United States v. Rico Dixon
CourtCourt of Appeals for the Eighth Circuit
Date FiledNovember 4, 2026
Docket25-1672
StatusPublished
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Full Opinion
United States Court of Appeals
For the Eighth Circuit
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No. 25-1672
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United States of America
lllllllllllllllllllllPlaintiff - Appellee
v.
Rico Cordell Dixon
lllllllllllllllllllllDefendant - Appellant
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Appeal from United States District Court
for the Southern District of Iowa - Central
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Submitted: January 16, 2026
Filed: November 4, 2026
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Before LOKEN, GRUENDER, and GRASZ, Circuit Judges.
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LOKEN, Circuit Judge.
After trial, a jury found Rico Cordell Dixon guilty of conspiracy to distribute
methamphetamine and two counts of possession with intent to distribute
methamphetamine. The jury also found him not guilty of a third count of possession
with intent to distribute methamphetamine, possession of a firearm in furtherance of
a drug trafficking crime, and being a felon in possession of a firearm. By special
interrogatory, the jury established a drug quantity of at least 50 but less than 500
grams of a substance containing methamphetamine.
At sentencing, overruling Dixon’s objections, the district court1 attributed a
total of 4,585.56 grams of methamphetamine to him, establishing a base offense level
of 32 under USSG § 2D1.1(b). The court imposed a three-level manager
enhancement pursuant to USSG § 3B1.1(b) and applied the career offender
enhancement, see USSG § 4B1.1, raising his offense level to 37 and criminal history
category to VI. This resulted in an advisory guidelines sentencing range of 360
months to life. Varying downward due to Dixon’s military service, traumatic
childhood, military sexual trauma, mental health history, and good behavior in
pretrial detention, the court sentenced him to concurrent sentences of 240 months
imprisonment on each count. Dixon appeals, challenging the admission of prior
convictions at trial and raising procedural sentencing issues that, if sustained, would
not affect his advisory guidelines range. We affirm the convictions and sentence.
I. Background.
The trial testimony and evidence established the following facts. Appearing
for the government as a cooperating conspirator, C.S. testified that he began
purchasing methamphetamine from Dixon’s girlfriend, Staci Lillard, at her residence.
Dixon was occasionally present for the sales. C.S. sometimes bought directly from
Dixon, including at a residence of Valicia Watkins, another of Dixon’s girlfriends.
In 2023, police conducted a traffic stop of a vehicle being driven by C.S and
found 83.36 grams of methamphetamine that C.S. had bought from Lillard. C.S.
agreed to cooperate and then performed two controlled buys from Lillard at her
1
The Honorable Rebecca Goodgame Ebinger, United States District Judge for
the Southern District of Iowa.
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residence. Dixon was present for one sale, and he encouraged C.S. to buy in greater
quantities to get a better price. Warrant searches of Lillard’s residence yielded 68.41
grams of methamphetamine and other indicia of drug trafficking. Police seized
Lillard’s cell phone, which contained coded text messages in which Dixon discussed
drug trafficking. During a warrant search of Watkins’s residence, officers found a
vehicle registered to that address in Dixon’s name that contained mail addressed to
Dixon at Lillard’s address. In the bedroom, police found tablets containing
methamphetamine in a dresser; Dixon’s clothing and mail addressed to him; 239.7
grams of cocaine, 39.94 grams of methamphetamine, and two baggies of marijuana
in a bucket next to the bed; and a bag containing a loaded handgun, ammunition,
fentanyl, and mail addressed to Dixon. Like Lillard’s phone, Watkins’s phone
contained coded drug-related messages with Dixon.
Valicia Watkins also agreed to testify for the government in exchange for
leniency. She testified that she and Dixon shared the bedroom in which the drug
evidence was found and that he lived there episodically. She claimed the firearm
belonged to Dixon and he had previously shown it to her. She identified the illegal
drugs in the home as belonging to Dixon and acknowledged she helped sell them.
Another cooperator, B.D., testified that for several months she sold methamphetamine
that she acquired from Dixon and Watkins.
Prior to trial, the government provided notice of its intent to use Dixon’s prior
convictions as evidence pursuant to Federal Rule of Evidence 404(b). The
convictions are for (1) conspiracy to distribute and possess with intent to distribute
cocaine (2012), (2) possession with intent to deliver ecstasy (2014), and (3) a carrying
weapons state charge (2014). Dixon moved to exclude the convictions, stating that
he would stipulate to his felony status pursuant to Old Chief v. United States, 519
U.S. 172 (1997). Therefore, he argued, other evidence of his prior convictions would
be inadmissible under Rules 404(b) and 403. The district court denied Dixon’s
motion, holding that the convictions are relevant to Dixon’s knowledge of the
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contraband he was charged with possessing and distributing. At trial, the court twice
provided a standard 404(b) limiting instruction, immediately after the prior conviction
evidence was admitted and again in the final written jury instructions.
The jury verdict convicted Dixon of the conspiracy and two possession with
intent to distribute counts. At sentencing, the government offered into evidence the
grand jury testimony of C.R., a cooperator who did not testify at trial, in which he
claimed to have purchased methamphetamine directly from Dixon around a dozen
times, with the purchase amounts varying between one half and three pounds. C.R.’s
testimony contributed 3,855.6 grams to the overall drug quantity.
On appeal, Dixon argues that the district court (1) abused its discretion in
admitting the 404(b) evidence of his prior convictions, (2) clearly erred in finding the
manager enhancement applicable, and (3) erred in its drug quantity finding, both by
erroneously crediting C.R.’s grand jury testimony and by attributing a quantity above
that found by the jury.
II. Discussion.
The 404(b) Issue. Dixon first argues the district court abused its discretion by
admitting his prior convictions under Rule 404(b) of the Federal Rules of Evidence.
“Rule 404(b) is a rule of inclusion that permits evidence of prior crimes to show a
defendant’s motive, opportunity, intent, preparation, plan, knowledge, identity,
absence of mistake, or lack of accident.” United States v. Monds, 945 F.3d 1049,
1052 (8th Cir. 2019) (cleaned up), cert. denied, 590 U.S. 974 (2020). However,
“propensity evidence is out of bounds: using another bad act to show that an
individual is likely to do the same thing again in the future.” United States v. Vaca,
38 F.4th 718, 721 (8th Cir. 2022). Therefore, to be admissible under Rule 404(b),
extrinsic evidence of other bad acts “must be (1) relevant to a material issue raised at
trial, (2) similar in kind and not overly remote in time to the crime charged, (3)
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supported by sufficient evidence to support a jury finding that the defendant
committed the other act, and (4) of probative value not substantially outweighed by
its prejudicial effect.” Monds, 945 F.3d at 1052. Here, Dixon argues evidence of his
prior convictions should have been excluded because it was irrelevant to show a
proper purpose “without propensity reasoning.” We review the admission of
evidence of past crimes under Federal Rule of Evidence 404(b) for abuse of
discretion and “we will not reverse unless the evidence clearly had no bearing on the
case and was introduced solely to prove the defendant’s propensity to commit
criminal acts.” United States v. Smith, 978 F.3d 613, 616 (8th Cir. 2020), cert.
denied, 142 S. Ct. 396 (2021).
Dixon argues on appeal his prior convictions are not relevant because they only
show a propensity to commit crimes. Like the district court, we disagree. By
pleading not guilty to possession of drugs and a firearm, Dixon made “past firearm
convictions relevant to show the material issues of knowledge of the presence of the
firearm and his intent to possess it. . . even if the government only pursues a
constructive-possession theory.” United States v. Drew, 9 F.4th 718, 723 (8th Cir.
2021) (quotation omitted), cert. denied, 142 S. Ct. 1159 (2022). Here, Dixon’s
knowledge was a focal point of the trial, as his defense was to deny knowledge of the
contraband by shifting blame to Watkins and Lillard. See United States v. Walker,
470 F.3d 1271, 1274 (8th Cir. 2006) (gun); United States v. Fang, 844 F.3d 775, 780
(8th Cir. 2016) (drugs). Dixon’s stipulation conceding that he knew he was a felon
who could not possess a gun did not take the knowledge issue out of the case.
Dixon correctly notes that “Rule 404(b) evidence is subject to Rule 403, which
provides that even relevant evidence may be excluded ‘if its probative value is
substantially outweighed by a danger of . . . unfair prejudice.’” United States v.
Atkins, 52 F.4th 745, 753 (8th Cir. 2022) (citation omitted). He argues the prior
conviction evidence in this case was unfairly prejudicial because it “inhibited Mr.
Dixon’s defense, which focuses on the cooperating witnesses’ significant credibility
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problems [and] invited the jury to ignore those glaring credibility issues in favor of
concluding, as to Mr. Dixon, ‘[o]nce a criminal, always a criminal.’” In addition to
concluding the prior convictions are relevant to knowledge and intent, the district
court noted that his prior convictions are not the type to risk prejudice by inflaming
the jury’s passions. It also provided a limiting instruction after the prior conviction
evidence was admitted and again in the final written jury instructions. See Drew, 9
F.4th at 724 (limiting instruction reduces risk of unfair prejudice). Bearing in mind
that Rule 404(b) “is a rule of inclusion,” we conclude that the district court did not
abuse its substantial discretion in admitting Dixon’s prior convictions.
The Manager Role-in-the-Offense Enhancement. Dixon argues the district
court clearly erred in applying the manager role enhancement, which applies “[i]f the
defendant was a manager or supervisor . . . and the criminal activity involved five or
more participants or was otherwise extensive.” USSG § 3B1.1(b); See United States
v. Heard, 91 F.4th 1275, 1279 (8th Cir. 2024) (standard of review). “We construe the
terms ‘manager’ and ‘supervisor’ liberally, affirming the enhancement even when the
defendant managed or supervised only one other participant during a single
transaction.” Id. We consider “the exercise of decision-making authority, the nature
of participation in the commission of the offense, the recruitment of accomplices, the
claimed right to a larger share of the fruits of the crime, the degree of participation
in planning or organizing the offense, the nature and scope of the illegal activity, and
the degree of control and authority exercised over others.” USSG § 3B1.1 cmt. n.4.
The district court found, and Dixon does not dispute on appeal, that his
criminal activity involved five or more participants. But he argues he did not manage
them, as they controlled their own drug operations. The district court found that
Watkins’s testimony undermined this claim, as she provided a share of her proceeds
to Dixon, evidence of a claimed right to a greater share of the proceeds. The text
messages between Dixon and his girlfriends also show Dixon telling them which
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drugs to sell to which customers. The district court did not clearly err in finding
Dixon supervised at least one person on at least one occasion.
The Drug Quantity Procedural Sentencing Issue. Dixon argues the district
court erred in attributing 4,585.56 grams of methamphetamine to him. First, he
argues, the court clearly erred in crediting C.R.’s grand jury testimony because he did
not testify at trial and had a prior felony conviction for a crime of dishonesty.
Second, the jury’s finding that the methamphetamine quantity was under 500 grams
acquitted him of a higher quantity at sentencing. Because the newly amended USSG
§ 1B1.3(c) prohibits considering acquitted conduct in calculating the advisory
guidelines range “unless such conduct also establishes, in whole or in part, the instant
offense of conviction,” Dixon argues the district court erred in considering the
acquitted quantity in calculating his guideline range. The district court ruled that the
exception to § 1B1.3(c) applies because “the drugs themselves and the [trial]
evidence about drugs that underline Count 1 is conduct that established, in whole or
in part, the instant offense of conviction.”
“Procedural errors, like the miscalculation of a defendant’s offense level, are
subject to harmless-error review.” United States v. Sigillito, 759 F.3d 913, 940 (8th
Cir. 2014). “When a defendant brings a procedural error challenge, the government
bears the burden of showing the error did not substantially influence the outcome of
the sentencing proceeding.” United States v. Woods, 717 F.3d 654, 659 (8th Cir.
2013) (internal quotations omitted). The government argues that any alleged
procedural error was harmless. We agree.
The two alleged procedural errors do not affect Dixon’s guidelines range
because he does not dispute the applicability of the career offender enhancement. See
United States v. Wiggins, 747 F.3d 959, 963-64 (8th Cir. 2014) (assuming
drug-quantity miscalculation, any error harmless because the career-offender
guideline set the offense level regardless). Therefore, Dixon’s advisory guidelines
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base offense level is 37 and his criminal history category is Category VI, resulting in
a guidelines range of 360 months to life, regardless of the drug quantity attributed to
him for sentencing. Even if the higher drug quantity the district court attributed to
Dixon does constitute acquitted conduct within the purview of the new § 1B1.3(c),
his adjusted base offense level would still be 37, his criminal history category would
be Category VI, and the adjusted guidelines range would still be 360 months to life,
well above the 240 month sentence the district court imposed with a substantial
downward variance. See USSG § 4B1.1(b)(1). Section 1B1.3(c) only prohibits
considering acquitted conduct in calculating Dixon’s guidelines range. Sigillito, 759
F.3d at 940. Because the alleged procedural errors “would not change [Dixon’s]
Guidelines range, any alleged error here was harmless.” Id. at 941. The amended
Guideline “does not prohibit a court from considering acquitted conduct when
analyzing the factors from § 3553(a).” United States v. Ware, 141 F.4th 970, 974 n.2
(8th Cir. 2025); see United States v. Ralston, 110 F.4th 909, 921 (6th Cir. 2024).
Accordingly, we affirm Dixon’s convictions and sentence.
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