{ "id": "RS22896", "type": "CRS Report", "typeId": "REPORTS", "number": "RS22896", "active": false, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 353566, "date": "2009-05-19", "retrieved": "2016-04-07T02:29:33.886110", "title": "United States v. Santos: \u201cProceeds\u201d in Federal\u00a0Criminal Money Laundering Statute, 18 U.S.C. Section 1956, Means \u201cProfits,\u201d Not\u00a0\u201cGross\u00a0Receipts\u201d", "summary": "On June 2, 2008, the U. S. Supreme Court, in United States v. Santos (No. 06-1005), vacated convictions of the operator of an illegal lottery and one of his runners who had been charged with conducting financial transactions involving the \u201cproceeds\u201d of an illegal gaming business in violation of 18 U.S.C. \u00a7 1956. The ruling is that \u201cproceeds,\u201d as used in this money laundering statute, means \u201cprofits\u201d rather than \u201cgross receipts\u201d of the underlying unlawful activity. The decision combines a plurality opinion interpreting the word \u201cproceeds\u201d in the statute to mean \u201cprofits\u201d and a concurring opinion, necessary for a majority ruling, that leaves room for interpreting \u201cproceeds\u201d as \u201cgross receipts\u201d in other circumstances. A strong dissenting opinion emphasized the constraints the ruling will place on prosecutors. The interpretation rests on two principles of statutory construction: the rule of lenity and the merger doctrine. Under the rule of lenity, ambiguities in criminal statutes are construed in favor of the defendant. Application of the merger doctrine avoids the prospect that a defendant would receive two punishments under different statutes for what is essentially a single offense. On February 5, 2009, Senator Leahy introduced S. 386, the Fraud Enforcement and Recovery Act of 2009, which was reported favorably by the Senate Committee on the Judiciary on March 23, 2009, S.Rept. 111-10. On April 28, the bill, as amended, was passed by the Senate. On May 7, an amended version of the bill was passed by the House. It was returned to the Senate, amended, and passed; thereafter, on May 18, it was passed by the House for presentation to the President. The bill includes provisions amending the definition of \u201cproceeds\u201d under the anti-money laundering criminal statutes, 18 U.S.C. \u00a7 1956(c)(8) and 1957(c), to specify that the term includes the \u201cgross receipts\u201d of the underlying criminal activity. As passed by the House, the bill also includes a provision addressing the possibility of a merger problem in money laundering prosecutions for predicate offenses closely connected with the elements of the money laundering offense. Other legislation with provisions to cover \u201cgross receipts\u201d includes S. 378 and H.R. 1793. This report will be updated on the basis of major legislative activity.", "type": "CRS Report", "typeId": "REPORTS", "active": false, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/RS22896", "sha1": "8dad9df2eee0aa2d8c658000305cf7ba4f244d8b", "filename": "files/20090519_RS22896_8dad9df2eee0aa2d8c658000305cf7ba4f244d8b.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/RS22896", "sha1": "d118f47d5a277b02fbf4a4c16a928fe5f49b0fc7", "filename": "files/20090519_RS22896_d118f47d5a277b02fbf4a4c16a928fe5f49b0fc7.pdf", "images": null } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metacrs10756/", "id": "RS22896_2008Jun13", "date": "2008-06-13", "retrieved": "2008-12-11T20:32:21", "title": "United States v. Santos: \"Proceeds\" in Federal Criminal Money Laundering Statute, 18 U.S.C. Section 1956, Means \"Profits,\" Not \"Gross Receipts\"", "summary": "On June 2, 2008, the U.S. Supreme Court, in United States v. Santos (No. 96-1005), vacated convictions of the operator of an illegal lottery and one of his runners who had been charged with conducting financial transactions involving the \"proceeds\" of an illegal lottery and one of his runners who had been charged with conducting financial transactions involving the \"proceeds\" of an illegal gaming business. The ruling is that \"proceeds,\" as used in this money laundering statute, means \"profits\" rather than \"gross receipts\" of the underlying unlawful activity. This report analyzes this decision, the factors contributing to the decision, the principles upon which the decision was based, and the possible future effects of the ruling.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20080613_RS22896_6aa5695706540f19eef7e64e288a157208282324.pdf" }, { "format": "HTML", "filename": "files/20080613_RS22896_6aa5695706540f19eef7e64e288a157208282324.html" } ], "topics": [ { "source": "LIV", "id": "Law", "name": "Law" }, { "source": "LIV", "id": "Criminal justice", "name": "Criminal justice" }, { "source": "LIV", "id": "Money laundering", "name": "Money laundering" }, { "source": "LIV", "id": "Sports", "name": "Sports" }, { "source": "LIV", "id": "Lotteries", "name": "Lotteries" }, { "source": "LIV", "id": "Gambling", "name": "Gambling" } ] } ], "topics": [] }