FILED U.S. COURT OF AP P E ALS E LE V EN T HC IRC U IT JUNE 4, 2007 THOMAS K. KAH

N CLERK [ DO NO T P UB L I S H] I N THE UN I TE D STATE S C OU RT OF APPE ALS F O R T H E E L E V E N T H C IR C U IT

________________________ N o. 06- 14298 N on -A rgum entC al endar

________________________ D. C . Do c k e tNo . 0 5 - 0 0 1 6 9 - C R - OR L - 1 9 - J GG U N I T E D S T A T E S O F A M E R I C A , P la in tif f - A p p e lle e , v ersu s R I C H A R D H . M A C L E A N , J R ., M A R Y A N N M A C L E A N , D e f e n d a n ts - A p p e lla n ts .

________________________ A pp ea l s f

rom the U ni t ed S t at es D i stri ctC ou rt f orthe M i ddl e D i s tr i c tof F l or i da

_________________________ ( Ju n e 4, 2007) B efo re B IR C H , D U B IN A an d C A RN E S , C i rcu i tJu d g es. P E R C U R I A M:2

R i char d H . M ac L ea n, Jr . , (“ M ac L ea n”) a nd M ary A nn M ac L ea n (“ M ary A nn ”) (c ol l ec t i vel y r ef

erre d t o as “ the M ac L ea ns”) appeal thei r c on vi ct i on s f or t ax evas i on un der 26 U . S . C . § 7 20 1. U po n revi ew , w e c on cl ud e: (1) the di stri ctcourt di d notabus e i t s di s c r e t i on by a dm i tt i ng e vi de nc e of M a c L e a n’ s pr i orc onvi c t i on un der R ul e 404 (b) of the F eder al R ul es of E vi dence, because the conv i ct i on w as r e le v a n t to h is in te n t a n d w a s n o t u n d u ly p r e ju d ic ia l; ( 2 ) th e d is tr ic t c o u r t c o rr e c tly deni ed the M ac L ea ns’ m ot i on for j ud gm entof ac qu i tt al , because aform al a s s e s s m e nti s nota r e qui r e m e ntof e s t abl i s hi ng t a x e va s i on a nd the r e w a s s uf f i c i e nt e vi de nc e of

the M a c L e a ns ’ i nc om e t a x de f i c i ta nd a f

f i r m a t i ve a c t s of

e va s i on; a nd (3) i tw as no tpl ai n err or for the di stri ctcourtt o fai l t o fi nd thatthe Int ernal R e v e n u e C o d e , o rp a r t s o f i t , wa s u n c o n s t i tu t i o n a l l y v a g u e . F o rth e s e r e a s o n s , we A F F IR M th e M acL ean s’ co n v i ct i o n s. I . B AC KG RO UN D T he M a c L e a ns w e r e j oi nt l y i ndi c t e d on f i ve c ount s of

e va di ng i nc om e t a x on th e in c o m e th e y e a rn e din th e 1 9 9 9 , 2 0 0 0 , 2 0 0 1 , 2 0 0 2 , a n d 2 0 0 3 ta x y e a r s , in vi ol a t i on of

26 U . S . C . § 7201. I n e ve ry c ount , the i ndi c tm e ntc ha r ge d tha tthe M ac L ea ns had ut i l i z [ e d] a bogus trus tf orthe purpos e of

c onc e a l i ng the ow ne r s hi p of the i nc om e ; [ m a de ] w i thdr a w a l s f r om the trus ti n the f

or m of c he c ks t o cash ; [p ai d ] al l p erso n al l i v i n g ex p en ses b y cash o r m o n ey o rd ers; titl[ e d ] p e r s o n a l a s s e ts in th e n a m e s o f b o g u s n o m in e e tru s ts to3

c onc e a l the ow ne r s hi p of the a s s e t s ; a nd e ndor s [ e d] c he c ks us i ng the la n g u a g e “F o r e ig n T ru s t P r o c e e d s ” to c o n c e a l th e s o u r c e o f th e ir i n co m e an d asset s. R 1- 1 a t1- 2. P r io rto tr ia l, th e g o v e rn m e n t f ile d a m o tio n in lim in e , e x p la in in g th a t it e xpe c t e d the M a c L e a ns t o a s s e r ta num be rof “ t a x pr ot e s t or ” a r gum e nt s –i nc l udi ng th e arg u m en tth atan assessm en tb y th e In t ern al R ev en u e S erv i ce (“IR S ”) w as a c o n d itio n p r e c e d e n t to p r o s e c u tin g c r im in a l ta x c h a r g e s , a n d a s k in g th e c o u r t to or de rthe M a c L e a ns a nd a ny de f e ns e w i tne s s e s nott o m e nt i on ora l l ude t o or s ubm i te vi de nc e r e ga r di ng a ny of the s e a r gum e nt s . T he M a c L e a ns f i l e d a m ot i on i n r e s pons e a nd oppos i t i on t o the gove rnm e nt ’ s m ot i on i n l i m i ne . T he M a c L e a ns s t i pul a t e d tha tthe y w oul d notr a i s e a num be rof the a r gum e nt s c i t e d by the g o v e rn m e n t. I n a n or de re nt e r e d di r e c t l y i nt o the doc ke t , the c our tde f e rr e d rul i ng on the gove rnm e nt ’ s m ot i on i n pa r t , a nd de ni e d the m ot i on a s m ootw i th r e ga r d t o the a r gum e nt s the M a c L e a ns ha d a gr e e d t o abs t a i n f r om r a i s i ng. T he c our tgr a nt e d the gove rnm e nt ’ s m ot i on w i th r e ga r d t o the M a c L e a ns ’ a r gum e nttha ta n a s s e s s m e nt w a s a c o n d itio n p r e c e d e n t to ta x e v a s io n , a p r o p o s itio n w h ic h th e c o u r t r e je c te d . T h e M a c L e a n s th e n f

ile d a m o tio n in lim in e , a r is in g f r o m c e r ta in c onvi c t i ons of

M a c L e a n a nd othe r s w ho ha d c oa c he d a n a dul tda ught e r , K r i s t i naWe have sinceaff irmed these c onvictions. United States v. Baker, N o. 05-10994 (Ma y 1 15, 2006). 4 M a c L e a n, r e ga r di ng w ha tt o s a y i n he rt e s t i m ony t o the gr a nd j ury . T he M a c L e a ns i nd i ca t ed thatthei r app ea l of these conv i ct i on s and se nt ence s w as pend i ng . T hey 1 a l s o a r gue d tha tthe s e c onvi c t i ons w e r e notr e l e va nta nd di d notf a l l unde rone of the perm i tt ed uses un der F eder al R ul e of E vi dence 404 (b). F urther, they c ont e nde d tha ta ny pr oba t i ve va l ue of thi s e vi de nc e w a s outw e i ghe d by the prej ud i ce i tw ou l d cause . A ttri al , the go vernm entpres ent ed 14 di ff er entw i tness es and sub m i tt ed n u me r o u s d o c u me n t s i n t o e v i d e n c e . G l o r i a J a c k s o n , a n i n v e s t i g a t o rf o rth e I RS, t e s t i f i e d tha t , a c c or di ng t o I R S r e c or ds , the M a c L e a ns f i l e d no t a x r e turns i n a ny ye arfr om 19 93 throu gh 20 03 , and the IR S se ntthe M ac L ea ns t ax del i nq uency n o tic e s . J e f f r e y S a ilo rw a s a f

r ie n d o f th e M a c L e a n s f

o rm a n y y e a r s a n d w a s th e ir a c c ount a nt . R 12 a t90, 92. S a i l ort e s t i f i e d tha tw hi l e he ha d pr e pa r e d t a x r e turns f o rth e m , h e h a d s to p p e d d o in g s o in th e e a r ly 1 9 9 0 s b e c a u s e M a c L e a n h a d to ld hi m “ tha the w a s e s s e nt i a l l y notpl a nni ng on f i l i ng, be c a us e he di dn’ tf e e l tha the ha d a r e a s on t o. ” I d. a t96. H e e xpl a i ne d tha tM a c L e a n t ol d hi m “ tha the di d not ha ve a l e ga l r e s pons i bi l i ty t o f i l e i nc om e t a xe s due t o c e r t a i n a s pe c t s of the c ode ne ve rbe i ng r a t i f

i e d . . . tha tm os tpe opl e [ w e r e ] notpr i vy t o tha tknow l e dge , a nd5

tha the ha d be c om e a w a r e of tha tknow l e dge , a nd w i th tha tnow he kne w tha the di d n otneed t o fi l e a nym ore. ” I d. at98 . S ai l or t ol d M ac L ean thathe di d n otagre e w i th thi s the ory , a nd tha the ne e de d t o f i l e t a x r e turns , butM a c L e a n t ol d hi m he w a s w r o n g . T hr e e di f f e r e ntw i tne s s e s t e s t i f

i e d tha tthe y ha d s ol d c a r s t o the one of the M a c L e a n s . T h e f

ir s t w itn e s s te s tif

ie d th a t in 2 0 0 1 M a y A n n M a c L e a n h a d p a id $ 2 3 , 7 0 0 c a s h f

r o m a tru s tf

o ra Bu i c k Pa r k A v e n u e . N o t ab l y , o n th e f o r ms a s s oc i a t e d w i th the tr a ns a c t i on, the pur c ha s e rl i s t e d thr e e di f f e r e ntna m e s a nd a ddr e s s e s . T he ve hi c l e w a s ul t i m a t e l y t i t l e d i n the na m e of “ S Y num be rone hol di ng trus t . ” I d. a t111. T he w i tne s s t e s t i f i e d tha tthe dr i ve r ’ s l i c e ns e M a ry A nn p ro d u ced as i d en t i fi cat i o n h ad an ad d ress d i fferen tfro m an y o n th e fo rm s. H e al so t es t i fi ed thatshe r ef

used t o g i ve hi m her s oci al se curi ty num ber. T he se cond such w i tness t es t i fi ed thati n 2 00 1 M ary A nn pu rc hase d an I nf i ni t i G 20 f

or$20, 576. 58 i n c a s h, a nd tha tthe ve hi c l e w a s t i t l e d t o “ S Y hol di ng n u m b e r3 h o ld in g tru s t.” R 1 3 a t 6 9 - 7 0 . F in a lly , a th ir d w itn e s s te s tif ie d th a t in 2 0 0 0 M a c L e a n p u r c h a s e d a 1 9 9 8 F o r d E x p e d itio n f o r$ 2 6 ,8 2 2 .0 8 in c a s h . A l tho ug h aton e poi ntthe vehi cl e w as t o b e t i t l ed i n M ac L ea n’ s nam e, i tw as ul t i m a t e l y t i t l e d t o “ S Y num be rone hol di ng trus t . ” I d. a t80- 81. N ot abl y , the w i tne s s t e s t i f

i e d tha tw he n he t ol d M a c L e a n tha the w a s goi ng t o de pos i tthe c a s h,6

M a c L e a n to ld th e w itn e s s n o t to d e p o s it m o r e th a n $ 1 0 ,0 0 0 a t o n c e in o r d e rto a v o id a ttr a c tin g a tte n tio n , a n d th e w itn e s s te s tif ie d th a t h e c o m p lie d w ith th is a d v ic e . A S ta te F a r m in s u r a n c e a g e n t te s tif ie d th a t M a c L e a n w a s h is c lie n t. He t e s t i f i e d tha tM a c L e a n i ns ur e d thr e e ve hi c l e s w i th S t a t e F a r m , though he c oul d not re m em ber w hatki nd of vehi cl es they w er e. H e di d n otre m em ber M ac L ea n ever t e l l i ng hi m tha t“ the ow ne r s hi p of the s e c a r s w a s i n a trus t . ” I d. a t61. F i na l l y , he t e s t i f i e d tha thi s r e c or ds s e e m e d t o s how tha tM a c L e a n ha d pa i d w i th a c he c k or m o n e y o r d e r . A nothe rw i tne s s t e s t i f

i e d tha ts he ha d l e a s e d a hous e t o the M a c L e a ns dur i ng th i s p eri o d , an dth ey h ad al w ays p ai d w i th a m o n ey o rd er o r w i th cash . S h e al so t e s t i f i e d tha tthe M a c L e a ns us e d a ge ne r a l de l i ve ry a ddr e s s f orthe i rm a i l i ngs f

r om h e r . B obbi J oy c e , a vi c e pr e s i de nta s s i s t a ntba nki ng c e nt e rm a na ge rw i th B a nk of A m e r i c a , t e s t i f

i e d tha tM a c L e a n w a s a f r e que ntc us t om e rof

he r s f ora n a c c ounthe ha d i n the na m e of

A pe nt e M a na ge m e ntG r oup. S he t e s t i f i e d tha tthe i rr e c or ds show ed M ac L ean and R i char d A l l en S hi ar l a a s s i gn at ori es t o the ac coun t , and that M ac L ea n w as the com pany’ s m anagi ng di re ct or. S he t es t i fi ed thatshe had never m etS hi ar l a. R ea di ng fr om do cum ent ary r ec ords, she t es t i fi ed thatM ac L ea n7

en d o rsed ch eck s th ath e d ep o si t ed i n t o th e acco u n tw i th th e w o rd s “ fo rei g n tru st pr oc e e ds pe rT i t l e 26, U S C / I R C 7701[ ( a ) ( 31) ] w i thoutpr e j udi c e , w i thout re course . ” I d. at43 . S he al so t es t i fi ed thatthe address on the ac coun tchanged fr om an addres s i n the B ri t i sh W es tIndi es t o an add re ss i n F l ori da. S he t es t i fi ed tha ti tappe a r e d tha ta l l of the c he c ks M a c L e a n w r ot e on the a c c ountw e r e c he c ks f orc a s h tha the dr e w a tthe ba nk. F i na l l y , s he t e s t i f i e d tha ta f

t e rthe M a c L e a ns tr i e d t o ha ve M a ry M a c L e a n a dde d t o the a c c ount , the ba nk’ s l e ga l de pa r tm e nt d e te r m in e d th a t th e a c c o u n t w a s im p r o p e ra n d c lo s e d it. B re nd a H ort on t es t i fi ed thatshe had w orked as abo ok keeper f or a D r. M i l t on M c l l w a i n dur i ng a pe r i od w he n the M a c L e a ns a l s o w or ke d f orhi m . S he t es t i fi ed thatfor at i m e, M ary A nn ’ s pay chec ks w er e m ade outt o R i char d M a c L e a n, a nd tha tl a t e r , the y w e r e m a de outt o A pe nt e M a na ge m e ntG r oup. S he t est i fi ed th atth e M acL ean s w o rk ed fo r D r. M cl l w ai n as i n d ep en d en tco n tract o rs, and thatM ary A nn had t ol d h erthi s w as “ because they w er e notusi ng thei r s oci al s e c ur i ty num be r s . ” I d. a t106- 08. S he a l s o t e s t i f i e d tha tthe c a nc e l l e d pa y c he c ks b o r e a n e n d o r s e m e n t, a n d th a t M a ry A n n to ld h e rth e e n d o r s e m e n t a llo w e d th e m to c a s h th e c h e c k s th r o u g h th e A p e n te M a n a g e m e n t G r o u p a n d “v e ry h o n e s tly ” to ld he rtha tthi s w a s done “ i n a voi da nc e of t a xe s . ” I d. a t114- 15.8

B y w ay of a s t i pu l at i on re ad i nt o evi dence, R i char d A l l en S hi ar l a s t at ed that he m e tthe M a c L e a ns i n the 1990s a nd tha the “ c r e a t e d A pe nt e M a na ge m e ntG r oup as a fo rei g n tru stan d h ad a m ai l i n g ad d ress i n C h arl est o w n N ev i s, B ri t i sh W est I ndi e s . ” I d. a t117. H e s t a t e d tha the c r e a t e d a num be rof doc um e nt s c r e a t i ng a trust , sol d the do cum ent s t o M ac L ea n, and w as pres entata m ee t i ng w here M a c L e a n w a s m a d e th e m a n a g in g d ir e c to ro f th e A p e n te M a n a g e m e n t G r o u p tru s t. F u r th e r , h e s ta te d th a t h e a n d M a c L e a n o p e n e d a b a n k a c c o u n t f o rth e A p e n te M a n a g e m e n t G r o u p . D r . M c l l w a i n t e s t i f

i e d tha the ha d be e n i nc l ude d i n the trus tc r e a t i on d o c u m e n ts d r a f

te d b y S h ia r la , b u t th a t h e n e v e rr e c e iv e d a n y th in g f r o m th e tru s t, a n d th a t h e u n d e r s to o d th e tru s t to h a v e b e e n c r e a te d to h e lp th e M a c L e a n s a v o id pa y i ng t a xe s . H e t e s t i f

i e d tha tw hi l e he c oul dn’ tr e m e m be r , he a s s um e d the c he c ks he w r ot e t o A pe nt e M a na ge m e ntG r oup w e r e f orthe s e rvi c e s pr ove d by the M a c L e a n s . A bank t el l ert es t i fi ed thatM ac L ea n regul ar l y m ade deposi t s a nd ca shed c he c ks –w r i tt e n “ f

r om the bus i ne s s i t s e l f

” –f r om the A pe nt e M a na ge m e ntG r oup ba nk a c c ount . I d. a t154- 55. W he n s he que s t i one d M a c L e a n aboutthe “ w e i r d” e ndor s e m e nton the ba c k of the c he c ks he de pos i t e d, he t ol d he r“ i tha d s om e thi ng t o d o w i th h i m bei ng a [ N ] at i ve A m er i ca n, w hi ch [s he] as sum ed m ea nt. . . he w as9

e i the rof I ndi a n de s c e ntors om e one w ho w a s f r om A l a s ka , tha tty pe thi ng. ” I d. a t156. B ruce B akert es t i fi ed thathe had em pl oyed the M ac L ea ns athi s e l ec troni cs c o m p a n y , a n d th a t th e irp a y c h e c k s w e r e m a d e o u t to A p e n te M a n a g e m e n t G r o u p . H e a l s o t e s t i f

i e d tha the ha d be e n c onvi c t e d of f a i l i ng t o f

i l e a t a x r e turn a nd s e n te n c e d to tw o y e a r s ’ im p r is o n m e n t. H e te s tif ie d th a t h e h a d “c o n s u lte d ” w ith M a c L e a n r e ga r di ng the i s s ue s i n hi s t a x tr i a l i n 2002 both be f or e a nd dur i ng the tr ia l. S c o tt E m e r s o n , th e tru s t te c h n ic a l a d v is o rf o rth e I R S w h o w a s q u a lif ie d to g iv e e x p e r t te s tim o n y w ith r e g a r d to tru s t ta x a tio n , te s tif ie d th a t th e A p e n te M a na ge m e ntG r oup doc um e nt s i n e vi de nc e s how e d tha ta trus tw a s e s t abl i s he d a nd then the A pent e M anagem entG roup w as hi re d t o m anage the trustand M ac L ea n w as m ad e th e tru st ee. R 1 4 at3 0 -3 1 . E m erso n t est i fi ed th ati n h i s o p i n i o n th i s tru st w a s “ a s ha m trus tora tbe s ta gr a nt ortrus t ” ( w hi c h the I R S w oul d i gnor e f or t a x a t i o n p u rp o s e s ) . I d . a t3 0 - 3 2 . W h e th e ra s h a m o ra g r a n t o rtru s t , th e i n c o me

“ w oul d be t a xe d t o the i ndi vi dua l . ” I d. a t34. E m e r s on a l s o t e s t i f i e d tha tone of the doc um e nt s ’ us e of

the t e r m “ de c l a r a t i on of a pur e c ontr a c ttrus tor ga ni z a t i on” w as a part i cul arki nd of sham thathe had seen before and thatw as no rm al l y use d t o e va de t a xe s orhi de a s s e t s . I d. H e a l s o opi ne d tha tthe trus tw a s nota f or e i gnCom bs omitte d th etax lia

bil ity fo r 1 99 9, though th etrans c ript sug g e stsit w a s v isibleto 2 th ej ur y i na c h ar th eh a d p rep are d th atw a s di s p l aye d

d uri n gh i s t e s t i m o ny. 10 tru s t, b e c a u s e it h a d a b e n e f ic ia ry in th e U n ite d S ta te s a n d th e U n ite d S ta te s c o u r ts w ou l d h ave j uri sdi ct i on ov eri t . R evi ew i ng addi t i on al do cum ent s i n evi dence, E m e r s o n te s tif

ie d th a t th e tru s t in q u e s tio n h a d n e v e rf ile d a n y o f

th e ap p r o p r ia te f o r m s w ith th e I R S to r e p o r t its in c o m e . R ob ertC om bs, a r evenue agentfor the IR S w ho w as qu al i fi ed t o g i ve expert te s tim o n y r e g a r d in g “th e c o m p u ta tio n o f g r o s s a n d a d

ju s te dg r o s s in c o m e , ta x ab le i ncom e a nd t ax l i abi l i ty, i ncl ud i ng the l i abi l i ty f or fi l i ng a f

eder al i ncom e t ax re turn, ” i d. at53 , t es t i fi ed that , af t erhavi ng ob se rved the ent i re tri al up t o that poi nt , a nd ha vi ng e xa m i ne d a l l of the doc um e nt s i n e vi de nc e , he ha d c om put e d the M ac L ea ns’ t axabl e i ncom e f or the t ax ye ar s 199 9 throu gh 20 03 . H e t es t i fi ed that the y ha d the f

ol l ow i ng t a xabl e i nc om e : ( 1) i n 1999, $77, 884. 32; ( 2) i n 2000, $111, 318. 91; ( 3) i n 2001, $128, 356. 17; ( 4) i n 2002, $95, 928. 095; a nd ( 5) i n 2003, $92, 878. 38. B a s e d on thi s s a m e c a l c ul a t i on, C om bs t e s t i f i e d tha tthe M a c L e a ns ow e d t a xe s i n the f

ol l ow i ng a m ount s : ( 1) i n 2000, $25, 630; ( 2) i n 2001, $29, 630; ( 3) i n 2002, $19, 696; a nd ( 4) i n 2003, $16, 839. H e t e s t i f i e d tha tthe M a c L e a ns 2 had w i thd ra w n cl ose t o $ 60 0, 00 0 from the trustbetw ee n 1 99 9 and 20 03 , and that th is w a s a ttr ib u tab le to th e m a s ta x ab le in c o m e .11

H a rry J o s e p h B r is te r , a n I R S s p e c ia l a g e n t, te s tif ie d th a t w h e n h e w e n t to s e r ve s ubpoe na s on the M a c L e a ns , M a c L e a n t ol d B r i s t e rtha t“ he di d notha ve a ny thi ng t o do w i th [ A pe nt e M a na ge m e ntG r oup] . ” I d. a t99- 100. A tva r i ous poi nt s dur i ng the tr i a l , the pa r t i e s a nd the c our tdi s c us s e d the a dm i s s i on of

M a c L e a n’ s pr i orc onvi c t i on. A tthe be gi nni ng of the thi r d da y of

the tr i a l , the c our tf

ound tha ti nt e ntw a s a n i s s ue r a i s e d by the M a c L e a ns a nd tha tthe go vernm ent ’ s c as e w as no t“ strong ” on the i ss ue of i nt ent . R 14 at4. T he court the n f ound tha tthe c onvi c t i on f orobs truc t i on w a s e vi de nc e of i nt e nt , a nd

“ al tho ug h [i t ] coul d n otfi nd any c as e thatal l ow [e d] a c on vi ct i on i n[t o evi dence] w ith o u t a [ R u le 4 0 4 ( b ) ] a n a ly s is . . . [ it d id ] n o t th in k a [ R u le 4 0 4 ( b ) ] a n a ly s is [w as ] approp ri at e, m ai nl y bec ause the extri nsi c a ctand con vi ct i on and charged of f e ns e s a r e tw o di f

f e r e ntof f e ns e s . ” I d. a t5. T he c our tthe n s t a t e d: S o , I d o n ’t k n o w th a t a [ R u le 4 0 4 ( b ) ] a n a ly s is is th e c o rr e c t a n a ly s is here . T he appel l at e c ou rtm aydi sa gree , bu tthat ’ s j ustho w I f ee l abouti t . I do f

e e l tha tthi s s how s i nt e ntf r om the gove rnm e nt ’ s poi nt of vi ew and thatun der the bal anci ng t es ti tw ou l d survi ve the [R ul e] 403 obj e c t i on tha tw a s m a de by [ M a c L e a n’ s c ouns e l ] a tthe be gi nni ng of the ca se . I d. a t5- 6. T he c our tthe n a s ke d c ouns e l t o de ve l op a l i m i t i ng i ns truc t i on, part i cul ar l y not i ng thati tw as l oo ki ng t o an i nstruct i on used i n ano ther c as e. A ft er further di sc ussi on re gardi ng l ay i ng a f ou nd at i on for the evi dence, the part i es a g r e e d to a d m it th e c o n v ic tio n b y w a y o f a s tip u la tio n .12

L at er th atd ay, th e co u rtm ad e th e fo l l o w i n g st at em en tt o th e j u ry: L adi es and g ent l em en, G ov ernm ent ’ s E xh i bi t12 i s bei ng adm i tt ed ove robj e c t i on. A nd I ha ve rul e d on thi s outof the pr e s e nc e of

the ju ry . It co n sists o f a co n v icti o n as to [M ac L ea n ]. H e r e i s a s t i pul a t i on of

the pa r t i e s a s t o thi s doc um e nttha tI ’ m goi ng t o r e a d t o y ou, s o thi s c a n be t a ke n a s e vi de nc e w i thoutpr oof . A nd a f te rI r e a d th is s tip u la tio n o f th e p a rtie s a s to E x h ib it 1 2 , I ’m g o in g to gi ve you a l i m i t i ng i nstruct i on . T hatm ea ns thatyou m ustconsi der thi s e vi de nc e i n a c c or da nc e w i th the l i m i t i ng i ns truc t i on I a m gi vi ng yo u , so fi rstl etm e read th e st i p u l at i o n o f th e p art i es. T he c onvi c t i on i n G ove rnm e nt ’ s E xhi bi t12 r e l a t e s t o a c t i ons t a ke n by [ M a c L e a n] dur i ng the c our s e of the i nve s t i ga t i on by a gr a nd j ury of [ the M a c L e a ns ’ ] i nc om e t a xe s . T ha ti nve s t i ga t i on l e d t o the in d ic tm e n t in th is c a s e . T h e c o n v ic tio n in E x h ib it 1 2 is p r e s e n tly b e in g ap p e a le d . I d. a t101- 02. A tthe gove rnm e nt ’ s r e que s t , the c our tthe n r e a d e a c h c ountof the j udgm e nti nt o the r e c or d, na m e l y , tw o c ount s of “ obs truc t i ng the a dm i ni s tr a t i on of j us t i c e of

a f e de r a l gr a nd j ury , ” one c ountof t a m pe r i ng w i th a w i tne s s , a nd one c ountof t a m pe r i ng w i th e vi de nc e . I d. a t102. T he c our tthe n c ont i nue d: N ow , I w a ntt o gi ve y ou a l i m i t i ng i ns truc t i on. T he e vi de nc e of the conv i ct i on , as t o [M ac L ea n] i n G ov ernm ent ’ s e xh i bi t12 , i s a dm i tt ed on l y f or your consi dera t i on of w hether i tshow s that[] M ac L ea n h ad th e in te n t to c o m m it th e o f f e n s e , in c o m e ta x e v a s io n , f o rw h ic h h e is n o w o n tr ia l. Iti s nott o b e c on si dere d b y y ou as evi nci ng bad charac t eror a c r i m i na l pr ope ns i ty on hi s pa r t , butonl y f orthe purpos e w hi c h I ha ve i ndi c a t e d tha ti tw a s a dm i tt e d i nt o e vi de nc e , na m e l y f ory our consi dera t i on of w hether [ M ac L ea n] had k no w l edge of and w hether there w as i l l egal ac t i vi ty occ urri ng i n con nect i on w i th the ca se , w hi ch13

is o n tr ia l h e r e b e f

o r e y o u . T h is c o n v ic tio n , a s to [ M a c L e a n ], is n o t to b e c o n sid er ed in an y w ay as to [M ar y A n n ]. I d. a t102- 03. T he c our tthe n a s ke d the pa r t i e s i f the y obj e c t e d t o the l i m i t i ng i nstruct i on “ or the m anner i tw hi ch [i thad] st at ed i t , ” t o w hi ch bo th p art i es r e s ponde d tha tthe y di d not . I d. a t103. Im m edi at el y there af

t er , the go vernm entre st ed i t s c as e. O utof the pres ence of the j ury , the M a c L e a ns m ove d f ora j udgm e ntof

a c qui tt a l , e s s e nt i a l l y a r gui ng thatthe go vernm enthad fai l ed t o est abl i sh a w i l l ful att em ptt o evade i ncom e t axes by ei ther of the M ac L ea ns, and reas se rt i ng i t s a rgum entthatthe go vernm entw as r e qui r e d t o s how tha ta f or m a l a s s e s s m e ntha d be e n c om pl e t e d f orthe pa y m e ntof t a xe s pr i ort o e s t abl i s hi ng the e va s i on of thos e t a xe s . A f

t e rthe gove rnm e nt offe re d argum enti n o pp osi t i on , the courtdeni ed the m ot i on . T he courtfoun d that

“ the r e [ w a s ] s uf

f i c i e nte vi de nc e vi e w e d i n the l i ghtm os tf a vor abl e t o the go vernm entfor the m att ert o b e pre se nt ed t o the j ury w i th a st andard of beyond [a ] r e a s o n ab le d o u b t.” I d . a t 1 0 9 - 1 0 . T h e c o u r t a ls o s p e c if ic a lly r e a f

f ir m e d its e a r ly ru lin g o n th e is s u e o f

th e f o r m a l a s s e s s m e n t. W hi l e ha l f

of the j ury w a s be i ng br oughtba c k t o the j ury r oom a f t e ra br e a k, th e y c r o s s e d a h a l l w a y w h e r e M a c Le a n w a s a l s o ap p r o a c h i n g th e c o u r tr o o m, hand cuff ed w i th h i s hands behi nd hi s bac k, and i n the pres ence of tw o U ni t ed S t a t e s m a r s ha l s . A c c or di ng t o the c our tof f i c e r , w he n he s a w the appr oa c hi ng14

m a r s ha l s , he m ot i one d t o the m t o s t op a nd the n pos i t i one d hi m s e l f t o bl oc k the j ur or s ’ vi e w . O ne of

the m a r s ha l s a l s o bl oc ke d the j ur or s ’ vi e w of M a c L e a n, a nd they c ou l d n otse e hi s handcuffs . N everthel es s, he expl ai ned thatthe j urors w er e o n ly “[ t]e n f

e e t o rm o r e ” f

r o m M a c L e a n . I d . a t 2 0 3 . A s a r e s u lt o f th is in c id e n t, th e M a c L e a n s ’ c o u n s e l m o v e d f o ra m is tr ia l, a r g u in g th a t s e e in g M a c L e a n w ith h is h an d s b eh in d h is b ac k , esc o rted b y U n it ed S tates m ar sh als, “clear ly p re ju d ic[e ]d th e ju ry .” I d . a t 1 3 6 . T h e c o u r t d e n ie d th e m o tio n , s ta tin g th a t it w a s “c o m p le te ly spec ul at i ve. ” I d. at13 6-37 . A l tho ug h the courtoffe re d t o q uest i on the j urors i ndi vi dua l l y orgi ve the m a n i ns truc t i on, the M a c L e a ns ’ c ouns e l de c l i ne d t o do a n y th in g o u t o f

th e c o n c e rn th a t it w o u ld o n ly m a k e th e s itu a tio n w o r s e . I n the i rde f

e ns e , the M a c L e a ns pr e s e nt e d thr e e w i tne s s e s : M a c L e a n a nd M ary A nn bo th t es t i fi ed i n thei r ow n d ef ense , and then the M ac L ea ns ca l l ed an I R S a ge ntw ho t e s t i f

i e d r e ga r di ng the I R S ’ s doc um e ntr e t e nt i on pol i c i e s , pur s ua nt t o w h i ch i tap p eared m o sto f th e M acL ean s’ fi l es h ad b een d estro yed . O n cro sse xa m i na t i on, M a c L e a n t e s t i f i e d, a m ong othe rthi ngs , tha t : ( 1) he ha d be e n pa i d f or w o r k h e p e r f

o r m e d ; ( 2 ) h e h a d n o t f

ile d a s in g le ta x r e tu rn ; a n d ( 3 ) h e h a d n o t p a id a n y in c o m e ta x e s . H e a ls o a d m itte d th a t h e h a d n o t f ile d a n y ta x r e tu rn f

o rA p e n te M an ag em en tG ro u p . W h en ask ed i f h e h ad t o l d M cl l w ai n th atw as t o av o i d t ax es,15

M a c L e a n r e pl i e d: “ [ i ] f

y ou us e the t e r m a voi d, y e s , I ha d the r i ghtt o a voi d a ny ta x e s I ’m n o t liab le f

o r .” R 1 4 a t 1 9 9 . I n he rdi r e c tt e s t i m ony , M a ry A nn t e s t i f i e d tha the r“ hus ba nd [ ha d be e n] t aken aw ay fr om [her ] . ” I d. at25 4. O n cross exam i nat i on , M ary A nn deni ed s t a t i ng tha tthe purpos e of the i rpa y a rr a nge m e nta tw or k w a s t o a voi d pa y i ng i nc om e t a xe s . S he a l s o s t a t e d tha ts he ha d notpa i d f orthe ve hi c l e s w i th c a s h, but w i th tra vel er s’ chec ks. S he st at ed thatshe di d n otw ork u nt i l 19 96 , and thataf t er th a t p o in t s h e r e lie d o n h e rh u s b a n d , w h o to ld h e rn o t to f ile a ta x r e tu rn . T here af t er , the defense re st ed, and, ou tof the pres ence of the j ury, re new ed i t s m ot i on f

ora j udgm e ntof

a c qui tt a l , r e a s s e r t i ng tha tthe e vi de nc e w a s i ns uf f i c i e nt to co n v ict eith ero f th e M ac L ea n s, an d also re as se rtin g th at th e g o v er n m en t’ s fa i l ure t o p re pare form al as se ss m ent s of the t ax ye ar s a ti ss ue w as a bas i s f or a ju d g m e n t o f

a c q u itta l. T h e c o u r t d e n ie d th e m o tio n . W h ile d is c u s s in g th e ju ry in s tru c tio n s , th e c o u r t s ta te d : A l s o, i n the a na l y s i s on the c onvi c t i on, I ga ve y ou a r e f e r e nc e t o a ca se , U ni t ed S t at es v. S ut t on , w hi ch cont ai ned a [R ul e 404 (b)] anal ys i s. A nd I t ol d you thatI r ea l l y di dn ’ tfe el the [R ul e 404 (b)] anal ys i s w as approp ri at e i n thi s c as e. B utt o the ext enti ti s, I f ol l ow ed the r e a s oni ng of

tha tc a s e , a nd I w a nt e d t o m a ke s ur e tha tw a s c l e a ron the r e c or d. R 17 a t49. L a t e r , dur i ng i t s i ns truc t i ons t o the j ury , the c our ts t a t e d:16

N o w , as I ad v ised yo u d u rin g th e c o u rs e o f th e trial, g o v er n m en t’ s E xhi bi t12 i s a j udgm e ntof c onvi c t i on a s t o [ M a c L e a n] a nd m a y be consi dere d b y y ou on l y a s t o the i ss ue of i nt entas t o thatdefe nd ant . It i s nott o b e c on si dere d i n any w ayas t o [M ary A nn ] or for any other pu rpose. T he j ud gm entof conv i ct i on i s pre se nt l y the subj ec tof an appe a l . D e f

e nda nt s a r e on tr i a l onl y f orthe c ha r ge s c ont a i ne d i n the i nd i ctm ent . T hey a re no ton tri al for a ny other c harge. I d. a t104. A f t e rde l i be r a t i on, the j ury f ound M a c L e a n gui l ty on a l l f i ve c ount s , but f ound M a ry A nn notgui l ty on one c ountof i nc om e t a x e va s i on ( C ount1) a nd gui l ty on a l l f

ourr e m a i ni ng c ount s . T he c our tl a t e rs e nt e nc e d M a ry A nn t o 24 m on ths of i m pri sonm ent , fol l ow ed by 2 yea rs of supervi se d rel ea se . T he court s e nt e nc e d M a c L e a n t o 33 m onths of i m pr i s onm e nt , t o be s e r ve d c ons e c ut i ve “ by ei gh tm on ths” t o h i s pri or un di sc harged feder al se nt ence , fol l ow ed by three ye ar s o f s u p e r v is e d r e le a s e . R 2 0 a t 9 1 - 9 2 . T h e M a c L e a n s tim e ly ap p e a le d . I I . DI S CUS S I ON A . W he the rthe di s tr i c tc our te rr e d by a dm i tt i ng e vi de nc e of M a c L e a n’ s pr i or c onvi c t i on e i the ra s i ntr i ns i c e vi de nc e orunde rF e de r a l R ul e of E vi de nc e 404( b) T he M a c L e a ns a r gue , f

i r s t , tha tM a c L e a n’ s pr i orc onvi c t i on w a s notr e l e va nt t o thi s c as e. F urther, they a rgue thati tdi d n otgo t ow ar d any of the uses perm i tt ed by F eder al R ul e of E vi dence 404 (b), such as m ot i ve, i nt ent , or kn ow l edge. E ven a s s u m in g th a t it d id s e r v e o n e o f th e s e u s e s , th e M a c L e a n s a r g u e th a t it s till s h o u ld n o t h a v e b e e n a d m itte d , a s its p r o b a tiv e v a lu e w a s o u tw e ig h e d b y th e p r e ju d ic e it17

caused, es peci al l y w i th regard t o M ary A nn . T hey a rgue thatthi s harm w as a g g r a v a te d b y th e ju ry s e e in g M a c L e a n in h a n d c u f f s in th e c u s to d y o f

m a r s h a ls . T hey c on t end thatthe adm i ss i on of the evi dence, t aken w i th the si gh tof M ac L ea n in h a n d c u f

f s , d e p r iv e d th e m o f

a f a irtr ia l. W e r e vi e w pr ope r l y pr e s e r ve d c ha l l e nge s t o the di s tr i c tc our t ’ s rul i ngs on a dm i s s i on of

e vi de nc e f

ora n abus e of

di s c r e t i on. U ni t e d S t a t e s v. J i m i ne z , 224 F . 3d 1243, 1249 ( 11th C i r . 2000) ( c i t a t i on om i tt e d) . A c our tabus e s i t s di s c r e t i on w he n i t s de c i s i on “ r e s t s upon a c l e a r l y e rr one ous f i ndi ng of f a c t , a n e rr a nt c onc l us i on of

l a w , ora n i m pr ope rappl i c a t i on of l a w t o f a c t . ” U ni t e d S t a t e s v. Ba k e r , 4 3 2 F. 3 d 1 1 8 9 , 1 2 0 2 ( 1 1 th Ci r . 2 0 0 5 ) ( c i t a t i o n o mi tt e d ) , c e r t . d e n i e d , 1 2 6 S. C t . 18 09 (200 6). F e de r a l R ul e of

E vi de nc e 404( b) s pe c i f i c a l l y ba r s the a dm i s s i on of

“ [ e ] vi de nc e of

othe rc r i m e s , w r ongs , ora c t s ” t o pr ove a de f e nda nt ’ s c ha r a c t e ror ac t i on i n con form i ty there w i th. H ow ever , thi s ki nd of evi dence m aybe adm i tt ed f o ro th e rp u rp o s e s , s u c h a s to s h o w “p r o o f o f m o tiv e , o p p o r tu n ity , in te n t, p r e p a r a t i o n , p l a n , k n o w l e d g e , i d e n t i ty , o rab s e n c e o f mi s t a k e o ra c c i d e n t . ” Fe d . R. E v id . 4 0 4 ( b ) . I f

( 1 ) th e e v id e n c e is r e le v a n t to o n e o f th e s e is s u e s , ( 2 ) th e r e is

“ s uf f i c i e ntpr oof

tha tthe de f

e nda ntc om m i tt e d the pr i ora c t , a nd [ ( 3) the g o v e rn m e n t] c a n s h o w th a t th e p r o b a tiv e v a lu e o f th e e v id e n c e is n o t s u b s ta n tia lly18

ou tw ei gh ed by i t s und ue prej ud i ce , and [i t ] m ee t s the other r equi re m ent s of [ R ul e] 40 3, ” then evi dence of other c ri m es m aybe adm i ss i bl e und erR ul e 404 (b). B aker , 4 3 2 F .3 d a t 1 2 0 5 ( c ita tio n o m itte d ) . T ha ts a i d, “ othe rc r i m e s e vi de nc e m a y be a dm i s s i bl e [ f r e e f r om R ul e 404( b) l i m i t at i on s] i f i ti s i nextri cabl y i nt ertw i ned w i th the evi dence re gardi ng the charged of f e ns e . ” U ni t e d S t a t e s v. F or t e nbe rry , 971 F . 2d 717, 721 ( 11th C i r . 1992) ( c i t a t i on om i tt e d) . “ ‘ E vi de nc e , notpa r tof the c r i m e c ha r ge d butpe r t a i ni ng t o the c h a in o f e v e n ts e x p la in in g th e c o n te x t, m o tiv e a n d s e t- u p o f th e c r im e , is p r o p e r ly adm i tt ed i f l i nk ed i n t i m e a nd ci rc um st ance s w i th the charged cr i m e, or form s a n i nt e gr a l a nd na tur a l pa r tof a n a c c ountof

the c r i m e , ori s ne c e s s a ry t o c om pl e t e the s t ory of the c r i m e f

orthe j ury . ’ ” U ni t e d S t a t e s v. M c L e a n, 138 F . 3d 1398, 1403 ( 1 1 th C ir . 1 9 9 8 ) ( q u o tin g U n ite d S ta te s v . W illif o r d , 7 6 4 F .2 d 1 4 9 3 , 1 4 9 9 ( 1 1 th C ir . 1 9 8 5 ) ) . H e r e , a lth o u g h s o m e o f th e c o u r t’s a n a ly s is s u g g e s ts th a t it a d m itte d th is e v id e n c e o u ts id e o f

R u le 4 0 4 ( b )

– in o th e rw o r d s , a s in e x tr ic ab ly in te r tw in e d w ith the c ha r ge d c r i m e , the c our tj us t i f i e d i t s de c i s i on, i n pa r t , by not i ng tha tthe

“ extri nsi c a ctand con vi ct i on and charged offense s a re tw o d i ff er entoffe nses . ” R 14 at5. T hi s s ee m s t o sug gestthatthe courtac tual l y tho ug htthe conv i ct i on w as n o t in e x tr ic ab ly in te r tw in e d w ith th e c h a r g e d o f f e n s e . T h e c o u r t w e n t o n to n o te19

the w e a kne s s of

the gove rnm e nt ’ s c a s e w i th r e ga r d t o i nt e nt , a nd tha tthe c onvi c t i on w a s l e s s pr e

j udi c i a l tha n pr oba t i ve . F i na l l y , the c our tl i m i t e d the us e of th e co n v i ct i o n t o i n t en t , an d g av e an i n stru ct i o n th ati tad o p t ed fro m an o th er case re g ar d in g R u le 4 0 4 (b ) e v id en ce . T h u s, d es p it e th e f ac t th at so m e o f th e c o u rt’s l a ngua ge m a y s ugge s tothe rw i s e , i tappe a r s tha ti ta dm i tt e d M a c L e a n’ s pr i or c o n v ic tio n u n d e rR u le 4 0 4 ( b ) , f o rth e p u rp o s e o f

e s tab lis h in g h is in te n t. M a c L e a n’ s pr i orc onvi c t i on f orobs truc t i on of

j us t i c e a nd w i tne s s a nd e v id e n c e ta m p e r in g w a s p r o b a tiv e o f h is in te n t to e v a d e ta x e s , a s it a r o s e o u t o f h is att em ptt o p re pare hi m se l f a nd others for t es t i m on y bef ore agrand j ury i nve s t i ga t i ng the M a c L e a ns f ort a x e va s i on. S e e B a ke r , 432 F . 3d a t1205. N one of the pa r t i e s a r gue tha tthe r e i s i ns uf f i c i e ntpr oof

tha tM a c L e a n w a s c onvi c t e d of o b s tru c tio n o f

ju s tic e , id ., a n d , in f

a c t, th e M a c L e a n s s tip u la te d to th is f a c t a t tr ia l. T hu s, as l on g as the evi dence’ s probat i ve val ue w as no tsubst ant i al l y outw ei gh ed by undue pr e

j udi c e , the n i tw a s pr ope r l y a dm i tt e d. I d. T h e e v id e n c e o f

M a c L e a n ’s p r io rc o n v ic tio n is p r o b a tiv e o f h is in te n tio n to e v a d e ta x e s b e c a u s e it s h o w e d th a t w h e n c o n f r o n te d w ith a n in v e s tig a tio n in to h is ac t i on s, he i nt er fe re d w i th w i tness es and evi dence, sugg es t i ng thathe w as a tt e m pt i ng t o pr e ve ntthe gr a nd j ury f r om di s c ove r i ng w ha the ha d done . T he evi dence al so sugg es t ed, as the court ’ s i nstruct i on al l ow ed the j ury t o con si der, that20

M ac L ea n k new hi s a ct i on s had been i l l egal . W hi l e thi s s trong evi dence w as o b v io u s ly p r e

ju d ic ia l to M a c L e a n ’s d e f e n s e , it w a s n o t u n d u ly s o , e s p e c ia lly c ons i de r i ng the c ourt ’ s tw o l i m i t i ng i ns truc t i ons tha tve ry c l e a r l y i ns truc t e d the j ury on the us e of

the e vi de nc e . U ni t e d S t a t e s v. C a l de r on, 127 F . 3d 1314, 1333 (11th C i r. 19 97 ) ( “ F urtherm ore, any unfai r pre j ud i ce thatm ayhave exi st ed w as m itig a te d b y th e d is tr ic t ju d g e ’s lim itin g in s tru c tio n .” ) . W hi l e M a c L e a n a r gue s tha tthe j ury ’ s a c c i de nt a l obs e r va t i on of hi m i n the m a r s ha l s ’ c us t ody a ggr a va t e d the pr e j udi c e c a us e d by the e vi de nc e of hi s pr i or c o n v ic tio n , it is n o t c le a rth a t th e ju ry s a w h im o rth e h a n d c u f f s . S e e , e .g ., M ar qu ar d v . S ec re t ary f or D ept . of C orre ct i on s, 42 9 F . 3d 12 78 , 13 09 (11th C i r. 20 05 ), ce rt . deni ed, 12 6 S . C t . 23 56 (200 6) (hol di ng thatdu e proces s c l ai m base d o n s h a c k lin g in f

r o n t o f th e ju ry w a s m e r itle s s , b e c a u s e th e r e w a s n o e v id e n c e in th e r e c o r d th e d e f

e n d a n t h a d b e e n s h a c k le d in f r o n t o f th e ju ry ) . M o r e o v e r , h is d e f e n s e c o u n s e l d e c lin e d th e c a u tio n a ry in s tru c tio n o f f e r e d b y th e c o u r t. F in a lly , th e M a c L e a n s a lle g e th a t th e e v id e n c e w a s e s p e c ia lly p r e ju d ic ia l to M a ry A nn. H ow e ve r , the c our ts pe c i f i c a l l y i ns truc t e d the j ury nott o c ons i de rthe evi dence w i th regard t o h er , and “ w e a ss um e thatj uri es fol l ow thei r i nstruct i on s. ” U ni t ed S t at es v. K ennard, 47 2 F . 3d 85 1, 85 8 (11 th C i r. 20 06 ) ( ci t at i on om i tt ed), pe t i t i on f orc e r t . f i l e d, N o. 06- 10149 ( M a r c h 14, 2007) . I n thi s c a s e , the na tur e of21

th e e v id e n c e w a s s u c h th a t it w o u ld n o t h a v e b e e n d if f ic u lt f o rth e ju ry to s e p a r a te i tf r om c ons i de r a t i on of

M a ry A nn’ s gui l t . F ur the r , a s di s c us s e d be l ow , the evi dence w as suff

i ci entt o sup po rther c on vi ct i on , even w i tho utthi s e vi dence. F o ra ll th e s e r e a s o n s , w e c o n c lu d e th a t th e d is tr ic t c o u r t d id n o t ab u s e its di sc re t i on w hen i tadm i tt ed M ac l ea n’ s pri or conv i ct i on i nt o evi dence. B . W hether the di stri ctcourterre d i n d enyi ng the M ac L ea ns’ m ot i on for a j ud gm entof ac qu i tt al base d o n i nsuffi ci entevi dence T he M ac L ea ns al so ar gu e thatthe di stri cterre d i n d enyi ng thei r m ot i on for a ju d g m e n t o f

a c q u itta l b a s e d o n in s u f f ic ie n t e v id e n c e . S p e c if

ic a lly , th e y a r g u e th a t: (1) the go vernm enthad t o est abl i sh the exi st ence of an as se ss m entof the t axes ow e d a s a c ondi t i on pr e c e de ntt o e s t abl i s hi ng t a x e va s i on; a nd ( 2) the gove rnm e nt f a i l e d t o e s t abl i s h tha tthe y ha d t a ke n a ny a f f i r m a t i ve a c tof

e va s i on. N ot abl y , the M ac L ea ns do no tar gu e thatthe evi dence w as i nsuffi ci entt o sho w thatthei r t ax e v a s io n w a s w illf

u l. W e ge ne r a l l y r e vi e w de n o v o th e d is p o s itio n o f a d e f e n d a n t’s p r o p e r ly pr e s e r ve d m ot i on f

orj udgm e ntof

a c qui tt a l . U ni t e d S t a t e s v. P e r e z - T os t a , 36 F . 3d 1552, 1556 ( 11th C i r . 1994) ( c i t a t i on om i tt e d) . “ T he di s tr i c tc our t ’ s de c i s i on on suff i ci ency of the evi dence i s e nt i t l ed t o n o d ef er ence by thi s c ou rt . ” U ni t ed S t at es v. T ay l or, 97 2 F . 2d 12 47 , 12 50 (11th C i r. 19 92 ). “ T he di stri ctcourt ’ s deni al of [] m o tio n s f

o ra ju d g m e n t o f

a c q u itta l w ill b e u p h e ld if a r e a s o n ab le tr ie ro f

f a c t c o u ld22

c o n c lu d e th a t th e e v id e n c e e s tab lis h e s th e d e f e n d a n t’s g u ilt b e y o n d a r e a s o n ab le do ub t . ” U ni t ed S t at es v. R od ri gu ez , 21 8 F . 3d 12 43 , 12 44 (11th C i r. 20 00 ) ( per curi am ) ( ci t at i on om i tt ed). I n o r d e rto b e s u f

f ic ie n t, th e e v id e n c e n e e d n o t “e x c lu d e e v e ry r e a s o n ab le hy pothe s i s of

i nnoc e nc e orbe w hol l y i nc ons i s t e ntw i th e ve ry c onc l us i on e xc e pt thatof gu i l t , prov i ded a rea sonabl e tri erof fa ctcoul d fi nd thatthe evi dence e s t abl i s he s gui l tbe y ond a r e a s onabl e doubt . ” U ni t e d S t a t e s v. Y oung, 906 F . 2d 6 1 5 , 6 1 8 ( 1 1 th C ir . 1 9 9 0 ) ( c ita tio n o m itte d ) . T h is is s o b e c a u s e “[ a ] ju ry is f r e e to choo se am on g rea sonabl e c on struct i on s of the evi dence. ” U ni t ed S t at es v. V er a, 7 0 1 F . 2 d 1 3 4 9 , 1 3 5 7 (1 1 th C i r. 1 9 8 3 ) (ci t at i o n o m i tt ed ). W e m u stv i ew th e fact s, a nd dr a w a l l r e a s onabl e i nf e r e nc e s the r e f

r om , i n the l i ghtm os tf

a vor abl e t o the go vernm ent . U ni t ed S t at es v. H anse n, 26 2 F . 3d 12 17 , 12 36 (11th C i r. 20 01 ) ( per curi am ) ( ci t at i on om i tt ed). U n d e rs e c tio n 7 2 0 1 , “[ a ]n y p e r s o n w h o w illf u lly a tte m p ts in a n y m a n n e rto e va de orde f

e a ta ny t a x i m pos e d by thi s t i t l e orthe pa y m e ntthe r e of s ha l l . . . be gu i l ty of afe l on y. ” 26 U . S . C . § 7 20 1. “ T o con vi cta per son for cr i m i nal t ax ev asi o n u n d er [th i s sect i o n ] , th e g o v ern m en tm u stp ro v e th ree el em en t s:

‘ w i l l ful ness ; the exi st ence of a t ax defi ci ency , . . . and an affi rm at i ve ac t c ons t i tut i ng a n e va s i on ora tt e m pt e d e va s i on of the t a x. ’ ” U ni t e d S t a t e s v.23

C al l ah an , 5 8 8 F . 2 d 1 0 7 8 , 1 0 8 1 (5 th C i r. 1 9 7 9 ) (ci t i n g S an so n e v . U n i t ed S t at es, 38 0 U . S . 34 3, 35 1, 85 S . C t . 10 04 , 10 10 (196 5)). T h e M a c L e a n s d o n o t c h a lle n g e o n ap p e a l th e e le m e n t o f w illf u ln e s s . A c c or di ngl y , thi s a r gum e nti s aba ndone d. S e e U ni t e d S t a t e s v. F or d, 270 F . 3d 1 3 4 6 , 1 3 4 7 ( 1 1 th C ir . 2 0 0 1 ) ( p e rc u r ia m ) ( “[ I ]s s u e s a n d c o n te n tio n s n o t tim e ly r a is e d in th e b r ie f

s a r e d e e m e d ab a n d o n e d ” ) . A s t o the t a x de f

i c i e nc y e l e m e nt , a n I R S a ge ntt e s t i f i e d r e ga r di ng the M a c L e a n s ’ in c o m e a n d ta x liab ilitie s f o re a c h o f

th e ta x y e a r s in th e in d ic tm e n t. R a the rtha n a tt a c ki ng thi s t e s t i m ony a s i t s e l f i ns uf f i c i e ntt o s uppor tthe c ha r ge , the M ac L ea ns as se rtthatthe go vernm entw as re qu i re d t o est abl i sh thatthe IR S had c om pl e t e d a f

or m a l a s s e s s m e ntof

the i rt a x de f

i c i e nc y . I n s uppor tof

thi s a r gum e nt the y poi ntt o 26 U . S . C . §§ 6201 ( e s t abl i s hi ng the gove rnm e nt ’ s a uthor i ty t o m a ke a s s e s s m e nt s ) ; 6203 ( e s t abl i s hi ng the m e thod of a s s e s s m e nt ) ; a nd 6303 ( gove rni ng no t i ce and d em and for t ax fol l ow i ng an as se ss m ent ). W hi l e w e have notaddres se d th is is s u e , o th e rc ir c u it c o u r ts h a v e h e ld th a t a f o r m a l a s s e s s m e n t is n o t r e q u ir e d to prov e t ax evas i on . S ee U ni t ed S t at es v. S i l km an, 15 6 F . 3d 83 3, 83 5 (8th C i r. 1 9 9 8 ) (h o l d i n g th atan IR S assessm en ti s “ o n l y p ri m a faci e p ro o f o f a d efi ci en cy” tha ts t i l l l e a ve s the i s s ue f orthe j ury ) ; c ontr a . U ni t e d S t a t e s v. E ngl a nd, 347 F . 2d 425, 430 ( 7th C i r . 1965) ( “ T he r e i s no doubttha ta va l i d a s s e s s m e nt , a nd pr oof24

the r e of , w a s a n e s s e nt i a l e l e m e ntof the c a s e a ga i ns tappe l l a nt s . ” ) ( c i t a t i on om i tt e d) . F ur the r , i ti s w e l l - e s t abl i s he d i n ourc our ttha ta de f i c i e nc y m a y be prov en w i th ci rc um st ant i al evi dence throu gh a num ber of m etho ds. U ni t ed S t at es v . C art er, 7 2 1 F . 2 d 1 5 1 4 , 1 5 3 8 (1 1 th C i r. 1 9 8 4 ), v acat ed i n p arto n o th er g ro u n d s, U ni t e d S t a t e s v. L i ght s e y , 886 F . 2d 304, 305 ( 11th C i r . 1989) . A c c or di ngl y , the e v id e n c e w a s s u f

f ic ie n t o n th is p o in t. A s t o the a f

f i r m a t i ve a c te l e m e nt , “ [ w ] hi l e the r e a r e i nde e d tw o e l e m e nt s of a f f i r m a t i ve a c ta nd w i l l f

ul ne s s , the y a r e r e l a t e d, a nd e vi de nc e w hi c h goe s t o pr ove w i l l ful ness m ay al so go t o the qu es t i on of do i ng an af fi rm at i ve ac t . ” U ni t ed S t at es v . S to n e , 7 0 2 F .2 d 1 3 3 3 , 1 3 3 9 n .4 ( 1 1 th C ir . 1 9 8 3 ) ( p e rc u r ia m ) ( c ita tio n o m itte d ) . T hu s, the S up re m e C ou rt ’ s w ords coul d arguabl y be app l i ed t o ei ther f ac t or, w hen it s ta te d th a t af fi rm at i ve w i l l ful att em pt[t o d ef ea tand evade t axes ] m aybe i nferre d fro m co n d u ctsu ch as k eep i n g a d o u b l e seto f b o o k s, m ak i n g fal se e ntr i e s of a l t e r a t i ons , orf

a l s e i nvoi c e s ordoc um e nt s , de s truc t i on of b o o k s o rr e c o r d s , c onc e alm e nt of as s e t s orc ov e r i ng up s our c e s of in c o m e , h a n d lin go

f o n e ’s a ffa irs to a v o id

m a kin gth e r e c o r d

s u s u a l in transact i on s of

the ki nd , an d a ny cond uct

, the l i ke l y e f f ec t of w hi ch w o u ld b e to m is le a d

o rto c o n c e a l. S pi e s v. U ni t e d S t a t e s , 317 U . S . 492, 499, 63 S . C t . 364, 368, 87 L . E d. 418 ( 1943) ( e m p h a s is a d d e d ) . A lle g in g th a t th e d e f e n d a n t w a s “c o n c e a lin g o ra tte m p tin g to co n ceal i n co m e” fu l fi l l s th e affi rm at i v e actreq u i rem en t . U n i t ed S t at es v . E d w ard s,25

77 7 F . 2d 64 4, 65 0 (11 th C i r. 19 85 ) ( hel d i n the cont extof the suff i ci ency of an in d ic tm e n t) . H e r e , the t e s t i m ony a ttr i a l e s t abl i s he d a num be rof a f f i r m a t i ve a c t s on the p arto f b o th o f th e M acL ean s th atco u l d b e co n stru ed as act s o f ev asi o n . M o st s i gni f i c a ntw i th r e ga r d t o M a c L e a n w a s the a c qui s i t i on of the A pe nt e M a na ge m e nt G r o u p tru s t, w h ic h te s tim o n y a t tr ia l s h o w e d f it th e d e s c r ip tio n o f

a “s h a m ” tru s t. M a c L e a n us e d the A pe nt e M a na ge m e ntG r oup na m e t o ope r a t e a s a n i nde pe nde nt c ontr a c t ora nd r e c e i ve hi s i nc om e thr ough c he c ks m a de outt o the c om pa ny w i tho utusi ng hi s s oci al se curi ty num ber or havi ng t axes w i thh el d. F urther, he then pa i d f orl i vi ng e xpe ns e s w i th c a s h dr a w n di r e c t l y f r om the c om pa ny ’ s c he c ki ng ac coun t . W hen h e purchase d a vehi cl e w i th cas h, he al so t i t l ed i ti n the nam e of a tru s t. F in a lly , M a c L e a n a d m itte d to n o t f ilin g a n y ta x r e tu rn s , a n dh e a d m itte d to avoi di ng payi ng t axes . W i th regard t o M ary A nn , she a l so op er at ed as an in d e p e n d e n t c o n tr a c to r , w ith th e s a m e b e n e f its o f d o in g s o , a n d w a s p a id f ir s t in he rhus ba nd’ s na m e a nd the n i n the na m e of the A pe nt e M a na ge m e ntG r oup. S he p u r c h a s e d tw o v e h ic le s in c a s h , u s in g m u ltip le a d d r e s s e s , a n d title d th e v e h ic le s in th e n a m e s o f

tw o d if f e r e n t tru s ts . A s aw ho l e, these w er e a ct s thatthe j ury c ou l d h ave r ea sonabl y dec i ded s h o w e d b e y o n d a r e a s o n ab le d o u b t th a t th e M a c L e a n s in te n d e d to c o n c e a l th e ir26

i nc om e orm i s l e a d the I R S . S e e S pi e s , 317 U . S . a t499, 63 S . C t . a t368. A l though M ary A nn se em ed t o con tra di ctsom e of the evi dence i n h ert es t i m on y, the j ury w a s f r e e notonl y t o di s be l i e ve he r , buta l s o t o be l i e ve the oppos i t e of w ha ts he sai d . U n i t ed S t at es v . T u rn er, 4 7 4 F . 3 d 1 2 6 5 , 1 2 8 0 (1 1 th C i r. 2 0 0 7 ) (“ [T ] h e j u ry, h e a r in g [ th e d e f

e n d a n t’s ] w o r d s a n d s e e in g [ h e r ] d e m e a n o r , w a s e n title d to di sbel i eve [ her] t es t i m on y a nd , i n fac t , t o b el i eve the op po si t e of w hat[s he] sa i d”) ( c i t a t i on a nd quot a t i ons om i tt e d) . F ora l l the s e r e a s ons , the e vi de nc e w a s s uf f i c i e nt t o sup po rtthe M ac L ea ns’ conv i ct i on s i n thi s c as e. C . W hether the di stri ctcourtpl ai nl y e rr ed by fa i l i ng t o fi nd thatthe Int ernal R e ve nue C ode , orpa r t s of the c ode , a r e unc ons t i tut i ona l l y va gue T he M a c L e a ns br i e f

l y a r gue tha ti f

a n a s s e s s m e nti s nota c ondi t i on p reced en tt o p ro v i n g t ax ev asi o n , th en T i t l e 2 6 o f th e U n i t ed S t at es C o d e, al so cal l ed th e In t ern al R ev en u e C o d e (“ IR C ”), i s v o i d fo r v ag u en ess. S p eci fi cal l y, th e y a s s e r t th a t “[ i]t is o b v io u s th a t th e g o v e rn m e n t d id n o t f o llo w th e p la in l a ngua ge of

[ 26 U . S . C . §§ 6201, 6303, a nd 6331( a ) ] w he n i t[ i ndi c t e d the M a c L e a ns ] . ” A ppe l l a nt s ’ B r . a t18. W e ge ne r a l l y r e vi e w the c ha l l e nge of a s t a tut e a s unc ons t i tut i ona l l y va gue de novo. U ni t e d S t a t e s v. P a r a di e s , 98 F . 3d 1266, 1282 ( 11th C i r . 1996) ( c i t a t i on om i tt e d) . H ow e ve r , be c a us e the M a c L e a ns r a i s e thi s a r gum e ntf orthe f i r s tt i m e on appeal , “ i ti s w i thi n o ur di sc re t i on t o ei ther a dd re ss [i t ] or consi der [ i t ] w ai ved. ”27

Un i t e d S t a t e s v . Du p r e e , 2 5 8 F . 3 d 1 2 5 8 , 1 2 5 9 ( 1 1 th C i r . 2 0 0 1 ) . Ac c o r d i n g l y , we w i l l o n l y r e v i e w th i s a r g u me n tf o rp l a i n e rr o r . U n i t e d St a t e s v . O l a n o , 5 0 7 U . S. 725, 731- 32, 113 S . C t . 1770, 1776 ( 1993) . U nde rthi s s t a nda r d, the M a c L e a ns m u s t e s tab lis h th a t: ( 1 ) a n e rr o ro c c u rr e d ; ( 2 ) it is p la in ; ( 3 ) it a f f e c te d th e ir s ubs t a nt i a l r i ght s ; a nd ( 4) i ts e r i ous l y a f f e c t e d the f

a i rne s s a nd i nt e gr i ty of

the pr oc e e di ngs . I d. a t731- 32, 113 S . C t . a t1776.

“ V a gue ne s s m a y i nva l i da t e a c r i m i na l s t a tut e i f i te i the r( 1) f

a i l s t o pr ovi de th e k in d o f

n o tic e th a t w ill e n ab le o r d in a ryp e o p le to u n d e r s ta n d w h a t c o n d u c t it proh i bi t s or ( 2) autho ri ze s or e ncou ra ges a rbi tra ryand d i sc ri m i nat ory e nf or c e m e nt . ” U ni t e d S t a t e s v. E c kha r dt , 466 F . 3d 938, 944 ( 11th C i r . 2006) ( c i t a t i on a nd quot a t i ons om i tt e d) , c e r t . de ni e d, 127 S . C t . 1305 ( 2007) . T o the ext entthata s t atut e r equi re s s ho w i ng “ kn ow i ng and w i l l ful ” c on du ct , any other va gue ne s s c ont a i ne d i n the s t a tut e i s m i t i ga t e d. U ni t e d S t a t e s v. S t a r ks , 157 F . 3d 83 3, 84 0 (11 th C i r. 19 98 ). T he M ac L ea ns ar gu e thati f aform al as se ss m enti s notre qu i re d for a c onvi c t i on f

ort a x e va s i on, the n the I R C , a nd i n pa r t i c ul a r , §§ 6201, 6203, a nd 6331, a r e unc ons t i tut i ona l l y va gue . B e y ond a l l e gi ng tha t“ i ti s obvi ous ” tha tthe prosec ut i on di d n otfol l ow the pl ai n l angu age of these se ct i on s, A pp el l ant s’ B r. at 18, pr e s um abl y by notpr e pa r i ng a f or m a l a s s e s s m e nti n thi s c a s e , the M a c L e a ns do28

note xpl a i n w ha taboutthe s e s e c t i ons , orthe r e s tof the I R C , i s va gue . W e ha ve n e v e rh e ld th a t a n y o f

th e s e s e c tio n s , le t a lo n e th e e n tir e I R C , is u n c o n s titu tio n a lly vagu e. E ven i f thi s i ss ue i s f ul l y r ai se d o n app ea l , and even i f i tw as error, i tw as notpl a i n. U ni t e d S t a t e s v. C ha u, 426 F . 3d 1318, 1322 ( 11th C i r . 2005) ( hol di ng tha ta n e rr ori s notpl a i n “ i f i ti s notc l e a runde rc urr e ntl a w ” ) ( c i t a t i on a nd qu ot at i on s om i tt ed). I I I . CONCL US I ON A f t e ra thor ough r e vi e w of the r e c or d a nd c ons i de r a t i on of the a r gum e nt s by th e p art i es w e fi n d n o rev ersi b l e erro r o n th e p arto f th e tri al co u rt . A cco rd i n g l y, w e A F F I R M.