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Friday, August 25, 2006

Ind. Decisions - One today from the 7th Circuit

Santos, Efrain v. USA (ND Ind., James T. Moody, Judge), a 15-page opinion, Circuit Judge Manion writes:

Efrain Santos and Benedicto Diaz ran an illicit lottery, which landed them in federal prison on money laundering charges. Their money laundering convictions were premised upon the word “proceeds” in 18 U.S.C. § 1956(a)(1) meaning gross income of unlawful activity. This court affirmed the judgments against them in United States v. Febus, 218 F.3d 784 (7th Cir. 2000). However, in later proceedings under 28 U.S.C. § 2255, the district court vacated their money laundering convictions on the basis of our decision in United States v. Scialabba, 282 F.3d 475 (7th Cir. 2002), which defined “proceeds” to mean net income, as opposed to gross income. The government appeals, asking us to overturn Scialabba and interpret the pivotal term “proceeds” to mean gross income. In the interest of stability in the law, we decline to do so and thus affirm the district court’s judgments in favor of Santos and Diaz.

Posted by Marcia Oddi on August 25, 2006 01:32 PM
Posted to Ind. (7th Cir.) Decisions