United States v. Morales ( 1997 )

F I L E D
United States Court of Appeals
Tenth Circuit
PUBLISH
MAR 11 1997
UNITED STATES COURT OF APPEALS
PATRICK FISHER
Clerk
TENTH CIRCUIT
UNITED STATES OF AMERICA,
Plaintiff-Appellee and Cross-Appellant,
v. Nos. 95-2069 &
95-2124
DAVID MORALES,
Defendant-Appellant and Cross-Appellee.
Appeal from the United States District Court
for the District of N.M.
(D.C. No. CR-92-486-14-JC)
Charles L. Barth, Assistant United States Attorney (John J. Kelly, United States
Attorney, and Laura Fashing, Special Assistant United States Attorney, with him
on the briefs), Albuquerque, New Mexico, for Plaintiff-Appellee and Cross-
Appellant.
Peter Schoenburg of Rothstein, Donatelli, Hughes, Dahlstrom, Cron &
Schoenburg, LLP, Albuquerque, New Mexico, for Defendant-Appellant and
Cross-Appellee.
Before BALDOCK and BRORBY, Circuit Judges, and DANIEL, * District Judge.
*
The Honorable Wiley Y. Daniel, United States District Judge for the
District of Colorado, sitting by designation.
BRORBY, Circuit Judge.
A New Mexico federal jury convicted David Morales on one count of
conspiracy to possess with intent to distribute controlled substances, and two
counts of money laundering. The United States District Court for the District of
New Mexico sentenced Mr. Morales to seventy months imprisonment. (Vol. 47 at
127-28.) Mr. Morales appeals his convictions and the United States appeals Mr.
Morales' sentence. We exercise jurisdiction over the appeals pursuant to 28
U.S.C. § 1291.
I. FACTUAL AND PROCEDURAL BACKGROUND
Gabriel Rodriguez-Aguirre ("Mr. Aguirre") managed a family-run
organization ("the Aguirre organization") specializing in the sale and distribution
of large amounts of marijuana and cocaine. United States v. Denogean, 79 F.3d
1010, 1011 (10th Cir.), cert. denied, 117 S. Ct. 154 (1996). Between 1984 and
1992, the organization sold more than 20,000 pounds of marijuana and over
20,000 pounds of cocaine to narcotics traffickers in New Mexico, Arizona, Utah,
Kansas, Massachusetts, and elsewhere throughout the United States. Id. The
organization used narcotics proceeds to purchase real property and other assets.
Id.-2-
Mr. Morales' wife is the niece of Mr. Aguirre. Evidence at trial showed
Mr. Morales was involved in the Aguirre organization as a money launderer. The
government's evidence revealed Mr. Morales purchased a number of horses and
trucks with drug proceeds. It also showed Mr. Morales purchased a bar, the E & J
Lounge, with drug profits. In total, the trial court determined Mr. Morales was
involved in the laundering of drug proceeds in the amount of $831,514.37.
In October 1992, a federal grand jury in the District of New Mexico
returned a twenty-three count indictment against Mr. Morales and twenty-one
other defendants, including Mr. Aguirre. The bill of indictment charged Mr.
Morales with conspiracy to distribute marijuana and two counts of money
laundering. Mr. Morales pled not guilty to the charges against him, and
proceeded to trial with his co-defendants in January 1994.
The original trial of Mr. Morales and his co-defendants lasted six months,
becoming "the longest federal criminal trial ever held in the district of New
Mexico." United States v. Rodriguez-Aguirre, 73 F.3d 1023, 1024 (10th Cir.
1996). After deliberating for more than six weeks, the jury was unable to reach a
verdict on the majority of counts, including all counts against Mr. Morales.
Consequently, the trial judge declared a mistrial. Id.-3-
In August 1994, the United States obtained a superseding indictment
against Mr. Morales and nine of his co-defendants. The superseding indictment
increased the charges against Mr. Morales. The superseding indictment charged
Mr. Morales with investment of illicit drug profits, conspiracy to possess with the
intent to distribute cocaine and marijuana, conspiracy to distribute cocaine and
marijuana, and two counts of money laundering. Although Mr. Morales moved to
dismiss the superseding indictment on the grounds of prosecutorial vindictiveness,
the district court summarily denied his motion.
Mr. Morales also filed a motion for severance pursuant to Fed. R. Crim. P.
14. Mr. Morales argued a joint trial would cause him prejudice because the
weight of the evidence against his co-defendants was much greater than the
weight of the evidence against Mr. Morales. Notwithstanding his contentions, the
district court denied Mr. Morales' motion for severance.
The United States tried Mr. Morales and his co-defendants on the
superseding indictment in November and December of 1994. Prior to trial, the
court selected a jury panel of approximately 250 jurors from voter registration
lists for the Roswell Division of the District of New Mexico. The district judge
excused 132 jurors sua sponte after reviewing the juror questionnaires; the court
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only directed 115 jurors to report for jury service. Six days prior to trial, defense
counsel were provided copies of juror questionnaires for the panel that had been
selected for service, and defense counsel learned the court had excused the
remaining jurors.
On the first day of trial, prior to jury selection, Mr. Aguirre filed a motion
to stay the proceedings, and Mr. Morales filed a motion to quash the jury venire. 1
The motions alleged the jury venire panel seriously misrepresented the ethnic
makeup of the District of New Mexico. Specifically, the defendants claimed
persons of Hispanic origin and American Indian background were
underrepresented. The defendants sought a stay of the trial to allow time for an
investigation of the ethnic background of all the jurors. In addition, Mr. Morales'
counsel, Paul Kennedy, advised the court orally of United States v. Calabrese,
942 F.2d 218 (3d Cir. 1991), which Mr. Kennedy claimed stood for the
proposition that it is reversible error for a court to exclude a juror prior to voir
dire "simply because a juror knows a defendant." Mr. Kennedy claimed it
appeared the court had excused at least one juror because the juror stated that he
1
Pursuant to the court's order that "one motion made by one defense
counsel applies to all [defendants] unless specifically excluded by that
defendant," all of the defendants adopted the motions of Mr. Aguirre and Mr.
Morales.
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or she knew one of the defendants.
Following Mr. Kennedy's comments, the court held an evidentiary hearing
at which Nancy Metzger, jury administrator for the Federal Court Clerk's office,
testified. Ms. Metzger stated the jury panel of approximately 250 jurors had been
selected randomly from voter registration lists. Ms. Metzger testified that the
district judge reviewed the juror questionnaires and directed her to excuse more
than 100 specific jurors. Ms. Metzger stated she did not know the ethnicity of
either the excused jurors or the jurors who reported for service.
The court then stated it had reviewed the individual juror questionnaires
and "retained the stack of those who, for some reason or other, claimed that they
couldn't serve." The court explained:
I think it goes without saying that the ones that were not summoned,
I never looked at the last name, whether it was [a] Hispanic surname
or whether it was not a Hispanic surname, or whether they were
American Indians or not. As a matter of fact, I'm not real sure that
that's part of the questionnaire --
Ms. Metzger confirmed the questionnaire forms did not direct the jurors to list
their ethnicity.
The district court denied the defendants' motion to stay the proceedings and
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the defendants' motion to quash the jury venire. However, the court allowed the
defendants to supplement the record within ten days of the completion of the trial
with information concerning the racial composition of the District of New Mexico
and the Roswell Division. None of the defendants chose to supplement the record
with such information.
The trial of Mr. Morales and his co-defendants lasted approximately one
month. On December 15, 1994, the jury returned a verdict against Mr. Morales
on one count of conspiracy and two counts of money laundering. The jury did not
reach a verdict on the investment of illicit drug profits count, and the district
court declared a mistrial as to that count.
Thereafter, Ms. Sonia Gallegos, one of Mr. Morales' co-defendants who
was also convicted, filed a motion for a new trial, arguing, inter alia, she was
entitled to a new trial because of jury misconduct. 2 Mr. Morales adopted Ms.
Gallegos' motion for a new trial pursuant to the district court's standing order that
"anything that anybody files the others adopt." Mr. Morales attached an affidavit
2
Although Mr. Morales also filed a motion for a new trial based on jury
misconduct, his motion is not included in the record. Thus, we must focus on the
allegations raised by Ms. Gallegos in her motion for a new trial.
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from defense investigator Kelly Owens to his motion. Mr. Owens testified that
following the trial, he questioned nine of the twelve jurors who convicted Mr.
Morales. Mr. Owens stated that one of the jurors, Linda Howard, admitted
looking up the dictionary definition of the word "distribution" on the first day of
deliberations and sharing its definition with the other jurors on the following day.
According to Mr. Owens, Ms. Howard stated the jurors discussed the meaning of
"distribution" as it related to the guilt or innocence of Ms. Gallegos. Mr. Owens
also testified juror Ronnie Warmuth claimed he had knowledge of another juror
researching the dictionary definition of the word "hypothecate." 3 In his post-trial
motion, Mr. Morales contended this improper juror conduct prejudiced him and
entitled him to a new trial.
3
The United States attached affidavits from jurors Ronnie Warmuth and
Kerry Romine to the United States' response to Ms. Gallegos' motion for a new
trial. Mr. Warmuth stated:
On further reflection, I do not believe that a dictionary was used at
all. The only definition which was questioned regarded the word
"pontificate" as used by the witness John Henry Lee. Mr. Kerry
Romine, a fellow juror, knew the definition of this word and no
dictionary was consulted.
Similarly, Mr. Romine testified that although a question arose during
deliberations as to the definition of the word "pontificate," "the jury did not at any
time consult a dictionary."
-8-
The district court denied Mr. Morales' motion for a new trial, rejecting the
defendants' claim of jury misconduct. The court concluded the word distribution
was one of common usage, and there was no showing any of the jurors relied
upon its dictionary definition or that it "made any difference at all in the jury
deliberations."
At sentencing, the district court adopted the factual findings and sentencing
guideline application in Mr. Morales' presentence report. The court concluded
Mr. Morales' guideline range should be calculated pursuant to his involvement in
money laundering, rather than pursuant to his conviction of conspiracy, because
his offense conduct did not "establish a quantity of narcotics reasonably
foreseeable to [Mr. Morales]." Thus, the court found Mr. Morales' guideline
range to be seventy to eighty-seven months, and sentenced him to a term of
seventy months imprisonment.
II. ISSUES RAISED ON APPEAL
Mr. Morales raises the following issues on appeal: (1) whether the district
court violated Mr. Morales' rights under the Constitution or the Jury Selection and
Service Act of 1968, 28 U.S.C. §§ 1861-1878 (1994), by excluding more than half
of the original jury panel sua sponte prior to voir dire; (2) whether the district
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court violated Mr. Morales' Fifth and Sixth Amendment rights by failing to grant
his motion for severance; (3) whether the district court should have dismissed the
superseding indictment on the basis of prosecutorial vindictiveness; (4) whether
the evidence was sufficient to support Mr. Morales' conviction on count XII,
money laundering; and (5) whether the district court should have granted Mr.
Morales a new trial based on the jury's misconduct in researching the definition of
"distribution." The United States raises one issue in its cross appeal: whether the
district court erred in failing to sentence Mr. Morales to the mandatory minimum
sentence of ten years imprisonment for his conviction of conspiracy to distribute
controlled substances. Mr. Morales has filed a motion to dismiss the United
States' appeal, arguing the appeal should be dismissed because it is facially
inadequate and untimely.
III. ANALYSIS
A. Mr. Morales' Appeal
1. Jury Selection
Mr. Morales argues the district court's excusal of over half the original jury
panel, off the record and outside the presence of the defendants and counsel,
violated the Jury Selection and Service Act, as well as Mr. Morales' Fifth and
Sixth Amendment rights. 28 U.S.C. § 1867(d) requires all motions challenging
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compliance with the Jury Selection and Service Act to be accompanied by a
"sworn statement of facts which, if true, would constitute a substantial failure to
comply with the [Jury Selection and Service Act]." In the recent appeal of Mr.
Morales' co-defendant Doloras Contreras, we determined Ms. Contreras' claim
under the Jury Selection and Service Act was barred by the defendants' failure to
accompany their motions challenging the district court's jury selection procedures
with an adequate sworn statement as required by 28 U.S.C. § 1867(d). United
States v. Contreras, __ F.3d ___ (10th Cir. Mar. 11, 1997). Here, as in
Contreras, Mr. Morales failed to file a sworn affidavit in support of his motion
challenging the district court's jury selection procedures. Consequently, Mr.
Morales' Jury Selection and Service Act claim is barred.
Also in Contreras, we denied Ms. Contreras' Fifth and Sixth Amendment
challenges to the jury selection procedures. See id. at ___. We determined Ms.
Contreras could not establish a prima facie case of a fair cross section violation
or an equal protection violation, and we concluded Ms. Contreras' Sixth
Amendment impartial jury claim was without merit. Id. For the reasons stated in
Contreras, we likewise find no merit in Mr. Morales' constitutional challenges to
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the district court's jury selection procedures. 4
2. Severance
Mr. Morales argues the district court violated his Fifth and Sixth
Amendment rights to due process and a fair trial by denying his motion for
severance and forcing him to trial with "[five] co-defendants against whom the
[United States] had overwhelming evidence." Mr. Morales alleges the
government had substantially less incriminating evidence against him than it had
against his co-defendants. According to Mr. Morales, the overwhelming evidence
the government introduced at trial against his co-defendants resulted in a spillover
effect, which led to Mr. Morales' convictions.
A decision to grant or deny severance is within the sound discretion of the
trial court and will not be disturbed on appeal unless there is an affirmative
showing of abuse of discretion. United States v. Sanders, 929 F.2d 1466, 1469
(10th Cir.), cert. denied, 502 U.S. 846 (1991). To establish an abuse of
discretion, the defendant must show actual prejudice resulted from the denial. Id.4
In Contreras, we also determined the district court did not violate Fed. R.
Crim. P. 43 or 28 U.S.C. § 753(b) (1994) by failing to dismiss the 132 jurors in
open court and in the presence of the defendants. See id. at ___. To the extent
Mr. Morales asserts claims under Rule 43 or 28 U.S.C. § 753(b), these claims are
rejected pursuant to our reasoning in Contreras.
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Furthermore,
"[i]n deciding on a motion for severance, the district court has a duty
to weigh the prejudice resulting from a joint trial of co-defendants
against the expense and inconvenience of separate trials .... Neither
a mere allegation that defendant would have a better chance of
acquittal in a separate trial, nor a complaint of the "spillover effect"
from the evidence that was overwhelming or more damaging against
the co-defendant than that against the moving party is sufficient to
warrant severance."
United States v. Cardall, 885 F.2d 656, 668 (10th Cir. 1989) (quoting United
States v. Hack, 782 F.2d 862, 870 (10th Cir.), cert. denied, 476 U.S. 1184(1986)).
We note as an initial matter that Mr. Morales was properly joined for trial
pursuant to Fed. R. Crim. P. 8(b). Rule 8(b) permits the joinder of two or more
defendants "if they are alleged to have participated in the same act or transaction
or in the same series of acts or transactions constituting an offense or offenses."
Rule 8 is construed broadly to allow liberal joinder to enhance the efficiency of
the judicial system. United States v. Hopkinson, 631 F.2d 665, 668 (1980), cert.
denied, 450 U.S. 969 (1981). The evidence at trial revealed Mr. Morales was
involved with his co-defendants in a common scheme or plan to launder illegally
derived drug proceeds. Thus, the joinder of Mr. Morales was proper and in
accordance with Rule 8(b).
-13-
Under Fed. R. Crim P. 14, the district court may grant a severance of
defendants if it appears joinder results in a prejudice to a defendant. In Zafiro v.
United States, 506 U.S. 534, 539 (1993), the Supreme Court explained that:
a district court should grant a severance under Rule 14 only if there
is a serious risk that a joint trial would compromise a specific trial
right of one of the defendants, or prevent the jury from making a
reliable judgment about guilt or innocence. Such a risk might occur
when evidence that the jury should not consider against a defendant
and that would not be admissible if a defendant were tried alone is
admitted against a codefendant. For example, evidence of a
codefendant's wrongdoing in some circumstances erroneously could
lead a jury to conclude that a defendant was guilty. When many
defendants are tried together in a complex case and they have
markedly different degrees of culpability, this risk of prejudice is
heightened. Evidence that is probative of a defendant's guilt but
technically admissible only against a codefendant also might present
a risk of prejudice.
Rule 14 leaves the determination of risk of prejudice and any remedy for such
prejudice to the sound discretion of the district court. Id. at 541.
Having thoroughly examined Mr. Morales' arguments, we do not believe the
district court abused its discretion in denying Mr. Morales' motion to sever. The
evidence at trial revealed Mr. Morales was involved with co-defendants Gabriel
Aguirre and Doloras Contreras in the purchase of race horses with illegally
derived proceeds. Evidence also established Mr. Morales, Mr. Aguirre, and co-
defendant Eleno Aguirre purchased the E & J Lounge with illicit funds. Thus, the
evidence against Mr. Morales and his co-defendants was overlapping and
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intertwined.
Although the joinder of Mr. Morales may have resulted in the admission of
some evidence that would not have been admitted if the court tried Mr. Morales
alone, we do not find the district court's denial of severance caused Mr. Morales
unfair prejudice. The fact that the jury was unable to reach a verdict as to Mr.
Morales on the illicit investment count shows the jury carefully evaluated the
evidence presented as to each defendant and each count. In denying Mr. Morales'
motion to sever, the district court appropriately determined considerations of
judicial economy and expediency outweighed the potential prejudice to Mr.
Morales. Given the considerable discretion afforded the district court under Rule
14, we cannot say it abused its discretion.
3. Vindictive Prosecution
Mr. Morales contends the district court should have dismissed the
superseding indictment because of prosecutorial vindictiveness. The United
States increased the charges against Mr. Morales in the superseding indictment
filed after the mistrial. Mr. Morales asserts the United States was aware of the
information giving rise to the increased charges prior to his first trial. Given this
prior knowledge, along with the negative publicity the United States suffered
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following the mistrial, Mr. Morales contends there is a reasonable likelihood the
increased charges were motivated by prosecutorial vindictiveness.
In Contreras, we decided a virtually identical vindictive prosecution claim
asserted by Ms. Contreras. __ F.3d at ___. Looking to the totality of the
circumstances, we determined there was no reasonable likelihood the increased
charges against Ms. Contreras stemmed from prosecutorial vindictiveness. Id. at
___. In the present case, based upon our reasoning in Contreras, we likewise
conclude there is no reasonable likelihood the enhanced charges against Mr.
Morales were motivated by prosecutorial vindictiveness. 5
5
Unlike Ms. Contreras, Mr. Morales alleges he rejected a number of plea
offers from the United States prior to the filing of the superseding indictment.
Mr. Morales ostensibly contends this is another factor establishing a reasonable
likelihood of vindictiveness. Assuming Mr. Morales' allegations are true, we are
not persuaded by his argument.
The Second Circuit denied an almost identical claim of vindictive
prosecution in United States v. Khan, 787 F.2d 28 (2d Cir. 1986). In Kahn, as in
the present case, the first trial of the defendant resulted in a mistrial caused by a
hung jury. Id. at 30. Neither the United States nor the defendant objected to the
mistrial. Id. at 33. Thereafter, the United States initiated plea discussions with
counsel for the defendant. Id. at 30. When the defendant refused to enter into a
plea agreement, however, the United States obtained a superseding indictment
that added charges against the defendant. Id. The defendant was tried on the
superseding indictment and found guilty on each count. Id.On appeal, the defendant argued a presumption of prosecutorial
vindictiveness arose from the addition of new counts following the defendant's
rejection of a plea offer and assertion of his right to a jury trial. Id. at 30-31.
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4. Sufficiency of the Evidence
Next, Mr. Morales asserts the evidence at trial was insufficient to support
his conviction on Count XII, money laundering. In reviewing the sufficiency of
the evidence in a criminal case, "'[t]he evidence -- both direct and circumstantial,
together with reasonable inferences to be drawn therefrom -- is sufficient if, when
taken in the light most favorable to the government, a reasonable jury could find
the defendant guilty beyond a reasonable doubt.'" Sanders, 929 F.2d at 1470
(quoting United States v. Hooks, 780 F.2d 1526, 1531 (10th Cir.), cert. denied,
475 U.S. 1128 (1986)). The evidence presented to support a conviction must be
substantial; "it must do more than raise a mere suspicion of guilt." Sanders, 929
F.2d at 1470 (internal quotation marks omitted).
The Second Circuit disagreed, concluding the defendant did nothing likely to
inspire the wrath of the United States. Id. at 33. In discussing the defendant's
claim, the court noted "in the 'give-and-take' of plea bargaining there is no
element of retaliation so long as a defendant remains free to accept or reject the
offer." Id. at 31 (citing Bordenkircher v. Hayes, 434 U.S. 357, 363 (1978)).
Consequently, the court held it was "unrealistic to assume that the government's
probable response to a defendant's choice to exercise his fundamental right to a
trial would be to seek to penalize and deter, even if that choice follows on the
heels of a mistrial." Id. at 33.
We agree with the Second Circuit. Notwithstanding Mr. Morales' rejection
of the United States' plea offers, we do not believe Mr. Morales engaged in any
conduct that was reasonably likely to "inspire the wrath of the prosecutor." See
id. Thus, Mr. Morales cannot prevail on his vindictive prosecution claim.
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The jury in this case convicted Mr. Morales of violating 18 U.S.C.
§ 1956(a)(1)(B)(ii) (Supp. 1996) and 18 U.S.C. § 2 (1994) by participating in the
purchase of the E & J Lounge. The jury determined Mr. Morales and two co-
defendants (Eleno and Gabriel Aguirre) purchased the lounge with fifty payments,
each in an amount less than $10,000.00, and each designed to avoid a federal
transaction reporting requirement. To obtain a conviction under 18 U.S.C.
§ 1956(a)(1)(B)(ii), 6 the government must prove the following four elements
beyond a reasonable doubt:
(1) the defendant willfully conducted or caused to be conducted a financial
transaction;
(2) the defendant knew at the time of the financial transaction that the
money represented proceeds of some unlawful activity;
(3) the money involved was in fact the proceeds of specified unlawful
activity; and
(4) the defendant knew at the time that the transaction was designed in
whole or in part to avoid a transaction reporting requirement under federal
law.
On appeal, Mr. Morales contends the United States failed to establish
6
As noted, the government also charged Mr. Morales with violating 18
U.S.C. § 2. This statute provides: "Whoever commits an offense against the
United States or aids [or] abets ... its commission, is punishable as a principal."
This statute is not relevant for our analysis on the sufficiency of the evidence
issued.
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beyond a reasonable doubt the first element of this statute -- that he willfully
conducted or caused to be conducted a financial transaction. According to Mr.
Morales, there is no evidence in the record to support the inference that Mr.
Morales was involved in any of the fifty payments made in connection with the
purchase of the E & J Lounge.
Our review of the record reveals Mr. Edward Lopez testified he entered
into an agreement to sell the E & J Lounge to Mr. Morales, Gabriel Aguirre, and
Eleno Aguirre for $434,000.00. The agreement to purchase, the commercial
lease, and the warranty deed were all signed by Mr. Morales.
The purchase of the E & J Lounge was effectuated through payments made
directly to the law offices of Lloyd Bates, Mr. Lopez's attorney. Ms. Patricia
Alvillar, Mr. Bates' secretary, testified that she issued a number of receipts for
payments made to David Morales. Although none of the employees of Mr. Bates'
law office could identify Mr. Morales as having made any of the payments, at
least one of the payments to the Bates law firm was made with a cashier's check
issued by Silver Savings and Loan, listing David Morales as the remitter. Ms.
Shirley Madrid, who issued the cashier's check on behalf of Silver Savings and
Loan, testified she knew Mr. Morales and his wife, and she would not have
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allowed anyone other than Mr. Morales or his wife to purchase the check.
Finally, the record reveals FBI Special Agent Sam Macaluso testified at
trial concerning a post-arrest statement made by Mr. Morales. Special Agent
Macaluso testified that Mr. Morales stated he was the owner of the E & J Lounge
and he believed a down payment on the bar was made with "the proceeds of drug
activity." Although Mr. Morales contends the testimony of Agent Macaluso was
"contrary to all of the other evidence in the case" and given with "little
confidence" by the agent,"'we may neither weigh conflicting evidence nor
consider the credibility of witnesses.'" United States v. Harrod, 981 F.2d 1171,
1174-75 (10th Cir. 1992) (quoting United States v. Darrell, 828 F.2d 644, 647
(10th Cir. 1987)), cert. denied, 508 U.S. 913 (1993); United States v. Torres, 53
F.3d 1129, 1134 (10th Cir.), cert. denied, 115 S. Ct. 2599, and 116 S. Ct. 220(1995). Such assessments are within the exclusive province of the jury. United
States v. Davis, 965 F.2d 804, 811 (10th Cir. 1992), cert. denied, 507 U.S. 910(1993). In our view, looking at the entire evidence in the light most favorable to
the government, a reasonable jury could have concluded beyond a reasonable
doubt that Mr. Morales willfully conducted at least one of the fifty financial
transactions specified in Count XII of the superseding indictment.
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5. Jury Misconduct
Finally, Mr. Morales contends the district court erred in failing to grant a
new trial based upon the jury's misconduct in using a dictionary to look up the
definition of the word "distribution." In the recent appeal of Mr. Morales' co-
defendant, Eleno Aguirre, we determined a presumption of prejudice arose from
the jury's improper conduct in researching the dictionary definition of
distribution. United States v. Aguirre, __ F.3d ___ (10th Cir. Mar. 11, 1997).
Nevertheless, because there was no evidence any of the jurors relied upon or
attached any significance to the dictionary definition, we concluded the jury's
misconduct was harmless beyond a reasonable doubt to Mr. Aguirre. Id. at ___.
Based on our reasoning in Aguirre, we likewise conclude the jury's misconduct in
researching the dictionary definition of distribution was harmless to Mr. Morales
beyond a reasonable doubt.
B. United States' Appeal
The United States contends the district court erred in failing to sentence
Mr. Morales to the mandatory minimum term of ten years imprisonment for his
conviction. Mr. Morales claims the United States' appeal must be dismissed
because it is facially inadequate and untimely. We first review Mr. Morales'
motion to dismiss to determine whether we have jurisdiction to entertain the
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government's appeal.
1. Motion to Dismiss
Mr. Morales claims the United States' appeal should be dismissed for either
of two reasons: (1) the notice of appeal failed to give proper notice of from what
order the government's appeal was taken, or (2) the notice of appeal was untimely.
First, Mr. Morales contends the government's notice of appeal is invalid because
the notice fails to state the United States is appealing the sentence of Mr.
Morales. Fed. R. App. P. 3(c) requires a notice of appeal to "designate the
judgment, order, or part thereof appealed from." Here, although the United States
seeks to appeal the sentence entered against Mr. Morales, the United States'
notice of appeal provides that it appeals from "an Order entered by the District
Court on May 19, 1995 which denied Motion for Judgment of Acquittal; Motion
for New Trial Based Upon Jury Misconduct; Motion to Continue Bail Pending
Appeal by David Morales." Because the notice of appeal does not indicate the
United States intends to appeal the sentence of Mr. Morales, the government
failed to comply with Fed. R. App. P. 3(c).
Nevertheless, our inquiry does not stop here. The Supreme Court has stated
that "the requirements of the rules of procedure should be liberally construed and
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that 'mere technicalities' should not stand in the way of consideration of a case on
its merits." Torres v. Oakland Scavenger Co., 487 U.S. 312, 316 (1988). We
have applied this principle of liberal construction in situations where a party has
misdesignated the order appealed from in a notice of appeal. For example, in the
notice of appeal in Wright v. American Home Assurance Co., 488 F.2d 361, 363
(10th Cir. 1973), the appellant improperly designated a non-appealable order as
the order being appealed. Nevertheless, we determined that:
incomplete compliance with F[ed]. R. App. P. 3(c) should not result
in the loss of an intended appeal on the merits. Appellant's intention
to seek review of the judgment is manifest. Both appellant and
appellee briefed the merits, and the appellant's statement of issues
similarly demonstrates an intent to challenge the judgment. It would
be contrary to the spirit of the Federal Rules of Civil Procedure to
deny appellant a decision on the merits because of a mere
technicality.
Id. (citations omitted). We therefore considered the merits of the case as an
intended appeal from the final judgment. Id.Similarly, in Cooper v. American Auto. Ins. Co., 978 F.2d 602, 607-09
(10th Cir. 1992), we held an order granting the government's motion to dismiss
was appealable even though the appellant's notice of appeal failed to designate
that order. Importantly, we found the supporting papers filed with the notice of
appeal, including the docketing statement, indicated the appellant was appealing
the order of dismissal. Id. Because the government was not misled or prejudiced
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by the inclusion of the dismissal issue on appeal, we allowed the appeal of that
issue to proceed. Id. at 609.
Notwithstanding the wording of the notice of appeal in the present case, we
are confident the notice was sufficient to inform Mr. Morales that the government
sought to appeal his sentence. As Mr. Morales states in his brief in support of his
motion to dismiss, the government "obviously" has no basis to appeal the court's
order of May 19, 1995. That order was favorable to the government. Because
Mr. Morales was convicted on three counts, and the trial court declared a mistrial
without objection on the remaining count, the only issue the government could be
appealing is Mr. Morales' sentence.
Moreover, as in Cooper, the supporting papers filed in connection with the
government's notice of appeal indicate the government seeks to appeal Mr.
Morales' sentence. The docketing statement unambiguously states the issue raised
on appeal as follows: "whether the trial court's failure to apply the statutory
minimum sentence under 21 U.S.C. [§] 841(b)(1)(A) constituted error." Like the
appellees in Cooper and Wright, Mr. Morales was neither misled nor prejudiced
by the government's notice of appeal. Under these circumstances, "incomplete
compliance with F[ed]. R. App. P. 3(c) should not result in the loss of an intended
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appeal on the merits." See Wright, 488 F.2d at 363. We therefore refuse to
dismiss the government's appeal on the basis of its failure to strictly comply with
Rule 3(c).
Second, Mr. Morales contends the government's appeal should be dismissed
because the government did not file its notice of appeal in a timely manner. Fed.
R. App. P. 4(b) requires an appeal by the government in a criminal case to be
filed in the district court "within 30 days after (i) the entry of the judgment or
order appealed from or (ii) the filing of a notice of appeal by any defendant."
The government claims it filed its June 19, 1995 notice of appeal within
thirty days of Mr. Morales' notice of appeal. Although the record indicates Mr.
Morales filed his notice of appeal on April 10, 1995, we must look to Fed. R.
App. P. 4(b) to determine the date on which Mr. Morales' appeal became
effective. Under Rule 4(b), "[a] notice of appeal filed after the court announces a
decision, sentence, or order but before it disposes of [a timely motion for
judgment of acquittal or a motion for a new trial] is ineffective until the date of
the entry of the order disposing of the last such motion outstanding."
Here, Mr. Morales filed a motion for judgment of acquittal and a motion for
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a new trial on January 13, 1995. 7 The district court denied these motions on May
19, 1995. Thus, if Mr. Morales filed his motion for judgment of acquittal and
motion for a new trial in a timely manner, Mr. Morales' appeal did not become
effective until May 19, 1995.
We must therefore determine whether Mr. Morales timely filed his motions
for judgment of acquittal and for a new trial. A defendant may filed a motion for
judgment of acquittal within seven days after the jury is discharged or within such
further time as determined by the court within the seven-day period. See Fed. R.
Crim. P. 29(c). A motion for a new trial "shall be made" within this same time
period. See Fed. R. Crim. P. 33. Intermediate Saturdays, Sundays, and legal
holidays are excluded from the calculation. See Fed. R. Crim. P. 45(a). In the
present case, the jury returned its verdict against Mr. Morales on Thursday,
December 15, 1994. On December 22, 1994, Mr. Morales filed a motion for
extension of time in which to file motions for judgment of acquittal and for a new
trial. On December 27, 1994, the district court granted co-defendant Sonia
Gallegos' similar motion for extension of time, giving Ms. Gallegos until January
7
Mr. Morales adopted Ms. Gallegos' motion for a new trial pursuant to the
court's "standing order." See supra notes 1 & 2.
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13, 1995, to file post-trial motions. 8 The court never ruled upon Mr. Morales'
motion for an extension of time. Nevertheless, on January 13, 1995, Mr. Morales
filed his motions for judgment of acquittal and for a new trial. The court denied
Mr. Morales' motions on May 19, 1995.
Because the district court never ruled upon Mr. Morales' motion for an
extension of time, the timeliness of Mr. Morales' motions for judgment of
acquittal and for a new trial are at issue. If the court's failure to rule upon the
motion was the result of a clerical mistake, then we will deem Mr. Morales'
motions for judgment of acquittal and for a new trial to have been timely filed.
Under Fed. R. Crim. P. 36, "errors in the record arising from oversight or
omission may be corrected by the court at any time and after such notice, if any,
as the court orders." A clerical mistake is not necessarily limited to an error
committed by a clerk. United States v. Sides, 1994 WL 38640, at *2 (10th Cir.
1994) (unpublished decision) (citing Pattiz v. Schwartz, 386 F.2d 300, 303 (8th
Cir. 1968)).
8
The district court's order granting Ms. Gallegos' motion for an extension
of time was filed within the seven-day period provided for in Rules 33 and 45(a).
See Fed. R. Crim. P. 45(a) (intermediate Saturdays, Sundays, and legal holidays
excluded from calculation).
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On January 22, 1996, we partially remanded this case to the district court
for the limited purpose of determining whether the failure to rule on Mr. Morales'
motion for an extension of time was a "clerical error," and, if so, to correct that
error. United States v. Morales, No. 95-2069 (10th Cir. Jan. 22, 1996) (order
partially remanding action). On remand, the district judge found "the motion for
extension of time was not presented to him for consideration." United States v.
Morales, No. 92-486 (D.N.M. Jan. 30, 1996) (order holding no clerical error).
The court never received a "courtesy copy" of the motion or a facsimile copy. Id.Consequently, the district court concluded no clerical error occurred. Id.Notwithstanding the district court's findings, we believe the court's failure
to rule on the motion for an extension of time was, in fact, the result of a clerical
mistake. As stated, a clerical mistake is an error in the record "arising from
oversight or omission." Fed. R. Crim. P. 36. In Pattiz, the Eighth Circuit
examined the meaning of "clerical mistake" under Fed. R. Civ. P. 60(a). 386 F.2d
at 303. The district judge in Pattiz received the plaintiff's amended complaint,
but placed it in the court file without ever filing the document. Id. at 301. In
subsequent litigation, whether the amended complaint was filed became an issue.
Id. at 302. The district court determined a clerical error had been made under
Rule 60(a) and ordered that the record be corrected to show the filing of the
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amended complaint. Id. The Eighth Circuit agreed, concluding Rule 60(a)
encompasses such things as "'misprisions, oversights and omissions, unintended
acts or failures to act.'" Id. at 303 (quoting 6A Moore's Federal Practice
¶ 60.06(1), p. 4042 (2d ed. 1966)).
The present case presents the converse of Pattiz. In Pattiz, the district
judge received the document but the clerk never docketed it. Here, the clerk
entered the document on the docket, but the district judge never received the
document. Neither of the parties in this case are responsible for the mistake.
Obviously, the error stemmed from an oversight on the part of the clerk.
Consequently, we conclude a clerical mistake occurred within the meaning of Fed.
R. Crim P. 36.
Ordinarily, we would remand a case involving a clerical mistake to the
district court for correction. See Fed. R. Crim. P. 36. However, such a remand
would serve no useful purpose in the present case. It would merely waste
valuable judicial time and resources. We conclude that if no clerical error had
occurred in the case at bar, the district court would have granted Mr. Morales'
motion for an extension of time on the same day the court granted Ms. Gallegos'
motion for an extension of time. There is nothing in the record to indicate Mr.
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Morales' motion would have received any less favorable treatment than the motion
filed by Ms. Gallegos. Because Mr. Morales filed his motion for judgment of
acquittal and motion for a new trial within the time allotted Ms. Gallegos, we
conclude Mr. Morales' motions were timely filed. 9
Having determined Mr. Morales filed his motions in a timely manner, it
follows Mr. Morales' notice of appeal did not become effective until May 19,
1995, the date the court denied Mr. Morales' post-trial motions. See Fed. R. App.
P. 4(b). Because the government filed its notice of appeal on June 19, 1995, it
did so within thirty days of Mr. Morales' appeal and in compliance with Rule
4(b). 10 We therefore deny Mr. Morales' motion to dismiss the government's
appeal.
9
Even if the court's failure to rule on Mr. Morales' motion was not the
result of a clerical error, we would still find Mr. Morales' post-trial motions to be
timely filed. The district court issued a standing order in this case that any
motion filed by one defendant was adopted by the other defendants. Thus, Mr.
Morales adopted Ms. Gallegos' motion for an extension of time to file a motion
for a judgment of acquittal and a motion for a new trial under the court's standing
order. In granting Ms. Gallegos' motion for an extension of time, we believe the
trial court implicitly granted an extension of time to Mr. Morales, as well.
10
The thirtieth day from the date Mr. Morales' appeal became effective was
June 18, 1995. However, because June 18 was a Sunday, it does not count for
computation of time purposes. See Fed. R. App. P. 26(a) (last day of time period
not included if it is a Saturday, Sunday, or legal holiday). Hence, the government
filed its appeal on time.
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2. Mr. Morales' Sentence
The United States contends the district court erred in sentencing Mr.
Morales pursuant to the money laundering guideline range. The United States
argues 21 U.S.C. §§ 841(b)(1)(A) and 846 (1994) required the court to sentence
Mr. Morales to the mandatory minimum sentence of ten years in prison for his
conviction of conspiracy.
In general, "district courts have broad discretion in sentencing a defendant
within the range prescribed by Congress." United States v. Robertson, 45 F.3d
1423, 1448 (10th Cir.), cert. denied, 115 S. Ct. 2258 and 116 S. Ct. 133 (1995).
"'"[I]t is not the role of an appellate court to substitute its judgment for that of the
sentencing court as to the appropriateness of a particular sentence."'" Koon v.
United States, 116 S. Ct. 2035, 2046 (1996) (quoting Williams v. United States,
503 U.S. 193, 205 (1992)). Although we review the district court's application of
the sentencing guidelines de novo, we review the sentencing court's factual
findings under a clearly erroneous standard. Robertson, 45 F.3d at 1444. Thus, a
sentencing court's determination of the quantity of drugs attributable to a
defendant is reviewed for clear error. Torres, 53 F.3d at 1144.
To constitute clear error, we must be convinced that the sentencing
court's finding is simply not plausible or permissible in light of the
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entire record on appeal, remembering that we are not free to
substitute our judgment for that of the district judge.
Id. (citing Anderson v. City of Bessemer City, 470 U.S. 564, 573 (1985)).
21 U.S.C. §§ 841(b)(1)(A) and 846 provide for a mandatory minimum
sentence of ten years for any defendant convicted of a conspiracy to distribute at
least five kilograms of cocaine or at least 1,000 kilograms of marijuana. Under
U.S.S.G. § 1B1.3(a), relevant conduct for sentencing purposes is assessed on the
basis of:
(1) (A) all acts and omissions committed, aided, abetted, counseled,
commanded, induced, procured, or willfully caused by the defendant;
and
(B) in the case of a jointly undertaken criminal activity ..., all
reasonably foreseeable acts and omissions of others in furtherance of
the jointly undertaken criminal activity ....
U.S.S.G. § 1B1.3(a) (1995). In the case of controlled substances, a defendant is
"accountable for all quantities of contraband with which he was directly involved
and, in the case of a jointly undertaken criminal activity, all reasonably
foreseeable quantities of contraband that were within the scope of the criminal
activity that he jointly undertook." U.S.S.G. § 1B1.3 comment. (n.2) (emphasis
added). The government must prove, by a preponderance of the evidence, the
amount of drugs attributable to each defendant. Torres, 53 F.3d at 1144.
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In the instant case, the trial court determined Mr. Morales was involved in
the laundering of drug profits in the amount of $831,514.37. However, the court
determined the mandatory minimum sentence under 21 U.S.C. § 841(b)(1)(A) was
inapplicable to Mr. Morales because his conduct did not establish a "quantity of
narcotics reasonably foreseeable" to him. Hence, the court sentenced Mr. Morales
pursuant to his involvement in money-laundering.
The government argues the trial court erred in two respects. First, the
government contends the court erroneously applied the "reasonably foreseeable
standard" to Mr. Morales, even though Mr. Morales "personally laundered drug
profits generated from selling quantities of cocaine well in excess of the five
kilograms necessary to invoke the mandatory minimum sentence." (Emphasis
omitted.) Second, the government claims the court erred in determining Mr.
Morales' conduct did not establish at least five kilograms of cocaine were
reasonably foreseeable to him. We address the government's contentions in turn.
We interpret the United States' first argument to be that the trial court erred
by failing to determine under U.S.S.G. § 1B1.3(a)(1)(A) that Mr. Morales was
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directly involved with at least five kilograms of cocaine. 11 As stated, a defendant
"'is accountable for all quantities of contraband with which he was directly
involved.'" United States v. Lockhart, 37 F.3d 1451, 1454 (10th Cir. 1994)
(quoting U.S.S.G. § 1B1.3, comment. (n.2)). Where the sentencing court
determines a defendant was directly involved in the distribution of a quantity of
drugs sufficient to invoke a mandatory minimum sentence under 21 U.S.C.
§ 841(b)(1)(A), the quantity of drugs reasonably foreseeable to the defendant is
irrelevant. Lockhart, 37 F.3d at 1454 (trial court did not err in failing to
determine whether quantity of drugs was reasonably foreseeable to defendant
where defendant personally participated in transaction involving more than five
kilograms of cocaine).
11
To the extent the government contends Mr. Morales was "directly
involved" in more than five kilograms of cocaine under U.S.S.G.
§ 1B1.3(a)(1)(A) simply by virtue of his involvement in money laundering (see
Ape's brief at 46), we find this contention to be without merit. Comment. 2 to
U.S.S.G § 1B1.3(a) provides that a defendant is accountable under
§ 1B1.3(a)(1)(A) for "quantities of [controlled substances] with which he was
directly involved." Commentary to sentencing guidelines is authoritative unless it
violates the Constitution or a federal statute or is inconsistent with the guideline
which it seeks to explain or is a plainly erroneous reading of the guideline itself.
Stinson v. United States, 508 U.S. 36 (1993). Here, we find comment. 2 to
U.S.S.G. § 1B1.3(a) to be consistent with the statute it interprets. Based upon
the plain language of this commentary, we do not believe a defendant's mere
involvement in money laundering is sufficient to enable a district court to
conclude the defendant was directly involved with a quantity of controlled
substances. The government has failed to provide the court with any authority to
the contrary.
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In United States v. Chalarca, 95 F.3d 239, 240 (2d Cir. 1996), a jury
convicted the defendant of conspiracy to distribute and possess with intent to
distribute cocaine. Although the defendant was present with his co-defendant at
the scene of an attempted drug transaction involving $70,000.00 and 12 kilograms
of cocaine, the district court determined the defendant was not directly involved
in the drug transaction. Chalarca, 95 F.3d at 240-41. Accordingly, the court
found the mandatory minimum sentence of ten years imprisonment under 21
U.S.C. § 841(b)(1)(A) was not applicable to the defendant. Id. at 242.
On appeal, the Second Circuit determined the district court's findings of
fact were not clearly erroneous.
Because the involvement of Chalarca was not direct, ... and
because Chalarca was not aware that the purpose of his trip to the
scene was to purchase cocaine, ... and because he did not
constructively possess drugs or actually possess them ..., he cannot
be sentenced under [21 U.S.S.G. § 1B1.3(a)(1)(A)] for criminal
activity personally undertaken.
Id. at 244. The court also determined the defendant's "mere presence at the
scene" was insufficient to establish that any particular quantity of cocaine was
reasonably foreseeable to the defendant. Id. at 245. Consequently, the Second
Circuit affirmed the defendant's sentence. Id. at 245-46.
Here, unlike Chalarca, there is no evidence Mr. Morales was ever present
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at the scene of any illicit drug transaction. The government's evidence at trial
simply established Mr. Morales was involved in the Aguirre organization as a
money launderer. The government does not even argue it presented any evidence
tending to show Mr. Morales was personally involved in the sale or distribution of
drugs. Consequently, the district court did not err in failing to determine Mr.
Morales was directly involved in the distribution of at least five kilograms of
cocaine.
The government also claims the district court erred in determining no
quantity of drugs was reasonably foreseeable to Mr. Morales. The government
contends the district court should have held Mr. Morales responsible for the
amount of cocaine that generated the drug profits Mr. Morales laundered. In
other words, the government asserts the court should have converted the total
amount of money Mr. Morales laundered ($831,514.37) into its value in cocaine
to determine the quantity of drugs reasonably foreseeable to Mr. Morales.
Although the record may have permitted the district court to have
undertaken such a conversion, we do not believe the trial court was obligated to
do so. Rather, we believe the record supports the court's finding that no quantity
of drugs was reasonably foreseeable to Mr. Morales. As stated, the record
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indicates Mr. Morales was simply a money launderer. Unlike Chalarca, where
the court also determined no quantity of drugs was reasonably foreseeable to the
defendant, there is no evidence Mr. Morales was present at the scene of any drug
transaction. In fact, the government does not even allege Mr. Morales had any
knowledge of the occurrence of a single drug transaction. In light of the Supreme
Court's admonition that "it is not the role of an appellate court to substitute its
judgment for that of the sentencing court as to the appropriateness of a particular
sentence," Koon, 116 S. Ct. at 2046 (internal quotation marks omitted), we
conclude the district court's determination that no quantity of drugs was
reasonably foreseeable to Mr. Morales was not clearly erroneous.
Because the district court did not err in determining Mr. Morales was not
directly involved in the distribution of cocaine and no quantity of cocaine was
reasonably foreseeable to Mr. Morales, the district court's decision to sentence
Mr. Morales pursuant to the money laundering guidelines was proper and in
accordance with law.
IV. CONCLUSION
Based on the foregoing reasons, we hereby AFFIRM the convictions of
Mr. Morales in all respects.
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