Opinion ID: 715846
Heading Depth: 2
Heading Rank: 3

Heading: Fifth Amendment Claim--Admission of Financial Affidavit

Text: 34 and Other Statements Made by Marcel Hardwell to Qualify for Appointed Counsel 35 The evidence of Marcel's lack of legitimate sources of income consisted of statements Marcel made in court and in an affidavit to establish his eligibility for appointed counsel. He now contends admission of his statements into evidence violated his rights under the Fifth and Sixth amendments. He argues the government cannot use statements made by a defendant to qualify for appointed counsel as part of its direct case against a defendant at trial because a defendant must be able to assert the right to counsel without risking self incrimination. The record does not show that Marcel objected to this evidence before the district court. 36 In Simmons v. United States, 390 U.S. 377, 88 S.Ct. 967, 19 L.Ed.2d 1247 (1968), the Supreme Court held that a defendant's testimony at a suppression hearing to establish standing to object to a search cannot be used against him at trial to establish guilt because otherwise, the defendant would be required to choose between the Fourth Amendment right to be free from unreasonable searches and the Fifth Amendment right against self incrimination. The Court has limited Simmons in some respects, see McGautha v. California, 402 U.S. 183, 211, 212, 91 S.Ct. 1454, 1469, 1469-70, 28 L.Ed.2d 711, (1971), but has not ruled on whether statements made by a defendant to establish eligibility for appointed counsel are admissible at trial as proof of guilt. See United States v. Kahan, 415 U.S. 239, 242-43, 94 S.Ct. 1179, 1180-81, 39 L.Ed.2d 297 (1974). 37 Several circuits have followed the reasoning of Simmons and held that a defendant is entitled to some sort of protection against the use of financial disclosures made to establish eligibility for appointed counsel. In the absence of some protection, a defendant would be forced to choose between the Sixth Amendment right to counsel and the Fifth Amendment right against self incrimination. See United States v. Hitchcock, 992 F.2d 236, 239 (9th Cir.1993); United States v. Pavelko, 992 F.2d 32, 34-35 (3d Cir.), cert denied --- U.S. ----, 114 S.Ct. 272, 126 L.Ed.2d 223 (1993); United States v. Gravatt, 868 F.2d 585, 589-92 (3d Cir.1989); United States v. Sarsoun, 834 F.2d 1358, 1363-64 (7th Cir.1987); United States v. Harris, 707 F.2d 653, 662-63 (2d Cir.), cert. denied 464 U.S. 997, 104 S.Ct. 495, 78 L.Ed.2d 688 (1983). Some courts have held that this protection may be offered before trial, either by granting the defendant use immunity or by conducting the indigence hearing in camera and sealing the record. See Gravatt, 868 F.2d at 590. 38 In United States v. Peister, 631 F.2d 658, 661-62 (10th Cir.1980), cert. denied 449 U.S. 1126, 101 S.Ct. 945, 67 L.Ed.2d 113 (1981), this circuit rejected the pretrial protection approach without resolving whether use of a defendant's financial affidavit and other statements made to obtain appointed counsel violates the Fifth Amendment. In Peister, the defendant, fearing self incrimination, refused to fill out a financial affidavit unless the court granted him immunity. The court rejected the defendant's argument that this violated his right to counsel, concluding that any conflict between the defendant's Fifth and Sixth Amendment rights was speculative until and unless the government attempted to use the information at trial. The court was unwilling to assume the government would attempt to use the information at trial or that the trial court would allow it. See also Sarsoun, 834 F.2d at 1364; Harris, 707 F.2d at 662-63. 39 Here, the conflict between Fifth and Sixth Amendment rights is not speculative. The government used Marcel's financial affidavit and other statements he made to establish eligibility for appointed counsel to prove guilt at trial. We conclude that use of those statements at trial violated Marcel's Fifth Amendment right against self incrimination. See Pavelko, 992 F.2d at 34-35. 40 Although neither the Supreme Court nor this court has decided the issue, given the weight of authority from other circuits, we conclude that the error was sufficiently clear and obvious to be plain error as defined in United States v. Olano, 507 U.S. 725, 113 S.Ct. 1770, 123 L.Ed.2d 508 (1993). The error was also sufficiently prejudicial to constitute plain error. See Olano, 507 U.S. at 732-37, 113 S.Ct. at 1777-79. 41 Marcel's statements about his financial condition had little relevance to the conspiracy charge, and could not have affected the verdict on that charge. However, the evidence of Marcel's lack of legitimate income was important evidence to support the money laundering charge. The prosecutor referred to it in closing argument, pointing out the Hardwells had no significant income but had approximately $10,000 in cash between them at the motel on August 6, and arguing the source of the money had to be from prior cocaine distribution. The evidence that Marcel lacked sufficient legitimate income to raise the money for his defense was essential to his money laundering conviction. Because drug traffickers may also have legitimate income, in the absence of proof to the contrary, it cannot be concluded beyond a reasonable doubt that all their money is drug money or that the money used in the charged transaction is drug money. See United States v. McDougald, 990 F.2d 259, 261-62 (6th Cir.1993). We conclude that admission of Marcel's financial affidavit and other statements he made to establish eligibility for appointed counsel had a prejudicial impact on the jury's deliberations on the money laundering charge. Marcel's money laundering conviction is reversed.