Tax Crimes and Money Laundering (Particularly Defense Attorney Fees) (9/24/11)

In United States v. Blair, ___ F.3d ___, 2011 U.S. App. LEXIS 19326 (4th Cir. 2011), here, the Fourth Circuit opens with a high level summary of the case:

Walter L. Blair, a Maryland attorney, concocted and executed a scheme to launder drug proceeds that he obtained from a client. Blair was tried and convicted on eight counts of concealment money laundering in violation of 18 U.S.C. § 1956(a)(1)(B)(i); one count of laundering in violation of 18 U.S.C. § 1957(a); one count of tampering with a witness in violation of 18 U.S.C. § 1512; one count of obstructing justice in violation of 18 U.S.C. § 1503(a); one count of making a false statement in violation of 18 U.S.C. § 1001(a)(2); and two counts of failing to file an income tax return in violation of 26 U.S.C. § 7203.1 He received a 97-month sentence. Blair appeals several counts of conviction for money laundering as well as his obstruction of justice conviction. Blair also challenges the ruling of the district court denying his motion to sever the failure-to-file counts. We affirm the convictions for money laundering under §§ 1956 and 1957, and we affirm the district court's denial of Blair's motion to sever. We reverse, however, Blair's conviction on the obstruction-of-justice charge (Count 11 of the superseding indictment) for insufficient evidence. We remand for resentencing in light of this opinion.

The facts were, in their essence (at the expense of detail and nuance): (1) a drug dealer left the proceeds of the drug dealing with a third party otherwise uninvolved in the drug dealing; (2) after much violence related to the drug dealer's associates and the drug dealer's disappearance, the third party contacted Blair, a lawyer and, at his request, delivered the proceeds to his office; (3) Blair then orchestrated the deployment of the proceeds, in part in ways to (a) launder a portion of the proceeds and in part to pay for the legal representation of two of the drug dealer's associates. Blair was charged with a panoply of money launder, tax and obstruction offenses. Blair was convicted on these charges and appealed.
Read more »

Rigas Claims of Prosecutorial Abuse Rejected (6/25/11)

Most long-term readers will recognize the name Rigas. Rigas family members looted Adelphia Communications Corporation. Those members were prosecuted for their misdeeds. I have previously covered some of the issues in those Rigas prosecutions here.

After being convicted of financial crimes related to their looting of Adelphia, the Rigases were prosecuted for tax crimes. By Memorandum and Order dated June 14, 2011, the District Court rejected the Rigases' claims in the tax prosecutions the their Fifth and Sixth Amendment rights had been violated by the Government's actions in putting pressure on Adelphia to fire the Rigases before the first prosecution. United States v. Rigas, 2011 U.S. Dist. LEXIS 66147 (MD PA 2011). The Rigases sought support in the Stein case where the Court dismissed 13 defendants for prosecutorial abuse of forcing KPMG to withdraw attorney fee support. See United States v. Stein, 435 F. Supp. 2d. 330 (S.D.N.Y. 2006), eventually affirmed United States v. Stein, 541 F.3d 130 (2d Cir. 2008).  The Court rejected the Rigases' claims because the constitutional violations, if they occurred, occurred prior to the first prosecution wheter the claims should have been but were not presented.
Read more »