Opinion ID: 781507
Heading Depth: 2
Heading Rank: 5

Heading: The Government's Dismissal of the Money Laundering Charge

Text: 56 Finally, Edmund Panek argues that he was prejudiced with respect to Count One of the indictment, conspiracy to possess with intent to distribute and to distribute marijuana in violation of 21 U.S.C. § 846, because the government dismissed Count Two of the indictment, conspiracy to launder monetary instruments in violation of 18 U.S.C. § 1956(h), after claiming in its opening statement that Edmund Panek was the brains of this organization .... [T]he evidence will show that Edmund Panek was the money man for this organization... [and that] Edmund maintained bank accounts in business names and he helped to clean up the drug money in this organization.... In determining whether there was spillover prejudice from a dismissed count, this Court first looks at whether the evidence introduced in connection with the dismissed count was so inflammatory that it would have tended to incite or arouse the jury into convicting the defendant on the remaining counts. United States v. Wapnick, 60 F.3d 948, 953 (2d Cir.1995) (citations omitted). The Court then considers whether the dismissed count and the remaining counts of the indictment arise from similar facts and whether the evidence introduced on the dismissed counts would have been admissible on the remaining counts. Id. at 954. Finally, the Court makes a general assessment of the strength of the government's case on the remaining counts. Id. In short, a defendant is only likely to succeed on a claim of prejudicial spillover when 57 evidence is introduced on the invalidated count that would otherwise be inadmissible on the remaining counts, and this evidence is presented in such a manner that tends to indicate that the jury probably utilized this evidence in reaching a verdict on the remaining counts.... 58 Id. (quoting United States v. Rooney, 37 F.3d 847, 856 (2d Cir.1994)). 59 We are concerned that the government charged Edmund Panek with conspiracy to launder monetary instruments and argued in its opening statement that he helped to clean up the drug money in this organization, but then dismissed this count of the indictment against him at the close of its case-in-chief. Regardless, Edmund Panek cannot demonstrate that he was prejudiced by the government's opening statement, as it was not so inflammatory that it would have influenced the jury to convict Edmund Panek on the remaining count. See Wapnick, 60 F.3d at 954 (holding that evidence of structuring transactions to avoid currency transaction reporting requirements was not the type of evidence likely to arouse a jury). Moreover, the government's opening statement and evidence against Edmund Panek would have been admissible against him with respect to the marijuana conspiracy charge. See Rooney, 37 F.3d at 855 (holding that there is no prejudicial spillover when the evidence would have been admissible on the remaining counts of the indictment). Evidence that Edmund Panek maintained bank accounts in business names and laundered drug money would have been relevant to establish his knowledge of and participation in the marijuana conspiracy. See, e.g., United States v. Orozco-Prada, 732 F.2d 1076, 1079-81 (2d Cir.1984). The government also would have been entitled to introduce evidence of the limousine purchases, as well as their elaborate predicate transactions, to demonstrate the existence of unexplained cash, which may be indicative of a marijuana conspiracy. See, e.g., United States v. Nersesian, 824 F.2d 1294, 1325 (2d Cir.1987); United States v. Young, 745 F.2d 733, 762-63 (2d Cir.1984). Accordingly, the dismissed money laundering conspiracy count did not result in spillover prejudice with respect to the marijuana conspiracy charge against Edmund Panek.