United States v. Caro
| Decision Date | 10 January 2012 |
| Docket Number | D. C. Docket No. 08-20044-CR-JAL,No. 09-13407,09-13407 |
| Parties | UNITED STATES OF AMERICA, Plaintiff-Appellee, v. JUAN RENE CARO, MAYTEMAR CORPORATION, d.b.a. La Bamba Check Cashing, Defendants-Appellants. |
| Court | U.S. Court of Appeals — Eleventh Circuit |
[DO NOT PUBLISH]
Appeals from the United States District Court
for the Southern District of FloridaBefore BARKETT and HULL, Circuit Judges, and SCHLESINGER,* District Judge.
I. INTRODUCTION
During the building boom in South Florida in the early 2000s, many within the construction industry played fast and loose with federal and state regulations to maximize profits and minimize taxes. These companies were able to find willing partners in this pursuit, and Juan Rene Caro ("Caro") was accused of being one of these partners. Caro's scheme allegedly involved using fictitious or "shell" construction corporations to avoid taxes and insurance costs.
Normally, employers withhold from employees' paychecks monies paid into the federal treasury; social security and payroll taxes. These legitimate construction companies, however, were trying to avoid these "obstacles," so that they could employ illegal aliens. One cannot simply write a payroll check to an illegal alien, as such employment is illegal. In addition, these illegal aliens could not open legitimate bank accounts where they could either deposit or cash paychecks.
If the alleged scheme worked properly, all of these "obstacles" would be overcome. A legitimate construction company would be approached by Caro or anassociate and offered an alternative to paying the taxes and insurance costs associated with employees. Rather than pay employees by check, the legitimate construction company would write a check to a shell corporation making it appear that the shell company was a subcontractor and the employer of the legitimate construction company's employees.
The shell corporation would allegedly cash that check at Caro's check cashing store, or another check cashing store. A percentage of the face value of the check was "charged" as a fee, with the remaining cash returned to the shell corporation. The shell corporation, in turn, provided the cash to the legitimate construction company. The cash, in its final voyage of the journey, was payed to employees, including illegal aliens.
In addition to evading payroll taxes, the scheme allegedly allowed the legitimate corporation to avoid the expense of workers' compensation insurance. This was accomplished when the shell company fraudulently procured workers compensation insurance and permitted the legitimate company's employees to work under that insurance certificate.
The shell companies, on the other hand, were then left holding the bag. They were responsible for the payroll taxes and insurance premiums but never paid them. Instead, when all the unpaid taxes and premiums drew scrutiny, usually within a year or eighteen months, the shell company simply dissolved leaving thesedebts unpaid. Another shell company would quickly be incorporated and the cycle would begin anew.
The flaw in Caro's scheme was underestimating the Internal Revenue Service ("IRS"). Financial institutions are required to complete and file with the IRS a currency transaction report ("CTR") for currency transactions involving more than $10,000. Caro allegedly made material misrepresentations in the CTRs for the transactions with these shell companies, which eventfully led to him being investigated by the IRS and being charged in this case.
II. CHARGES
A thirty-three count Superceding Indictment was returned by a federal grand jury based upon this alleged scheme.
Count One charged a conspiracy between Caro, Alfredo Filomeno Gonzalez, Jose Jorge Chaoui, Oscar Alberto Valle, Meylin Maria Morales, as well as Maytemar Corporation, d/b/a La Bamba Check Cashing ("La Bamba"), and others; in violation of 18 U.S.C. § 371. It was alleged that the conspiracy existed to willfully violate currency transaction reporting requirements; in violation of 31 U.S.C. §§ 5313(a); 5324(a)(2), (d)(2). The purpose of the conspiracy allegedly was to unlawfully enrich the co-conspirators by earning substantial commissions, or "fees," by cashing checks for these shell corporations.
In furtherance of the conspiracy, co-conspirators filed CTRs for transactions with the shell companies that contained materially false statements and omissions of material facts.
It was alleged from August 2005 until January 2008, that the co-conspirators used various shell corporations and allowed customers to write checks payable to those shell companies. The advantage of this was to make it appear that the shell company was an actual subcontractor, engaged in construction work, for the legitimate company. These checks were cashed for a "fee," at La Bamba, or an associated check cashing store, despite not being payable to the person conducting the transaction.
Thereafter, Caro and other co-conspirators allegedly caused La Bamba to file CTRs falsely stating that the parties involved in the check cashing transaction were the shell companies and their nominee owners. This misrepresented the true source of the money and the true identities of the individuals conducting the transaction. From August 2005 until January 2008, the co-conspirators filed false CTRs that reflected transactions totaling more that $132.7 million. In addition, Caro payed a portion of the "fee" from the transaction to the co-conspirator as payment for the use of the shell company.
The Superceding Indictment alleged twenty-one overt acts of the conspiracy. These overt acts listed activities such as: Caro meeting with Miguel Obispo, theowner of an associated check cashing store, and discussing cashing checks in exchange for cash at an agreed fee; filing false CTRs for transactions involving Fast Construction, Group, Inc. ("Fast"), Spirit Construction Group Corporation ("Spirit"), SB Construction Group Corporation ("SB"), and PAW Construction ("PAW"); co-conspirator Chaoui's accepting checks on July 23, 2007, from Obispo payable to the shell companies; and Caro giving Obispo a business card from DJ Construction Group, Inc. ("DJ") for the purpose of Obispo contacting Valle and becoming a part of this conspiracy.
Counts Two through Seventeen charged Caro, Gonzalez, Chaoui, Valle, Morales, and La Bamba with causing and attempting to cause a domestic financial institution to file CTRs that contained materially false statements and omissions of material facts; in violation of 31 U.S.C. §§ 5313(a); 5324(a)(2), (d)(2); and 18 U.S.C. § 2. Count Two alleged that Caro and Chaoui, on April 6, 2007, accepted checks payable to Spirit totaling $79,965, and caused and attempted to cause the filing of a false CTR from that transaction stating that Marvin Marroquin had cashed the check.1
Count Six alleged that Caro and Chaoui accepted checks payable to Spirit,on May 18, 2007, in the amount of $233,836, and caused and attempted to cause a false CTR from that transaction to be filed stating that Marvin Marroquin had cashed the check.2 Count Eight alleged that on July 12, 2007, Caro accepted checks payable to PAW in the amount of $60,120, and caused and attempted to cause a false CTR to be filed from that transaction stating that Carlos Martinez cashed the check.3 Count Nine alleged that on July 31, 2007, Caro accepted checks payable to PAW in the amount of $46,050, and caused and attempted to cause a false CTR to be filed from that transaction stating that Carlos Martinez cashed the check. Count Ten alleged that on August 15, 2006, Caro and Gonzalez accepted checks payable to PAW in the amount of $56,233, and caused and attempted to cause a false CTR to be filed from that transaction stating that Carlos Martinez cashed the check. Count Eleven alleged that on August 16, 2007, Caro and Gonzales accepted checks payable to PAW in the amount of $44,325, and caused and attempted to cause a false CTR to be filed from that transaction stating that Carlos Martinez cashed the check. Count Twelve alleged that on August 22, 2007, Caro and Gonzales accepted checks payable to PAW in the amount of $56,042, and caused and attempted to cause a false CTR to be filed from that transaction stating that Carlos Martinez cashed the check. Count Thirteen alleged that onAugust 23, 2007, Caro and Gonzales accepted checks payable to PAW in the amount of $41,208, and caused and attempted to cause a false CTR to be filed from that transaction stating that Carlos Martinez cashed the check. Count Fourteen alleged that on September 5, 2007, Caro and Gonzales accepted checks payable to PAW in the amount of $107,812, and caused and attempted to cause a false CTR to be filed from that transaction stating that Carlos Martinez cashed the check.4 Count Fifteen alleged that on September 5, 2007, Caro, Valle, and Morales accepted and cashed checks payable to DJ in the amount of $100,288, and caused and attempted to cause the filing of a false CTR that stated that G.V. had cashed the check. Count Sixteen alleged that on September 26, 2007, Caro, Gonzalez, Valle, and Morales accepted and cashed checks payable to DJ in the amount of $72,447, and caused and attempted to cause the filing of a false CTR that stated that G.V. had cashed the check. Count Seventeen alleged that on September 26, 2007, Caro and Gonzales accepted checks payable to PAW in the amount of $55,015, and filed a false CTR from that transaction stating that Carlos Martinez cashed the check.
Counts Eighteen through Thirty-Three charged La Bamba with filing false CTRs; in violation of 31 U.S.C. §§ 5313(a); 5322(b); and 18 U.S.C. § 2. Thesecounts involve the same transactions alleged in Counts Two through Seventeen, in which Caro was a Defendant but not La Bamba.
III. PROCEEDINGS
Caro, Gonzalez, Chaoui, and La Bamba were jointly tried during a lengthy jury...
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