United States v. Dela Espriella

781 F.2d 1432
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 10, 1986
DocketNos. 84-5252 to 85-5255, and 84-5298
StatusPublished
Cited by65 cases

This text of 781 F.2d 1432 (United States v. Dela Espriella) 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. Dela Espriella, 781 F.2d 1432 (9th Cir. 1986).

Opinion

CANBY, Circuit Judge:

These consolidated appeals challenge convictions resulting from a scheme to launder funds derived from narcotics transactions. Following return of a 19-count indictment, appellants Antoinette Espriella, Margaret Caro, Alberto Espriella and Pablo Chapoy each entered conditional guilty pleas to one count of conspiracy to violate the currency reporting laws and to defraud the government, in violation of 18 U.S.C. § 371 and 31 U.S.C. §§ 5313, 5322, and one count of fraudulent concealment of material facts from the Internal Revenue Service (IRS) relating to the filing of Currency Transaction Reports (CTR’s), in violation of 18 U.S.C. § 1001.

Appellant Ronderos also conditionally pled guilty to one count of violating 18 U.S.C. § 1001 (Count Ten). In addition, he entered conditional guilty pleas to one count of conspiracy to aid and abet the possession and distribution of cocaine, in violation of 18 U.S.C. § 2 and 21 U.S.C. § 846 (Count One), and one count of causing a financial institution not to file CTR’s, in violation of 18 U.S.C. § 2 and 31 U.S.C. §§ 5313, 5322 (Count Seven). Finally, based on stipulated facts, the district court found Ronderos guilty of one count of operating a currency exchange business that failed to file CTR’s, again in violation of 18 U.S.C. § 2 and 31 U.S.C. §§ 5313, 5322 (Count Six).1

[1435]*1435Appellants entered their pleas while preserving for appeal their contention that the indictment failed to allege a crime under 31 U.S.C. §§ 5313, 5322. We agree and therefore reverse the convictions as to all appellants except Ronderos. We reverse Ronde-ros’ convictions on Counts Seven and Ten, and we affirm his convictions on Counts One and Six.

BACKGROUND

The indictment charged that, between 1982 and 1984, appellants were involved in a scheme to convert millions of dollars in U.S. currency derived from cocaine trafficking into negotiable.instruments such as cashier’s checks. Ronderos, as apparent kingpin of this money-laundering operation, employed the other appellants as “runners,” who each day carried large sums of currency to various banks and converted the cash into cashier’s checks or other negotiable instruments. Under 31 U.S.C. § 5313,2 financial institutions must file CTR’s with the IRS for every currency transaction in excess of $10,000.

To avoid the reporting requirement, Ronderos instructed his runners to purchase eashier’s checks for less than $10,000 each. Runners would often convert more than $100,000 in a given day, with transactions at as many as nineteen different banking locations.

DISCUSSION

1. Currency Reporting Act Charges

Appellants contend that Section 5313 does not proscribe intentional transaction restructuring of the sort engaged in here and that the indictment, therefore, did not allege a crime. We review de novo the legal sufficiency of an indictment. United States v. Buckley, 689 F.2d 893, 897 (9th Cir.1982), cert. denied, 460 U.S. 1086, 103 S.Ct. 1778, 76 L.Ed.2d 349 (1983).

The precise question at issue was recently considered by this court in United States v. Varbel, 780 F.2d 758 (9th Cir.1986). There, we held that the plain language of Section 5313 and accompanying regulations made clear that CTR’s were required only of financial institutions and only when the currency transaction involved $10,000 or more. Id. at 762; accord United States v. Anzalone, 766 F.2d 676, 681-83 (1st Cir.1985). We also held that, because the individual transactions involved were perfectly legal, there could be no violation of 18 U.S.C. § 2 (aiding or abetting a violation of § 5313) or 18 U.S.C. § 1001 (fraudulent concealment of material fact concerning a transaction within the jurisdiction of a federal government agency). Varbel, At 762-63. We think it equally clear from Varbel that, where each currency transactions involves less than $10,-000, there can be no conspiracy, under 18 U.S.C. § 371, to violate Section 5313.

On the authority of the Varbel decision, we reverse all of the convictions of all appellants except Ronderos. In Ronderos’ case, we reverse his convictions on Counts Seven and Ten of the indictment.

II. Remaining Counts Against Ronderos

We still must consider Ronderos’ convictions on Counts One and Six. He chal[1436]*1436lenges these convictions on several grounds.

A.Laundering Funds as Aiding and Abetting

Ronderos first argues that an act of money laundering that occurs after the commission of a narcotics offense may not result in prosecution of the launderer as an aider and abettor of the narcotics offense. He therefore believes his conviction for conspiracy under Count One must also be reversed. We disagree.

It is today well settled that a person can be liable for conspiracy because he provides a central service to a criminal venture. See, e.g., United States v. Batimana, 623 F.2d 1366, 1368 (9th Cir.) (defendants acted as lookouts), cert. denied, 449 U.S. 1038, 101 S.Ct. 617, 66 L.Ed.2d 500 (1980); United States v. Haro-Espinosa, 619 F.2d 789, 794 (9th Cir.1979) (defendant rented motel room and lent co-conspirator his car). Several courts have addressed laundering of illicit narcotics proceeds directly and have concluded that such activities may be integral to the success of a narcotics conspiracy. See, e.g., United States v. Orozco-Prada,

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