Justices rule for defendants on money laundering

Lawyer Blogs

The Supreme Court on Monday ruled against the government in two money laundering cases, making it more difficult for prosecutors to use an important weapon in the war on drugs and organized crime.

In a unanimous decision, Justice Clarence Thomas said that a money laundering case cannot be proven merely by showing that funds were concealed while being transported.

In a 5-4 ruling, Justice Antonin Scalia said that money laundering refers to profits of an illegal operation, not gross receipts. The court's interpretation is a narrow one opposed by law enforcement agencies.

Scalia said the narrow definition will not unduly burden authorities, who must show only that a single instance of unlawful activity was profitable.

In the cases of Efrain Santos and Benedicto Diaz, a federal judge and the 7th U.S. Circuit Court of Appeals in Chicago said that paying off gambling winners and compensating employees who collect the bets don't qualify as money laundering. Those are expenses, and prosecutors must show that profits were used to promote the illegal activity, the appeals court ruled in a decision affirmed by the Supreme Court.

In dissent, Justice Samuel Alito said that the court's ruling would frustrate congressional intent and "maim" a law that was enacted as an important defense against organized criminal enterprises.

Related listings

  • Court refuses to consider fantasy baseball dispute

    Court refuses to consider fantasy baseball dispute

    Lawyer Blogs 06/02/2008

    The Supreme Court on Monday refused to step into a dispute between a fantasy sports business and professional baseball.Without comment, the justices declined to hear the case involving a segment of the $1.5 billion fantasy sports industry in the Unit...

  • Recognition of gay marriages in NY faces battle

    Recognition of gay marriages in NY faces battle

    Lawyer Blogs 05/30/2008

    Religious and social conservatives vowed Thursday to fight Gov. David Paterson's directive requiring state agencies to recognize gay marriages performed legally elsewhere, saying it flouts traditional values and is a big step toward legalizing same-s...

  • Calif.: Same-sex marriages OK beginning June 17

    Calif.: Same-sex marriages OK beginning June 17

    Lawyer Blogs 05/29/2008

    Barring a stay of a historic California Supreme Court ruling, same-sex couples will be able to wed in the state beginning June 17, according to a state directive issued Wednesday.And such unions might soon be recognized at the other end of the countr...

New Rochelle, New York Personal Injury Lawyers

If you or a loved one has been injured in an accident, contact Kommer, Bave & Ollman, LLP, in New Rochelle, New York, immediately. We can answer all your questions and work with you to determine if you have the grounds for a personal injury lawsuit. The attorneys at our firm are determined to resolve even the most difficult of cases. We will work closely with you to determine the best course of action to get your claim or case resolved in the most efficient way possible. We will fight for your right to compensation! No one should have to suffer a financial burden from the result of another person’s carelessness. The attorneys at Kommer, Bave & Ollman, LLP will aggressively fight to ensure that justice is served on your behalf.

Business News

New York & New Jersey Family Law Matters We represent our clients in all types of proceedings that include termination of parental rights. >> read