United States v. Cunan

152 F.3d 29, 1998 WL 514110
CourtCourt of Appeals for the First Circuit
DecidedAugust 26, 1998
Docket95-1965, 96-1157, 96-1156 and 97-1865
StatusPublished
Cited by37 cases

This text of 152 F.3d 29 (United States v. Cunan) is published on Counsel Stack Legal Research, covering Court of Appeals for the First 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. Cunan, 152 F.3d 29, 1998 WL 514110 (1st Cir. 1998).

Opinion

BOWNES, Senior Circuit Judge.

In these appeals, Patricia and Patrick Cu-nan (husband and wife) challenge their convictions for conspiracy and laundering of drug money. 1 Patrick was sentenced to 121 months imprisonment, and Patricia to 60 months imprisonment, and both were assessed substantial fines. They allege multiple trial errors, which we address in turn. They also contend that the imposition of fines was an abuse of discretion. We affirm in all respects.

I.

Facts

We recite the facts in the light most favorable to the verdict. See Glasser v. United States, 315 U.S. 60, 80, 62 S.Ct. 457, 86 L.Ed. 680 (1942). From approximately 1982 to 1990, the Cunans were involved in a variety of financial transactions with Richard DeCato structured to launder the proceeds from De-Cato’s extensive marijuana and cocaine distribution business. DeCato is the ex-husband of Patricia’s sister. The Cunans were never involved in the sale or distribution of the drugs themselves, and contend that they were unaware that DeCato’s money came from illegal activities.

Patrick was the owner and president of State Scale Company, which sells, rents, and services industrial scales. Patricia was. the office manager of the business, and was responsible for keeping the books, including the payroll.

DeCato was arrested in 1981 on charges of possessing marijuana with intent to distribute. Patrick posted the $10,000.00 bail for DeCato; one year later DeCato fled and became a fugitive. During his years as a fugitive, DeCato continued to distribute drugs.

As a fugitive, DeCato was obviously reluctant to open bank accounts, register motor vehicles, or otherwise establish his whereabouts to the local authorities. DeCato assumed the name “Richard Cunan,” and represented to numerous individuals that he was Patrick’s brother. Through State Seale, De-Cato, inter alia, received phone messages and mail. He was also given a fake “job” which allowed him to obtain health insurance for himself and his common-law wife. State Scale also issued cheeks to pay federal income taxes for DeCato. DeCato never actually performed any work for State Scale, and never received a paycheck. The Cunans also handled DeCato’s child support payments, and wrote checks to DeCato’s tax consultant.

Most importantly for this case, DeCato laundered money through State Scale, primarily through the purchase of real estate, goods, and bars of silver. Typically, DeCato would give cash or bank checks to the Cu-nans for them to deposit in their checking accounts. The amounts deposited were less than $10,000.00, thus avoiding currency re *33 porting requirements. The Cunans would contemporaneously -write checks to DeCato’s creditors. Both Patrick and Patricia wrote the checks. Patrick usually took title to the real property. DeCato registered his automobiles as State Scale vehicles. The silver bars were purchased through Patrick’s investment broker. Some of these transactions were accomplished through two sham corporations set up by the Cunans, Prestige Precious Metals and People’s United Development Trust. These transactions were proved primarily with documentary evidence which established a paper trail between large cash deposits and cheeks to cover DeCato’s purchases. Appellants paid for DeCato’s purchases withchecks, and offset the amounts with cash received from DeCato. Many of these transactions corresponded to entries in a ledger found in DeCato’s vehicle when he was arrested in events leading up to these prosecutions. DeCato’s trial on related charges was severed from appellants’. He pled guilty one week into the government’s ease, and did not testify in the appellants’ trial.

Patrick and Patricia raise different issues on appeal. Their appeals have been consolidated for purposes of argument and decision. Patrick also adopts those positions briefed only by Patricia. See Fed. R.App. P. 28(i). Where such arguments are transferable, we treat them as such. See United States v. David, 940 F.2d 722, 737 (1st Cir.1991).

II.

Patricia Cunan

A. The Brady Violation

The first argument in Patricia’s arsenal involves an alleged violation of Brady v. Maryland, 373 U.S. 83, 83 S.Ct. 1194, 10 L.Ed.2d 215 (1963). In Brady, the Court held that,

suppression by the prosecution of evidence favorable to an accused upon request violates due process where the evidence is material either to guilt or to punishment, irrespective of the good faith or bad faith of the prosecution.

Id. at 87, 83 S.Ct. 1194.

Patricia’s assertion of error is based on the following facts: Prior to trial, the government indicated that it would call one Fred Proulx as a witness for the prosecution. His testimony would be that he also laundered considerable sums through State Seale by way of a fake “job.” Proulx would state that although he was listed on the State Scale payroll, he did not do work for State Scale, but instead received paychecks in exchange for cash. Specifically, Proulx would testify that on several occasions, he had personally handed Patricia envelopes containing cash. The government possessed documentary and other testimonial evidence to substantiate Proulx’s purported testimony.

Proulx did not testify at trial, and the government provided no explanation at the time for its decision not to use him as a witness. Patricia was, however, cross-examined by means of pointed and leading questions on whether Proulx had been a legitimate employee, or instead a money launderer. This cross-examination was done on the basis of Patricia’s direct testimony that she was unaware of any criminal activity at State Scale involving DeCato or other individuals. The government also introduced documentary evidence, which tended to disprove Patricia’s denials. The government introduced some of the paychecks that Proulx had received from State Scale for cash. They were significant because they were deposited in groups of five to ten cheeks. The government argued that this was evidence that Proulx was not, in fact, a regular employee, because such deposits were inconsistent with the actions of a regular working-person, who would be more apt to deposit paychecks promptly and singly. The government also introduced Proulx’s federal W-2 form, which fraudulently listed the State Scale business address as his home. The Proulx evidence was referred to in the ‘government’s closing argument.

After trial, as part of the negotiations concerning the recommendations the government would make at sentencing, the govern *34 ment asked the Cunans if they had any information which would explain why Proulx had claimed a memory loss so that he was unable to testify that he had handed Patricia envelopes of cash.

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Bluebook (online)
152 F.3d 29, 1998 WL 514110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-cunan-ca1-1998.