United States v. Reid

625 F.3d 977, 2010 U.S. App. LEXIS 24436, 2010 WL 4829852
CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 30, 2010
Docket09-5142, 09-5144
StatusPublished
Cited by26 cases

This text of 625 F.3d 977 (United States v. Reid) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth 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. Reid, 625 F.3d 977, 2010 U.S. App. LEXIS 24436, 2010 WL 4829852 (6th Cir. 2010).

Opinion

OPINION

RALPH B. GUY, JR., Circuit Judge.

Defendants Wayne Reid and Donna Reid, husband and wife, were convicted following a jury trial of conspiracy to commit money laundering, 18 U.S.C. § 1956(h); six counts of money laundering, or aiding and abetting money laundering, 18 U.S.C. § 1956(a)(1)(A)®, (a)(1)(B)®; and one count of harboring or concealing a fugitive, 18 U.S.C. § 1071. The jury also returned a separate verdict for forfeiture of $800,000, 18 U.S.C. § 982(a)(1). Both defendants argue for a new trial on the grounds that the prosecutor improperly vouched for several witnesses and that the district court erred by limiting the cross-examination of two prosecution witnesses concerning their adulterous relationship. In addition, while Wayne Reid claims error in the limitation placed on the character evidence he offered, Donna Reid contends that the district court improperly excluded evidence that she was charged in an attempt to pressure her husband to plead guilty. After review of the record and *980 consideration of the arguments presented on appeal, we affirm.

I.

The evidence adduced during the defendants’ ten-day trial established the existence of a large-scale, mostly marijuana, drug trafficking operation centered in rural Clay County, Kentucky. That operation generated millions of dollars in illicit drug proceeds for its distributors, one of whom, Larry Jackson, Jr., (Jackson) was a long-time friend of Wayne and Donna Reid. 1 The money laundering conspiracy began in January 2000, after the drug trafficking operation was well established, and continued until the last of the substantive money laundering transactions occurred on November 9, 2005. In all, Reid received an estimated $1.5 million in drug proceeds from Jackson either directly, or at Jackson’s direction after he became a fugitive. Since defendants do not challenge the sufficiency of the evidence, we briefly summarize the relevant drug trafficking and money laundering activities.

Larry Jackson, who was on disability for a coal mining injury, became involved in a drug trafficking operation run by Kenneth Day (Day) and was asked to take over the operation while Day served four years in prison between 1997 and 2002. Introduced to Day’s suppliers, including John Sherry (Sherry), a/k/a Terry King, Jackson increased the quantities of marijuana being distributed from a few hundred pounds per month to, at its height, a few thousand pounds every three to four months. Eugene Stewart (Stewart) was a customer and then became Jackson’s partner in the marijuana distribution.

In January 2000, at the commencement of the money laundering conspiracy, Jackson was living in a trailer behind the Reids’ home. At that time, Reid, who had previously worked operating heavy equipment and running a store and an auction business, was the pastor of a local Baptist church and a partner with his brother-in-law Darrell McQueen (McQueen) in an excavation business. Donna Reid had retired after ten years of teaching to open a church-affiliated temporary foster care home in 2000. Around that time, Reid offered to sell their house, the trailer, and the surrounding property to Jackson. When Jackson told Reid that he could not “show” that much money, Reid offered to keep the property in his name. Jackson paid Reid $125,000 in cash toward the total purchase price of $175,000, and title remained in the Reids’ name.

Not long after, Reid approached Jackson about joining the excavation business as a “silent” partner by providing money to purchase equipment in exchange for a share of the profits in the future. Jackson testified, as did Stewart and Day, that Reid knew that they were selling drugs. Jackson even testified that he “laid it all out” for Reid, and promised to “keep Reid out of it” if Reid promised not to lie or cheat him. Jackson testified that he gave Reid a total of $150,000 in cash in late March and early April 2000. Reid used the money to purchase some equipment, including a Freightliner truck for $41,000.

Then, in May 2000, Reid invited Jackson to become a silent partner in the purchase and development of a 250-acre farm. Jackson testified that he accepted, gave Reid $335,000 in cash, and understood that he would “get a check” that would be attributable to legitimate business activity. The property, which would be called Deer Creek Estates, was purchased at public auction by the Reids and McQueens with a *981 $225,000 mortgage. Bank records showed that between March 2000 and November 2000, frequent if not daily deposits of cash totaling nearly $475,000 were made into the Reids’ personal and business accounts. Yet, not one of those deposits exceeded $10,000.

Development of that property over the next few years included removing timber and coal, constructing the Deer Creek Quick Stop, remodeling an existing home on the property, and building several new homes. Jackson testified that he gave Reid $80,000 or $90,000 in cash toward the construction of the Quick Stop, gave Reid roughly $90,000 in cash to remodel the existing home on the property, and instructed Stewart to deliver another $75,000 in cash to Reid for the completion of a home being built for the Reids’ daughter Marty and her husband at the time, Shawn Hensley. There was also evidence that Reid paid more than $100,000 in cash for building supplies during the years 2000 to 2002. Reid asserted that the documented influx of cash came from legitimate sources of income, including the sale of timber and coal and some excavation and gravel work, but it was largely unsubstantiated.

In January 2002, before Jackson was indicted, the Reids, d/b/a Reid Gravel, took a bank loan for $1 million. 2 Reid purchased nearly $725,000 in heavy equipment, paid off an existing Deer Creek mortgage, and deposited the rest of the money into the bank. Reid approached Stewart and Day about joining this expansion, but they declined. Jackson, however, agreed and had Stewart deliver cash to Reid for several loan payments and other expenses.

Jackson was finally indicted in February 2002, but he eluded arrest and was dedared a fugitive in April 2002. Jackson fled to Tucson, Arizona, where he stayed briefly with Sherry, took on another identity, and maintained contact with Stewart and Reid using prepaid phones and making a few return trips to nearby Tennessee. Stewart took over managing the marijuana operation, held drug proceeds belonging to himself and Jackson, and delivered cash to Reid at Jackson’s direction until it ran out. Stewart was arrested with $75,000 in cash in May 2002, but successfully challenged the validity of the stop and ceased his drug trafficking activities by early 2003. The Reids admitted that Jackson arrived at their home in February 2005, in need of money and not physically well, and returned to Arizona with $50,000 in cash from a bank loan they took out against the land they were holding for Jackson.

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Cite This Page — Counsel Stack

Bluebook (online)
625 F.3d 977, 2010 U.S. App. LEXIS 24436, 2010 WL 4829852, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-reid-ca6-2010.