United States v. Butler ( 2000 )

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH  (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU )LOH 1DPH DS 81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB 81,7(' 67$7(6 2) $0(5,&$ ; 3ODLQWLII$SSHOOHH    1R Y  !  526/ KH@ FRUUHFW LQ FRQFOXGLQJ WKDW WKH GHIHQGDQW WULHG WR DOOD\ ZDQWHGWKDWYHKLFOHVWRSSHGl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mLQYROYHG LQ QDUFRWLF 'LVWULFW&RXUWjVILQGLQJRIIDFWWKDWWKHGHIHQGDQWFRQVHQWHG WUDIILFNLQJl RU mQDUFRWLFV DFWLYLWLHVl  1HLWKHU RIILFHU ZDV WRWKHULGHWRWKHSROLFHVWDWLRQDQGWRWKHLQWHUURJDWLRQDWWKH DVNHGWRORRNRXWIRURUREVHUYHGDQ\WUDIILFYLRODWLRQVE\WKH SROLFHVWDWLRQ FDE  2IILFHU *LOOPDQ GHDOW SULQFLSDOO\ ZLWK WKH GULYHU (]HNZHPEDDQG2IILFHU+DQLVKGHDOWZLWK'HIHQGDQW 6HFRQG WKH RIILFHUV KDG SUREDEOH FDXVH WR VHDUFK WKH GHIHQGDQWjV sHHS &KHURNHH DIWHU WKH\ OHDUQHG WKDW WKH 2IILFHU+DQLVKWHVWLILHGWKDWKHDSSURDFKHG'HIHQGDQWWROG GHIHQGDQWjVFRQIHGHUDWHKDGDJDPHSDFNDJHVLPLODUWRWKH KHUWKDWWKHRIILFHUVKDGEHHQLQVWUXFWHGWRVWRSWKHYHKLFOH RQH GHIHQGDQW KDG DQG WKDW LQVLGH WKDW JDPH SDFNDJH ZDV EHFDXVH LW ZDV VXVSHFWHG DV EHLQJ LQYROYHG LQ mQDUFRWLFV IRXQG WZR DQG RQHKDOI NLORJUDPV RI FRFDLQH  2QFH WKH\ DFWLYLWLHVlDQG DVNHG 'HIHQGDQW WR VWHS RXW RI WKH FDE NQHZ WKDW WKH WZR SHRSOH GHIHQGDQW DQG GHIHQGDQWjV 'HIHQGDQWWROG2IILFHU+DQLVKWKDWWKHFDEKDGSLFNHGKHUXS FRQIHGHUDWHZHUHFDUU\LQJJDPHVRIDVLPLODUW\SHDQGWKDW DW7HOHJUDSKDQG7ZHOYH0LOH5RDGVDQGWKDWVKHKDGMXVW WKHFRQIHGHUDWHKDGFRFDLQHLQKLVJDPHSDFNDJHWKHSROLFH ERXJKW D JDPH DW WKH m7R\V58Vl VWRUH  2IILFHU +DQLVK WKHQKDGSUREDEOHFDXVHWREHOLHYHWKDWGHIHQGDQWj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l $VWUXJJOHWKHQHQVXHGLQDQDWWHPSWWRJHW(]HNZHPEDLQWKH EDFNRIWKHSDWUROFDUZKLFK2IILFHU*LOOPDQGHVFULEHGDV IROORZV 7KHUHZDVQRIRUFHDJDLQVWPHDWWKDWSRLQWRWKHUWKDQ KLP XVLQJ ZKDW , ZRXOG FDOO GHIHQVLYH IRUFH  +H MXVW GLGQj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s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mFKHFNLQJ RXW WKH EHOLHYLQJ WKDW WKH\ ZHUH ORRNLQJ IRU QDUFRWLFV VSHFLILFDOO\ VXVSLFLRXVFLUFXPVWDQFHVWKDWOHGWRWKHRULJLQDOVWRSl mFUDFN FRFDLQHl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jV SRLQW ZDV LQ YLRODWLRQ RI WKH )RXUWK $PHQGPHQW DQG WKH SXUVHDQGZKLWHSODVWLFEDJFRQWDLQLQJWKHERDUGJDPHDQG GLVWULFW FRXUW HUURQHRXVO\ FRQFOXGHG WKDW WKH RIILFHUV ZHUH KDG'HIHQGDQWVLWLQWKHOREE\XQWLOWKHDJHQWVFDPHWRWDONWR OHJDOO\DOORZHGWRDUUHVW'HIHQGDQWDQGVHL]HKHUEDJEDVHG KHU'HIHQGDQWDVNHGWRPDNHDWHOHSKRQHFDOODQG2IILFHU XSRQUHDVRQDEOHVXVSLFLRQ$JDLQLWLVZHOOHVWDEOLVKHGWKDW +DQLVKDOORZHG'HIHQGDQWWRGRVR m>Z@KHQDGHWHQWLRQULVHVWRWKHOHYHORIDIXOOIOHGJHGDUUHVW    WKH )RXUWK $PHQGPHQW GHPDQGV WKDW WKH VHL]XUH EH $ERXWILYHPLQXWHVODWHU/LHXWHQDQW+HLQVDUULYHGDWWKH VXSSRUWHGE\SUREDEOHFDXVHl6HH*DUGHQVKLUH)GDW VWDWLRQ DQG WRRN 'HIHQGDQW LQWR D SULYDWH URRP RII RI WKH  OREE\ ZKLFK 2IILFHU +DQLVK GHVFULEHG DV mDQ LQWHUYLHZ URRPlFRQWDLQLQJDWDEOHDQGDFRXSOHRIFKDLUV/LHXWHQDQW )XUWKHUPRUH LQ LWV DPHQGHG RSLQLRQ WKH GLVWULFW FRXUW +HLQVDQG'HIHQGDQWKDGDERXWDILIWHHQWRWZHQW\PLQXWH HUURQHRXVO\IRXQGWKDWWKHSROLFHRIILFHUVKDGSUREDEOHFDXVH FRQYHUVDWLRQLQZKLFK/LHXWHQDQW+HLQVLGHQWLILHGKLPVHOI DVZHOODV'HIHQGDQWjVFRQVHQWWRVHDUFK'HIHQGDQWjVsHHS H[SODLQHGmZKDWZDVJRLQJRQlDQGDVNHG'HIHQGDQWIRUKHU &KHURNHH2XUDQDO\VLVQHHGQRWUHDFKWKLVSRLQWLQDVPXFKDV FRRSHUDWLRQLQWKHLQYHVWLJDWLRQ$V/LHXWHQDQW+HLQVDQG WKHFRQWLQXHGGHWHQWLRQRI'HIHQGDQWSDVWWKHSXUSRVHRIWKH 'HIHQGDQW ZHUH H[LWLQJ WKH LQWHUYLHZ URRP 'HIHQGDQWjV LQLWLDOVWRSZDVLOOHJDO,QDQ\HYHQWWKHUHFRUGLVQRWFOHDU QLHFH &DURO %XWOHU ZDV HQWHULQJ WKH SROLFH VWDWLRQ WKDWFRQVHQWZDVJLYHQWRVHDUFK'HIHQGDQWjVYHKLFOHZKHUH /LHXWHQDQW+HLQVVWDWHGWKDWDWWKLVSRLQWLWKDGEHHQDERXW 'HIHQGDQWjVQLHFHWHVWLILHGWKDWWKHRIILFHUVmGHPDQGHGlWKDW RQHKDOI KRXU VLQFH 'HIHQGDQW KDG EHHQ EURXJKW LQWR WKH VKHXQORFNWKHsHHSDIWHUWKHRIILFHUVXQVXFFHVVIXOO\WULHGWR SROLFHVWDWLRQ RSHQWKHYHKLFOHWKHPVHOYHVDQGWKHUHLVQRWKLQJWRLQGLFDWH WKDWFRQVHQWZDVQRQHWKHOHVVYROXQWDULO\JLYHQE\'HIHQGDQW %XWOHUWHVWLILHGIRU'HIHQGDQWDWWULDODQGVWDWHGWKDWVKH RUKHUQLHFH6HH:LOOLDPV)GDW,QDGGLWLRQ KDGUHFHLYHGDFDOOIURP'HIHQGDQWDVNLQJ%XWOHUWRSLFNKHU RQFHWKHRIILFHUVOHDUQHGWKDWWKH%DOGHUGDVKJDPHIRXQGLQ 8NRKDjV SRVVHVVLRQ KDG FRFDLQH FRQFHDOHG LQVLGH WKHUHE\ DUJXDEO\SURYLGLQJSUREDEOHFDXVHWREHOLHYHWKDWWKH L@IWKHFRQVHQWLVQRW RIILFHUVLQIRUPHG%XWOHUWKDW'HIHQGDQWFRXOGQRWOHDYHIRU VXIILFLHQWO\DQDFWRIIUHHZLOOWRSXUJHWKHSULPDU\WDLQWRIWKH DERXWILIWHHQPLQXWHV%XWOHUOHIWDWWKDWSRLQWZLWKWKHEDJ LOOHJDOGHWHQWLRQ>WKHHYLGHQFH@PXVWEHVXSSUHVVHGDVµIUXLW DSSDUHQWO\WRJHWDEHYHUDJH RIWKHSRLVRQRXVWUHHjl0RUHRYHURQFHSRVLWLRQHGLQWKH EDFNRIWKHSDWUROFDU'HIHQGDQWZDVXQDEOHWRYROXQWDULO\ ,Q WKH PHDQWLPH 6RXWKILHOG 3ROLFH RIILFHUV KDG EHHQ OHDYHHYHQLILQFOLQHGWRGRVR6HH5LFKDUGVRQ)GDW UHTXHVWHGWRVWRSWKHJUHHQ(VFRUWLQZKLFK8NRKDKDGOHIWWKH  ,QQ  7KH YHKLFOH ZDV VHDUFKHG DQG WZR DQG RQHKDOI NLORJUDP EORFNV RI FRFDLQH ZHUH UHFRYHUHG IURP D $OWKRXJKZHEDVHRXUKROGLQJRQWKHSUHPLVHWKDWWKHVWRS m%DOGHUGDVKlJDPHIRXQGLQDSLHFHRIOXJJDJHLQWKHFDU EHFDPHLOOHJDORQFH'HIHQGDQWZDVSODFHGLQWRWKHEDFNRIWKH %DFNDWWKH5HGIRUG3ROLFHVWDWLRQ/LHXWHQDQW+HLQVOHDUQHG SDWUROFDUZHQRWHWKDWWKHRIILFHUVjDFWLRQVRIWUDQVSRUWLQJ DERXWWKHFRFDLQHUHFRYHUHGIURPWKH%DOGHUGDVKJDPHDQG 'HIHQGDQWWRWKHSROLFHVWDWLRQIRUWKHSXUSRVHRIGHWDLQLQJ UHFDOOHG WKH $@VHDUFKZKLFK +RZHYHU%XWOHUWHVWLILHGWKDWVKHWROGWKHRIILFHUVWKDWVKH LV UHDVRQDEOH DW LWV LQFHSWLRQ PD\ YLRODWH WKH )RXUWK KDGWDNHQWKHEDJKRPHWRZKLFKWKHRIILFHUVUHSOLHGWKDWWKH\ $PHQGPHQWE\YLUWXHRILWVLQWROHUDEOHLQWHQVLW\DQGVFRSHl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:HDJUHH 3ODFLQJ >WKH GHIHQGDQW@ LQ WKH SROLFH FUXLVHU QRW RQO\ FRQVWLWXWHG D VHL]XUH DV PHQWLRQHG HDUOLHU EXW DOVR :HUHYLHZDGLVWULFWFRXUWjVIDFWXDOILQGLQJVRQDPRWLRQWR FURVVHG WKH OLQH LQWR DQ DUUHVW  >7KH GHIHQGDQW@ ZDV VXSSUHVVIRUFOHDUHUURUKRZHYHUDGLVWULFWFRXUWjVDSSOLFDWLRQ PRYHGIURPKLVFDUWRDQRWKHUORFDWLRQDQGKLVIUHHGRP RIWKHODZWRWKHIDFWVLVUHYLHZHGGHQRYR6HH8QLWHG6WDWHV RIPRYHPHQWZDVVHYHUHO\UHVWULFWHG Y7KRPDV)GWK&LU 6HH8QLWHG6WDWHVY5LFKDUGVRQ)GWK&LU m6WRS DQG IULVNl FDVHV DUH XOWLPDWHO\ JRYHUQHG E\ WKH  6XSUHPH&RXUWjVGHFLVLRQLQ7HUU\ZKHUHWKH&RXUWKHOGDV IROORZV 7KHGLVWULFWFRXUWjVKROGLQJWKDW'HIHQGDQWFRQVHQWHGWRVLW LQWKHSDWUROFDUDQGWREHWUDQVSRUWHGWRWKHSROLFHVWDWLRQLV >:@KHUH D SROLFH RIILFHU REVHUYHV XQXVXDO FRQGXFW QRW VXSSRUWHG E\ WKH IDFWV  &RQVHQW LV MXGJHG XQGHU WKH ZKLFKOHDGVKLPUHDVRQDEO\WRFRQFOXGHLQOLJKWRIKLV WRWDOLW\RIWKHFLUFXPVWDQFHV6HH6FKQHFNORWKY%XVWDPRQWH H[SHULHQFHWKDWFULPLQDODFWLYLW\PD\EHDIRRWDQGWKDW 86m&RQVHQWPXVWEHSURYHGE\FOHDU WKHSHUVRQVZLWKZKRPKHLVGHDOLQJPD\EHDUPHGDQG DQGSRVLWLYHWHVWLPRQ\DQGPXVWEHXQHTXLYRFDOVSHFLILFDQG SUHVHQWO\GDQJHURXVZKHUHLQWKHFRXUVHRILQYHVWLJDWLQJ LQWHOOLJHQWO\ JLYHQ XQFRQWDPLQDWHG E\ DQ\ GXUHVV DQG WKLVEHKDYLRUKHLGHQWLILHVKLPVHOIDVDSROLFHPDQDQG FRHUFLRQl8QLWHG6WDWHVY:LOOLDPV)G PDNHV UHDVRQDEOH LQTXLULHV DQG ZKHUH QRWKLQJ LQ WKH WK&LU,QWKLVFDVHWKHJRYHUQPHQWIDLOHGWRPHHW LQLWLDO VWDJHV RI WKH HQFRXQWHU VHUYHV WR GLVSHO KLV WKLVEXUGHQLQFODLPLQJWKDW'HIHQGDQWFRQVHQWHGWRVLWWLQJLQ UHDVRQDEOH IHDU IRU KLV RZQ RU RWKHUVj VDIHW\ KH LV WKHSROLFHFDUWUDYHOLQJWRWKHSROLFHVWDWLRQUHPDLQLQJDWWKH HQWLWOHGIRUWKHSURWHFWLRQRIKLPVHOIDQGRWKHUVLQWKH VWDWLRQ DQG DQVZHULQJ TXHVWLRQV  &OHDUO\ XSRQ VHHLQJ DUHD WR FRQGXFW D FDUHIXOO\ OLPLWHG VHDUFK RI WKH RXWHU (]HNZHPEDEHLQJSK\VLFDOO\IRUFHGLQWRWKHSROLFHFDUE\WKH FORWKLQJ RI VXFK SHUVRQV LQ DQ DWWHPSW WR GLVFRYHU RIILFHUVLWLVKDUGWRLPDJLQHWKDW'HIHQGDQWZRXOGQRWKDYH ZHDSRQVZKLFKPLJKWEHXVHGWRDVVDXOWKLP IHOW FRHUFHG WR UHPDLQ LQ 2IILFHU +DQLVKjV SDWURO FDU DQG  8QLWHG6WDWHVY%XWOHU 1R 1R 8QLWHG6WDWHVY%XWOHU  86DW,QRWKHUZRUGVXQGHU7HUU\ZKHQDSROLFH 7KH 6XSUHPH &RXUW H[SODLQHG WKH SRLQW DW ZKLFK DQ RIILFHU UHDVRQDEO\ FRQFOXGHV WKDW FULPLQDO DFWLYLW\ PD\ EH LQYHVWLJDWLYH GHWHQWLRQ WULJJHUV WKH IXOO SURWHFWLRQ RI WKH DIRRWWKHRIILFHUPD\EULHIO\VWRSWKHVXVSLFLRXVSHUVRQDQG )RXUWK$PHQGPHQWDVIROORZV PDNHmUHDVRQDEOHLQTXLULHVlDLPHGDWFRQILUPLQJRUGLVSHOOLQJ KLVVXVSLFLRQVDQGPD\FRQGXFWDSDWGRZQIRUZHDSRQV,G 7KHUHLVQRGRXEWWKDWDWVRPHSRLQWLQWKHLQYHVWLJDWLYH ,Q 0LQQHVRWD Y 'LFNHUVRQ  86    WKH SURFHVV SROLFH SURFHGXUHV FDQ TXDOLWDWLYHO\ DQG 6XSUHPH&RXUWIXUWKHUKHOGWKDWmSROLFHRIILFHUVPD\VHL]H TXDQWLWDWLYHO\EHVRLQWUXVLYHZLWKUHVSHFWWRDVXVSHFWjV QRQWKUHDWHQLQJ FRQWUDEDQG GHWHFWHG GXULQJ D SURWHFWLYH IUHHGRPRIPRYHPHQWDQGSULYDF\LQWHUHVWVDVWRWULJJHU SDWGRZQVHDUFKRIWKHVRUWSHUPLWWHGE\7HUU\>@VRORQJ WKH IXOO SURWHFWLRQ RI WKH )RXUWK DQG )RXUWHHQWK DV WKH RIILFHUVj VHDUFK VWD\V ZLWKLQ WKH ERXQGV PDUNHG E\ $PHQGPHQWV$QGRXUYLHZFRQWLQXHVWREHWKDWWKHOLQH 7HUU\>@l WKHUHE\ HVWDEOLVKLQJ WKH VRFDOOHG mSODLQIHHOl LVFURVVHGZKHQWKHSROLFHZLWKRXWSUREDEOHFDXVHRUD H[FHSWLRQWRDZDUUDQW ZDUUDQW IRUFLEO\ UHPRYH D SHUVRQ IURP KLV KRPH RU RWKHUSODFHLQZKLFKKHLVHQWLWOHGWREHDQGWUDQVSRUW 7KH EUHYLW\ DQG OLPLWHG QDWXUH RI 7HUU\W\SH VWRSV KDYH KLPWRWKHSROLFHVWDWLRQZKHUHKHLVGHWDLQHGDOWKRXJK EHHQ UHSHDWHGO\ DIILUPHG  6HH 8QLWHG 6WDWHV Y 2EDVD  EULHIO\ IRU LQYHVWLJDWLYH SXUSRVHV  :H DGKHUH WR WKH )GWK&LU7KDWLVWRVD\m>Z@KHQSROLFH YLHZWKDWVXFKVHL]XUHVDWOHDVWZKHUHQRWXQGHUMXGLFLDO DFWLRQVJREH\RQGFKHFNLQJRXWWKHVXVSLFLRXVFLUFXPVWDQFHV VXSHUYLVLRQ DUH VXIILFLHQWO\ OLNH DUUHVWV WR LQYRNH WKH WKDWOHGWRWKHRULJLQDOVWRSWKHGHWHQWLRQEHFRPHVDQDUUHVW WUDGLWLRQDOUXOHWKDWDUUHVWVPD\FRQVWLWXWLRQDOO\EHPDGH WKDWPXVWEHVXSSRUWHGE\SUREDEOHFDXVHl,G,QVKRUWXSRQ RQO\RQSUREDEOHFDXVH PDNLQJWKHVWRS +D\HV Y )ORULGD  86    FLWDWLRQV WKHRIILFHUPD\DVNWKHGHWDLQHHDPRGHUDWHQXPEHURI RPLWWHGHPSKDVLVDGGHG TXHVWLRQVWRGHWHUPLQHKLVLGHQWLW\DQGWRWU\WRREWDLQ LQIRUPDWLRQ FRQILUPLQJ RU GLVSHOOLQJ WKH RIILFHUjV $SSO\LQJ WKHVH )RXUWK $PHQGPHQW MXULVSUXGHQWLDO VXVSLFLRQV%XWWKHGHWDLQHHLVQRWREOLJDWHGWRUHVSRQG SULQFLSOHVWRWKHFDVHDWKDQGZHKROGWKDWWKHGLVWULFWFRXUW $QGXQOHVVWKHGHWDLQHHjVDQVZHUVSURYLGHWKHRIILFHU HUUHGLQGHQ\LQJ'HIHQGDQWjVPRWLRQWRVXSSUHVVWKHHYLGHQFH ZLWK SUREDEOH FDXVH WR DUUHVW KLP KH PXVW WKHQ EH ZKHUHXSRQOHDUQLQJ'HIHQGDQWjVLGHQWLW\DQGWKDWVKHZDV UHOHDVHG QRW DUPHG RU FDUU\LQJ FRQWUDEDQG DV GHWHUPLQHG E\ WKH SDWGRZQ VHDUFK WKH 5HGIRUG 3ROLFH RIILFHUV XQUHDVRQDEO\ %HUNHPHUY0F&DUW\86IRRWQRWHV VHL]HG 'HIHQGDQW E\ SODFLQJ KHU LQ WKH SROLFH FDU DQG RPLWWHG  m:KHQ D GHWHQWLRQ ULVHV WR WKH OHYHO RI D IXOO TXHVWLRQLQJKHUIXUWKHUWUDQVSRUWLQJKHUWRWKHSROLFHVWDWLRQ IOHGJHGDUUHVWWKH)RXUWK$PHQGPHQWGHPDQGVWKDWWKH GHWDLQLQJ 'HIHQGDQW ZKLOH DW WKH SROLFH VWDWLRQ DQG VHL]XUHEHVXSSRUWHGE\SUREDEOHFDXVHl6HH*DUGHQVKLUHY TXHVWLRQLQJ KHU IXUWKHU RQFH WKHUH  $OWKRXJK WKH RIILFHUV 6FKXEHUW  )G   WK &LU   $ mVHL]XUHl SURSHUO\UHOLHGXSRQWKHEXOOHWLQIURP/LHXWHQDQW+HLQVZKLFK RFFXUV IRU SXUSRVHV RI WKH )RXUWK $PHQGPHQW ZKHQ WKH LQGLFDWHGWKDW(]HNZHPEDDQG'HIHQGDQWZHUHVXVSHFWHGDV SROLFH GHWDLQ DQ LQGLYLGXDO XQGHU FLUFXPVWDQFHV ZKHUH D EHLQJLQYROYHGLQGUXJWUDIILFNLQJVRDVWRMXVWLI\WKHLQLWLDO UHDVRQDEOHSHUVRQZRXOGIHHOWKDWKHRUVKHLVQRWDWOLEHUW\WR VWRSRIWKHFDEVHH8QLWHG6WDWHVY+HQVOH\86 OHDYH6HH8QLWHG6WDWHVY0HQGHQKDOO86 RQFH'HIHQGDQWLGHQWLILHGKHUVHOIDQVZHUHG  WKHRIILFHUjVTXHVWLRQVDQGFRQVHQWHGWRWKHSDWGRZQZKLFK GLGQRWUHYHDODQ\WKLQJVXVSLFLRXVWKHRIILFHUVZHUHUHTXLUHG