United States v. Song Chon
713 F.3d 812
| 5th Cir. | 2013Background
- Jury convicted Chon, Garcia–Rico, Cardoza, and YCL of conspiring to smuggle, transport, and harbor illegal aliens under 8 U.S.C. § 1324(a)(1)(A)(v)(I).
- Chon, as YCL’s president and Gateway Hotel owner, managed hotel operations and books, and the hotel housed illegal aliens for smugglers through 2003–2009.
- Employees and associates (Arzate, Herrera, May) aided the conspiracy by housing, feeding, laundering, and electronically communicating with alien smugglers at the Gateway Hotel.
- Chon created dual sets of books to understate gross receipts and signed YCL’s tax returns; he skimmed cash daily and maintained insider credit to smugglers.
- ICE raids uncovered hundreds of aliens; Chon was present at raids and aware of ongoing illicit activity; multiple witnesses linked him to the conspiracy.
- Chon, Cardoza, Garcia–Rico, and YCL challenged their convictions; Chon and Garcia–Rico challenged the sentences on Count II money laundering and related counts.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Sufficiency of conspiracy evidence (Count I) | Chon/Cardoza/YCL lacked proof of a conspiratorial agreement to violate § 1324(a). | Defendants argue insufficient evidence of an agreement and intentional participation. | Evidence supported a tacit agreement and participation; convictions affirmed. |
| Sufficiency of money laundering evidence (Count II) | Chon knowingly participated in laundering proceeds from the conspiracy. | Chon contests awareness of the unlawful activity driving the funds. | Sufficient evidence that Chon knowingly participated in laundering proceeds; conviction affirmed. |
| Sufficiency of tax-filing aiding (Counts III–V) | Chon willfully aided in fraudulent tax returns by misreporting Gateway Hotel income via YCL. | YCL did not own the hotel, so there was no reportable income by appropriate entity. | § 7206(2) satisfied because Chon aided in filing a false return reporting YCL as the reporting entity. |
| Reasonableness and procedural adequacy of Chon’s sentence (Count II) | Upward departure was properly supported and within authority. | District court failed to adequately explain the departure and some enhancements. | Procedural error found in explanation of departure, but error did not affect substantial rights; sentence affirmed on review. |
Key Cases Cited
- Ahmed Khan, 258 F. App’x 714 (5th Cir. 2007) (unpublished persuasive authority on conspiracy element)
- Davis, 226 F.3d 346 (5th Cir. 2000) (conduct of conspirator can be inferred; knowledge inferred from circumstances)
- Bieganowski, 313 F.3d 264 (5th Cir. 2002) (money laundering knowledge requirement for proceeds of unlawful activity)
- Inv. Enters., Inc., 10 F.3d 263 (5th Cir. 1993) (corporate liability for acts of its agents within scope of authority)
- Gore, 298 F.3d 322 (5th Cir. 2002) (explanation for upward departures; review sufficiency via PSR reference)