United States v. Basilio Castaneda, United States of America v. Rolando Quinonez, United States of America v. Luis Navarro Casillas

16 F.3d 1504, 94 Cal. Daily Op. Serv. 1170, 94 Daily Journal DAR 2046, 40 Fed. R. Serv. 523, 1994 U.S. App. LEXIS 2611
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 17, 1994
Docket92-10722, 92-10728 and 92-10734
StatusPublished
Cited by63 cases

This text of 16 F.3d 1504 (United States v. Basilio Castaneda, United States of America v. Rolando Quinonez, United States of America v. Luis Navarro Casillas) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Basilio Castaneda, United States of America v. Rolando Quinonez, United States of America v. Luis Navarro Casillas, 16 F.3d 1504, 94 Cal. Daily Op. Serv. 1170, 94 Daily Journal DAR 2046, 40 Fed. R. Serv. 523, 1994 U.S. App. LEXIS 2611 (9th Cir. 1994).

Opinion

CANBY, Circuit Judge:

Basilio Castaneda, Rolando Quinonez, and Luis Casillas appeal their sentences and convictions of conspiracy to engage in money laundering and of several substantive counts of money laundering. We affirm Casillas’s convictions and sentence. As to Quinonez and Castaneda, we affirm in part, reverse in part, and remand for resentencing.

I

In 1991, federal agents began an investigation of money laundering and cocaine trafficking in the Modesto, California area. To *1506 aid in the investigation, the agents recruited a former drug dealer, Ignacio Felix, to carry out an undercover sting operation. They set up Felix in an apartment that was outfitted with covert video and audio recording equipment, a money counting machine, a duffle bag containing bottles of lidocaine, a triple beam balance, and cash to represent the proceeds of cocaine dealing.

On June 18, 1991, Felix made his first contact with appellant Quinonez, telephoning him on instructions from the agents. At a meeting the following day at Quinonez’s real estate office, Felix explained that he had a large amount of cash he had earned in the cellular phone and beeper business. He told Quinonez that he wanted to invest this cash in real estate, but did not want to fill out any government forms. Quinonez responded by suggesting several ways to avoid reporting requirements: (1) going from bank to bank and purchasing cashier’s checks for amounts less than $10,000, (2) opening accounts at several different banks and slowly depositing the money, and (3) giving the money to someone with several bank accounts who would in turn give checks to Felix.

Over the next few weeks, Felix and Quino-nez had several more conversations during which Felix hinted, but never specifically stated, that the funds he needed laundered were proceeds from cocaine trafficking. At some point, Quinonez suggested that his brother, appellant Castaneda, could help in the laundering scheme. Thus, on August 19, 1991, Quinonez took Castaneda to Felix’s apartment to make arrangements to have Castaneda launder money for Felix. Felix and Castaneda agreed that Castaneda would take $20,000 in cash to convert into cashier’s cheeks which he was to return the following day. However, when Felix mentioned that he then would have an additional $50,000 for Castaneda to launder, Castaneda expressed some reluctance, saying that that was too much, and that he would prefer to do it little by little. Quinonez assured Felix that if Castaneda would not launder the additional money fast enough, he would get another person who would do it. At the end of the meeting, Castaneda left with $20,000 to launder in return for an eight percent commission.

The following day, Castaneda returned to Felix’s apartment with $25,000 in cashier’s checks of various amounts. Felix gave Castaneda his commission plus money to cover the extra $5,000 in cheeks Castaneda had delivered. Following this delivery, Castaneda received and laundered an additional $25,-000, making his last delivery of cashier’s checks to Felix on August 30,1991. There is no evidence that Quinonez and Castaneda had any dealings with Felix after August 30.

On September 3, Felix contacted appellant Casillas, who worked in the same real estate office as Quinonez, and told him he wanted to invest in property. They did not speak again until September 13, when Felix and Casillas had a recorded telephone conversation during which they discussed how Casillas could help launder money for Felix. Casillas recruited Leopoldo Gutierrez and Francisco Cordova, and over the next two months the three laundered several thousand dollars for Felix. Neither Quinonez nor Castaneda was directly involved in these transactions, the last of which occurred on November 15,1991.

On December 6, 1991, Quinonez, Castaneda, Casillas, Cordova, and Gutierrez were indicted on the following charges:

Count 1 (all defendants): Conspiracy to engage in money laundering and structured financial transactions between on or about June 1991 through on or about November 15, 1991, in violation of 18 U.S.C. § 371, 18 U.S.C. § 1956(a)(1)(B), and 31 U.S.C. § 5324.
Counts 2-5 (Quinonez and Castaneda): Money laundering and aiding and abetting on or about August 20, 1991, and between on or about August 22, 1991 through on or about August 30, 1991, in violation of 18 U.S.C. § 1956(a)(3)(B) and 18 U.S.C. § 2.
Counts 6-12 (Casillas and Cordova) Engaging in structured financial transactions and aiding and abetting between on or about November 13, 1991, and November 15, 1991, in violation of 31 U.S.C. §§ 5324(3), 5322(a), 5313(a), and 18 U.S.C. § 2.

*1507 Cordova and Gutierrez pled guilty to lesser charges prior to trial. The remaining defendants were convicted by a jury of all charges, and now appeal.

Underlying nearly all of their claims on appeal is appellants’ view that the facts reveal — and the government proved — not the single large conspiracy charged in Count 1 of the indictment, but at most two smaller conspiracies: one between Quinonez and Castaneda (the “Quinonez conspiracy”) running from June 19,1991 to August 30,1991, and a second between Casillas, Cordova, and Gutierrez (the “Casillas conspiracy”) running from September 3, 1991 to November 15, 1991.

II

All three appellants object that the district court improperly admitted hearsay testimony under the so-called coeonspirator exception to the hearsay rule, Fed.R.Evid. 801(d)(2)(E). This rule provides that a statement is not hearsay if it is made by a coconspirator of a party, and was made in the course and furtherance of the conspiracy. Under this rule, an accused’s knowledge of and participation in an alleged conspiracy with the putative coconspirator are preliminary facts that must be established, by a preponderance of the evidence, before the coeonspirator’s out-of-court statements can be introduced into evidence. United States v. Silverman, 861 F.2d 571, 576 (9th Cir.1988). In order to establish these facts, the government cannot rely solely on the coeonspirator statements themselves. Id. at 578.

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Bluebook (online)
16 F.3d 1504, 94 Cal. Daily Op. Serv. 1170, 94 Daily Journal DAR 2046, 40 Fed. R. Serv. 523, 1994 U.S. App. LEXIS 2611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-basilio-castaneda-united-states-of-america-v-rolando-ca9-1994.