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Putting Funds Obtained by Fraud into Bank Account, Without More, Is Not Money Laundering
Description Appeals court reversed a conviction for money laundering. The defendant was properly convicted of participating in an insurance fraud scheme, but simply depositing the money obtained in that fraud into a checking account is not money laundering. That involves using the funds to support further criminal activity.
Topic Criminal Law
Key Words Insurance Fraud; Money Laundering
C A S E   S U M M A R Y
Facts Jolivet was convicted of mail fraud, money laundering, and conspiracy in connection with an insurance fraud scheme she carried out with her husband. Fraudulent documents were provided to insurance companies to extract settlements for auto accidents that never occurred. She appealed the conviction.
Decision Affirmed in part, reversed in part. Jolivet's mail fraud and conspiracy convictions stand. The mails were used to send fraudulent documents that she prepared and signed. She received insurance proceeds. Her participation in the conspiracy was knowing. However, the money laundering conviction is reversed. Her act of depositing into her bank account the proceeds obtained from the insurance fraud was insufficient to prove that she intended to use the proceeds to carry on unlawful activities, which is required to support a conviction for money laundering. The money in her checking account was used to pay for ordinary living expenses, there was no evidence that the illegally obtained funds were used to further other criminal activity.
Citation U.S. v. Jolivet, 2000 WL 1364207 (8th Cir., 2000)

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