Judges order new trial for woman who withdrew, deposited cash from ATMs

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In a split decision from the 7th Circuit Court of Appeals, the majority reversed a Russian woman’s conviction for violating a federal statute that prohibits structuring currency transactions in order to evade federal reporting requirements for transactions involving more than $10,000 in currency. The majority cited the prosecution’s questioning of the woman about past financial records as the reason for reversal.

Yulia Abair, who moved to the United States in 2005, married, and later got divorced, learned two weeks before the close on her new house that her bank in Russia would not deposit the money she needed from her account there to her U.S. account because her last name on the accounts did not match. She scrambled around Indiana, withdrawing the maximum daily amount of cash from her Russian account from Citibank ATMs and deposited the money into her local bank account. The government became aware of her activity when she made two deposits around Memorial Day, which pushed her daily deposit over the $10,000 reporting threshold set by regulation.

She was indicted by a grand jury on eight charges and convicted, with the judge merging the counts into one. At trial, the District judge allowed the prosecutor to ask Abair about a 2008 joint income tax return and the Free Application for Federal Student Aid forms she filled out while attending nursing school. The government wanted to attack Abair’s truthfulness by using these forms, claiming she lied on the forms.

In United States of America v. Yulia Yurevna Abair, 13-2498, the judges did not hide their beliefs that the government may have better directed its prosecutorial resources elsewhere instead of bringing charges against Abair, a nurse and mother of an 11-year-old son. Due to her conviction, she forfeited the entire value of her house after selling it, which was $67,000.

“In this case we conclude that the district court abused its discretion by allowing the cross-examination on Abair’s financial filings because the government did not provide a sufficient basis to believe the filings were probative of Abair’s character for truthfulness. Rule 608(b) requires that the crossexaminer have reason to believe the witness actually engaged in conduct that is relevant to her character for truthfulness,” Judge David Hamilton wrote for the majority.

While the 7th Circuit didn’t need to hold that the scope of the questioning itself was error under Rule 403 or under Rule 611’s bar on harassing or wasteful questioning, the cross-examination in this case went on so long and in such detail as to dispel any suggestion that the error was harmless, Hamilton continued.

“We recognize that the government believes that Abair may have been involved in a range of other wrongdoing, but there is simply no evidence of other wrongdoing. For all that appears in this record, Abair is at most a one-time offender who committed an unusually minor violation of the structuring statute not tied to other wrongdoing. We therefore have serious doubts that the forfeiture of her home’s entire $67,000 value comports with the ‘principle of proportionality’ that is the ‘touchstone of the constitutional inquiry under the Excessive Fines Clause,’ but further exploration of the issue can await a new trial.”

Judge Diane Sykes dissented from her colleagues because despite the prosecutorial overreaching, she found no legal error. To cross-examine a witness under Rule 608(b)(1), the cross-examiner needs to only have a good-faith factual basis to support the proposed line of questioning, and that stand was met in this case, she wrote.

Sykes also noted in a footnote, “Despite our disagreement about the legal issue under Rule 608(b)(1), my colleagues’ decision to reverse and remand for a new trial has the salutary effect of permitting a fresh exercise of prosecutorial discretion. The executive branch may choose to moderate its strict enforcement stance against Abair and resolve not to sink further resources into prosecuting her. Under the circumstances, that might be the most prudent and just thing to do.”



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  1. I have an open CHINS case I failed a urine screen I have since got clean completed IOP classes now in after care passed home inspection my x sister in law has my children I still don't even have unsupervised when I have been clean for over 4 months my x sister wants to keep the lids for good n has my case working with her I just discovered n have proof that at one of my hearing dcs case worker stated in court to the judge that a screen was dirty which caused me not to have unsupervised this was at the beginning two weeks after my initial screen I thought the weed could have still been in my system was upset because they were suppose to check levels n see if it was going down since this was only a few weeks after initial instead they said dirty I recently requested all of my screens from redwood because I take prescriptions that will show up n I was having my doctor look at levels to verify that matched what I was prescripted because dcs case worker accused me of abuseing when I got my screens I found out that screen I took that dcs case worker stated in court to judge that caused me to not get granted unsupervised was actually negative what can I do about this this is a serious issue saying a parent failed a screen in court to judge when they didn't please advise

  2. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

  3. Paul Hartman of Burbank, Oh who is helping Sister Fuller with this Con Artist Kevin Bart McCarthy scares Sister Joseph Therese, Patricia Ann Fuller very much that McCarthy will try and hurt Patricia Ann Fuller and Paul Hartman of Burbank, Oh or any member of his family. Sister is very, very scared, (YES, I AM) This McCarthy guy is a real, real CON MAN and crook. I try to totall flatter Kevin Bart McCARTHY to keep him from hurting my best friends in this world which are Carolyn Rose and Paul Hartman. I Live in total fear of this man Kevin Bart McCarthy and try to praise him as a good man to keep us ALL from his bad deeds. This man could easy have some one cause us a very bad disability. You have to PRAISAE in order TO PROTECT yourself. He lies and makes up stories about people and then tries to steal if THEY OWN THRU THE COURTS A SPECIAL DEVOTION TO PROTECT, EX> Our Lady of America DEVOTION. EVERYONE who reads this, PLEASE BE CAREFUL of Kevin Bart McCarthy of Indianapolis, IN My Phone No. IS 419-435-3838.

  4. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

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