Source: https://law.justia.com/cases/federal/appellate-courts/F2/897/309/435885/
Timestamp: 2020-02-21 10:49:43
Document Index: 320207834

Matched Legal Cases: ['§ 841', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 1956', '§ 2255', '§ 1956', '§ 841']

United States of America, Appellee, v. Derrick Lance Blackman, Appellant, 897 F.2d 309 (8th Cir. 1990) :: Justia
Justia › US Law › Case Law › Federal Courts › Courts of Appeals › Eighth Circuit › 1990 › United States of America, Appellee, v. Derrick Lance Blackman, Appellant
United States of America, Appellee, v. Derrick Lance Blackman, Appellant, 897 F.2d 309 (8th Cir. 1990)
US Court of Appeals for the Eighth Circuit - 897 F.2d 309 (8th Cir. 1990) Submitted Sept. 14, 1989. Decided Jan. 5, 1990
Derrick Lance Blackman appeals from a final judgment entered in the District Court1 for the Western District of Missouri upon a jury verdict finding him guilty of possession with intent to distribute cocaine in violation of 21 U.S.C. § 841(a) (1) and (b) (1) (A) (Count I) and money laundering in violation of 18 U.S.C. § 1956 (Counts II-VI). The district court sentenced Blackman to 25 years under Count I and 5 years each for Counts II-VI, to be served concurrently. On appeal, Blackman argues that: (1) the district court erroneously denied his motion to suppress evidence obtained from a search of his luggage and incriminating statements made to arresting officers, (2) the government's evidence on the money laundering charges is insufficient to sustain a guilty verdict, (3) the jury instructions on the money laundering counts were inadequate, (4) the district court erroneously admitted into evidence Blackman's pistol and certain hearsay statements, (5) his sentence under the Sentencing Guidelines violates his constitutional right to due process, and (6) he was denied effective assistance of counsel. We affirm the conviction, but remand the case for resentencing consistent with Part IV of this opinion.
In addition to charges of possession with intent to distribute cocaine (Count I), Blackman was charged with five counts of money laundering in violation of 18 U.S.C. § 1956. At trial the government introduced the following evidence in support of those charges. On four separate occasions, Blackman, using the names Darnell Draper and Thomas McElroy, wired money via Western Union to a woman in Inglewood, California, a suburb of Los Angeles (Counts III-VI). The four wires, sent over a four-month period, totalled $11,000. A narcotics expert told the jury that drug traffickers commonly use Western Union to transfer cash needed in their business. The fifth charge (Count II) involved an arrangement between Blackman and Citadel Auto Sales to transfer title in Blackman's truck from Thomas McElroy to Donald Summers. Blackman approached Citadel Auto Sales and paid them some $4,000 in exchange for papers purporting to sell the truck to Donald Summers with a lien attached. A narcotics expert testified that drug traffickers favor liens because it shields the motor vehicle from seizure should the trafficker be arrested or stopped.
The search of the trunk and the seizure of the luggage contained therein pending issuance of a search warrant are justified under the automobile exception to the warrant requirement.3 See Chambers v. Maroney, 399 U.S. 42, 90 S. Ct. 1975, 26 L. Ed. 2d 419 (1970). While the police could not have justified a search of the interior of the bags found in the trunk under the automobile exception to the warrant requirement, Arkansas v. Sanders, 442 U.S. 753, 99 S. Ct. 2586, 61 L. Ed. 2d 235 (1979), seizure of the luggage from the trunk was lawful. In Arkansas v. Sanders, a case involving nearly identical facts, the Supreme Court noted, " [h]aving probable cause to believe that contraband was being driven away in the taxi, the police were justified in stopping the vehicle, searching it on the spot, and seizing the suitcase they suspected contained contraband." 442 U.S. at 761, 99 S. Ct. at 2591 (citing Chambers v. Maroney, 399 U.S. at 52, 90 S. Ct. at 1981). See also United States v. Chadwick, 433 U.S. 1, 13 n. 8, 14, 97 S. Ct. 2476, 2485 n. 8, 2485, 53 L. Ed. 2d 538 (1977) (seizure of a footlocker thought to contain contraband from the trunk of an automobile not challenged on appeal but the Supreme Court noted that the search of the interior of the footlocker was a far greater intrusion into fourth amendment values than its impoundment). Under the totality of the circumstances, we find that the police had probable cause to believe the trunk of the taxi contained evidence of illegal drug trafficking.4 Blackman argues that probable cause did not exist because the police were looking for a man transporting cocaine in wheel rim boxes and his bags were not large enough to contain a wheel rim box. This discrepancy did not significantly detract from the police's knowledge about Blackman's criminal activity.5 Virtually every other fact supplied by the informant had been corroborated by the time police first observed Blackman, including his arrival in Kansas City on an Amtrak train from Los Angeles. As the Supreme Court noted in Gates, " [i]t is enough, for purposes of assessing probable cause, that 'corroboration through strict sources of information reduced the chances of a reckless or prevaricating tale,' thus providing 'a substantial basis for crediting the hearsay.' " 462 U.S. at 244-45, 103 S. Ct. at 2335 (quoting Jones v. United States, 362 U.S. 257, 269, 271, 80 S. Ct. 725, 735, 736, 4 L. Ed. 2d 697 (1960)).
We need not address the validity of Sergeant Pierce's handling of Blackman's luggage because the affidavit contains sufficient information to support a finding of probable cause to search the interior of the bags without the two sentences devoted to the brick-like objects she felt inside the red bag. Therefore, we decline to address whether Sergeant Pierce's conduct constitutes a search, or whether we would apply a "plain touch" exception in this case. See United States v. Williams, 822 F.2d 1174 (D.C. Cir. 1987) (plain view exception encompasses "plain touch").
Nor do we find that any omissions or misleading statements contained in the affidavit invalidate the warrant. The affidavit stated that Sergeant Pierce felt "several" brick-sized objects in Blackman's red bag. At the suppression hearing, Sergeant Pierce testified that she could not be sure she felt more than one object in the bag. Although her statement may have misled the magistrate, it is immaterial to his finding of probable cause. Blackman also argues that if the magistrate had been told that police were looking for a man transporting cocaine in wheel rim boxes he would not have issued the warrant. We disagree. As the district court found, the magistrate's decision to issue the warrant would not have been affected had he known about the wheel rim boxes. This finding is not clearly erroneous. See United States v. Flett, 806 F.2d 823, 826 (8th Cir. 1986) (district court's findings of fact on motion to suppress reviewable under clearly erroneous standard).
We next address the denial of Blackman's oral motion to suppress two incriminating statements he made to arresting officers before he was advised of his Miranda rights. Blackman argues that his denial of having luggage and his refusal to consent to a search were statements elicited during custodial interrogation without the benefits of Miranda warnings, and therefore should have been suppressed. See Miranda v. Arizona, 384 U.S. 436, 86 S. Ct. 1602, 16 L. Ed. 2d 694 (1966). Although we tend to agree with Blackman that the district court erred in refusing to suppress the statements, we hold that the error was harmless in light of the overwhelming evidence submitted against Blackman on the cocaine charge.6
A review of the entire record, exclusive of any reference to the two incriminating statements, convinces us beyond a reasonable doubt that their erroneous admission was harmless. See Jones v. Wyrick, 542 F.2d 1013, 1014 (8th Cir. 1976), cert. denied, 430 U.S. 956, 97 S. Ct. 1603, 51 L. Ed. 2d 807 (1977). See also Chapman v. California, 386 U.S. 18, 87 S. Ct. 824, 17 L. Ed. 2d 705 (1967). The evidence against Blackman relevant to his intent to distribute cocaine, the element to which the statements are relevant, is overwhelming. Blackman was found in possession of over nine kilograms of cocaine powder and over 800 grams of crack cocaine. At the time of his arrest, Blackman was carrying some $2,000 in cash. Blackman's apartment contained devices commonly used in the drug trade: four wheel rim boxes; baking soda; a .22 caliber pistol; and a "drug ledger." Blackman testified in his defense that he did not know the cocaine was in his luggage. He testified that he was transporting the blue bag as a favor for a friend. As to the cocaine in the red bag, Blackman's testimony only inferred that his friend had placed it there without his knowledge. In light of all the evidence, we hold that the admission of Blackman's statements to the officers concerning his luggage was harmless error.
When considering a challenge to the sufficiency of the evidence to convict, we view the evidence in a light most favorable to the government. United States v. O'Connell, 841 F.2d 1408, 1424 (8th Cir. 1988), cert. denied, --- U.S. ----, 109 S. Ct. 799, 102 L. Ed. 2d 790 (1989). If a juror could reasonably infer from the evidence presented at trial that Blackman had engaged in money laundering proscribed by 18 U.S.C. § 1956, we must uphold the conviction.
We turn first to the legal issues Blackman raises about the scope of 18 U.S.C. § 1956. The government charged Blackman under 18 U.S.C. § 1956(a) (1) (A) and 18 U.S.C. § 1956(a) (1) (B) (i). According to these provisions, the government has the burden of proving beyond a reasonable doubt that Blackman knowingly conducted a financial transaction which involved the proceeds of drug distribution and that he did so either with the intent to promote his drug business or with knowledge that the transaction was designed to disguise the nature or source of those proceeds. Blackman argues that (1) the transfer of title on his pickup truck does not constitute a financial transaction under the statute;7 (2) the government must trace the proceeds involved in the transactions to a particular drug sale; and (3) the government cannot satisfy its burden of proof on the proceeds element by merely showing that a drug trafficker has no other legitimate source of income.
Turning first to the element of a "financial transaction," we are convinced that Blackman's arrangement with Citadel Auto Sales constitutes a financial transaction within the scope of 18 U.S.C. § 1956. The statute defines "financial transaction" very broadly. See S.Rep. No. 433, 99th Cong.2d Sess. 12-13 (1986). The term includes the purchase, sale or disposition of any kind of property as long as the disposition involves a monetary instrument. For example, a deposit of money in a bank and the subsequent use of that money to purchase a house are two transactions within the scope of the statute. Id. In this case the transaction between Blackman and Citadel Auto Sales purported to be a sale of the truck from Citadel to Donald Summers. The government submitted evidence that Blackman paid Citadel to conduct the transaction. Accordingly, we find that the transaction in question fits squarely within the coverage of Sec. 1956, and is precisely the type of transaction that Congress intended to criminalize.
Unfortunately neither the statute nor its legislative history precisely addresses the requirement that the money involved in the transaction represent proceeds from drug trafficking.8 The government relied on evidence of Blackman's involvement in drug trafficking and his lack of any legitimate source of income to raise the inference that the money wired to Los Angeles and paid to Citadel Auto Sales represented proceeds from drug distribution. While the government can point to no specific drug sale that produced the money,9 we do not believe that the government's evidence fails to make out a claim of money laundering under 18 U.S.C. § 1956. We do not read the statute to require that the government trace the proceeds to a particular sale. We do agree with Blackman that the government cannot rely exclusively on proof that a defendant charged with using proceeds from an unlawful activity has no legitimate source of income. However, as the Third Circuit noted in United States v. Massac, 867 F.2d 174 (3rd Cir. 1989), evidence of a defendant's use of wire service to transfer cash to Haiti rather than a bank, combined with evidence of defendant's drug trafficking, is sufficient to sustain a conviction of money laundering under 18 U.S.C. § 1956(a) (1) (B) (i).
We must remember that the government's burden on a particular element of the offense may be satisfied by circumstantial evidence as long as it is sufficient to prove that element beyond a reasonable doubt. In United States v. Matra, 841 F.2d 837, 841 (8th Cir. 1988), for example, we noted that large sums of unexplained currency is circumstantial evidence of intent to distribute cocaine. Reviewing the entire record, we conclude that the government presented sufficient circumstantial evidence from which a juror could infer each element of the money laundering offense beyond a reasonable doubt. The government introduced undisputed evidence of Blackman's use of Western Union to transfer $11,000 to Los Angeles. The jury heard testimony from an expert witness explaining drug dealers' common use of the wire services in furtherance of their drug activities. The jury also heard from an expert who testified that drug dealers prefer to drive automobiles which are encumbered by a lien so as to protect the automobile from police seizure. Accordingly, we hold that the district court did not err in denying Blackman's motion for acquittal on the money laundering counts.
Contrary to Blackman's assertion, presence of a firearm is relevant to the element of Blackman's intent to distribute cocaine. See United States v. Brett, 872 F.2d 1365, 1370 (8th Cir.) (citing United States v. LaGuardia, 774 F.2d 317, 320 (8th Cir. 1985)), cert. denied, --- U.S. ----, 110 S. Ct. 322, 107 L. Ed. 2d 312 (1989). Nor do we find that the district court abused its discretion by finding that the pistol's relevance outweighed its possible prejudice. Therefore, we hold that the district court did not err in admitting the pistol into evidence.
Because defense counsel failed to object to the admission of the hearsay statements, we review their admission under the plain error standard. United States v. Miller, 725 F.2d 462, 467 (8th Cir. 1984). The admission of hearsay statements elicited from two government witnesses on re-direct was not plain error. In each instance, defense counsel opened the door by questioning the witness about the nature of the transaction between Blackman and Citadel Auto Sales.10 On re-direct, the government was merely trying to establish the foundation for each witness' opinion. We have often held admissible evidence which is adduced on re-direct to clarify an issue raised on cross-examination even if it would otherwise be inadmissible. See, e.g., United States v. Womochil, 778 F.2d 1311, 1315 (8th Cir. 1985). Furthermore, even if they were erroneously admitted, the statements did not seriously affect Blackman's substantial rights. Cross-examination had already revealed that each witness thought the transaction to be a "sham." The government's re-direct did not significantly bolster that testimony.
We turn first to Blackman's due process arguments. The Sentencing Guidelines do not per se violate a criminal defendant's right to due process under the fifth amendment. We have consistently upheld the Guidelines against allegations that they unconstitutionally eliminate a sentencing judge's discretion, and do so again in this case. See United States v. Fuller, 887 F.2d 144 (8th Cir. 1989); United States v. Williams, 879 F.2d 454 (8th Cir. 1989); United States v. Brittman, 872 F.2d 827 (8th Cir.), cert. denied, --- U.S. ----, 110 S. Ct. 184, 107 L. Ed. 2d 140 (1989).
We turn now to the two-level enhancement for Blackman's use of an alias. The district court, relying on the Presentence Report, based the two-level enhancement for obstruction of justice on Blackman's use of an alias during a detention hearing and a prebail interview. The record shows that the police officers knew from the moment they were first tipped off to Blackman's criminal activity that Blackman used several aliases, and they also knew each name Blackman used. Far from impeding the investigation, Blackman's use of an alias when the police first approached him actually confirmed the police's suspicions that he was the suspect. We hold, consistently with our opinion in United States v. Brett, 872 F.2d 1365 (8th Cir.), cert. denied, --- U.S. ----, 110 S. Ct. 322, 107 L. Ed. 2d 312 (1989), that in order to increase a defendant's sentence under Section 3C1.1 for the defendant's use of an alias, the sentencing judge must make a factual determination that the use of an alias was a material falsehood. In Brett, we upheld an upward adjustment for use of an alias during an investigation because the district court specifically found that it cost the government "time, manpower and money." 872 F.2d at 1372-73. Because Blackman's use of an alias did not have a material bearing on the government's investigative efforts, we reverse the district court's decision to grant a 2-level enhancement for obstruction of justice and order that Blackman be resentenced according to a base offense level of 36.
Finally, Blackman argues he was deprived of his constitutional right to effective counsel. However, because the issue was not raised below, we have no record upon which to review Blackman's claims. We therefore decline to address the issue on this appeal. See United States v. Gallegos-Torres, 841 F.2d 240, 242-43 (8th Cir. 1988); United States v. Dubray, 727 F.2d 771, 772 (8th Cir. 1984) (per curiam). The proper procedure for challenging the effectiveness of trial counsel is in a petition for post-conviction relief pursuant to 28 U.S.C. § 2255.
Contrary to the government's assertion, the search of the trunk cannot be justified as a lawful search incident to arrest. See New York v. Belton, 453 U.S. 454, 462, 101 S. Ct. 2860, 2865, 69 L. Ed. 2d 768 (1981). Because the trunk was not within the reach of the detainee, it poses no threat to an arresting officer and therefore is outside the scope of a search incident to arrest. See Chimel v. California, 395 U.S. 752, 763, 89 S. Ct. 2034, 2040, 23 L. Ed. 2d 685 (1969)
Blackman argues that the totality of the circumstances test in Illinois v. Gates, 462 U.S. 213, 103 S. Ct. 2317, 76 L. Ed. 2d 527 (1983) does not apply to warrantless searches. Instead he urges us to apply the more stringent two-prong Aguilar/Spinelli test. See Aguilar v. Texas, 378 U.S. 108, 84 S. Ct. 1509, 12 L. Ed. 2d 723 (1983) and Spinelli v. United States, 393 U.S. 410, 89 S. Ct. 584, 21 L. Ed. 2d 637 (1969). While it is true that the Gates test measured probable cause to obtain a warrant, we find that it is equally applicable to measure probable cause when no warrant is needed. We are not persuaded by Blackman's argument that the rationale behind the totality of the circumstances test in Gates is unique to the issuance of warrants. As the Supreme Court noted in United States v. Ross, 456 U.S. 798, 808, 102 S. Ct. 2157, 2164, 72 L. Ed. 2d 572 (1982), a case deciding the scope of the automobile exception, "... the probable-cause determination must be based on objective facts that could justify the issuance of a warrant by a magistrate...."
Furthermore, even if the police only had reasonable suspicion to justify an investigatory stop, those suspicions clearly rose to probable cause when Blackman confirmed his identification and denied having any luggage. See United States v. Eisenberg, 807 F.2d 1446, 1450 (8th Cir. 1986) (police may stop a moving vehicle to investigate a reasonable suspicion that the occupant is engaged in criminal activity). See also Reid v. Georgia, 448 U.S. 438, 100 S. Ct. 2752, 65 L. Ed. 2d 890 (1980)
Blackman's detention was far from routine. Contra Berkemer v. McCarty, 468 U.S. 420, 104 S. Ct. 3138, 82 L. Ed. 2d 317 (1984) (questions posed to a motorist after a routine traffic stop do not constitute custodial interrogation). Instead Blackman was the center of an investigation. See United States v. Terry Gene Carter, 884 F.2d 368 (8th Cir. 1989). A reasonable person in Blackman's shoes would not have felt free to leave the scene, and numerous officers were present at the time of questioning to arrest Blackman for transporting drugs the police firmly believed to be in the trunk of the taxi
There is no question that the four wire transfers in Counts III-VI are "financial transactions," which by definition includes the movement of funds by wire. 18 U.S.C. § 1956(c) (4)
It is on this element that Blackman also challenges the adequacy of the jury instructions. We review the merits of Blackman's challenge to the jury instructions under the plain error standard because he failed to object at trial. United States v. Young, 702 F.2d 133, 136 (8th Cir. 1983). Under this standard, and because of our holding on the sufficiency of the government's evidence on the proceeds elements, we find Blackman's challenge to the jury instructions without merit
Each transaction occurred well before Blackman was found with the cocaine constituting the violation of 21 U.S.C. § 841 in Count I