United States v. Betancourt

422 F.3d 240, 2005 WL 1971271
CourtCourt of Appeals for the Fifth Circuit
DecidedAugust 18, 2005
Docket03-41590
StatusPublished
Cited by301 cases

This text of 422 F.3d 240 (United States v. Betancourt) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth 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. Betancourt, 422 F.3d 240, 2005 WL 1971271 (5th Cir. 2005).

Opinion

EDITH BROWN CLEMENT, Circuit Judge:

Jose Luis Betancourt was convicted of drug trafficking and forced to forfeit his interest in Texas lottery winnings of over $5 million because the ticket was purchased with proceeds of that trafficking. He appeals his sentence of 292 months and the forfeiture. Having carefully reviewed the record and the parties’ submissions, we find no error in the sentencing or forfeiture and affirm the judgment of the district court.

I. FACTS AND PROCEEDINGS

A. Proceedings Below

On February 12, 2003, Betancourt was indicted for possession with intent to distribute more than five hundred grams of cocaine in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B) and 18 U.S.C. § 2. Fourteen days later, the grand jury returned a superseding indictment charging Betancourt with conspiracy to possess more than five kilograms of cocaine between September 2002 and January 2003, thirty-six grams of cocaine on January 16, 2003, and 1.63 kilograms on January 17, 2003. The superseding indictment also included a notice of the criminal forfeiture of $5,481,462.91 in Texas lottery proceeds, pursuant to 21 U.S.C. § 853, on the theory that the money was property derived from violations of 21 U.S.C. §§ 841 and 846.

At the conclusion of the trial, Betancourt was found guilty on all three counts of the superseding indictment. The jury then answered special interrogatories for the separate forfeiture phase and found that Betancourt purchased a winning Texas lottery ticket on December 11, 2002, “with proceeds the defendant obtained, directly or indirectly, during the course of the conspiracy of which [the jury had already] found him guilty, and there was no likely source for such property other than the conspiracy.”

On June 25, 2003, the district court entered a preliminary order of forfeiture in the amount of $5,481,462.91, all of which was attributed to Betancourt’s winning Texas lottery ticket. On November 4, 2003, the district court sentenced Betanc-ourt to a term of 292 months of imprisonment to be followed by five years of super *243 vised release. 1

B. Facts

(1) Cocaine Trafficking

Betancourt was convicted of possession with intent to distribute cocaine and conspiracy to possess cocaine. The government presented evidence to prove that Be-tancourt was not only involved in drug dealing, but was also the leader of an extensive cocaine distribution chain. Jose Denicio Esparza, the government’s principal witness, first met Betancourt in 2000 and began buying cocaine from him. By mid-2002, the amount of cocaine Betanc-ourt sold to Esparza gradually increased to approximately two ounces per day, every day except Sunday when Betancourt did not sell drugs. Esparza not only worked directly with Betancourt, but also sold cocaine purchased from Betancourt to many others. After winning the lottery, Betancourt taught Esparza how to run his cocaine business, and trained him to manage his “cut and dilute” scheme. The two agreed that Betancourt would front Espar-za the cocaine, and Esparza in turn would handle the day-to-day operations.

Betancourt was also acquainted with Ramon Negrete who testified that Esparza’s residence served as a central meeting place for numerous drug dealers buying cocaine from Betancourt. Negrete observed countless drug deals, and he was continually in contact with United States Bureau of Immigration and Customs Enforcement (“Customs”) agents in his capacity as a confidential informant, providing them with information regarding Betanc-ourt’s cocaine trafficking.

Betancourt eventually relocated his base of operations from Esparza’s home to Neg-rete’s home, which provided Negrete with the ability to observe Betancourt’s drug deals first-hand. Negrete testified that Betancourt sold packages of cocaine varying from a quarter ounce to three ounces in weight, six days a week, and that Be-tancourt always placed his drug proceeds in a small black bag that he carried on his person at all times. Negrete’s observations provided evidence that Betancourt was not guilty of simple cocaine possession on a few occasions, but rather that he was a primary supplier for numerous other dealers.

By November 2002, Betancourt was prepared to expand his drug dealing enterprise and instructed Negrete to first build him a “clavito” or little compartment with sufficient space to hold two to three kilograms of cocaine. Betancourt told Neg-rete that he was a ten kilogram a week dealer, and he asked Negrete to remodel his warehouse to store 100 kilograms of cocaine for Betancourt.

On January 16, 2003, U.S. Customs agents secretly recorded a conversation between Negrete and Betancourt with Negrete’s cooperation. Betancourt incriminated himself by making various references to selling cocaine, as well as stating that he had three kilograms on hand. When Negrete attempted to buy cocaine from Betancourt, he responded to Neg-rete’s request and said, “I can’t do those right now because I have to — I have to *244 feed a lot of people I have out there just like you. Just as I gave you one ounce right now today right now at this time, I already distributed seven pieces of [cocaine].”

Furthermore, Betancourt mentioned various people by name to whom he delivered cocaine and volunteered that he had “like about 12 [people] and they’re all like you. That’s it. I want to help them out. I want to help them out.” Negrete and Special Agent Mena understood this last statement to mean that there were 12 individuals in addition to Negrete who sold cocaine for Betancourt. In this same meeting, Betancourt gave Negrete thirty-six grams of cocaine.

The Customs agents commenced surveillance of Betancourt’s apartment, and arrested him on January 17, 2003. Be-tancourt consented to a search of his apartment, where agents seized one and a half kilograms of cocaine. The agents also found a significant amount of drug paraphernalia and concluded that Betancourt was selling cocaine in kilogram quantities out of his apartment.

(2) The Texas Lottery

Betancourt won the Texas lottery on December 11, 2002. In the forfeiture phase of trial, the government intended to show that Betancourt’s interest in the winning Texas lottery ticket was purchased with proceeds from the sale of cocaine. Guadalupe Rosales, Betancourt’s neighbor, would regularly pick the numbers for lottery tickets with the understanding that while Betancourt contributed ten dollars and Rosales only five dollars, the two men would split any winnings from the Texas lottery equally.

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Cite This Page — Counsel Stack

Bluebook (online)
422 F.3d 240, 2005 WL 1971271, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-betancourt-ca5-2005.