United States v. Goodwin

141 F.3d 394
CourtCourt of Appeals for the Second Circuit
DecidedDecember 12, 1997
DocketNos. 20, 19, 23, 18, 25, 21, 507, Dockets 96-1199, 96-1228, 96-1229, 96-1231, 96-1256, 96-1315, 96-1350 and 96-1751
StatusPublished
Cited by16 cases

This text of 141 F.3d 394 (United States v. Goodwin) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second 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. Goodwin, 141 F.3d 394 (2d Cir. 1997).

Opinion

JOHN M. WALKER, Jr., Circuit Judge:

Defendants-appellants Rodney Hampton, Wayne Rodriguez, Jerry Williams, Fred Moye, Michelle Thomas, James Piggott, and Christian Key (hereinafter “appellants”) appeal from judgments of conviction entered by the United States District Court for the Southern District of New York (Thomas P. Griesa, Chief District Judge). The appellants raise numerous claims of error on appeal. In a summary order entered simultaneously with this opinion, we dispose of all but three of these claims and resolve them against the appellants. We consider here the appellants’ remaining three claims on appeal: (1) that Congress exceeded its authority under the Commerce Clause, U.S. Const, art. I, § 8, in criminalizing money laundering, 18 U.S.C. § 1956; (2) that the indictment was invalid on its face because it failed to allege that the financial transactions engaged in by the appellants affected interstate or foreign commerce; and (3) that the government improperly applied for a “roving wiretap” of three cellular telephones without securing the authorization of a high-level official of the Department of Justice, in violation of 18 U.S.C. § 2518(ll)(b)(i). We conclude that Congress was well within its authority when it enacted 18 U.S.C. § 1956, that the indictment sufficiently apprised the appellants of the charges against them, and that the government neither sought nor implemented a “roving wiretap” within the meaning of 18 U.S.C. § 2518(11), and therefore was not required to secure high-level authorization.

BACKGROUND

The indictment in this case charged the appellants with various criminal offenses in connection with their participation in a nationwide narcotics trafficking and money laundering ring. After a ten-week jury trial, the appellants were convicted on most of these charges. All appellants, except for Michelle Thomas, were found guilty of committing various substantive narcotics trafficking offenses in violation of 21 U.S.C. §§ 812, 841(a)(1) and 841(b)(1); all appellants, except for Michelle Thomas and Christian Key, were found guilty of conspiring to commit narcotics offenses in violation of 21 U.S.C. § 846;1 all appellants, except for Rodney Hampton and Christian Key, were convicted of substantive money laundering offenses in violation of 18 U.S.C. § 1956(a)(1); all appellants, except for Christian Key and James Piggott, were convicted of conspiracy to launder money in violation of 18 U.S.C. § 1956(h); and, finally, James Piggott was convicted of managing a continuing criminal enterprise, in violation of 21 U.S.C. § 848. All of the appellants received substantial sentences, ranging from 30 months’ imprisonment for Michelle Thomas to life imprisonment for James Piggott. The details of their sentences are not relevant to the claims considered in this opinion.

[397]*397Much of the significant evidence supporting the narcotics and money laundering convictions came from wiretaps that the government placed on three cellular telephones used by appellant Piggott (“the New York wiretaps”). On March 28, 1994, the United States Attorney successfully applied in the United States District Court for the Southern District of New York (Louis L. Stanton, District Judge) for a wiretap of these three phones. The application, authorized by a Deputy Assistant Attorney General, specified the telephone numbers and electronic serial numbers of the target cellular telephones.

The affidavit in support of the application stated that there was probable cause to believe that the target cellular telephones were being used to further illegal narcotics and money laundering activities. The FBI and the IRS were conducting an ongoing investigation of the narcotics trafficking and money laundering ring, and Atlanta telephones already subject to interception had been used to make calls to the New York cellular telephones. The affidavit affirmed that the New York wiretaps were necessary because other investigative procedures were unlikely to succeed. After the wiretaps were approved by the district court, the government commenced tapping two of the telephones.2 Interception continued for 22 days.

Prior to trial, the appellants moved to suppress the New York wiretaps on various grounds. At a pretrial hearing, the appellants argued, inter alia, that all evidence from the New York wiretaps should be suppressed because a wiretap on a cellular telephone is a “roving wiretap” within the meaning of 18 U.S.C. § 2518(11) requiring authorization by one of certain senior Justice Department officials which had not been obtained. Unlike standard wiretaps, “roving wiretaps” do not require specification of “the nature and location of the facilities from which or the place where the communication is to be intercepted.” 18 U.S.C. § 2518(11). A Deputy Assistant Attorney General may not authorize a “roving wiretap” application. The district court denied the motion to suppress, concluding that the wiretaps at issue were not “roving wiretaps.”

At trial, in addition to wiretap evidence, the government relied on direct surveillance; physical evidence of drug sales, including drug records, seized from members of the crime ring; the testimony of cooperating witnesses; and the testimony of an undercover IRS agent who briefly infiltrated the ring by posing as a person able to exchange untraceable bank checks for large amounts of cash. Over the course of a few days, the agent laundered over two million dollars for the ring. The checks were drawn on Citibank, and most of these were negotiated through foreign banks.

The appellants assert, inter alia, that the statute criminalizing money laundering, 18 U.S.C. § 1956, is unconstitutional; that the indictment was insufficient on its face because it failed to allege a nexus with interstate commerce; and that the district court erred in declining to suppress New York wiretap evidence.3

DISCUSSION

I.

Appellant Moye challenges the constitutionality of the federal money laundering statute, 18 U.S.C. § 1956. He alleges that in enacting the statute, Congress exceeded its authority under the Commerce Clause, U.S.

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United States v. Goodwin
141 F.3d 394 (Second Circuit, 1997)

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141 F.3d 394, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-goodwin-ca2-1997.