ILNews

SCOTUS quiet on money-laundering case

Michael W. Hoskins
January 1, 2008
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The nation's highest court hasn't yet ruled on an East Chicago case involving money laundering, but that could be because justices are waiting to hear a similar case before making a decision.

Indianapolis attorney Todd Vare with Barnes & Thornburg argued before the Supreme Court of the United States Oct. 3, but so far the court hasn't issued a decision on U.S. v. Efrain Santos, No. 06-1005.

Ten of the 14 cases argued that month have been ruled on, as well as other cases argued before the justices since October.

One possible reason the court hasn't ruled yet is that it's going to consider another similar case at the same time, said Vare, who represents Santos. Less than two weeks after his arguments last fall, justices accepted Cuellar v. U.S., No. 06-1456, that deals with the question of whether merely hiding funds without trying to make that money appear "clean" or "laundered" is sufficient to support a money-laundering conviction.

Arguments are set for Monday morning, and Vare anticipates the court will decide both simultaneously.

"It's possible - now quite probable - that the court will issue opinions in both cases on the same day," Vare said, adding that he hopes the delay will bode well for his client.

In Santos, the court is considering the definition of money laundering and the word "proceeds" as it's used in the federal statute. Federal Circuit Courts, including the 7th Circuit in Chicago, do not agree on an exact definition and have disagreed about whether it's considered money laundering to pay for the operation of a criminal enterprise with the profits of that illegal business. The nation's high court will determine whether the ban on the use of "proceeds" of a crime to promote or conceal it - "laundering" the proceeds - applies to the total amount of money or only the profits after expenses.

Specifically, this case involves the federal prosecution of an old tavern lottery raid where Santos - known as "Puerto Rican Frankie" - was arrested for running the illegal operation throughout northwest Indiana from the 1970s to 1994. He was sentenced to 17 years in prison in 1998, but he was later released after the 7th Circuit heard two other cases in 2000 and 2002 and issued rulings that changed the interpretation of money laundering.

Following those decisions, U.S. District Judge James Moody in Hammond ruled that Santos' actions were no longer considered money laundering because of an interpretation of "net proceeds" and "gross proceeds" in federal laws.

Vare took Santos' case as part of the 7th Circuit's pro bono appointment program.

The Cuellar case deals with the concealment prong of the statute, while Santos involves the "promotion" prong of the statute, Vare said. He recalled how several justices focused on how a ruling in Santos could affect cases arising under that concealment issue raised in Cuellar.
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  1. Indianapolis employers harassment among minorities AFRICAN Americans needs to be discussed the metro Indianapolis area is horrible when it comes to harassing African American employees especially in the local healthcare facilities. Racially profiling in the workplace is an major issue. Please make it better because I'm many civil rights leaders would come here and justify that Indiana is a state the WORKS only applies to Caucasian Americans especially in Hamilton county. Indiana targets African Americans in the workplace so when governor pence is trying to convince people to vote for him this would be awesome publicity for the Presidency Elections.

  2. Wishing Mary Willis only God's best, and superhuman strength, as she attempts to right a ship that too often strays far off course. May she never suffer this personal affect, as some do who attempt to change a broken system: https://www.youtube.com/watch?v=QojajMsd2nE

  3. Indiana's seatbelt law is not punishable as a crime. It is an infraction. Apparently some of our Circuit judges have deemed settled law inapplicable if it fails to fit their litmus test of political correctness. Extrapolating to redefine terms of behavior in a violation of immigration law to the entire body of criminal law leaves a smorgasbord of opportunity for judicial mischief.

  4. I wonder if $10 diversions for failure to wear seat belts are considered moral turpitude in federal immigration law like they are under Indiana law? Anyone know?

  5. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

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