Source: http://openjurist.org/165/f3d/34/98/2161
Timestamp: 2013-12-11 20:01:29
Document Index: 282627864

Matched Legal Cases: ['§ 2024', '§ 1956', '§ 1956', '§ 2024', '§ 2', '§ 1956', '§ 2', '§ 2', '§ 2024', '§ 1956']

165 F3d 34 United States of America v. Watford | OpenJurist
165 F. 3d 34 - United States of America v. Watford	Home165 f3d 34 united states of america v. watford
165 F3d 34 United States of America v. Watford 165 F.3d 34
UNITED STATES OF AMERICA, Plaintiff-Appellee,v.Tyrone WATFORD, Defendant-Appellant.
No. 98-2161.
Argued Oct. 8, 1998.Decided Nov. 9, 1998.
Appeal from the United States District Court for the Northern District of Indiana, South Bend Division. No. 3:96-CR-20. Robert L. Miller, Jr., Judge.
Before Hon. RICHARD A. POSNER, Chief Circuit Judge, Hon. WALTER J. CUMMINGS, Hon. JESSE E. ESCHBACH, Circuit Judges.
Tyrone Watford pleaded guilty to redeeming illegally received food stamps in violation of 7 U.S.C. § 2024(c), and to laundering money in violation of 18 U.S.C. § 1956(a)(1)(A)(i). The district court sentenced Watford to 135 months' imprisonment for the § 1956 violation, and to 60 months' imprisonment for the § 2024 violation, with the terms to be served concurrently. The court reached the figure of 135 months by applying U.S.S.G. § 2S1.1, the Sentencing Guideline corresponding to the money laundering offenses defined in § 1956. In his guilty plea agreement, Watford retained his right to appeal the issue of whether the district court should have departed downward from U.S.S.G. § 2S1.1--and that is the issue that now confronts this court. Because the district court did not abuse its discretion in determining that Watford's offense fell within the "heartland" of § 2S1.1, we affirm.
Watford owned and operated a grocery store named Linden Market. From approximately January 1992 to November 1993, Watford continually purchased large quantities of food stamps at a discount close to 30% and deposited them into the savings and checking accounts of Linden Market. He funded each purchase by withdrawing money from the same bank accounts. The money usually was withdrawn as soon as the stamps were deposited; most, but not all, of it was used to purchase more stamps, always at the same illegal discount rate. According to an IRS agent, deposits into the savings account during 1992 and 1993 totaled $677,525, of which $666,872 went in as food stamp deposits. The corresponding figures for the checking account were $49,903 and $29,392. Cash withdrawn from the savings account totaled $658,374.
Linden Market was minimally stocked and, in 1992 and 1993, the store appears to have served basically as a front for Watford's illegal food stamp "business." One of Watford's cellmates (who had a lengthy prior felony record) testified that Watford told him that he had made over $375,000 in his food stamp scheme.
Alerted by the large quantities of stamps flowing through the accounts of this little grocery store, the United States Department of Agriculture began to investigate Linden Market. On May 1, 1996, Watford was charged in a twenty-five count indictment. On January 16, 1998, after months of pretrial proceedings, Watford pleaded guilty to Count Five (redemption of illegally received food stamps in violation of 7 U.S.C. § 2024(c)) and Count Six (money laundering in violation of 18 U.S.C. § 1956(a)(1)(A)(i). In exchange, the government agreed to drop all of the other counts.
Section 1956(a)(1)(A)(i) is applicable to "[w]ho[m]ever, knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity, conducts or attempts to conduct such a financial transaction which in fact involves the proceeds of specified unlawful activity ... with the intent to promote the carrying on of specified unlawful activity." Section 2024(c) states that "[w]hoever presents or causes to be presented, coupons for payment of redemption of the value of $100 or more, knowing the same to have been received, transferred, or use