U.S. v. Virgen-Moreno

• Decision Date: 05 September 2001
• Docket Number: MADRIGAL-TRUJILLO,ANGUIANO-LLERENAS,VIRGEN-MORENO,No. 98-11196,98-11196
• Citation: 265 F.3d 276
• Parties: (5th Cir. 2001) UNITED STATES OF AMERICA, Plaintiff-Appellee, v. BLAS, also known as Quintana; ARNULFO; DAVID; MARCO ANTONIO, also known as Paco, Defendants-Appellants
• Court: U.S. Court of Appeals — Fifth Circuit

Page 276

265 F.3d 276 (5th Cir. 2001)

UNITED STATES OF AMERICA, Plaintiff-Appellee, v. BLAS VIRGEN-MORENO, also known as Quintana; ARNULFO ANGUIANO-LLERENAS; DAVID MADRIGAL-TRUJILLO; MARCO ANTONIO VIRGEN-MORENO, also known as Paco, Defendants-Appellants.

No. 98-11196

IN THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT

September 5, 2001

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Appeal from the United States District Court for the Northern District of Texas, Dallas

Before DAVIS, WIENER, and STEWART, Circuit Judges.

CARL E. STEWART, Circuit Judge:

Blas Virgen-Moreno ("Blas"), Arnulfo Anguiano-Llerenas ("Anguiano"), David Madrigal-Trujillo ("Madrigal"), and Marco Antonio Virgen-Moreno ("Marco") (collectively, "the defendants" or "the appellants") each appeals his conviction and sentence for conspiracy to distribute methamphetamine. Blas also appeals his conviction and sentence for money laundering. For the following reason, we affirm.

FACTUAL AND PROCEDURAL BACKGROUND

The appellants were among twenty-eight persons indicted on drug-related charges as a result of an eight-month investigation by the Drug Enforcement Agency ("DEA") in Dallas, Texas, and in Los Angeles, California. On December 2, 1997, Blas, Anguiano, Madrigal, Marco, and others were charged with conspiracy to distribute methamphetamine. Marco and others were charged with conspiracy to distribute cocaine. On April 8, 1998, a superseding indictment was returned again charging Blas, Anguiano, Madrigal, Marco, and others with conspiracy to distribute methamphetamine. Marco and others were again charged with conspiracy to distribute cocaine.¹ Blas and others were charged with conspiracy to launder money.

The facts giving rise to the defendants' indictments and convictions are as follows. Daniel Virgen ("Daniel"), who is not a defendant in this case, was a Dallas drug wholesaler who trafficked primarily in pound quantities of methamphetamine. He had various suppliers in Mexico and California, including his Los Angeles-based cousin, Anguiano.

The DEA first became aware of Daniel when his name was referenced by suspects in another narcotics case prompting the DEA to initiate investigation focusing on the Virgen family. Telephone numbers subscribed to by Daniel and Blas came under scrutiny. DEA agents initially obtained a Dallas court order to monitor Daniel's cell phone. The agents immediately began intercepting drug-related conversations between Daniel in Dallas and his suppliers in Los Angeles. They contacted Los Angeles agents and asked them to join the investigation.

Next, DEA agents monitored Blas's telephone, which was primarily used by his brother, Humberto Virgen ("Humberto"), Daniel's cousin. Eventually, the agents targeted and monitored other telephones. Ultimately, they monitored seven telephones and intercepted 15,000 calls, approximately 3,800 of which were drug-related. The participants in the intercepted telephone conversations, who included drug sellers and buyers, used code words when they discussed drug deals or other illicit activity. The government introduced the transcripts of many of these coded conversations at trial.

Through the intercepted telephone conversations and surveillance, DEA agents determined that Daniel headed the Virgen organization, which was highly structured. Daniel was assisted by Humberto, Marco, and Blas, all of whom are brothers. Humberto was second in command, behind Daniel. Marco and Blas took orders from Daniel and Humberto, and they delivered drugs and drug money. The Virgen organization had numerous customers who in turn had their own customers. Thus, according to the government, the organization was elaborate and extremely profitable.

Also through the intercepted telephone calls and surveillance, DEA agents discovered that Madrigal, like Daniel, was a drug wholesaler. He received his drug supply from Anguiano. Daniel learned of Madrigal's operations when Anguiano suggested that Daniel use Madrigal as an alternate source when drug supplies became scarce. Daniel purchased methamphetamine directly from Madrigal. Daniel and Madrigal transported drugs and money between California and Texas, sometimes sharing the same transporters. The drugs and money were typically transported in vehicles which had hidden compartments. Conspiracy-connected transporters possessing drugs and money were apprehended by the authorities on June 19, 1997, and again on August 1, 1997.

The eight-month investigation by the DEA culminated with the searches of twenty locations. These searches resulted in the seizure of methamphetamine and other drugs at several of the locations. The investigation produced indictments against twenty-eight individuals, including these defendants. The government presented a substantial amount of evidence in this case, including numerous wiretap tapes and the corresponding transcripts, various seized items, and testimony from DEA agents and local police officers involved in the investigation and arrests of the defendants. The jury convicted the defendants, and the district court sentenced them as follows: Blas, 260 months of imprisonment for count 1, the drug conspiracy charge, and 240 months of imprisonment for count 3, the money laundering conspiracy charge, to run concurrently; Anguiano, 420 months of imprisonment; Madrigal, 420 months of imprisonment; and Marco, 240 months of imprisonment. Each of the defendants now appeals his conviction and sentence.

DISCUSSION

I. Sufficiency of the Evidence

Blas, Marco, and Madrigal argue that the evidence was insufficient to support their convictions. As they each moved for judgment of acquittal at the close of the government's case, the standard of review in assessing their challenge to the sufficiency of the evidence is "whether, considering all the evidence in the light most favorable to the verdict, a reasonable trier of fact could have found that the evidence established guilt beyond a reasonable doubt." United States v. Mendoza, 226 F.3d 340, 343 (5th Cir. 2000).

In a prosecution for drug conspiracy under 21 U.S.C. § 841,² the government must prove beyond a reasonable doubt: "(1) the existence of an agreement between two or more persons to violate narcotics law; (2) the defendant's knowledge of the agreement; and (3) the defendant's voluntary participation in the agreement." United States v. Gonzalez, 76 F.3d 1339, 1346 (5th Cir. 1996). To prove conspiracy to launder money under 18 U.S.C. § 1956(h), the government must establish "(1) that there was an agreement between two or more persons to commit money laundering, and (2) that the defendant joined the agreement knowing its purpose and with the intent to further the illegal purpose." United States v. Meshack, 225 F.3d 556, 573-74 (5th Cir. 2000); see also United States v. Threadgill, 172 F.3d 357, 366 (5th Cir. 1999).

"Direct evidence of a conspiracy is unnecessary; each element may be inferred from circumstantial evidence . . . . An agreement may be inferred from a 'concert of action.'" United States v. Casilla, 20 F.3d 600, 603 (5th Cir. 1994) (quoting United States v. Cardenas, 9 F.3d 1139, 1157 (5th Cir. 1993)). Once the government presents evidence of a conspiracy, it only needs to produce slight evidence to connect an individual to the conspiracy. Id. Additionally, "[p]resence and association with other members of a conspiracy, along with other evidence, may be relied upon to find a conspiracy." Id.

After carefully reviewing the record in this case, we find that there was more than sufficient evidence on which to convict each of the defendants of his respective charge or charges. As stated above, the government's evidence included tapes of numerous wiretaps and the corresponding transcripts,³ various seized items, and testimony from DEA agents and local police officers involved in the investigation and arrests of the defendants. The following is a summary of the evidence that the government presented as to Blas, Marco, and Madrigal.

A. Evidence as to Blas

1. Conspiracy to Distribute Methamphetamine

While intercepting conversations in another case, DEA agents discovered that telephone numbers subscribed to by Blas and Daniel were being used to facilitate drug trafficking. The DEA then initiated their investigation into the Virgen drug operation. It discovered that Blas took orders from Daniel, the organization's leader. Some of Blas's duties included making wire transfers, cash deposits, and drug deliveries to customers.

The government's evidence as to Blas included specific incidents in which Blas actively participated in the drug operation. On one occasion, after a customer had been arrested subsequent to receiving drugs from Daniel and Marco, Blas and Daniel discussed the arrest. On another occasion, Blas picked up money and delivered methamphetamine to a customer. Humberto and the customer discussed the delivery in a telephone call. Also, once when Daniel and Humberto went out of town, they left Blas and Marco to take care of customers, handle money, "pay bills" and ensure that drug proceeds were wired.

Furthermore, agents searched Blas's house and found several incriminating items. They seized a triple beam weight scale, "baggies," money orders, and Western Union Money Grams. Blas's wallet, which agents seized, contained telephone numbers of drug customers, drug suppliers, Madrigal's pager and telephone numbers, and numbers associated with Daniel. Also, though during his post-arrest interview Blas denied transporting drugs for Daniel, he admitted that he had transported and picked up money for Daniel several times.

2. Money Laundering

The government presented evidence regarding the money laundering charges through Agent Paul Shanks ("Agent Shanks") from the Internal Revenue Service ("IRS"). Agent Shanks established, through summary charts, that the Virgen...