Opinion ID: 11538
Heading Depth: 3
Heading Rank: 1

Heading: hanks and landerman

Text: 59 Hanks and Landerman contend that the evidence is insufficient to convict them because the only evidence linking them to any of the counts of conviction is the funds from the drilling rig deal. They contend that because Horizontal Drilltex, the company involved in the rig deal, was dismissed from a prior SEC civil action, res judicata principles preclude any finding that Horizontal Drilltex, Inc. funds were the proceeds of specified unlawful activity. We find no merit in this argument. 60 The appellants do not dispute that the judgment that dismissed Horizontal Drilltex from the previous suit provided that no violations of securities laws were admitted or denied. As such, it is clear that the issue of whether the proceeds from the rig deal were from unlawful activity was not litigated. The SEC action did not terminate with a final judgment on the merits, one of the requirements necessary for the application of res judicata. See United States v. Shanbaum, 10 F.3d 305, 310 (5th Cir.1994). 61 Hanks and Landerman do not argue that the evidence is insufficient to sustain their convictions if the evidence regarding the drilling rig deal is included. In any event, viewing all the evidence in the light most favorable to the verdict, the evidence is sufficient to support the convictions of Hanks for conspiracy and wire fraud and Landerman for conspiracy and money laundering.