United States v. Hosseini
2012 U.S. App. LEXIS 9218
7th Cir.2012Background
- Hosseini and Obaei ran three Chicago auto dealerships and sold many luxury cars to drug dealers from 1995–2005 in cash; they falsified sales contracts and liens and evaded bank and IRS reporting; they structured deposits to avoid $10,000 reporting thresholds; they were charged in a 100-count indictment with RICO conspiracy, money laundering, mail fraud, structuring, bank fraud, and aiding a drug conspiracy; conviction on 97 counts after a five-week trial; they were sentenced to 240 and 180 months and the dealerships were forfeited; they raised multiple trial and evidentiary challenges on appeal; the money-laundering proceeds issue was unsettled at trial but Congress later adopted a broader gross-receipts definition.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Meaning of proceeds in money laundering (§1956) | Hosseini/Obaei: proceeds mean net profits | Hosseini/Obaei: broader interpretation needed | Not plain error; law unsettled; proceeds defined by post-Santos statute as gross receipts (congressional change) or not plain here |
| Misjoinder/severance of drug conspiracy count | Joinder proper under Rule 8; economy and coherence | Severance required due to prejudice | Joinder proper; severance denied |
| Voir dire on religious/ethnic bias | Group voir dire adequate; individualized not required | Defendants should have individualized bias questioning | No abuse of discretion; group voir dire with targeted follow-up reasonable |
| Sufficiency of trial evidence (RICO, money laundering, drug conspiracy) | Evidence showed a coordinated enterprise and laundering scheme | Evidence amounts to mere parallel conduct | Evidence sufficient to support RICO enterprise, money-laundering, and aiding/abetting charges; Pinkerton liability discussed where applicable |
Key Cases Cited
- United States v. Scialabba, 282 F.3d 475 (7th Cir. 2002) (proceeds means net profits in promotion money laundering context (merger concerns))
- Santos v. United States, 553 U.S. 507 (2008) (proceeds meaning ambiguous; plurality favored net profits, others favored gross receipts; statute amended thereafter)
- United States v. Aslan, 644 F.3d 526 (7th Cir. 2011) (limited handling of proceeds issue; unsettled at time; controls here for plain-error review)
- United States v. Lee, 558 F.3d 638 (7th Cir. 2009) (addressed proceeds in promotion context; related to Santos implications)
- United States v. Hodge, 558 F.3d 630 (7th Cir. 2009) (proceeds analysis in other Sixth contexts; contributes to unsettled law)
- Boyle v. United States, 556 U.S. 938 (2009) (defining RICO enterprise: three elements with longevity; breadth of enterprise concept)