- Child Pornography
- Domestic Violence Cases
- Driving under the influence (DUI)
- Drug Crimes
- Federal White Collar Crime
- Health Care Fraud
- International Criminal Law and Extradition
- Internet Crime
- Misdemeanor / Felony Crimes
- Money Laundering and Racketeering (RICO)
- Professional Licensure Issues
- Sex Crimes & Abuse Allegations
- August 18, 2016
Third Circuit Says Government Can’t Infringe upon the Right of Allocution (U.S. v. Jason Moreno)
- July 21, 2016
A defendant who is convicted for committing federal sexual exploitation and child pornography crimes and who pays criminal restitution to the victim can be sued in a civil action by the victim for damages for the same offense (under 18 U.S.C. Sec. 2225)
- June 14, 2016
Arizona’s Highest Court Resolves Questions regarding DUI Convictions of Medical Marijuana Users (Dobson v. McClennen, 238 Ariz. 389 (2015))
- June 1, 2016
Pennsylvania Courts Uphold Institutional Sexual Assault Statute as Applied to Teachers’ Aide and 18 Year Old Student
- November 4, 2015
Philadelphia DUI Arrests & Challenges to the Case. By a criminal attorney in Philadelphia
Fourth Circuit Holds that Money Laundering Applies to the Profits of Crime, Not the Expenses
In United States v. Cloud, 680 F.3d 396; 2012 U.S. App. LEXIS 10946, The United States Court of Appeals for the Fourth Circuit reversed Defendant William Roosevelt Cloud’s money laundering convictions, applying State v. Santos, 553 U.S. 507 (2008). Cloud’s convictions all stemmed from a complex mortgage-fraud scheme in which Cloud would dupe buyers with good credit into purchasing property as an ostensible joint-real estate investment with Cloud; unbeknownst to the buyers, however, the properties had already been “flipped” by Cloud who was making a profit on each deal and who had in his pocket a group of lawyers, loan officers, and mortgage brokers – all of whom were perpetuating the conspiracy.
Cloud was indicted for mortgage fraud and money laundering. The mortgage fraud charges stemmed from Cloud encouraging his buyers to make false statements on their mortgage applications. The money laundering charges arose from Cloud paying a number of people to help him to find home buyers and facilitate their real estate closings. Cloud was convicted by a jury and sentenced to 324 months’ imprisonment.
On appeal, Cloud argued that the government failed to prove the money laundering charges because it did not show that the transactions involved the profits of unlawful activity as required by Santos.
The appellate court agreed, stating:
“Cloud’s money laundering convictions are based on payments to recruiters, buyers, and other coconspirators for the role each person played in the mortgage fraud scheme. Cloud’s mortgage fraud depended on the help of others, and their help, in turn, depended on payments from Cloud. Such payments are no different than ‘the felon who uses the stolen money to pay for the rented getaway car’ or ‘the initial recipient of the wealth’ in ‘any wealth-acquiring crime with multiple participants . . . [who] gives his confederates their shares.’ Santos, 553 U.S. at 516 (plurality opinion). Because Cloud’s money laundering convictions on Counts 28-33 were based on paying the ‘essential expenses’ of his underlying fraud, we find a merger problem.”
Applying the precedent of Santos, the Court reversed defendant’s money laundering convictions.
If you have been charged with a crime and/or believe your rights may have been violated, please contact the Law Offices of Marc Neff for a confidential consultation: 215-563-9800 or via email at firstname.lastname@example.org.
Posted in: Federal White Collar Crime