lily
06-02-2008, 04:26 PM
Linkhttp://www.washingtonpost.com/wp-dyn/content/article/2008/06/02/AR2008060200843.html?hpid=moreheadlines
Justices rule for defendants on money laundering
The Associated Press
Monday, June 2, 2008; 10:38 AM
WASHINGTON -- The Supreme Court on Monday ruled against the government in
two money laundering cases, making it more difficult for prosecutors to use
an important weapon in the war on drugs and organized crime.
In a unanimous decision, Justice Clarence Thomas said that a money
laundering case cannot be proven merely by showing that funds were concealed
while being transported.
In a 5-4 ruling, Justice Antonin Scalia said that money laundering refers to
profits of an illegal operation, not gross receipts. The court's
interpretation is a narrow one opposed by law enforcement agencies.
Scalia said the narrow definition will not unduly burden authorities, who
must show only that a single instance of unlawful activity was profitable.
In the cases of Efrain Santos and Benedicto Diaz, a federal judge and the
7th U.S. Circuit Court of Appeals in Chicago said that paying off gambling
winners and compensating employees who collect the bets don't qualify as
money laundering. Those are expenses, and prosecutors must show that profits
were used to promote the illegal activity, the appeals court ruled in a
decision affirmed by the Supreme Court.
In dissent, Justice Samuel Alito said that the court's ruling would
frustrate congressional intent and "maim" a law that was enacted as an
important defense against organized criminal enterprises.
Money laundering carries a maximum penalty of 20 years in prison and
prosecutors often use it in drug and gambling cases.
Congress enacted the anti-money laundering law in 1986 after the President's
Commission on Organized Crime highlighted the growing problem of "washing"
criminal proceeds through overseas bank accounts and legitimate businesses.
The cases are U.S. v. Santos, 06-1005, and Cuellar v. U.S., 06-1456.
Justices rule for defendants on money laundering
The Associated Press
Monday, June 2, 2008; 10:38 AM
WASHINGTON -- The Supreme Court on Monday ruled against the government in
two money laundering cases, making it more difficult for prosecutors to use
an important weapon in the war on drugs and organized crime.
In a unanimous decision, Justice Clarence Thomas said that a money
laundering case cannot be proven merely by showing that funds were concealed
while being transported.
In a 5-4 ruling, Justice Antonin Scalia said that money laundering refers to
profits of an illegal operation, not gross receipts. The court's
interpretation is a narrow one opposed by law enforcement agencies.
Scalia said the narrow definition will not unduly burden authorities, who
must show only that a single instance of unlawful activity was profitable.
In the cases of Efrain Santos and Benedicto Diaz, a federal judge and the
7th U.S. Circuit Court of Appeals in Chicago said that paying off gambling
winners and compensating employees who collect the bets don't qualify as
money laundering. Those are expenses, and prosecutors must show that profits
were used to promote the illegal activity, the appeals court ruled in a
decision affirmed by the Supreme Court.
In dissent, Justice Samuel Alito said that the court's ruling would
frustrate congressional intent and "maim" a law that was enacted as an
important defense against organized criminal enterprises.
Money laundering carries a maximum penalty of 20 years in prison and
prosecutors often use it in drug and gambling cases.
Congress enacted the anti-money laundering law in 1986 after the President's
Commission on Organized Crime highlighted the growing problem of "washing"
criminal proceeds through overseas bank accounts and legitimate businesses.
The cases are U.S. v. Santos, 06-1005, and Cuellar v. U.S., 06-1456.