Villafana, Ann Marie C. (USAFLS) From: Cassella, Stefan Sent: Thursday, March 22, 2007 3:10 PM To: Villafana, Ann Mare C. (USAFLS) Subject: RE: A Money Laundering Question Marie, We have always taken the position that a sting offense — i.e., a violation of 1956a3 — requires proof of a representation that the property involved in the transaction was either A) SUA proceeds, or B) property used to facilitate. In other words, contrary to your construction of the statute, we think the representation element applies to both of the phrases that follow, and not just to the proceeds. I could go into detail regarding the elements of 1956(a)(3) and its legislative history if necessary (we did a memo on this to counsel for one of the agencies many years ago), but I think the reason you haven't found any case law on this is that we've discouraged bringing any prosecutions based on this reading of the statute. I suspect that this is not what you were hoping to hear, but that's how we see it. Good luck with this, Stef From: Villafana, Ann Marie C. (USAFLS) [mailto:Ann.Marle.CVillafana@usdolgov] Sent: Thursday, March 22, 2007 12:50 PM To: Cassella, Stefan Subject: A Money Laundering Question Hi Stefan -- One of our ICE Agents recommended that I contact you with this question. I have a target who transfers funds from a bank account in New York to a bank account in Florida. The target then asks his assistant in Florida to withdraw cash from the Florida account to pay underage prostitutes here in Florida. I would like to charge money laundering under I956(aX3XA): "Whoever, with the intent (A) to promote the carrying on of specified unlawful activity; ... conducts or attempts to conduct a financial transaction involving . .. property used to conduct or facilitate specified unlawful activity, shall be fined under this title or imprisoned for not more than 20 years or both." I read the statute as NOT requiring either the use of criminal proceeds or an attempt to conceal the transactions, but I haven't found any cases that involve purely promotional money laundering. Can you help? Thank you so much. A. Marie Malaita Assistant U.S. Attorney 500 S. Australian Ave, Ste 400 West Palm Beach, FL 33401 561 820-8711 8777 [email protected] 216 EFTA00179847