Commonwealth v. Braune
Commonwealth v. Braune
Opinion
**304 *966 The defendant, Shea Braune, was convicted of receiving stolen property and money laundering after she and her girlfriend, Romi Kimell, used over $ 300,000 in cash that Kimell had stolen from her mother and stepfather to fund a lavish lifestyle. In an ill-fated attempt to cover their tracks, Kimell gave a substantial amount of the stolen cash to Braune, who deposited it into her checking account through a series of transactions, each under $ 10,000, later claiming to have received the money in an inheritance. A subset of these deposits forms the basis for Braune's money laundering conviction. On appeal, Braune argues that the evidence was insufficient as a matter of law to establish "concealment" money laundering, in violation of G. L. c. 267A, § 2 (2) (ii) (A), where she openly deposited the money into her **305 checking account using her own name. Because we conclude that the evidence was sufficient for a rational jury to conclude that Braune's deposits were designed, in whole or in part, to conceal the nature, location, source, ownership, or control of the stolen funds, we affirm.
Background . Viewing the evidence in the light most favorable to the Commonwealth, the jury could have found the following facts. In the fall of 2013, when the victims, James and Janice Welling, 1 went to stay at their Florida home for the winter, they left over $ 300,000 in cash (packaged in stacks of fifty and one hundred dollar bills), along with a few items of Janice's jewelry, in a box that was taped shut and stored in a locked closet in the master bedroom of their North Andover home. 2 The only other person who knew about the box was Janice's daughter, Kimell.
Kimell had enjoyed a close relationship with her mother and James, who was Kimell's stepfather, and the Wellings had provided significant financial support to Kimell throughout her life. However, the relationship had soured shortly before the time in question. 3 While the Wellings were in Florida, Kimell began to remove cash from the box in the Wellings' master closet. Kimell provided some of the cash to Braune. Braune then made a series of deposits into her checking account, each under $ 10,000, 4 using the stolen money.
At a certain point, Kimell took the remaining contents of the box and replaced them with a duffel bag full of copy paper, resealing the box and restoring it to its place in the closet. 5 Kimell informed her mother that she and Braune were moving to California and that Braune had received a large inheritance. During and after the move to California, Braune's pattern of making successive, large cash deposits -- each under $ 10,000 -- continued, **306 as did a pattern of lavish spending by Kimell and Braune. 6 *967 The Wellings did not discover that the cash and jewelry were missing until October 2014, and did not immediately report the incident to police. Instead, they confronted Kimell about the missing money, and when she denied any involvement, they hired a private investigator to look into the matter.
In July of 2015, Kimell filed a petition for bankruptcy in a Federal bankruptcy court in California. James intervened in that proceeding, and his attorney deposed Kimell and Braune. In their sworn deposition testimony, which was later entered as an exhibit in the criminal trial in Massachusetts, Kimell and Braune reiterated their claim that Braune had used money from an inheritance to support their lavish lifestyle. 7
Shortly after the defendant filed the petition for bankruptcy, the Massachusetts State police worked with law enforcement officials in California to execute a search of the home that Braune and Kimell shared in San Diego. Among other things, the police recovered, from Kimell's bedroom, jewelry matching that which Janice had reported missing; and from the closet in Braune's bedroom, a total of $ 130,110 in United States currency, stored in a backpack and a cardboard box and packaged mainly in stacks of fifty and one hundred dollar bills, consistent with James's description of the missing money.
Discussion
. In assessing the sufficiency of the evidence, we ask "whether, after viewing the evidence in the light most favorable to the prosecution,
any
rational trier of fact could have found the essential elements of the crime beyond a reasonable doubt" (emphasis in original).
Commonwealth
v.
Latimore
,
The Massachusetts money laundering statute, G. L. c. 267A, § 2, provides in relevant part: 8
"Whoever knowingly ... (2) engages in a transaction involving a monetary instrument or other property known to be derived from criminal activity ... (ii) knowing that the transaction is designed in whole or in part either to: (A) conceal *968 or disguise the nature, location, source, ownership or control of the property derived from criminal activity; or (B) avoid a [Federal or State] transaction reporting requirement ... shall be guilty of the crime of money laundering ..."
Braune was convicted of concealment money laundering in violation of G. L. c. 267A, § 2 (2) (ii) (A). 9
Here, at least three forms of evidence typically associated with concealment money laundering were present: (1) the false statements made by the defendant and Kimell, initially to Kimell's mother and then later in sworn deposition testimony, that the money was part of an inheritance that Braune received from her grandfather, suggested an intent to conceal; (2) the structure of the defendant's deposits, which were staggered over time and confined to amounts below the reporting threshold, supported an inference of a design to conceal; and (3) the use of the defendant as a third party to deposit the money supported an inference of an intent to distance the money from Kimell and the Wellings, in other words, an intent to conceal the nature, source, ownership, or control of the stolen funds. As discussed below, the combination **308 of these factors persuades us that the evidence was sufficient to establish a design to conceal under G. L. c. 267A, § 2 (2) (ii) (A). 10
The language of § 2 (2) (ii) mirrors the language of the Federal money laundering statute, in particular its requirement that the defendant engage in the subject transaction "knowing that the transaction is designed in whole or in part ... (i) to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of specified unlawful activity; or (ii) to avoid a transaction reporting requirement under State or Federal law."
In
Cuellar
v.
United States
,
The Court observed that "when an act is 'designed to' do something, the most natural reading is that it has that something as its purpose."
In so holding, the
Cuellar
Court rejected the proposition that the "designed ... to conceal" element of the Federal money laundering statute requires the prosecution "[to] prove that the defendant attempted to create the appearance of legitimate wealth."
On the facts presented in
Cuellar
, the Court held that although evidence of the secretive manner in which the funds were transported "was plainly probative of an underlying goal to prevent the funds from being detected while he drove them from the United States to Mexico,"
ibr.US_Case_Law.Schema.Case_Body:v1">id
To be clear, "[c]oncealing or disguising a listed attribute need be only one of the purposes of the transportation [or transaction]."
Still, taken to the extreme, almost any transaction involving stolen funds could be characterized as designed, at least in part,
**310
to conceal a listed attribute of the funds, because every transaction takes the money one step further from its illicit source. Cf.
United States
v.
Valdez
,
Recognizing this, United States Courts of Appeals in several circuits have taken different approaches to grafting a workable limiting principle onto the "designed ... to conceal" element of the Federal money laundering statute.
13
We find the United States Court of Appeals for the Sixth Circuit's formulation, which holds that concealment must be "an animating purpose" of the transaction,
Faulkenberry
,
Moreover, evidence of the "structure" of a transaction, that is, evidence of the manner in which a transaction was carried out, in
**311
terms of timing, amount, complexity, use of a third party, or some other relevant aspect, may be probative of whether the transaction had concealment as one of its purposes. See
Faulkenberry
,
In sum, we conclude that to satisfy the requirement under G. L. c. 267A, § 2 (2) (ii) (A), that a transaction be "designed in whole or in part ... [to] conceal or disguise the nature, location, source, ownership or control" of stolen funds, the Commonwealth must demonstrate that concealment was an animating purpose of the transaction. In other words, concealment must be proved to have been one of the purposes that motivated or drove the defendant to engage in the transaction, not merely an incidental attribute or effect of the transaction. In making this determination, evidence that the structure of the transaction served to conceal a listed attribute of the funds will be probative of whether concealment was an animating purpose of the transaction.
The defendant suggests that allowing evidence of structure to support an inference of a design to conceal improperly conflates subparts (A) (the "concealment" prong) and (B) (the "structuring" prong) of G. L. c. 267A, § 2 (2) (ii), and is contrary to legislative intent. We disagree. That the evidence used to convict under subparts (A) and (B) may overlap does not vitiate the Legislature's intent to create two separate crimes. This is so because, although evidence of structure, in and of itself, may be sufficient to show an intent to avoid a reporting requirement under
**312
G. L. c. 267A, § 2 (2) (ii) (B), such evidence is probative, but generally not sufficient, standing alone, to establish a design to conceal under G. L. c. 267A, § 2 (2) (ii) (A). Cf.
Cuellar
,
In this respect, our holding is consistent with the familiar and well-established principle of criminal law that "[i]ntent is a factual matter that may be proved by circumstantial evidence" (citation omitted).
Commonwealth
v.
Walters
,
Moreover, to be relevant and admissible, there is no requirement that an individual piece of circumstantial evidence be sufficient, standing alone, to prove a material fact. See
Commonwealth
v.
Pickering
,
The question we must consider is whether the circumstantial evidence in this case, taken together, was sufficient to permit a rational jury to conclude that an animating purpose of the alleged money-laundering deposits was to conceal a listed attribute of the **313 funds. 15 We conclude that it was. 16
In
Garcia-Emanuel
,
"statements by a defendant probative of intent to conceal; unusual secrecy surrounding the transaction; structuring the transaction in a way to avoid attention; depositing illegal profits in the bank account of a legitimate business; highly irregular features of the transaction; using third parties to conceal the real owner; a series of unusual financial moves cumulating in the transaction; or expert testimony on practices of criminals" (footnotes omitted).
Finally, we reject the defendant's argument that the rule of lenity requires us to rule in her favor. The rule of lenity "is a guide for resolving ambiguity, rather than a rigid requirement that we interpret each statute in the manner most favorable to defendants."
Commonwealth
v.
Roucoulet
,
Conclusion . For these reasons, we conclude that the evidence **315 was sufficient to support the defendant's money laundering conviction.
Judgment affirmed .
For clarity, we refer to the couple either collectively as the Wellings, or individually by their first names.
According to James, the box contained anywhere from $ 300,000 to $ 600,000, possibly more.
James had made unwelcome sexual advances toward Kimell during an approximately eighteen-month period beginning in 2011, which Kimell had rejected. In addition, James had expressed disapproval of Kimell's romantic relationship with Braune.
The jury heard evidence that cash transactions over $ 10,000 must be reported to the Federal government. See
The jury saw date-stamped, security-camera footage of Kimell leaving the Wellings' house in North Andover on April 27, 2014, with a large black garbage bag over her shoulder.
The two stayed at expensive hotels, took trips to Paris, Las Vegas, and Aruba, and purchased a new vehicle, among other large expenditures.
Braune claimed to have received $ 75,000 in cash as an inheritance from her grandfather in 1998. She further claimed that she kept the money in a box and did not spend any of it until 2014, when she began to use it, along with about $ 15,000 in savings and other inheritance money, to pay for the expenses she and Kimell incurred during and after their move to California. However, Braune and Kimell's spending during the relevant time period exceeded $ 250,000, not including over $ 130,000 in cash that the police later recovered from Braune.
The first prong of G. L. c. 267A, § 2, omitted in the text, deals, broadly speaking, with "transportation" money laundering, rather than "transaction" money laundering. Under the umbrella of "transaction" money laundering, there are two broad subcategories: § 2 (2) (i), omitted in the text, which deals with "promotion" money laundering; and § 2 (2) (ii), reproduced in the text, which itself has two subparts: subpart (A), which deals with "concealment" money laundering; and subpart (B), sometimes referred to as the "structuring" prong, which deals with transactions designed to avoid a State or Federal reporting requirement.
The Commonwealth originally proceeded under subparts (A) and (B) of G. L. c. 267A, § 2 (2) (ii). But after the trial judge found that there was insufficient evidence under subpart (B) (the "structuring" prong) as to any transaction occurring prior to the date that Kimell was recorded leaving the house with the garbage bag, the Commonwealth elected to proceed under subpart (A) (the "concealment" prong) as its sole theory of liability.
We need not consider whether any one of these factors, in isolation, would be sufficient to convict.
Because the language of the "designed ... to conceal" requirement in
Thus, Braune's assertion, even if true, that the deposits were designed to allow the defendants to spend the money, does not end the inquiry.
See, e.g.,
United States
v.
Cessa
,
As noted above, this does not require that concealment be the sole purpose -- or even the dominant or primary purpose -- of the transaction. See
Cuellar
,
The defendant originally challenged the Commonwealth's proof on multiple elements of the crime of money laundering. However, the defendant conceded certain points in her reply brief and indicated at oral argument that the only remaining question was whether the evidence was sufficient to show a design to conceal. To the extent the defendant continues to press any of the other arguments made in her opening brief, we reject them.
While the evidence here was legally sufficient to prove concealment money laundering under G. L. c. 267A, § 2 (2) (ii) (A), it could well be described as overwhelming with respect to a charge of receiving stolen property over $ 250, in violation of G. L. c. 266, § 60. Here, the Commonwealth apparently inadvertently charged the defendant with receiving stolen property of $ 250 or less, rather than the more appropriate charge of receiving stolen property over $ 250.
The defendant resists the characterization of her role as that of a third party to the underlying crime and argues that her straightforward, and easily traceable, deposits of the money into an account bearing her name constituted "transparent division or deposit" of the proceeds of their joint crime, not money laundering.
United States
v.
Adefehinti
,
Reference
- Full Case Name
- COMMONWEALTH v. Shea BRAUNE.
- Cited By
- 6 cases
- Status
- Published