Opinion ID: 766864
Heading Depth: 2
Heading Rank: 2

Heading: Khachatrian

Text: 47 The evidence presented against Khachatrian, although similar to that againstMasino and Messer, was significantly less probative. Instead of allowing an inference that Khachatrian must have known that he was engaging in transactions with criminally derived proceeds, the evidence merely casts him in a suspicious light. Therefore, we conclude that the evidence is insufficient to convict him of money laundering and conspiracy to launder money. 48 We acknowledge that the government presented evidence that raises suspicions about Khachatrian. For example, there was testimony that, like Masino and Messer, Khachatrian received shipments of cash from Saccoccia. Palafoutas testified that Masino also gave Khachatrian cash in small denominations with which to buy gold. There was evidence that Khachatrian used the same code words as the other Appellants and was aware of Messer's fears that he was being followed. Perhaps most damning was the evidence that Khachatrian transferred funds by wire on Saccoccia's behalf. 49 On the other hand, most of the evidence presented at trial had nothing to do with Khachatrian. Further, Khachatrian generally received shipments that contained gold instead of cash. Therefore, the major inference that may be drawn against Masino and Messer -that deliveries of such large quantities of cash indicates criminality -may not be drawn against Khachatrian. 50 Finally, Masino testified to a business arrangement between Khachatrian and Saccoccia that accounts for Saccoccia's shipments to Khachatrian and Khachatrian's wire transfers for Saccoccia and payments to IMM. Masino testified that Saccoccia had extended Khachatrian a line of credit in the approximate amount of $150,000 for the purpose of buying and selling gold. Saccoccia would send RGE gold and sometimes cash as an advance on this line of credit. In order to remain within the credit line, Khachatrian would pay certain balances on a daily basis. Saccoccia charged Masino and sometimes Messer with making sure Khachatrian stayed within the credit limit. Masino testified that he would receive directions from Saccoccia as to where he wanted payments sent, and then he would instruct Khachatrian to make wire transfers on Saccoccia's behalf. 51 In sum, Khachatrian was not dealing with amounts of cash comparable to Masino and Messer, and there is a reasonable, legitimate explanation for the transactions in which Khachatrian participated. We find Khachatrian's use of code words and knowledge of certain security issues, although suspicious, to be insufficient to support an inference that he knew that he was engaging in transactions with criminally derived proceeds. We therefore conclude that there was insufficient evidence to convict Khachatrian.