United States v. Rosario Montoya, United States of America v. Filiberto E. Montoya

45 F.3d 1286, 95 Daily Journal DAR 558, 95 Cal. Daily Op. Serv. 316, 1995 U.S. App. LEXIS 430, 1995 WL 9707
CourtCourt of Appeals for the Ninth Circuit
DecidedJanuary 12, 1995
Docket93-50411, 93-50440
StatusPublished
Cited by108 cases

This text of 45 F.3d 1286 (United States v. Rosario Montoya, United States of America v. Filiberto E. Montoya) 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. Rosario Montoya, United States of America v. Filiberto E. Montoya, 45 F.3d 1286, 95 Daily Journal DAR 558, 95 Cal. Daily Op. Serv. 316, 1995 U.S. App. LEXIS 430, 1995 WL 9707 (9th Cir. 1995).

Opinions

Opinion by Judge T.G. NELSON; Dissent by Senior Circuit Judge BRIGHT.

OPINION

T.G. NELSON, Circuit Judge:

I.

OVERVIEW

This case involves the prosecution of a formerly immunized witness and his wife. Filiberto Montoya is a real estate salesperson who was accused of laundering money for alien drug lords by making investments in local real estate. Montoya appeals his conviction following his conditional guilty plea to conspiracy to engage in monetary transactions in property derived from specified unlawful activity and to commit bank fraud, in violation of 18 U.S.C. §§ 371, 1957(a), and 1344. Rosario Montoya appeals her conviction following her conditional guilty plea to making a false statement on a loan application and aiding and abetting, in violation of 18 U.S.C. § 1014,18 U.S.C. § 2. The Montoyas’ conditional guilty pleas preserved the right to appeal the district court’s denial of the motion to dismiss the indictment on the ground that this prosecution is allegedly tainted by Filiberto’s status as an immunized witness in a drug investigation focusing on the Contreras-Subias drug organization. We conclude that the district court properly denied the motion to dismiss the indictment on the ground that it was not tainted by the earlier grant of immunity to Montoya; that a Kastigar evidentiary hearing was not compelled under the circumstances of this case; and that the district court did not err in refusing to dismiss the indictment on grounds that it was not the result of outrageous government conduct or prosecutorial vindictiveness.

II.

FACTS AND PROCEDURAL HISTORY

In May 1988, the Government became aware that a niimber of real properties in San Diego County were connected with the Contreras-Subias drug trafficking organization. Assistant United States Attorney (AUSA) Warren Reese was assigned to investigate the trafficking activities of this organization (the “Reese investigation”). Early in the investigation, documents obtained as the result of the arrests of members of the Contreras-Subias organization and from searches.of the San Diego properties, led to materials indicating that Filiberto Montoya was involved. Montoya had acted as a real estate salesperson in transactions whereby members of the organization, or its nominees, acquired real property. From May through August 1988, documents were collected as a result of the issuance of grand jury and administrative subpoenas.

A separate investigation revealed that Montoya was involved, on behalf of the Contreras family, in a real estate transaction in Oklahoma. This led to indictments of members of the drug organization for money [1290]*1290laundering in Oklahoma, and AUSA Reese was assigned to assist in this prosecution.

In the Fall of 1988, Reese was contacted by an attorney on behalf of Montoya, and they discussed the possibility of Montoya cooperating in the investigation. Reese wrote a letter dated November 17, 1988, granting Montoya informal immunity. The first interview with Montoya took place on November 18, 1988. He was also interviewed in January, February, and May of 1989. Discussions with Montoya led Reese to conclude that Montoya would be called as a witness. Montoya was formally granted immunity and ordered to testify before the grand jury in San Diego in January 1989, and at the Oklahoma trial in May 1989.

In February 1990, Reese prepared a memorandum to the United States Attorney requesting that authority be sought from the Department of Justice to prosecute Montoya for conspiracy to commit bank and mail fraud and money laundering, as well as the substantive offenses. Reese’s request explained:

In weighing the public interest in prosecution, it should be noted 'that the witness appeared to testify falsely before the grand jury, then recanted when confronted with contradictory evidence. He is also believed to have testified falsely during a trial (although a peijury prosecution could not be sustained), and he did' not give complete testimony, as explained below.

Permission was ultimately granted by the Attorney General, and AUSA Amalia Meza, then AUSA Ed Weiner, were assigned to prosecute Montoya (the “Weiner investigation”).1 The Montoyas were indicted on May 7, 1992, for conspiracy to engage in money laundering and bank fraud, and for the underlying substantive offenses.

The Montoyas filed a motion to dismiss the indictment on the ground it was tainted by immunized testimony. The Government filed a response, including nine declarations of the various prosecutors and agents involved in the Reese and Weiner investigations. The Montoyas subsequently, filed a motion to cross-examine the nine declarants after the court indicated that it might not hold a hearing on the motion (a Kastigar evidentiary hearing).

The district court denied the motion to dismiss the indictment and the motion to cross-examine on November 30, 1992. The court found that “[t]he government, in its response and opposition, met its heavy burden of proof that it obtained the evidence used to indict Montoya from independent sources.” The court concluded:

There was some overlap between the Reese investigation and the Weiner investigation, as the defense contends. However, the Government must prove that it had prior independent sources for the information that lead to Montoya’s indictment, not that there was no overlap. The searches of Montoya’s property in August of 1988, the subpoenas for records from escrow companies and financial institutions as a result of these searches, and the separate investigations of Agents Morris, Young and Grover all indicate that the Government had more than enough independent evidence to indict Montoya.

Instead of filing a motion for reconsideration, the Montoyas petitioned the Ninth Circuit for a writ of mandamus to compel the district court to vacate its order, conduct a hearing on the motion, including cross-examination of the nine declarants, and file discovery documents.2 The Government filed a motion for reconsideration with the district court, requesting that it permit filing of the discovery material, review the material, and reconsider the motion to dismiss. The court granted the motion and reconsidered the motion to dismiss in light of the new material.

[1291]*1291On February 2, 1993, the court again denied the motion to dismiss. The court noted that the discovery documents “actually support the Government’s assertion that the evidence used to indict Montoya was derived from independent sources,” and then described the documents. The court rejected the Montoyas’ argument that the discovery documents were inconsistent with the declarations filed by the Government and that therefore an evidentiary hearing was required. The court explained:

The defendants point out that certain declarations state that the declarants did not have information about Montoya’s immunized statements or testimony.

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Bluebook (online)
45 F.3d 1286, 95 Daily Journal DAR 558, 95 Cal. Daily Op. Serv. 316, 1995 U.S. App. LEXIS 430, 1995 WL 9707, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-rosario-montoya-united-states-of-america-v-filiberto-e-ca9-1995.