United States v. Robert Panaro, United States of America v. Stephen Cino, the Cino's Petition for Rehearing is Granted

266 F.3d 939, 2001 WL 1111628
Court of Appeals for the Ninth Circuit·Decided September 24, 2001·No. 99-10446, 99-10450·Published·Cited by 40 cases

Opinion

ORDER AND AMENDED OPINION

DAVID R. THOMPSON, Circuit Judge:

ORDER

The court has heretofore denied the appellant Panaro’s petition for rehearing. The mandate in his case, No. 99-10446, is recalled.

The opinion filed February 28, 2001, and published at 241 F.3d 1104 (9th Cir.2001) is amended as follows:

At 241 F.3d at 1107, the last sentence of the first paragraph of the opinion is deleted, and the following is inserted in its place:

We have jurisdiction under 28 U.S.C. § 1291 (1994). We affirm Panaro’s conviction and sentence. We also affirm Cino’s extortion convictions and one of his two money laundering convictions; we reverse the other money laundering conviction, and remand Cino’s case to the district court for resentencing in light of that reversal.

*943 At 241 F.3d at 1109, the last sentence of the penultimate paragraph under Part I.A. is deleted, and the following is inserted in its place:

Under section 1951(b)(2) of the Hobbs Act, “The term ‘extortion’ means the obtaining of property from another, with his consent, induced by wrongful use of actual or threatened force, violence, or fear, or under color of official right.” 18 U.S.C. § 1951(b)(2). The evidence shows that DeLuca, Cino, Panaro, and Branco conspired to “obtain! ] ... property from” Blitzstein, viz., his interests in the auto shop and loansharking business, through the use or threat of force or fear.
The four conspirators sought not only to put Blitzstein out of business, but actually to get his business interests for themselves. That is important with regard to the “obtaining” element of the Hobbs Act. Of course, “it is not necessary to prove that the extortioner himself, directly or indirectly, received the fruits of his extortion or any benefit therefrom. The Hobbs Act does not require such proof.” United States v. Provenzano, 334 F.2d 678, 686 (3d Cir.1964); see also United States v. Hyde, 448 F.2d 815, 843 (5th Cir.1971) (“One need receive no personal benefit to be guilty of extortion .... ”). But under the Hobbs Act, extortion, which is a larceny-type offense, does not occur when a victim is merely forced to part with property. Rather, there must be an “obtaining”: someone — either the extortioner or a third person — must receive the property of which the victim is deprived. See Provenzano, 334 F.2d at 686 (“It is enough that payments were made at the extortioner’s direction to a person named by him.”); cf. United States v. Nedley, 255 F.2d 350 (3d Cir.1958) (finding allegation that defendant tried to put victim out of business insufficient to show “obtaining” for purposes of “robbery” under the Hobbs Act). See generally Brian J. Murray, Note, Protesters, Extortion, and Coercion: Preventing RICO From Chilling First Amendment Freedoms, 75 Notre Dame L.Rev. 691, 704-712 (1999) (tracing extortion from the common law through the Hobbs Act and concluding that extortionate “obtaining” requires not only that a victim be deprived of property, but also that someone get the property as a result of the deprivation).

At 241 F.3d at 1109, the second sentence under Part I.C. is amended to read: This payment was to compensate Cino for his help in arranging a $25,000 counterfeit travelers’ checks transaction.

At 241 F.3d at 1110, the final three paragraphs under Part I. C., denoted by headnotes [4], [5], [6] & [7], are deleted and the following is inserted in their place:

With regard to count 27, we are not persuaded by Cino’s arguments. The $1,000 tribute payment was made to facilitate the carrying on of the underlying illegal activity. See United States v. Marbella, 73 F.3d 1508, 1514 (9th Cir.1996) (scheme to pay referral fees to “cappers” out of illegally obtained settlement proceeds promoted the underlying fraud because it encouraged the cappers to refer future cases). A reasonable jury could have found that the $1,000 tribute payment to Cino promoted the $25,000 counterfeit travelers’ checks transaction, because without that tribute payment, Cino would not have permitted the fraudulent scheme to continue.
The evidence was also sufficient for a reasonable jury to find that by accepting the $1,000 tribute payment, Cino engaged in “a financial transaction involving property represented to be the proceeds of specified unlawful activity.”
*944 See 18 U.S.C. § 1956(a)(3). A financial transaction includes a “ ‘transfer, delivery, or other disposition’ of money.” United States v. Gough, 152 F.3d 1172, 1173 (9th Cir.1998) (quoting 18 U.S.C. § 1956(c)(3)). Cino engaged in a financial transaction when he accepted the $1,000 tribute payment. The payment also represented “proceeds of specified unlawful activity.” Branco, the cocon-spirator-turned-government-informant, testified that after“the completion of the purchase of the $25,000 in travelers’ checks, he had an obligation to give Cino “a cut.” As Branco testified,
Q. Mr. Branco, with the completion of the purchase of the twenty-five thousand dollars ($25,000) in counterfeit traveler’s checks, did you have any obligation toward defendant Steve Cino?
A. Yes.
Q. And what obligation did you have?
A. He would get a cut, an even cut, from — between me and the agent, and the other half — part would go to him.
Q. And why was he entitled to a cut?
A. Because he more — he put it [the transaction] together by that meeting that we had over in Palm Springs. He got it where he put us right back into being able to purchase those [traveller’s checks] from that fella....
To fulfill his obligation to give Cino “a cut,” Branco arranged to have the $1,000 sent to Cino. In a subsequent phone call with Cino, Branco told him that he had “sent [Cino] out that news clipping”— referring to Cino’s “end of the money.” Cino. confirmed during a phone conversation with Branco that he had received the money.

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United States v. Robert Panaro, United States of America v. Stephen Cino, the Cino's Petition for Rehearing is Granted, 266 F.3d 939, 2001 WL 1111628 (9th Cir. 2001).

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