United States v. Shepard - George

396 F.3d 1116, 2005 U.S. App. LEXIS 1657, 2005 WL 237684
CourtCourt of Appeals for the Tenth Circuit
DecidedFebruary 2, 2005
Docket03-3293
StatusPublished
Cited by23 cases

This text of 396 F.3d 1116 (United States v. Shepard - George) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth 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. Shepard - George, 396 F.3d 1116, 2005 U.S. App. LEXIS 1657, 2005 WL 237684 (10th Cir. 2005).

Opinion

HENRY, Circuit Judge.

In July 2002, a jury found George Shepard guilty of twenty-four counts of money laundering, in violation of 18 U.S.C. § 1956(a)(1)(B)®; one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h); one count of transportation of stolen property, in violation of 18 U.S.C. § 2314; and one count of wire fraud, in violation of 18 U.S.C. § 1343. On appeal, Mr. Shepard argues that the evidence is insufficient to support his convictions. We exercise jurisdiction under 28 U.S.C. § 1291 and affirm Mr. Shepard’s convictions on all counts.

I. BACKGROUND

George Shepard was the chief welding inspector on a natural gas pipeline project between Mobile Oil Corporation and KN *1118 Energy near Liberal, Kansas. KN Energy, now doing business as Kinder Morgan, agreed in 1997 to install compressor stations for the project’s pipelines. It retained Cisneros Welding and Construction (“CWC”) as a contractor for the actual construction. Mr. Shepard oversaw the work performed by CWC to ensure the project’s compliance with KN Energy’s specifications. He reviewed and mailed daily time sheets for CWC workers to KN Energy’s home office for payment. Mr. Shepard was paid salary and per diem by an engineering sub-contractor that invoiced KN Energy. His son, Kim Shepard (“Kim”), was another inspector on the project.

KN Energy’s policies prohibited Mr. Shepard or Kim from renting their own welding equipment to CWC or KN Energy for use at the Liberal site. Around January 1998, Mr. Shepard asked a new CWC truck driver, Danny Blood, if Mr. Shepard could put a welding rig in Mr. Blood’s name and collect rental checks. Mr. Blood agreed, cashed the first two checks for welding rig rentals, and forwarded the rental money to Mr. Shepard and Kim. Mr. Blood is not a welder and never worked on a welding rig. He remained on the payroll for rig rentals after cashing the initial checks, but payments no longer came to him. All but three rig rental checks made payable to Mr. Blood were deposited into bank accounts of Mr. Shepard or Kim. Rec. vol. III, doc. 111, at 555.

In addition, Mr. Shepard instructed Mr. Blood to haul KN Energy equipment from the Liberal site to Thayer, Missouri. There, Mr. Shepard and Kim owned Country Club Kennels and other property. Mr. Blood hauled a tractor, bobcat, brush hog, and backhoe from Liberal to Thayer. From January through April 1998, another CWC driver, Louis Loya, hauled four or five truck loads of equipment from Liberal to Thayer. This equipment included steel pipe, a small crane, a backhoe, prefabricated frames, and various tools.

Also in 1998, Mr. Shepard placed Jeremy Thomas Wooldridge on the CWC payroll as a welder. Mr. Wooldridge worked for the Shepards in Thayer, Missouri, but he never worked on the Liberal project. Mr. Shepard and Kim deposited Mr. Wool-dridge’s welder checks into their bank accounts. Rec. vol. III, doc. 111, at 549-50. In addition, Mr. Shepard placed a fictitious employee named “Eloy Moreno” on the CWC payroll and collected payroll checks issued to “Mr. Moreno.” Mr. Shepard also created a fictitious rental company, “Moreno Rentals,” to generate CWC rental checks. Mr. Shepard and Kim collected the “Moreno Rental” checks and deposited them in the bank accounts of Mr. Shepard, Kim, and Country Club Kennels. Id. at 703.

The Liberal site’s project manager became aware of possible problems and notified KN Energy in May or early June 1998. A KN Energy audit discovered that (1) people on the payroll were not actually working; (2) welding equipment that the welder did not own was being charged to the project; (3) materials that did not relate to the project, such as dog feeders and dog food, were being purchased; and (4) some of Mr. Shepard’s storage trailers and welding figs were being used on the project. Rec. vol. I, doc. 109, at 44. KN Energy terminated Mr. Shepard’s employment in early June 1998. That same month, KN Energy recovered on Mr. Shepard’s Missouri property fifty-five company items with an estimated value of $88,854.

The government charged Mr. Shepard and Kim in a superceding indictment with twenty-nine counts of money laundering, one count of conspiracy to commit money laundering, one count of transportation of *1119 stolen goods, and one count of wire fraud. Prior to trial, the district court granted defendants’ motions for severance. At the conclusion of the government’s evidence at Mr. Shepard’s trial, he moved for a judgment of acquittal on all counts. The district court dismissed five counts of money laundering because those checks “were deposited directly into Kim Shepard or George Shepard’s accounts” and did not satisfy the necessary concealment element for a money laundering conviction. Rec. vol. III, doc. 111, at 764. The jury found Mr. Shepard guilty of twenty-four counts of money laundering, one count of conspiracy to commit money laundering, one count of transportation of stolen goods, and one count of wire fraud. A separate jury later found Kim guilty of eighteen counts of money laundering, one count of conspiracy to commit money laundering, and one count of wire fraud.

After the jury conviction, Mr. Shepard filed a motion for a judgment of acquittal. The district court denied the motion, sentenced Mr. Shepard to thirty-three months’ imprisonment, followed by three years of supervised release, and ordered him to pay $106,328.71 in restitution.

II. DISCUSSION

On appeal, Mr. Shepard contends that the government did not present sufficient evidence as to any of the offenses on which he was convicted. On this question, we review the record de novo. United States v. Delgado-Uribe, 363 F.3d 1077, 1081 (10th Cir.2004). “We must determine whether viewing the evidence in the light most favorable to the Government, any rational trier of fact could have found Mr. Shepard guilty of the crime beyond a reasonable doubt.” Id. (internal quotation marks omitted). This court does not weigh conflicting evidence nor consider the credibility of witnesses. United States v. McKissick, 204 F.3d 1282, 1289-90 (10th Cir.2000). We only determine “whether [the] evidence, if believed, would establish each element of the crime.” United States v. Vallo, 238 F.3d 1242, 1247 (10th Cir.2001) (internal quotation marks omitted). “We will only overturn a jury verdict if no reasonable juror could have reached the disputed verdict.” United States v. Magleby, 241 F.3d 1306, 1312 (10th Cir.2001) (internal quotation marks omitted).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. McHenry
Tenth Circuit, 2025
United States v. Cunningham
Tenth Circuit, 2025
United States v. Dermen
Tenth Circuit, 2025
United States v. Brown
Tenth Circuit, 2018
United States v. Tee
881 F.3d 1258 (Tenth Circuit, 2018)
United States v. Francisco Colorado Cessa
861 F.3d 121 (Fifth Circuit, 2017)
United States v. Sheridan
679 F. App'x 492 (Seventh Circuit, 2017)
United States v. 4219 University Drive, Fairfax
714 F.3d 782 (Fourth Circuit, 2013)
United States v. Aguilera-Meza
329 F. App'x 825 (Tenth Circuit, 2009)
United States v. Baldridge
559 F.3d 1126 (Tenth Circuit, 2009)
United States v. Svete
556 F.3d 1157 (Eleventh Circuit, 2009)
United States v. Parker
553 F.3d 1309 (Tenth Circuit, 2009)
United States v. Gruber
Tenth Circuit, 2006
United States v. McGehee
177 F. App'x 815 (Tenth Circuit, 2006)
United States v. Davis
437 F.3d 989 (Tenth Circuit, 2006)
United States v. Hall
434 F.3d 42 (First Circuit, 2006)
United States v. Conner
152 F. App'x 732 (Tenth Circuit, 2005)
United States v. Summers
414 F.3d 1287 (Tenth Circuit, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
396 F.3d 1116, 2005 U.S. App. LEXIS 1657, 2005 WL 237684, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-shepard-george-ca10-2005.