United States v. Rosalind K. Reed

77 F.3d 139, 1996 U.S. App. LEXIS 3407, 1996 WL 86563
CourtCourt of Appeals for the Sixth Circuit
DecidedMarch 1, 1996
Docket95-1567
StatusPublished
Cited by43 cases

This text of 77 F.3d 139 (United States v. Rosalind K. Reed) 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. Rosalind K. Reed, 77 F.3d 139, 1996 U.S. App. LEXIS 3407, 1996 WL 86563 (6th Cir. 1996).

Opinions

KENNEDY, J., delivered the opinion of the court, in which MERRITT, C.J., MARTIN, MILBURN, NELSON, RYAN, BOGGS, NORRIS, SILER, BATCHELDER, DAUGHTREY, and MOORE, JJ., joined. MARTIN, J. (pp. 143-44), also delivered a separate concurring opinion.

KENNEDY, Circuit Judge.

The government appeals the pre-trial dismissal of three counts of money laundering on the basis that the delivery or transfer of cash is not a “financial transaction” within the meaning of the money laundering statute, 18 U.S.C. § 1956. A majority of this court voted to hear this case en banc. For the following reasons, we reverse the decision of the District Court.

I.

Defendant Rosalind K. Reed, a criminal defense attorney, is charged with two counts of money laundering in violation of 18 U.S.C. § 1956(a)(l)(A)(i) for, on each of two occasions, accepting approximately $100,000, which represented the proceeds of unlawful activity, and then arranging for delivery of the currency to California with the intent of promoting a client’s continued marijuana trafficking.1 She is also charged in a conspiracy count relating to the same acts. The government filed a pre-trial motion to submit these money laundering counts to the jury with the instructions that “a ‘delivery’ of cash is a ‘financial transaction’ ” under the statute.

[141]*141The government’s brief in support of the motion sought to distinguish this case from this Court’s decisions in United States v. Samour, 9 F.3d 531 (6th Cir.1993), and United States v. Oleson, 44 F.3d 381 (6th Cir.1995), which held that when a defendant delivered or caused the delivery of cash representing drug proceeds to another person for the purchase of more drugs, it was “mere transportation” and was not a violation of § 1956(a) (1)(A) (i).

In support of its motion, the government filed a brief indicating that its evidence would tend to establish the following:

At the time of her indictment on drug and money laundering charges, defendant was representing one Richard Sumpter. Sump-ter was arrested in Detroit, Michigan, after he took possession of a van that had been driven from California to Michigan loaded with 560 pounds of marijuana. Apparently, Sumpter intended that this shipment of marijuana be sold by Jerome Maddox. Maddox lived in Detroit and was Sumpter’s local distributor of marijuana. Maddox was also a neighbor of defendant. She, Sumpter, and Maddox were friends and defendant knew that Sumpter and Maddox were involved in the ongoing distribution of marijuana. Defendant was engaged to represent Sumpter.

During the course of this representation, defendant learned that Maddox owed Sump-ter approximately $500,000 in past drug debts. Defendant conveyed messages back and forth between Sumpter and Maddox so they could determine the exact amount of the debt. Once they determined the exact amount, defendant facilitated repayment of the debt; she told Maddox to bring his marijuana proceeds to her office and arranged for the transfer of the money to a courier, who took the money back to California for Sump-ter.

Two such transfers took place according to the government. The first occurred on or about February 11, 1994. Defendant arranged a meeting between Maddox and Sumpter’s wife, who travelled to Detroit from California, so that Maddox could repay a portion of the money he owed Sumpter. The meeting took place at defendant’s law office. When both individuals were present, defendant momentarily left her office, and Maddox gave Sumpter’s wife approximately $96,000. Maddox then left the office and defendant returned. Pursuant to a prearranged plan, defendant and Sumpter’s wife put the money in a bag and hid it in defendant’s office where it would be picked up by a courier and transported to California for Sumpter. Within a few days a courier did indeed arrive at defendant’s office. At defendant’s direction, the office receptionist gave the bag containing the money to the courier.

The second transfer of marijuana proceeds occurred approximately one month later, on or about March 10, 1994. Defendant informed Maddox that Sumpter’s wife was coming back to Detroit in order to collect more of the drug debt. Maddox arrived at defendant’s office, as instructed by defendant, with approximately $96,000 in a cardboard box. He gave this money to Sump-ter’s wife. Once Maddox left, defendant and Sumpter’s wife discussed the retrieval of the money by a courier. They put the money in a suitcase and, as before, hid it in defendant’s office. A few days later the same courier arrived at defendant’s office, took the suitcase, and transported the money to California. Federal agents arrested the courier upon his arrival in California.

The District Court, after finding itself bound by Samour and Oleson, denied the government’s requested jury instruction and dismissed the money laundering counts. The government appealed pursuant to 18 U.S.C. § 3731, which authorizes it to appeal in a criminal case from an order dismissing an indictment as to any one or more counts.

II.

The sole issue we revisit en banc is a discrete question of statutory interpretation: Whether the delivery or transfer of cash, which is the proceeds of unlawful activity, to another person is a financial transaction within the meaning of the money laundering statute, 18 U.S.C. § 1956. The government argues that it is, and that this court, sitting en banc, should overrule Samour and Oleson to the extent that the holdings of those cases are inconsistent with this position.

[142]*142Defendant argues that Samour and Oleson were correctly decided and that the facts alleged do not constitute a financial transaction for the purposes of the money laundering statute.2

III.

A.

The counts dismissed by the District Court all alleged that defendant violated Title 18 U.S.C. § 1956(a)(l)(A)(i). That section states, in pertinent part:

(a)(1) Whoever, knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity, conducts or attempts to conduct such a financial transaction which in fact involves the proceeds of specified unlawful activity—
(A)(i) with the intent to promote the carrying on of specified unlawful activity;
* * *
shall be [punished as set forth in this subsectionl.

“Financial transaction” is defined in § 1956(c)(4), which states, in pertinent part:

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Cite This Page — Counsel Stack

Bluebook (online)
77 F.3d 139, 1996 U.S. App. LEXIS 3407, 1996 WL 86563, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-rosalind-k-reed-ca6-1996.