Money Laundering Charges Harder To Prove in New Court Ruling

WASHINGTON — The Supreme Court yesterday made it tougher for prosecutors to prove money-laundering charges, ruling twice against the government’s employment of what it says is a critical weapon in fighting drug lords and other criminals.The justices were unanimous in one case that merely proving that a person hid drug money while transporting it was not enough to satisfy the law’s standard that the transportation was intended to disguise the “nature, location, the source, the ownership or the control” of the funds.But the court was splintered in the other case, interpreting the law to refer only to the profits garnered from an illegal enterprise, rather than gross receipts. The government said that would make indictment far more difficult to prove.Justice Samuel Alito Jr., a former prosecutor, led the dissenters in the 5-4 ruling, saying the opinion “would frustrate Congress’ intent and maim a statute that was enacted as an important defense against organized criminal enterprises.”Justice Antonin Scalia, who wrote for a four-member plurality in the case, said that the money-laundering statute refers to criminal “proceeds” but that Congress did not define the word further to mean “receipts” or “profits.”“Under a long line of our decisions, the tie must go to the defendant,” Justice Scalia wrote, saying the “rule of lenity” requires the court to interpret the law in the light most favorable to those subject to it.Justice John Paul Stevens broke what was in essence a 4-4 tie, saying that in this instance he thought “proceeds” referred to “profits.” But he frustrated Justice Scalia by saying that may not always be the case, especially in prosecution of organized-crime syndicates, on which he said Congress has been more clear.Yesterday’s decision came in United States vs. Santos, in which Efrain Santos and Benedicto Diaz ran an illegal lottery in Indiana. They were convicted of several offenses, but a federal appeals court threw out the money-laundering charge. It said that transactions such as paying off winners and helpers in the enterprise did not qualify as criminal profits and thus could not be the basis for money-laundering charges.Without such an interpretation, Justice Scalia wrote, “nearly every violation of the illegal lottery statue would also be a violation of the money-laundering statute.”In the other case, Humberto Fidel Regalado Cuellar was stopped in 2004 while driving erratically in southern Texas, headed for Mexico. He aroused further suspicion when, after telling officers they could search his car, began “making the sign of the cross,” according to the opinion written by Justice Clarence Thomas. Officers found $81,000 that smelled like marijuana under the floorboard.Cuellar was found guilty of violating the money-laundering law.Justice Thomas disagreed with Cuellar’s argument that the law requires proof that the defendant attempted to create the appearance that the money was legitimate. But it does require more than simply proving the money was concealed, the court found.

Money Laundering Charges Harder To Prove in New Court Ruling

Money Laundering Charges Harder To Prove in New Court Ruling

More from the New York Sun

Did Eve Arden Live the Life Sylvia Plath Desired?

Washington Slow To Tackle a Brewing Crisis, as America’s Most Powerful Mideast Allies, Turkey and Israel, Lock Horns

Hasan Piker’s Mockery of Charlie Kirk Updates Orwell’s ‘Two Minutes Hate’ for the Podcast Era

WNBA Rejects Draft Bid From Former NBA Players, Calling Intentions a ‘Publicity Stunt’

Roni Ben-Hur’s Stylish Latin Jazz Entente

Finding the Altalena

The Rent Freeze Case Moves to Manhattan

‘60 Is the New 50:’ Rule Change Turns NFL Placekickers Into Long-Distance Bombers

More from the New York Sun

Did Eve Arden Live the Life Sylvia Plath Desired?

Washington Slow To Tackle a Brewing Crisis, as America’s Most Powerful Mideast Allies, Turkey and Israel, Lock Horns

Hasan Piker’s Mockery of Charlie Kirk Updates Orwell’s ‘Two Minutes Hate’ for the Podcast Era

WNBA Rejects Draft Bid From Former NBA Players, Calling Intentions a ‘Publicity Stunt’

Roni Ben-Hur’s Stylish Latin Jazz Entente

Finding the Altalena

The Rent Freeze Case Moves to Manhattan

‘60 Is the New 50:’ Rule Change Turns NFL Placekickers Into Long-Distance Bombers