Opinion ID: 78296
Heading Depth: 2
Heading Rank: 1

Heading: Issues Regarding Counts Two, Four, and Six

Text: According to the Appellants, Counts Two, Four, and Six of the First Superseding Indictment failed to charge an offense because they did not identify the requisite state of mind necessary to violate § 1956(a)(3). [11] The Appellants contend that this absence meant that the grand jury failed to make the appropriate specific intent findings and that their subsequent convictions on these charges therefore violated their rights under the Fifth Amendment. They thus assert that the district court erred in failing to dismiss these counts. We review de novo the legal question of whether an indictment sufficiently alleges a statutorily proscribed offense, though a district court's denial of a motion to dismiss an indictment is reviewed for abuse of discretion. See United States v. Pendergraft, 297 F.3d 1198, 1204 (11th Cir.2002). We will not uphold a criminal conviction if the indictment upon which it is based does not set forth the essential elements of the offense. United States v. Gayle, 967 F.2d 483, 485 (11th Cir.1992) ( en banc ). [I]f the facts alleged in the indictment warrant an inference that the jury found probable cause to support all the necessary elements of the charge, the indictment satisfies the Fifth Amendment. United States v. Fern, 155 F.3d 1318, 1325 (11th Cir.1998). Additionally, we need not find an indictment defective simply because it fails to allege mens rea so long as the allegation that the crime was committed with the requisite state of mind may be inferred from other allegations in the indictment. United States v. Woodruff, 296 F.3d 1041, 1046 (11th Cir.2002) (quotation marks and citation omitted). As a general rule, practical, rather than technical, considerations govern the validity of an indictment. United States v. Hooshmand, 931 F.2d 725, 735 (11th Cir.1991) (quotation marks and citation omitted). Finally, we note that several of our sister circuits have held that where, as here, the defendant challenges the indictment after the government's case has ended, the indictment should be construed in a liberal manner in favor of validity. See United States v. Sabbeth, 262 F.3d 207, 218 (2d Cir.2001); United States v. Gooch, 120 F.3d 78, 80 (7th Cir.1997); United States v. Lucas, 932 F.2d 1210, 1218 (8th Cir.1991). Counts Two, Four, and Six of the indictment charged as follows: On or about [date], in the Northern District of Georgia, the defendants ... did knowingly and intentionally conduct a financial transaction, namely, sold [description of jewelry] for [amount] in United States currency, involving property represented to be the proceeds of specified unlawful activity by a law enforcement officer, in violation of Title 18, United States Code, Sections 1956(a)(3)(B) and 1956(a)(3)(C). R1-31 at 2-5. Sections 1956(a)(3)(B) and (C), referenced in these counts, state the necessary intent for a money laundering offense. [12] Under the former subsection, an offender must have the intent to conceal or disguise the nature, location, source, ownership, or control of property believed to be the proceeds of specified unlawful activity. 18 U.S.C. § 1956(a)(3)(B). The latter provision requires that the offender intend to avoid a transaction reporting requirement under State or Federal law. Id. § 1956(a)(3)(C). At issue is whether the indictment's statutory references warrant an inference that the grand jury found probable cause for all the essential elements of the offenses charged. The most analogous case appears to be Fern, in which the indictment charged the defendant with making false statements in violation of the Clean Air Act. Fern, 155 F.3d at 1325 (quotation marks omitted). Though the indictment referenced the relevant statute, 42 U.S.C. § 7413(c)(2), it did not mention the materiality of these statements, an essential element of the offense. See 42 U.S.C. § 7413(c)(2)(A); id. at 1326. We concluded that this charge was sufficient for Fifth Amendment purposes because the indictment's reference to a particular statutory subsection created a reasonable inference that the grand jury found that the false statements mentioned therein were material. See Fern, 155 F.3d at 1326. Similarly, in United States v. Arteaga-Limones, 529 F.2d 1183, 1199 (5th Cir. 1976), we addressed an indictment that did not mention that the defendant imported marijuana knowingly or intentionally, an essential element of the charged offense. However, the indictment referenced the relevant statutory sections, which discussed those scienter requirements. See Arteaga-Limones, 529 F.2d at 1199. We found that the elements of the offense did not have to be alleged in terms and focused on whether the indictment fairly import[ed] knowledge or intent. Id. Given this framework, we concluded that the statutory references were sufficient to make the indictment not defective, particularly since the court instructed the jury that it had to find knowledge or intent to convict the defendant. See id. at 1200. These cases indicate that the Fifth Amendment is satisfied if the indictment makes a specific statutory reference to an essential element of the offense and contains some other indication from which we can infer that the grand jury found that element to be present. See Fern, 155 F.3d at 1326. The indictment in this case did not spell out the different forms of intent required for the offenses alleged in Counts Two, Four, and Six. However, it did include the word intentionally as well as specific references to the statutory provisions which described the different forms of intent required to violate the money laundering statute. This combination of statutory citation and reference to the essential element discussed in that statutory subsection serves as a reasonable basis for inferring that the grand jury found that the Appellants committed money laundering with the intents described in those statutory subsections. See id. In fact, the rationale for making such an inference arguably is even stronger here than in Fern, since here the statutory reference is to a specific subsection rather than to a section in general. [13] See id. Appellants contend that this interpretation of Fern conflicts with United States v. Hess, 124 U.S. 483, 8 S.Ct. 571, 31 L.Ed. 516 (1888). They specifically refer to language in Hess stating that [t]he omission [of an essential element of the crime] cannot be supplied by intendment or implication, and the charge must be made directly, and not inferentially, or by way of recital. Hess, 124 U.S. at 486, 8 S.Ct. at 573. However, the Court in Hess was addressing whether the indictment sufficiently alleged the factual circumstances comprising a mail fraud scheme, not the legal elements of the offense. See id. at 487, 8 S.Ct. at 573 (noting that the absence of all particulars of the alleged scheme renders the count as defective as would be an indictment for larceny without stating the property stolen, or its owner or party from whose possession it was taken). In addition, Hess focused on whether the defendant had proper notice of the charges, rather than on whether the grand jury could find the essential elements of the charge. See id. at 487, 8 S.Ct. at 573. We thus read the language cited by the Appellants as referring to the omission of facts pertaining to the charge, not to the omission of legal elements from the charge, as occurred here. [14] Hess therefore would not alter our analysis of the indictment in this case. We note, however, that, even if Hess did apply to legal issues, we would still find the indictment here sufficient for Fifth Amendment purposes. The indictment identified the particulars of the offense committed, and there was no need to infer scienter since the statutes pertaining to intent were specified in the indictment. Accordingly, we find that the indictment did not fail to charge an offense and presented no Fifth Amendment violation. The district court thus did not abuse its discretion in denying Appellants' motion to dismiss Counts Two, Four, and Six on this basis.
The Appellants also contend that the district court erred in denying their motion to dismiss Counts Two, Four, and Six because those counts were fatally duplicitous. They premise their duplicity argument on the assumption that § 1956(a)(3) contains three different offenses, which means that each of these counts, by referencing subsections (B) and (C) of that provision, charged two different offenses. As a preliminary matter, we note that the Appellants appear to have waived their ability to raise this issue because they failed to challenge the indictment on these grounds pre-trial. Generally, a defendant must object before trial to defects in an indictment, and the failure to do so waives any alleged defects. See United States v. Ramirez, 324 F.3d 1225, 1227-28 (11th Cir.2003) (per curiam) (defendants waived issue of defective indictment where they did not raise a statute of limitations defense to the indictment before trial); see also Fed.R.Crim.P. 12(b)(3), (e). The only exception to this waiver rule is for claims that the indictment fails to invoke the court's jurisdiction or to state an offense, which may be made at any time during the proceedings. [15] Fed.R.Crim.P. 12(b)(3)(B). Our sister circuits generally have held that this exception does not apply to claims that an indictment was duplicitous, and we see no reason to depart from this conclusion since a duplicity objection does not implicate jurisdictional issues and does not assert that the indictment fails to state an offense. [16] See, e.g., United States v. Creech, 408 F.3d 264, 270 (5th Cir.2005); United States v. Klinger, 128 F.3d 705, 708 (9th Cir.1997); United States v. Prescott, 42 F.3d 1165, 1167 (8th Cir.1994); see also Reno v. United States, 317 F.2d 499, 502 (5th Cir.1963) (agreeing with district court's assertion that [d]uplicity is not a fatal defect) (quotation marks omitted). Despite the Appellants' apparent waiver of this issue, the waiver argument has never been raised by the government, though the issue was discussed at oral argument and the Appellants filed supplemental authority on the issue. We have been willing to consider sua sponte whether an issue was waived when an appellant failed to preserve or raise that issue before the district court. See Harden v. United States, 688 F.2d 1025, 1032 n. 7 (5th Cir. Unit B 1982). We also are required to raise sua sponte the issue of whether an indictment properly charges an offense, since that represents a jurisdictional issue. See United States v. Peter, 310 F.3d 709, 713 (11th Cir.2002) (per curiam); United States v. Meacham, 626 F.2d 503, 509 (5th Cir.1980). However, we conclude that the distinctions between those situations and this matter are sufficient to warrant our not raising the waiver issue. Here, the Appellants did not raise the duplicity issue for the first time on appeal, the district court ruled on the issue in denying the motion to dismiss, and both parties fully briefed the issue on appeal. Additionally, we do not believe that this kind of defective indictment allegation implicates jurisdictional issues. [17] See United States v. Moloney, 287 F.3d 236, 240 (2d Cir.2002) (noting that a duplicitous indictment claim does not implicate[] the jurisdiction of the federal courts). Since it is not incumbent upon us to make a waiver argument which the government was willing to forego, we choose not to do so here. Ochran v. United States, 117 F.3d 495, 503 (11th Cir.1997). We now turn to the merits of the Appellants' duplicity argument. A count in an indictment is duplicitous if it charges two or more separate and distinct offenses. United States v. Schlei, 122 F.3d 944, 977 (11th Cir.1997) (quotation marks and citation omitted). [T]he key issue to be determined is what conduct constitutes a single offense. Id. In support of the claim that Counts Two, Four, and Six are duplicitous, the Appellants cite United States v. Calderon, 169 F.3d 718, 720 (11th Cir.1999), in which we stated that [t]he four subsections of Section 1956(a)(1) are separate offenses, each requiring different elements of proof. They acknowledge that Calderon dealt with a different statutory provision but contend that its discussion is relevant to our analysis since the three subsections of § 1956(a)(3) contain the same language as three of the four subsections in § 1956(a)(1). [18] They submit that it would be incongruous for us to interpret the former differently from the latter. Additionally, the Appellants argue that we should analyze duplicity under the test established in Blockburger v. United States, 284 U.S. 299, 304, 52 S.Ct. 180, 182, 76 L.Ed. 306 (1932), which requires us to look at whether each provision requires proof of a fact which the other does not. They contend that the subsections of § 1956(a)(3), when evaluated under the Blockburger test, would be separate offenses since each subsection requires proof of an additional fact which the other does not. For example, subsection (C) requires proof that the defendant intended to avoid a transaction reporting requirement, while subsection (B) does not. See 18 U.S.C. § 1956(a)(3)(B)-(C). The Supreme Court has described the Blockburger test as a rule of statutory construction. Missouri v. Hunter, 459 U.S. 359, 366, 103 S.Ct. 673, 678, 74 L.Ed.2d 535 (1983). Specifically, the Blockburger rule helps to determine whether Congress intended to punish the same offense under two different statutes. We ordinarily assume that Congress did not have such an intent. See id. at 678. Accordingly, where two statutory provisions proscribe the `same offense,' they are construed not to authorize cumulative punishments in the absence of a clear indication of contrary legislative intent. Id. at 678. (quotation marks and citation omitted, emphasis in original). In other words, even if two statutory provisions punish the same offense under the Blockburger test, multiple punishments would be permissible if Congress clearly intended that. See id. at 367, 103 S.Ct. at 678. In accordance with the Supreme Court's refinement of the Blockburger test, we stated in Schlei that we must look to congressional intent in analyzing whether a count in an indictment is duplicitous. Schlei, 122 F.3d at 977. We have not yet examined congressional intent in enacting § 1956(a)(3). The government argues that United States v. Puche, 350 F.3d 1137 (11th Cir.2003), authorizes charging the intents in § 1956(a)(3)(B) and (C) alternatively. Puche does not explicitly state this, however. Rather, in determining whether there was sufficient evidence to sustain a money laundering conviction under § 1956(a)(3), we outlined the government's burden of proof, which included establishing that the defendant acted with one of the three intents listed under § 1956(a)(3). See Puche, 350 F.3d at 1142-43. We did not discuss whether the three subsections on intent comprised one offense or separate offenses. We also have not examined congressional intent in enacting § 1956(a)(1), the parallel provision to § 1956(a)(3). [19] The district court and the government correctly point out that our decision in Calderon addressed the issue of sufficiency of the evidence to support a § 1956(a)(1) conviction, rather than duplicity. See Calderon, 169 F.3d at 720. As part of our discussion of the sufficiency issue, we recited the language of § 1956(a)(1) and then stated that, The four subsections of Section 1956(a)(1) are separate offenses, each of which requires the Government to prove an element not required under the others. Id. After examining the context of that quotation, however, we find it to be dicta. The remainder of the opinion never addresses congressional intent regarding § 1956(a)(1). Instead, we focused solely on whether the evidence at trial evidenced a violation of the promotion subsection, § 1956(a)(1)(A)(i), which was the only portion of § 1956(a)(1) included in the jury charge. [20] See id. Given that we did not analyze congressional intent in Calderon, and since the issue of a duplicitous indictment likewise was not raised or addressed, we are not bound by our statement therein that the subsections of § 1956(a)(1) are separate offenses. In the absence of controlling case law within our circuit, we find it particularly helpful to look at the analyses of our sister circuits, at least six of which have determined that § 1956(a)(1) does not create separate offenses, only alternative mental states for a single offense. See United States v. Garcia-Torres, 341 F.3d 61, 65-66 (1st Cir.2003); United States v. Bolden, 325 F.3d 471, 487 n. 19 (4th Cir.2003); United States v. Booth, 309 F.3d 566, 571-72 (9th Cir.2002); United States v. Meshack, 225 F.3d 556, 580 n. 23 (5th Cir.2000), reh'g granted on other grounds, United States v. Meshack, 244 F.3d 367 (5th Cir. 2001); United States v. Navarro, 145 F.3d 580, 592 (3d Cir.1998); United States v. Holmes, 44 F.3d 1150, 1155-56 (2d Cir. 1995). The most instructive of these analyses with regard to the question of congressional intent is Navarro. In that case, the indictment conjunctively charged the defendants with possessing three mental states listed in § 1956(a)(1), i.e., with promotion, concealment, and avoidance of reporting requirements. See Navarro, 145 F.3d at 585. However, the district court's instructions to the jury for that charge were in the disjunctive, i.e., the defendant would be guilty if his intent was promotion, concealment, or avoidance of reporting requirements. See id. On appeal, the Third Circuit had to decide whether the district court should have instructed the jury that it had to decide unanimously which of the alternative mental states the defendants possessed. See id. The Third Circuit, relying on the framework established in Schad v. Arizona, 501 U.S. 624, 631-45, 111 S.Ct. 2491, 2499-504, 115 L.Ed.2d 555 (1991), examined the issue using a two-step inquiry: (1) whether the legislature intended to create different means for violating a single offense, and (2) if it so intended, whether that statutory definition satisfied the Due Process Clause. See Navarro, 145 F.3d at 586. After a lengthy analysis, the court found that Congress intended for the subsections to be construed as separate means of committing the same offense, that this interpretation of the statute raised no due process concerns, and that there was no risk of jury confusion. [21] Id. at 590. The court found that Congress intended for § 1956 to punish a financial transaction involving known illicit proceeds, accomplished for a guilty purpose. Id. at 592. That multiple purposes could satisfy this end does not mean that Congress intended to create multiple offenses. Id. Thus, since the three alternative mental states in § 1956(a) could be treated as separate means of committing a single offense, the Third Circuit concluded that no specific unanimity instruction was required. See id. We agree with Navarro 's analysis regarding congressional intent and find it applicable to § 1956(a)(3) due to the parallels between the subsections of the two provisions. Furthermore, we see no policy reasons to interpret this language differently when addressing money laundering uncovered in a sting operation and money laundering in general. Accordingly, even if the Appellants are correct that the subsections of § 1956(a)(3) contain different elements of proof and so are different offenses under the Blockburger test, this does not negate the congressional intent to treat § 1956(a) as creating a single offense of money laundering with alternative mental states, subject to only one punishment. See Schlei, 122 F.3d at 977. In fact, permitting an alternative reading would present multiplicity problems because it would permit a defendant to be convicted of two different money laundering offenses based on the same transaction simply because he knew that his prohibited conduct was designed for two unlawful purposes. Navarro, 145 F.3d at 592 n. 6. We therefore find that Counts Two, Four, and Six were not duplicitous and conclude that the district court did not err in denying the Appellants' motion for judgment of acquittal on those grounds.
The Appellants assert that the district court's jury charge constructively amended the indictment because: (1) the intent elements were never charged in the indictment, and (2) the court charged the jury in the disjunctive, whereas the indictment's charge was in the conjunctive. In this case, the indictment charged the Appellants with violating § 1956(a)(3)(B) and § 1956(a)(3)(C); however, the jury charge stated that the Appellants could be found guilty if they violated either of those subsections. In evaluating whether the indictment was constructively amended, we review the district court's jury instructions... in context to determine whether an expansion of the indictment occurred either literally or in effect. United States v. Castro, 89 F.3d 1443, 1450 (11th Cir. 1996) (quotation marks and citation omitted). A jury instruction amends an indictment when it broaden[s] the possible bases for conviction beyond what is contained in the indictment. United States v. Dennis, 237 F.3d 1295, 1299 (11th Cir.2001) (quotation marks and citation omitted). We need not tarry long over the Appellants' arguments on this issue, since they essentially reiterate their claims regarding duplicity and failure to state an offense. We find these allegations equally unpersuasive in their constructive amendment guise. The indictment specifically referenced the statutory subsections on intent, and the jury charge merely tracked the language of those provisions. As such, the jury charge did not expand the bases for conviction as to Counts Two, Four, and Six. See id. (finding that jury instruction which tracked the language of the bankruptcy fraud statute did not amend the indictment). Additionally, § 1956(a)(3)(B) and § 1956(a)(3)(C) are not separate offenses but rather alternative intents for the single offense of money laundering. [T]he law is well established that where an indictment charges in the conjunctive several means of violating a statute, a conviction may be obtained on proof of only one of the means, and accordingly the jury instruction may properly be framed in the disjunctive. United States v. Simpson, 228 F.3d 1294, 1300 (11th Cir.2000). Furthermore, several circuits addressing the analogous provisions of § 1956(a)(1) have concluded that it is permissible to indict in the conjunctive but charge the jury in the disjunctive. See, e.g., Garcia-Torres, 341 F.3d at 65-66; Bolden, 325 F.3d at 487 n. 20; Navarro, 145 F.3d at 592. We therefore conclude that the district court's jury instructions did not constructively amend the indictment.
The Appellants also contend that the government failed to prove that Seher intended to conceal or disguise the origin of the proceeds used in the money laundering at Chaplin's and Midtown. They thus assert that there was insufficient evidence to sustain their convictions on Counts Two, Four, and Six. Their argument focuses exclusively on the failure to prove a violation of § 1956(a)(3)(B). However, these counts all allege violations of both § 1956(a)(3)(B) and § 1956(a)(3)(C). Since we have found that these subsections represent alternative intents for the same offense, their convictions would be sustained if there was sufficient evidence to support either intent. The Appellants do not contend that there was insufficient evidence that they acted in violation of § 1956(a)(3)(C), i.e., with the intent to avoid a transaction reporting requirement, and the record is replete with proof that Seher had such intent for each of the transactions cited in Counts Two, Four, and Six. [22] Accordingly, we find that there was sufficient evidence to support the jury's verdict for those three counts. We therefore affirm the Appellants' convictions on those counts.