For the professional edge in your day-to-day practice, rely on the most timely, objective reporting on significant developments, trends, and emerging patterns in criminal law today—Criminal Law...
Former New York State Assembly Speaker Sheldon Silver is asking the U.S. Supreme Court to review his corruption conviction, even though a federal appeals court overruled the verdict in July.
Silver’s 2015 conviction was thrown out by the U.S. Court of Appeals for the Second Circuit in light of a new, narrowed definition of “official act” handed down by the U.S. Supreme Court in McDonnell v. United States.
Silver primarily challenges the legality of his former money laundering conviction in his petition to the Supreme Court. He appealed to the high court in October before a new trial in the district court where he was originally found guilty could begin. The Justice Department response to Silver’s petition is due Dec. 13.
Jeffrey Bellin, a professor at the College of William and Mary Law School specializing in constitutional and criminal law, told Bloomberg Law that Silver is “focused on the money laundering count” because there is a conflict in circuit court decisions on money laundering, increasing his petition’s chances of being taken up by the high court.
The Supreme Court is interested in resolving cases that have a larger impact on the law, Bellin said, and without a circuit split, the case would be limited to Silver’s convictions.
Adam H. Schuman, a lawyer who prosecuted crimes related to the infamous “Wolf of Wall Street” securities fraud case, told Bloomberg Law in an email that Silver’s petition is “a savvy strategy to have the Supreme Court shave back the money laundering charge against Silver before the case is retried.”
Silver relied on the opinions from other circuits in arguing that his money laundering conviction could not stand post- McDonnell.
“Although the Second Circuit has adopted the majority view,” the split “opens the door for Silver’s petition to the Supreme Court,” Schuman said.
Schuman, who recently joined Perkins Coie LLP in New York as a partner, said the “the shifting legal landscape since McDonnell should make this an interesting case to watch.”
Silver’s case is just one example of the effects the high court’s unanimous ruling in McDonnell has had. Former Rep. William Jefferson (D-Va.) and New York State Senate Majority Leader Dean Skelos (R-Nassau County), similarly had corruption convictions thrown out in light of the case.
Under McDonnell, an “official act” requires a formal exercise of governmental power, not merely arranging a meeting, talking to another official or setting up an event.
The instructions given to the jury in Silver’s trial did not comply with the definition in McDonnell, the Second Circuit said.
The ruling recently played a role in New Jersey Senator Bob Menendez’s corruption trial, which ended in a hung jury mistrial Nov. 16.
There isn’t a clear definition of what the government needs to prove in money laundering cases involving transfers from accounts that contain both criminally derived and non-criminally derived funds, Silver argues in his petition.
The Fifth and Ninth circuits have ruled that in order to find someone guilty of money laundering, the funds a defendant transfers must be traced to “criminally derived proceeds,” Silver said.
“The practical effect of that construction is to preclude the Government from obtaining a conviction where a commingled account contains sufficient clean funds to cover the withdrawal,” Silver argues.
The Second Circuit sided with the majority view in the courts,holding “that the Government is not required to trace criminal funds that are comingled with legitimate funds.” Requiring each dollar be traced back to criminal activity “would allow individuals effectively to defeat prosecution for money laundering by simply commingling legitimate funds with criminal proceeds,” the court said, quoting United States v. Moore, a Fourth Circuit decision.
Silver also asked the court to review his extortion and honest services fraud convictions, arguing the evidence against him wasn’t sufficient.
Silver was found guilty of corruption in November 2015 for his involvement in two quid pro quo schemes while serving as Speaker of the New York State Assembly from 1994 to 2015.
He was convicted of honest services fraud, extortion, and money laundering, netting an estimated $4 million, according to court documents.
The government alleged Silver used his official position to reward those who sent potential clients to law firms who in turn would pay Silver referral fees.
Silver’s new trial in the U.S. District Court for the Southern District of New York is set for April 16, 2018, but is tentative based on the Supreme Court’s response to the petition, Judge Valerie E. Caproni said in a court document Aug. 15.
The Justice Department and Silver’s attorneys Steven Molo and Joel Cohen did not respond to Bloomberg Law requests for comment
The case is Silver v. United States, U.S., No. 17-562, response due 12/13/17 .
To contact the reporter on this story: Madison Alder in Washington at email@example.com
To contact the editor responsible for this story: C. Reilly Larson at firstname.lastname@example.org
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)