cir.
2008) (en banc). Section 3553(a) requires district courts to
consider: (1) “the nature and circumstances of the offense”;
(2) the “history and characteristics of the defendant”; (3) the
need for the sentence in light of the seriousness of the
offense, promoting respect for the law, and providing for just
punishment; (4) the need for the sentence to afford adequate
deterrence; (5) the need for the sentence to protect the
public; (6) the need to avoid unwarranted sentencing
disparities; and (7) the prospect for rehabilitation. See
United States v. Autery, 555 F.3d 864, 873–78 (9th Cir.
2009). A sentence is substantively reasonable if it “is
‘sufficient, but not greater than necessary’ to accomplish
§ 3553(a)(2)’s sentencing goals.” Ressam, 679 F.3d at 1089
(quoting United States v. Crowe, 563 F.3d 969, 977 n.16 (9th
Cir. 2009)). “The touchstone of ‘reasonableness’ is whether
the record as a whole reflects rational and meaningful
consideration of the factors enumerated in . . . § 3553(a).”
Id. (quoting United States v. Tomko, 562 F.3d 558, 568 (3d
Cir. 2009) (en banc)).
The substantive reasonableness of a district court’s
sentence is reviewed for abuse of discretion. Id. We must
consider “the totality of the circumstances, including the
extent of any variance from the Guidelines range.” Id.
However, we may not impose a presumption that a sentence
outside the Guidelines range is unreasonable. Gall, 552 U.S.
at 51. “[W]e may reverse if, upon reviewing the record, we
have a definite and firm conviction that the district court
committed a clear error of judgment in the conclusion it
USA V. THOMPSON 13
reached upon weighing the relevant [sentencing] factors.”
Ressam, 679 F.3d at 1087 (quoting United States v.
Amezcua-Vasquez, 567 F.3d 1050, 1055 (9th Cir. 2009)).
The Government argues that the district court
erroneously focused on one sentencing factor—Thompson’s
history and characteristics—to the exclusion of all other
factors. We agree that the district court overemphasized
Thompson’s personal story and committed a clear error of
judgment in its weighing of several of the § 3553(a) factors,
which resulted in a substantively unreasonable sentence. 8
A. Nature, Circumstances, and Seriousness of Offense
District courts must consider “the nature and
circumstances of the offense” during sentencing. 18 U.S.C.
§ 3553(a)(1). Similarly, they must consider “the need for the
sentence imposed . . . to reflect the seriousness of the offense
. . . .” Id. § 3553(a)(2)(A). Here, the district court found that
Thompson committed “a terrible crime.” But it also found
that Thompson (1) did not act “in [a] malicious manner that
you want to punish” her “to the same degree” as someone
who sells stolen data, (2) “was tortured and tormented about
what she did” and reached out for help, and (3) “was caught
before she did anything bad, or anything good.”
As noted, Thompson committed one of the largest data
breaches in American history. She hacked into and stole
dozens of companies’ data, including PII of nearly 100
million Americans just from Capital One. She also used the
companies’ own computing power to mine cryptocurrency,
8
The parties do not fully discuss each § 3553(a) factor. Accordingly, we
limit our discussion to those factors briefed by the parties, and we merge
the factors where the parties do. Of course, on remand, the district court
must consider and appropriately weigh each of the § 3553 factors.
14 USA V. THOMPSON
causing their AWS bills to skyrocket while she kept the
proceeds of her illegal conduct and deleted evidence of her
cryptojacking from her victims’ computer logs. Ultimately,
Thompson caused at least $40 million in damage, and
significant non-monetary harm. Her private communications
demonstrate that she knew her conduct was unlawful and
could result in imprisonment. In fact, Thompson specifically
mused in an online chat, “[H]ow am I not in jail?” She then
blamed AWS customers for failing to adequately “protect[]
their assets,” and she encouraged others to hack vulnerable
accounts.
On this record, the district court’s findings minimizing
the nature, circumstances, and seriousness of Thompson’s
offenses are clearly erroneous. See Ressam, 679 F.3d at
1093–94 (explaining that the district court’s finding that the
defendant was a “quiet, solitary and devout man” was clearly
erroneous where he “had for many years violated the laws of
many nations and led a life dedicated to terrorist causes”).
First, it was clear error for the district court to conclude
that Thompson’s actions were not “malicious.” By her own
words, Thompson specifically targeted AWS customers that
she concluded had inadequate security and she encouraged
others to do the same. She also blamed her victims’
incompetency for her thefts. These actions are the definition
of malicious. E.g., Malice, Merriam-Webster,
https://www.merriam-webster.com/dictionary/malice
[https://perma.cc/2FHH-DBCS] (last visited Dec. 3, 2024)
(defining “malice” as the “desire to cause pain, injury, or
distress to another”).
Second, the district court’s finding that Thompson did
not do anything “bad” before she was caught is clearly
erroneous. While Thompson did not monetize the stolen PII
USA V. THOMPSON 15
for identity theft or other separate crimes, the data breaches
alone were wrong, and the scale of her criminal activity
warrants a serious consequence. Moreover, Thompson’s
suggestion that an ultimate good has come from her crimes
because the companies that she targeted have now improved
their security, falls flat where she could have pointed out the
security flaws that she discovered without stealing private
information or using others’ computing power to mine
cryptocurrency.
Third, the district court’s finding that Thompson was
“tortured and tormented about what she did” is not supported
by the record. Thompson bragged about her crimes,
encouraged others to commit the same offenses, researched
illicit credit card trading forums, and threatened to leak
sensitive information to the public. If Thompson was
distressed about her criminal conduct, she could have
reported her hacking directly to the victim companies or the
FBI—rather than encouraging others to engage in the same
conduct and “doxing” herself on Twitter.
B. Thompson’s History and Characteristics
Section 3553(a)(1) directs district courts to consider “the
history and characteristics of the defendant” when imposing
a sentence. This inquiry is “broad,” Gall, 552 U.S. at 50 n.6,
and contains no express limitation as to what history and
characteristics are relevant. See 18 U.S.C. § 3553(a)(1).
The district court considered that Thompson is
transgender, autistic, and has suffered prior trauma in her
life. Thompson’s personal background and characteristics
are, of course, proper considerations at sentencing, but they
may not be the sole basis for the chosen sentence. See Gall,
552 U.S. at 49–50 ([T]he district judge should . . . consider
all of the § 3553(a) factors . . . .” (emphasis added)); see also
16 USA V. THOMPSON
United States v. Fitzpatrick, 126 F.4th 348, 353 (4th Cir.
2025) (vacating as substantively unreasonable a 17-day time
served custody term in a significant PII fraud and child
pornography case where the district court “relied only on
[the defendant’s] history and personal characteristics—his
autism and youth”). And the district court also speculated
that recent BOP policy changes about housing transgender
inmates may be undone by a future presidential
administration. Such speculation regarding BOP policy is
improper, especially when it apparently carried the weight it
did in this sentencing. See United States v. Ceasar, 10 F.4th
66, 80, 82 (2d Cir. 2021) (determining that the district court
erred by imposing a remarkably low sentence which was
heavily influenced by “the potential creation of then-
untested rehabilitation programs—which may never come
into existence”). 9
C. Deterrence
District courts must consider the need for adequate
deterrence and the need to protect the public from future
crimes of the defendant when fashioning a criminal
sentence. 18 U.S.C. § 3553(a)(2)(B), (C). The former is
aimed at general deterrence in the population, while the latter
is aimed at specific deterrence of the defendant. United
States v. Edwards, 595 F.3d 1004, 1021 (9th Cir. 2010) (Bea,
J., concurring in part) (citing United States v. Martin, 455
F.3d 1227, 1240 (11th Cir. 2006)).
9
The BOP has since changed its policies regarding the incarceration of
transgender persons. See Exec. Order No. 14,168, § 4, 90 Fed. Reg.
8615, 8616–17 (Jan. 30, 2025). The district court may consider this non-
hypothetical policy on remand, but, consistent with this opinion, it may
not do so at the expense of a proper weighing of all the § 3553(a) factors.
USA V. THOMPSON 17
At sentencing, the Government explained that
Thompson’s case garnered considerable media attention and
a significant prison sentence was necessary to deter future
hackers. The district court agreed that “there are some people
out there who are looking at the cost-benefit analysis and
saying . . . if I can get away with credit for time served of
100 days, with the possibility of making a couple hundred
million dollars with this, I’m going to take the chance.”
As the district court explained, hacking is “not . . . a
crime of passion that [just] happens.” Fraud crimes like those
at issue here typically are calculated, and, as a result, are
particularly amenable to general deterrence. See Edwards,
595 F.3d at 1016 (noting “the increased importance of
general deterrence in white collar crime cases”). But, while
the district court acknowledged the Government’s argument
that a low sentence would incentivize similar crimes, it does
not appear that it gave this factor meaningful weight in
selecting the sentence that it imposed. This was a clear error
of judgment. Cf. Carty, 520 F.3d at 992–93 (noting that
while district courts “need not tick off each of the § 3553(a)
factors,” nor “articulate in a vacuum how each § 3553(a)
factor influences its determination of an appropriate
sentence,” district courts should offer an explanation about
their weighing of a given factor in response to a nonfrivolous
argument); Fitzpatrick, 126 F.4th at 353–54 (noting the
district court’s failure “to account for the need for its
sentence to promote respect for the law” or to “consider[]
how its sentence would deter others from committing such
crimes” in reversing for substantive unreasonableness).
While the dissent is correct that probation does
“substantially restrict” offenders’ liberty, Gall, 552 U.S. at
48, and neither our precedent nor § 3553(a) imposes a
categorical rule that “the goal of general deterrence be met
18 USA V. THOMPSON
through a period of incarceration,” Edwards, 595 F.3d at
1016, a purely probationary sentence in this case does not
meet the deterrence goal in sentencing. The scale and
potential monetary return of Thompson’s crimes are a
significant factor in assessing deterrence. As is that the
offenses at issue can be committed from a person’s home and
are generally committed by people skilled in how to use
computers without detection. In this context, it is
unconvincing that a person inclined and having the skills to
commit the scale of hacking and computer fraud at issue here
would be meaningfully deterred by the risk of probation or
home confinement.
As for specific deterrence, the district court explained
that Thompson had evolved over the course of her case and
that it was confident she would not reoffend. While district
courts generally are better positioned to assess a defendant’s
risk of recidivism, see Ressam, 679 F.3d at 1086, the record
here reveals that the district court may not have considered
all the information relevant to this point. At sentencing, the
Government presented evidence that, while awaiting trial,
Thompson withdrew for her own purposes approximately
$40,000 that she cryptojacked that could have been used to
compensate victims and that, after she was found guilty and
was awaiting sentencing, she used her computer for
unauthorized purposes and lied about it. The district court
did not address this evidence or the Government’s
arguments, nor did it make any findings regarding these
incidents. See Ceasar, 10 F.4th at 83 (questioning the district
court’s assessment of the defendant’s risk of recidivism
where the court failed to discuss that the defendant “had
already exhibited recidivist behavior while on release”);
Fitzpatrick, 126 F.4th at 354 (vacating the district court’s
sentence where the district court “seemingly failed to
USA V. THOMPSON 19
consider that [the defendant] immediately and continuously
violated the conditions of his presentence release”). The
failure to consider this highly relevant evidence to
Thompson’s risk of recidivism was an abuse of discretion.
D. Unwarranted Sentence Disparities
When imposing sentence, district courts must consider
“the need to avoid unwarranted sentence disparities among
defendants with similar records who have been found guilty
of similar conduct.” 18 U.S.C. § 3553(a)(6). The goal of the
Guidelines was to “achieve uniformity in sentencing.”
United States v. Banuelos-Rodriguez, 215 F.3d 969, 974 (9th
Cir. 2000). Therefore, “in the ordinary case, the
[Guidelines’] recommendation of a sentencing range ‘will
reflect a rough approximation of sentences that might
achieve § 3553(a)’s objectives.’” Kimbrough v. United
States, 552 U.S. 85, 109 (2007) (quoting Rita v. United
States, 551 U.S. 338, 350 (2007)). We have noted that a
significant variance from the Guidelines must be supported
by a correspondingly persuasive justification “because other
values reflected in § 3553(a)—such as, for example,
unwarranted disparity—may figure more heavily in the
balance.” Carty, 520 F.3d at 992. Likewise, the extent of
variance impacts how much explanation the district court
must provide in support of its sentencing choice. See id. (“A
within-Guidelines sentence ordinarily needs little
explanation . . . . But the judge must explain why he imposes
a sentence outside the Guidelines.”).
Here, the district court acknowledged that the Guidelines
help avoid sentencing disparities. But beyond that general
recognition, nothing in the record indicates that in choosing
the sentence that it imposed, the district court weighed the
risk of unwarranted disparity in making its decisions. And
20 USA V. THOMPSON
the Government has presented compelling data showing that
the sentence imposed in this case is a notable outlier. In
2022, when Thompson was sentenced, there were 5,208
federal theft, property destruction, and fraud offenses—
cases like Thompson’s in which the defendant was sentenced
under U.S. Sentencing Guidelines § 2B1.1. Quick Facts:
Theft, Property Destruction, and Fraud Offenses, U.S.
Sent’g Comm’n,
https://www.ussc.gov/sites/default/files/pdf/research-and-
publications/quick-
facts/Theft_Property_Destruction_Fraud_FY22.pdf
[https://perma.cc/U3QG-L8HW] (last visited Dec. 3, 2024).
The median loss in these cases was $160,737; only 17.5% of
cases involved losses exceeding $1.5 million. Id. Seventy
percent of offenders had a Criminal History Category of I,
and “[t]he average guideline minimum was 32 months.” Id.
Of the offenders that received a downward variance, the
average reduction was 57.7%. Id. And “[t]he average
sentence length was 23 months.” Id.
Thompson caused greater financial loss than 80% of
defendants in these types of cases, and her minimum
Guidelines range was five times greater than the average
low-end range. Nonetheless, the district court varied so far
downward that Thompson received 20 months less than the
average sentence length. We cannot ignore the magnitude of
disparity between Thompson’s sentence and the sentences
imposed in these other cases.
Thompson did not respond to the Government’s
unwarranted-disparity argument or to the data that the
Government presented. But the dissent does significant work
for her. The dissent argues that it is improper for us to
consider the Government’s disparity data because it was not
presented to the district court. Indeed, the dissent suggests
USA V. THOMPSON 21
that we should not consider whether the district court
adequately weighed the risk of unwarranted sentencing
disparity at all because the Government failed to make a
specific argument about this issue below.
As an initial matter, the Government did argue to the
district court in making its own below-Guidelines
recommendation that “[e]ven though some amount of
downward variance is justified based on Thompson’s history
and characteristics, . . . too much consideration loses sight of
the seriousness of her crimes, reduces any deterrent effect,
and creates unwarranted disparity.” Moreover, our general
waiver rule operates differently in substantive-
reasonableness challenges. The requirement that a sentence
be substantively reasonable “is applicable in all sentencing
decisions and is not affected by failure to object.” United
States v. Blinkinsop, 606 F.3d 1110, 1116 (9th Cir. 2010)
(citing Autery, 555 F.3d at 871). Indeed, after the district
court announced its sentence in Blinkinsop, it asked the
parties “if they had any statements that they wanted placed
on the record” challenging the court’s sentence, and neither
party objected to the sentence. Id. at 1113. Nonetheless, the
defendant appealed his sentence as unreasonable, and we
considered his challenge. There is logic to not rigidly
imposing waiver in this context because it can be difficult to
challenge something as unreasonable before it happens. And
this flexibility runs both ways, to the Government and also
to defendants. Additionally, in performing our obligation to
ensure a defendant’s sentence is substantively reasonable,
we must “take into account the totality of the circumstances,
including the extent of any variance from the Guidelines
range.” Gall, 552 U.S. at 51.
The dissent contends that it was not an abuse of
discretion for the district court not to consider data that was
22 USA V. THOMPSON
not presented to it. We do not suggest that the failure to
consider the specific data that the Government has presented
was an abuse of discretion. Rather, the district court abused
its discretion by failing to meaningfully weigh the
sentencing disparity that its chosen sentence created, and we
reference the statistics proffered by the Government on
appeal—to which Thompson herself does not object—to
illustrate the concern.
The risk of unwarranted disparity was obvious here
because the district court varied so significantly from the
Guidelines, which, as the district court discussed at the
sentencing hearing, work to remove disparity. See Gall, 552
U.S. at 594; Banuelos-Rodriguez, 215 F.3d at 974. The
district court did not need a specific argument to know this
risk existed or that it was obligated to justify its extreme
variance. To be clear, district courts need not in every case
compare its sentence to every other similarly situated federal
defendant. See United States v. Treadwell, 593 F.3d 990,
1012 (9th Cir. 2010) (“A district court need not, and, as a
practical matter, cannot compare a proposed sentence to the
sentence of every criminal defendant who has ever been
sentenced before. Too many factors dictate the exercise of
sound sentencing discretion in a particular case . . . .”). But
it is well established that where the sentence imposed varies
significantly from the Guidelines, a resulting sentencing
disparity must be justified by the particularities of the case
in light of the other § 3553(a) factors. See Gall, 552 U.S. at
50 (“We find it uncontroversial that a major departure should
be supported by a more significant justification than a minor
one.”); Autery, 555 F.3d at 867, 876 (holding that sentencing
disparity and downward variance were warranted where the
record demonstrated that the district judge had expressly
considered the defendant’s dissimilarity from other
USA V. THOMPSON 23
defendants convicted of similar crimes); see also Fitzpatrick,
126 F.4th at 353–54 (vacating where district court imposed
99% downward variance but did “not appear to have
considered how such an extreme variance might contribute
to unwarranted sentencing disparities”).
The district court plainly viewed Thompson as unique
because of her personal vulnerabilities and because she did
not sell the data that she stole. But given the district court’s
unsupported findings on some of the relevant facts, we
conclude that the district court’s explanation for the sentence
it imposed is inadequate to justify the resulting disparity
from other similar cases and defendants, which is a weighty
consideration given the extent of the district court’s
variance.
*****
We do not lightly conclude that a district court’s
sentence is substantively unreasonable. E.g., Ressam, 679
F.3d at 1086 (“It is clear that we are to afford significant
deference to a district court’s sentencing decision.”). District
courts enjoy significant discretion in bringing their
individual judgment to bear in crafting criminal sentences.
But the court’s handling of the sentencing in this case is
troubling and leaves us with “a definite and firm conviction
that [it] committed a clear error of judgment in the
conclusion it reached.” Id. at 1087 (quoting Amezcua-
Vasquez, 567 F.3d at 1055).
The scope of Paige Thompson’s data breaches is
virtually unprecedented, and the degree of financial harm
that she caused is what led to a Guidelines calculation of 168
to 210 months of imprisonment. At sentencing, the district
court was seemingly as influenced by its perceptions about
the evolution of the criminal-justice system as it was with
24 USA V. THOMPSON
the specific facts about Thompson and her crimes. The
district court’s findings regarding Thompson’s mindset in
committing her crimes, the harmfulness of her conduct, and
her likelihood of recidivism cannot be justified on the record.
And while the district court acknowledged the § 3553(a)
factors, it did not meaningfully weigh them. Simply put,
Thompson’s personal vulnerabilities do not outweigh all the
other sentencing considerations or displace the district
court’s obligation to select a sentence that serves the federal
sentencing goals, including properly reflecting the
seriousness of the offense, promoting respect for the law,
imposing just punishment, deterring similar criminal
conduct, and protecting the public against future criminal
conduct of the defendant. 18 U.S.C. § 3553(a)(2).
SENTENCE VACATED; REMANDED FOR
RESENTENCING.
USA V. THOMPSON 25
SUNG, Circuit Judge, dissenting:
The district court found that Paige Thompson committed
a “terrible crime,” and it recognized that fashioning an
appropriate sentence was a “very difficult and challenging”
task. All parties recommended a below Guidelines sentence:
the Government recommended an 84-month prison
sentence, the defense requested a sentence of time served,
followed by three years of supervised release, and Probation
recommended a 24-month prison sentence. However, “given
the extenuating circumstances in this case,” Probation also
presented the district court with an alternative
recommendation of five years of probation, including 36
months of home incarceration. 1 After considering the
arguments of the parties, the record before it, and the factors
enumerated in 18 U.S.C. § 3553(a), the district court adopted
Probation’s alternative recommendation.
We review the substantive reasonableness of a sentence
for abuse of discretion. United States v. Autery, 555 F.3d
864, 871 (9th Cir. 2009). We “must first ensure that the
district court committed no significant procedural error, such
as…failing to consider the § 3553(a) factors, selecting a
sentence based on clearly erroneous facts, or failing to
1
The majority states that Probation provided the alternative sentence at
the request of the district judge. I do not think the record is clear on this
point. Probation wrote in the PSIR that while “[i]t is not generally our
department’s practice to provide an alternative sentencing
recommendation…it appears appropriate to offer an additional option.”
Referencing this alternative, the district court stated at sentencing that
the probation officer “did do me the favor of coming up with a potential
alternative approach. And that’s the one that I’m going to take.” The
PSIR does not state that it provided the alternative in response to a
request from the district court.
26 USA V. THOMPSON
adequately explain the chosen sentence.” Gall v. United
States, 552 U.S. 38, 51 (2007). “Assuming that the district
court’s sentencing decision is procedurally sound, [we] then
consider the substantive reasonableness of the sentence
imposed under an abuse-of-discretion standard.” Id. “We
give due deference to the district court because the
sentencing judge is in a superior position to find facts and
judge their import under § 3553(a) in the individual case.”
United States v. Edwards, 595 F.3d 1004, 1015 (9th Cir.
2010) (cleaned up). “Reversal is appropriate only if the
district court’s sentence is illogical, implausible, or without
support in inferences that may be drawn from the facts in the
record.” United States v. Spangle, 626 F.3d 488, 498 (9th
Cir. 2010) (cleaned up).
Applying the framework set forth by the Supreme Court
in Gall, I find no abuse of discretion in the district court’s
decision. The Government does not claim that the district
court procedurally erred and raises only a substantive
reasonableness challenge. Review for substantive
reasonableness “requires deference to the district court’s
decision, and should not resemble a de novo review.” United
States v. Cherer, 513 F.3d 1150, 1159-60 (9th Cir. 2008).
“[I]f the sentence is outside the Guidelines range, the court
may not apply a presumption of unreasonableness…The fact
that the appellate court might reasonably have concluded
that a different sentence was appropriate is insufficient to
justify reversal of the district court.” Gall, 552 U.S. at 51.
Because the majority does not faithfully apply the abuse of
discretion standard to the district court’s sentence, I
respectfully dissent.
USA V. THOMPSON 27
I. The district court’s sentence was substantively
reasonable.
The majority begins by stating that the district court
“granted a roughly 98% downward variance,” a
“characterization[] that directly flout[s] the Supreme Court’s
instruction that courts should not quantify variances from the
Guidelines ‘as a certain percentage of the maximum,
minimum, or median prison sentence recommended by the
[g]uidelines.’” United States v. Ruff, 535 F.3d 999, 1003-04
(9th Cir. 2008) (quoting Gall, 552 U.S. at 48). This
framework is improper because it “gives no weight to the
substantial restriction of freedom involved in a term of
supervised release or probation.” Gall, 552 U.S. at 48.
Instead, we must examine whether the full record reflects a
rational and meaningful consideration of the relevant
§ 3553(a) factors. See United States v. Ressam, 679 F.3d
1069, 1089 (9th Cir. 2012) (en banc) (describing the
“touchstone of reasonableness” as “whether the record as a
whole reflects rational and meaningful consideration of the
factors enumerated in . . . § 3553(a)”) (internal citation and
quotation marks omitted). Here, the record shows that the
district court rationally and meaningfully considered each
relevant § 3553(a) factor.
A. Nature and Circumstances of the Offense
The majority claims that the district court “clearly erred”
in three respects when it analyzed the nature and
circumstances of Thompson’s offense. I address each
purported error in turn.
The majority first finds that it was “clear error for the
district court to conclude that Thompson’s actions were not
‘malicious.’” Majority Opinion at 14. As a factual matter,
the district court did not make this finding. Rather, the court
28 USA V. THOMPSON
found that Thompson had not acted “in the malicious manner
that you want to punish, to the same degree as somebody
who gets that information and immediately turns to
monetizing it in some way.” This finding was not clear error.
To the contrary, it is fully consistent with the Government’s
sentencing memorandum, which conceded that Thompson,
unlike a person with “purely malicious motives,” should
receive “[a] significant downward departure . . . to
recognize that [she] could have caused even more harm than
she did.”
Next, the majority concludes that “the district court’s
finding that Thompson did not do anything ‘bad’ before she
was caught is clearly erroneous.” Majority Opinion at 14.
This again misconstrues the sentencing transcript. The
district court plainly did not find that Thompson “did not do
anything bad before she was caught”—it expressly found
that her crime was “terrible.” The language cited by the
majority, read in context, refers to the fact that Thompson
“was caught before she did anything bad, or anything good”
with the data she stole. The majority acknowledges that
while Thompson researched how she could profit from the
stolen data, she did not sell or distribute any of it prior to her
arrest. On this record, the district court’s finding that
Thompson “was caught before she did anything bad, or
anything good” was not clearly erroneous.
Finally, the majority claims that “the district court’s
finding that Thompson was ‘tortured and tormented about
what she did’ is not supported by the record.” Majority
Opinion at 15. While the record includes statements by
Thompson boasting about her data theft and threatening to
disseminate sensitive information, the record also supports
the district court’s finding that she felt “tortured and
tormented” about her actions. For example, when security
USA V. THOMPSON 29
researcher Kat Valentine asked Thompson why she was
sending information about her data theft to a stranger, she
replied, “Im ready to check the f*** out . . . I dont care if its
jail or death. Prefer to die, and something to make it easy.”
She described her state of mind to Valentine as feeling as if
she had “basically strapped myself with a bomb vest,
f***ing dropping capitol ones dox and admitting it.” After
the data theft, Thompson wrote that she had “gone
completely insane. theyre gonna lock me up and throw away
the key. it really is for the best.” The district court, which
saw the evidence presented at trial, “was intimately familiar
with the nature of the crime and the defendant’s role in it,
and “could appraise [the defendant’s] sincerity first-hand, as
we cannot.” United States v. Whitehead, 532 F.3d 991, 993
(9th Cir. 2008). The record adequately supports the district
court’s finding that Thompson was “tortured and tormented”
by her actions.
The district court never found that Thompson’s actions
were not malicious, never found that she did not do anything
bad, and permissibly found that she was tortured and
tormented by her actions. I respectfully disagree with the
majority’s conclusion that the district court’s findings about
the nature and circumstances of Thompson’s offense were
clearly erroneous.
B. Thompson’s History and Characteristics
The majority next faults the district court for purportedly
placing too much weight on the possibility that Bureau of
Prisons housing policies for transgender inmates “may be
undone by a future presidential administration.” The
majority relies on inapposite, out of circuit caselaw to reach
this conclusion, which is not supported by statute, Supreme
Court precedent, or the law of this circuit.
30 USA V. THOMPSON
The parties agree, and the majority does not dispute, that
the fact that Thompson is a transgender woman is a relevant
characteristic that the court must consider under
§ 3553(a)(1). The court must also consider “the need for the
sentence imposed . . . to provide the defendant with
needed . . . medical care” under § 3553(a)(2)(D). The
defense argued that Thompson’s medical and mental health
needs as a transgender woman could not be adequately
addressed by the Bureau of Prisons, particularly if she were
to be placed in a facility designated for men. The
Government conceded that “Thompson faces significant
challenges and risks as a transgender woman in prison” and
agreed that “[i]t is appropriate for the Court to consider those
circumstances when imposing a sentence, just as it would
consider any other person’s medical or psychological
prognosis in a prison setting.” As evidence that Thompson’s
needs could be adequately addressed, the Government cited
a 2022 Bureau of Prisons policy change that established a
Transgender Executive Council and standardized policies
and practices to improve conditions for transgender
inmates. 2
The district court made two findings with respect to the
fact that Thompson is transgender. First, the district court
found that “the time that a transgender person serves in
prison is going to be difficult, for sure, under any
circumstances.” A district court’s finding that a defendant is
“particularly likely to be [a target] of abuse during their
incarceration” is “just the sort of determination that must be
accorded deference by the appellate courts.” Koon v. United
2
As the majority acknowledges, some of these policies are no longer in
effect. See Majority Opinion at 16, fn. 9. (“The BOP has since changed
its policies regarding the incarceration of transgender persons.”).
USA V. THOMPSON 31
States, 518 U.S. 81, 111 (1996). See also United States v.
Parish, 308 F.3d 1025, 1031 (9th Cir. 2002) (“A defendant’s
unusual susceptibility to abuse by other inmates while in
prison may warrant a downward departure.”).
Second, the district court observed that the BOP policy
cited by the Government could be subject to change. But far
from carry significant weight at sentencing, as the majority
claims, the district court ultimately concluded that “[w]e just
don’t know” what would happen in the future, and
emphasized that “dealing with Paige Thompson, what she
did, who she is, is the dilemma before the court today.” The
court properly considered Thompson’s history and
characteristics at sentencing.
C. Deterrence
Next, the majority contends that the district court failed
to give sufficient weight to the need for general and specific
deterrence. At the sentencing hearing, the Government told
the court that a Guidelines sentence was “not necessary for
deterrence” and only conclusorily asserted that Probation’s
recommendation would not have a deterrent effect. The
district court expressly considered the need for deterrence
and acknowledged the possibility that someone could
“[look] at the cost-benefit analysis” and commit a similar
crime if they thought they could “get away with credit for
time served of 100 days.” As required, however, the district
court considered deterrence together with all of the
sentencing factors, noting that there were valid arguments
both for and against a prison sentence and explaining that the
case was a ‘tough one.’” After weighing all of the factors,
the district court ultimately concluded that Probation’s
alternative was sufficient and appropriate.
32 USA V. THOMPSON
The majority asserts that the sentence imposed was
insufficient because, in its view, a person skilled in the use
of computers would not be deterred. This assertion is not
supported by the law or the factual record. Under our
precedent, § 3553(a) “does not require the goal of general
deterrence be met through a period of incarceration.”
Edwards, 595 F.3d at 1016. While “custodial sentences are
qualitatively more severe than probationary sentences of
equivalent terms,” “[o]ffenders on probation are nonetheless
subject to several standard conditions that substantially
restrict their liberty.” Gall, 552 U.S. at 48. Here, Probation
proposed the alternative sentence that the district court
ultimately adopted because “[a] probationary sentence,
unlike supervised release, can be retributive in nature and
utilized to satisfy the punitive purpose of sentencing.”
Further, when the majority concludes that Thompson’s
sentence does not meet the deterrence goal of sentencing, the
majority focuses solely on the lack of incarceration—
without accounting for the deterrent effects of the sentence’s
other terms. The sentence imposed a total of twenty-six
conditions, including ongoing monitoring and inspection of
Thompson’s computers, hardware, software, and Wi-Fi
connections, the installation of monitoring software,
quarterly polygraph testing, extensive financial disclosures
to Probation, and location monitoring with radio frequency
technology for three years. These are substantial restrictions
on Thompson’s liberty, imposed with the possibility of
further incarceration if she fails to comply. Additionally,
while sentencing Thompson, the district court noted that it
would schedule a restitution hearing, and it ultimately
ordered Thompson to pay over $40 million in restitution to
Capitol One. See Paroline v. United States, 572 U.S. 434,
456 (2014) (“The primary goal of restitution is remedial or
USA V. THOMPSON 33
compensatory, but it also serves punitive purposes.”)
(internal citations omitted). The district court properly
“considered, weighed and factored into its sentence the
important goal of deterrence.” Edwards, 595 F.3d at 1017.
The majority also contends that the district court’s
sentence is insufficient to specifically deter Thompson.
Applying an abuse of discretion standard, the district court’s
sentence is supported by the record. The Government argued
that Thompson’s cryptojacking and violation of pretrial
release conditions “go to and suggest that her history and
characteristics are significant, and suggest a significant
sentence.” The defense argued that Thompson “poses a low
risk of recidivism” due to her significant support system in
the community. The PSIR emphasized Thompson’s overall
“compliance and stability on pretrial supervision,” and stated
that “finding interesting, challenging, and rewarding
employment is a crucial piece in deterring Ms. Thompson
from returning to illegal conduct.” The district court heard
these arguments and fashioned a sentence that, in its
considered view, would specifically deter Thompson,
allowing her to seek meaningful employment while also
facing serious consequences for probation noncompliance.
While the majority may disagree with the sentence imposed
as a policy matter, the district court did not err as a matter of
law.
D. Unwarranted Sentencing Disparities
Finally, the majority finds that the district court erred by
failing to consider sentences for similar crimes or similar
defendants. The Government never developed any argument
about unwarranted sentencing disparities before the district
court—it offered only one conclusory and boilerplate
statement that “too much consideration” of Thompson’s
34 USA V. THOMPSON
personal circumstances “creates unwarranted sentencing
disparity.” The majority nevertheless finds that the district
court abused its discretion by “failing to meaningfully weigh
the sentencing disparity that its chosen sentence created.”
Majority Opinion at 22. To “illustrate the concern,” the
majority cites a “Quick Facts” sheet issued by the United
States Sentencing Commission and cited by the Government
for the first time on appeal. But the Government never
presented these statistics to the district court, either in its
sentencing memorandum or at the sentencing hearing. 3
Despite the Government’s silence below, the majority finds
that the district court abused its discretion because “nothing
in the record indicates that in choosing the sentence that it
imposed, the district court weighed the risk of unwarranted
disparity in making its decisions.” Majority Opinion at 19.
This is inconsistent with Supreme Court precedent, which
compels the opposite conclusion: the district court
“necessarily gave significant weight and consideration to the
need to avoid unwarranted disparities” because it “correctly
calculated and carefully reviewed the Guidelines range.” See
Gall, 552 U.S. at 54 (holding that the appellate court erred
3
This was not for lack of opportunity. Probation proposed the sentence
that was ultimately adopted by the district court in the PSIR, which the
Government reviewed prior to sentencing. The Government had notice
of Probation’s recommendation (as well as the recommendation of the
defense) but chose not to offer any substantive argument about whether
and to what extent these recommendations would result in sentencing
disparities. The majority’s expansive interpretation of waiver allows a
party to profit from its lack of preparedness: it can offer no argument
about disparity to the district court, research average sentences for
comparable defendants after the sentencing hearing, and then claim on
appeal that the district court abused its discretion by inadequately
grappling with the disparity issue. Contrary to the majority’s claim, there
is no “logic” to this. Majority Opinion at 21.
USA V. THOMPSON 35
when it “stated that ‘the record does not show that the district
court considered whether a sentence of probation would
result in unwarranted disparities’”). The district court did not
abuse its discretion by not considering evidence and
argument that was never presented to it. See Gall, 552 U.S.
at 53-54; United States v. Carty, 520 F.3d 984, 991 (9th Cir.
2008) (en banc) (“the district judge is not obliged to raise
every possibly relevant issue sua sponte”). 4
The majority effectively faults the district court for not
expressly discussing the disparity issue. That approach
contravenes well-established principles of sentencing law.
Procedurally, “[t]he district court “need not tick off each of
4
The majority argues that a party can present a cursory and boilerplate
argument about a § 3553(a) factor to the district court, then argue on
appeal that the district court’s sentence was substantively unreasonable
because it did not reflect adequate consideration of that factor. The cases
it cites undermine this novel argument. In Autery, the issue was whether,
when a defendant does not object to overall substantive reasonableness
before the district court, we review for abuse of discretion or plain error,
and we held that we review for abuse of discretion. Autery, 555 F.3d at
871. We did not address the question presented here, which is whether a
district court abuses its discretion by not considering evidence of
sentencing disparity that was never presented to it. In United States v.
Blinkinsop, 606 F.3d 1110, 1116 (9th Cir. 2010), we merely reiterated
the rule that “[s]ubstantive reasonableness of a sentence, reviewed for
abuse of discretion, is applicable in all sentencing decisions and is not
affected by failure to object.” We adopted this rule in Autery because “in
a substantive reasonableness challenge, the parties have already fully
argued the relevant issues (usually both in their briefs and in open
court), and the court is already apprised of the parties’ positions and what
sentences the parties believe are appropriate.” Autery, 555 F.3d at 871
(emphasis added). But in this case, the Government never developed an
argument about unwarranted sentencing disparities before the district
court. Neither Autery nor Blinkinsop suggests that a district court abuses
its discretion by not considering a sentencing argument developed for the
first time on appeal.
36 USA V. THOMPSON
the § 3553(a) factors to show that it has considered them. We
assume that district judges know the law and understand
their obligation to consider all of the § 3553(a) factors, not
just the Guidelines.” Carty, 520 F.3d at 992. If a “party raises
a specific, nonfrivolous argument tethered to a relevant
§ 3553(a) factor in support of a requested sentence, then the
judge should normally explain why he accepts or rejects the
party’s position.” Id. at 992-93. But when a party does not
specifically raise an issue, the district court does not err by
not discussing it, and here, the Government does not claim
that there was any procedural error. See id. at 991; Gall, 552
U.S. at 53-54. Indeed, in Gall, the Supreme Court held that
the circuit court erred when it concluded that the district
court did not adequately weigh the seriousness of an offense
involving ecstasy because “the prosecutor did not raise
ecstasy’s effects at the sentencing hearing.” Id. at 54. The
Court explained that “[h]ad the prosecutor raised the issue,
specific discussion of the point might have been in order, but
it was not incumbent on the District Judge to raise every
conceivably relevant issue on his own initiative.” Id. Here,
as in Gall, the Government failed to make a specific
argument about sentencing disparities to the district court,
and the majority errs by faulting the district court for not
expressly addressing the issue.
II. Conclusion
The majority may be “certain” that it “would have
imposed a different sentence had [it] worn the district
judge’s robe,” but we may not “reverse on that basis.”
Whitehead, 532 F.3d at 993. See also United States v. Door,
996 F.3d 606, 623 (9th Cir. 2021) (276-month, above-
Guidelines sentence not substantively unreasonable); United
States v. Doe, 842 F.3d 1117, 1123 (9th Cir. 2016) (78-
month, above-Guidelines sentence not substantively
USA V. THOMPSON 37
unreasonable); United States v. Burgos-Ortega, 777 F.3d
1047, 1057 (9th Cir. 2015) (46-month, above-Guidelines
sentence not substantively unreasonable); United States v.
Rangel, 697 F.3d 795, 806 (9th Cir. 2012) (264-month,
above-Guidelines sentence not substantively unreasonable);
United States v. Burgum, 633 F.3d 810, 814 (9th Cir. 2011)
(180-month, above-Guidelines sentence not substantively
unreasonable); United States v. Lichtenberg, 631 F.3d 1021,
1027 (9th Cir. 2011) (112-month, above-Guidelines
sentence not substantively unreasonable); United States v.
Fitch, 659 F.3d 788, 798-99 (9th Cir. 2011) (262-month,
above-Guidelines sentence not substantively unreasonable);
United States v. Ellis, 641 F.3d 411, 422-23 (9th Cir. 2011)
(151-month, above-Guidelines sentence not substantively
unreasonable); Spangle, 626 F.3d at 488 (24-month, above-
Guidelines sentence not substantively unreasonable); United
States v. Hilgers, 560 F.3d 944, 948 (9th Cir. 2009) (60-
month, above-Guidelines sentence not substantively
unreasonable).
While the majority “clearly disagree[s] with the District
Judge's conclusion that consideration of
the § 3553(a) factors justified a sentence of probation” and
“believe[s] that the circumstances presented here were
insufficient to sustain such a marked deviation from the
Guidelines range,” “it is not for the Court of Appeals to
decide de novo whether the justification for a variance is
sufficient or the sentence reasonable.” Gall, 552 U.S. at 59.
Because the district court’s sentence was substantively
reasonable under an abuse of discretion standard, I
respectfully dissent.
Plain English Summary
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT UNITED STATES OF AMERICA, No.
Key Points
01FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT UNITED STATES OF AMERICA, No.
02OPINION Appeal from the United States District Court for the Western District of Washington Robert S.
03Lasnik, District Judge, Presiding Argued and Submitted June 5, 2024 Portland, Oregon Filed March 17, 2025 Before: Johnnie B.
04THOMPSON SUMMARY * Criminal Law The panel vacated Paige Thompson’s sentence and remanded for resentencing in a case in which Thompson committed the second largest data breach in the United States at the time, causing tens of millions of dol
Frequently Asked Questions
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT UNITED STATES OF AMERICA, No.
FlawCheck shows no negative treatment for United States v. Paige Thompson in the current circuit citation data.
This case was decided on March 17, 2025.
Use the citation No. 10357172 and verify it against the official reporter before filing.