Carlos Cardenas-Ramirez was convicted of conspiracy but acquitted of possession charges based on the same underlying events. The district court considered the acquitted conduct during sentencing, prompting Cardenas-Ramirez to petition for rehearing en banc challenging this practice.

Chief Judge Jennifer Walker Elrod, writing for the panel, acknowledged the constitutional concerns but emphasized the court's binding precedent. "However, we remain bound by precedent, namely United States v. Watts, which dictates that 'a sentencing court may consider conduct of which a defendant has been acquitted,'" Elrod wrote, noting that as an "inferior court," the Fifth Circuit cannot provide the relief sought even in en banc review.

The case originated in the Southern District of Texas, where Cardenas-Ramirez was sentenced after his conviction. The defendant initially appealed his sentence, and the panel affirmed in February 2026 before denying the rehearing petition in March.

The court suggested the Supreme Court may eventually address acquitted-conduct sentencing in an appropriate case, noting that recent Sentencing Guidelines amendments in 2024 restricted but did not eliminate the practice. "One day, the proper court may reconsider acquitted-conduct sentencing and the issues it raises in the right case," Elrod concluded. "This is not that day, not that court, and not that case."