United States v. Talebnejad

460 F.3d 563, 2006 WL 2390645
CourtCourt of Appeals for the Fourth Circuit
DecidedAugust 21, 2006
Docket04-4841, 04-4873
StatusPublished
Cited by13 cases

This text of 460 F.3d 563 (United States v. Talebnejad) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth 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. Talebnejad, 460 F.3d 563, 2006 WL 2390645 (4th Cir. 2006).

Opinions

Reversed in part, dismissed in part, and remanded by published opinion. Chief Judge WILKINS wrote the majority opinion, in which Judge ANDERSON joined. Judge GREGORY wrote an opinion concurring in part and dissenting in part.

OPINION

WILKINS, Chief Judge.

The United States appeals an order of the district court dismissing the indictment against Farhad Talebnejad and his parents (collectively, “the Talebnejads”). The Ta-lebnejads were charged with conducting an unlicensed money transmitting business, see 18 U.S.C.A. § 1960 (West Supp.2006). The district court dismissed the indictment on the basis that its allegations were insufficient in numerous respects. See United States v. Talebnejad, 342 F.Supp.2d 346, 353-61 (D.Md.2004). The court declined to address the Talebnejads’ Eighth Amendment challenge to the forfeiture allegations of the indictment on the basis that the claim was premature. See id. at 361. For the reasons set forth below, we reverse the dismissal of the indictment and dismiss the Talebnejads’ cross-appeal of the refusal to consider the Eighth Amendment claim.

I.

A. Relevant Provisions

1. 18 U.S.C.A. § 1960

A money transmitting business is one that, for a fee, accepts currency for transfer within or outside the United States through foreign currency exchanges and financial institutions. See 18 U.S.C.A. § 1960(b)(2); United States v. Velastegui, 199 F.3d 590, 592 (2d Cir.1999). Many of these businesses are operated informally, by immigrants for fellow immigrants from their home countries. In 1992, Congress sought “to combat the growing use of money transmitting businesses to transfer large amounts of the monetary proceeds of unlawful enterprises” by enacting § 1960. Velastegui, 199 F.3d at 593. Prior to 2001, the statute provided, in pertinent part:

(a) Whoever conducts, controls, manages, supervises, directs, or owns all or part of a business, knowing the business is an illegal money transmitting business, shall be fined in accordance with this title or imprisoned not more than 5 years, or both.
(b) As used in this section—
(1) the term “illegal money transmitting business” means a money transmitting business which affects interstate or foreign commerce in any manner or degree and—
(A) is intentionally operated without an appropriate money transmitting license in a State where such [566]*566operation is punishable as a misdemeanor or a felony under State law; or
(B) fails to comply with the money transmitting business registration requirements under section 5330 of title 31, United States Code, or regulations prescribed under such section....

18 U.S.C.A. § 1960, historical & statutory notes (West Supp.2006) (emphasis added) (internal quotation marks omitted).

On October 26, 2001, Congress amended the statute to provide, in relevant part, as follows:

(a) Whoever knowingly conducts, controls, manages, supervises, directs, or owns all or part of an unlicensed money transmitting business, shall be fined in accordance with this title or imprisoned not more than 5 years, or both.
(b) As used in this section—
(1) the term “unlicensed money transmitting business” means a money transmitting business which affects interstate or foreign commerce in any manner or degree and—
(A) is operated without an appropriate money transmitting license in a State where such operation is punishable as a misdemeanor or a felony under State law, tvhether or not the defendant knew that the operation was required to be licensed or that the operation was so punishable; [or]
(B) fails to comply with the money transmitting business registration requirements under section 5330 of title 31, United States Code, or regulations prescribed under such section....

18 U.S.C.A. § 1960 (emphasis added). The purpose of the amendment was to eliminate a potentially available affirmative defense that the defendant was unaware of applicable state licensing requirements. See H.R.Rep. No. 107-250, pt. I, at 54 (2001) (explaining that the amendment “clarifies the scienter requirement in § 1960 to avoid the problems that occurred when the Supreme Court interpreted the currency transaction reporting statutes to require proof that the defendant knew that structuring a cash transaction to avoid the reporting requirements had been made a criminal offense. See Ratzlaf v. United States, [510 U.S. 135,] 114 S.Ct. 655 [126 L.Ed.2d 615] (1994). The proposal makes clear that an offense under § 1960 is a general intent crime for which a defendant is liable if he knowingly operates an unlicensed money transmitting business.”).

2. Maryland Law

Maryland law prohibits a person from engaging in “the business of money transmission” unless that person is a licensee, is a delegate of a licensee, or is exempt from the licensing requirement. Md.Code Ann., Fin. Inst. § 12-05 (LexisNexis 2003). “Money transmission” is defined as “the business of selling or issuing payment instruments or stored value devices, or receiving money or monetary value, for transmission to a location within or outside the United States” and includes “[a]ny informal money transfer system engaged in as a business for ... facilitating the transfer of money outside the conventional financial institutions system to a location within or outside the United States.” Md. Code Ann., Fin. Inst. § 12-401(l) (Lexis-Nexis 2003). Maryland law sets forth criminal penalties for “[a]ny person who knowingly and willfully violates” the licensing requirement. Md.Code Ann., Fin. Inst. § 12-130 (LexisNexis 2003) (emphasis added).

3. Federal Regulations

Although § 1960 has made failure to comply with federal registration requirements punishable since 1994, see 18 U.S.C.A. § 1960, historical & statutory notes (West 2000), pertinent regulations were not promulgated until 1999 and did not become effective until December 31, [567]*5672001. The actual content of applicable federal regulations is not pertinent to the issues before us.

B. The Talebnejads

The Talebnejads are Iranian immigrants. Farhad Talebnejad operated two money transmitting businesses — Shirazi Money Exchange, Inc., and Shirazi Arz, Inc. — out of his parents’ home in Rockville, Maryland. The businesses were not licensed under Maryland law, nor were they registered pursuant to 31 U.S.C.A. § 5330 (West 2003). In late 1995, Talebnejad investigated the possibility of obtaining licenses, but decided not to do so because he could not afford the cost and he believed that the licensing statute did not apply to his businesses.

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