JAMES L. WHITE, 49, a Seattle, Washington, attorney, pleaded guilty
today in U.S. District Court in Seattle to a felony information charging
him with Money Laundering, in violation of federal law. In a related
case, A. MARK VANDERVEEN, 45, a Seattle, Washington, attorney, pleaded
guilty to a felony information charging him Failing to File a Currency
Transaction Report as Required by Federal Law. Sentencing in both matters
is set for December 2, 2005.
Court papers indicate that during 2005, JAMES L. WHITE, a practicing
attorney, was visited in his law office by a client who delivered to
WHITE approximately $100,000 cash in a backpack, which WHITE knew constituted
proceeds from the distribution of drugs. The currency was packaged in
bundles held together by rubber bands. The money was provided to WHITE
to be used in connection with the representation of the client. Rather
than deposit the money in a bank account which would have triggered
a federal currency reporting requirement by the bank for cash transactions
in excess of $10,000.00, and in order to avoid that requirement, and
to further conceal and disguise the nature and source of the funds,
WHITE took the money to his home where he kept it hidden. In addition,
and for similar reasons, WHITE failed to document in any way his receipt
of the cash from the client. No law office records were created to document
the receipt of cash, and no receipt was provided to the client. Thereafter,
WHITE expended the money in a variety of ways intended to further conceal
the nature and source of the funds.
In particular, during March 2005, WHITE met with A. MARK VANDERVEEN
on two occasions, in the Western District of Washington, and delivered
to VANDERVEEN stacks of cash removed from the backpack totaling approximately
$20,000 U.S. currency. On one occasion, WHITE met with VANDERVEEN in
a parking lot to deliver the cash. On the second occasion, the cash
was left in a paper bag inside the Edmonds Courthouse for VANDERVEEN
to pick up. VANDERVEEN took possession of the cash on both occasions.
It was part of WHITE's intent in providing the cash to VANDERVEEN in
this manner, to conceal and disguise his possession of such criminally
derived funds and the nature and source of those funds. The cash was
provided to VANDERVEEN as a retainer for VANDERVEEN to represent another
individual then being investigated by federal authorities for participation
in drug trafficking.
Following his receipt of this money, VANDERVEEN willfully failed to
file a "Report of Cash Payments Over $10,000 Received in a Trade
of Business" (IRS Form 8300) with the Internal Revenue Service,
which VANDERVEEN was lawfully obligated to file as a result of his receipt
of $20,000 for representation of a client. This 8300 form requires the
filer to provide the identity of the individual from whom the cash was
received, the identity of the person on whose behalf such transaction
was conducted, and a description of the transaction and the method of
payment. This form is required in order to assist the United States
in tracking criminal payments.
By engaging in a financial transaction using drug proceeds, with the
purpose and intention of concealing the nature and source of the funds,
WHITE committed money laundering in violation of federal law.
By failing to file a currency transaction report (CTR) for cash transactions
involving in excess of $10,000, VANDERVEEN also violated federal law.
The felony offense of Money Laundering is punishable by imprisonment
for up to 20 years, a fine of up to $250,000.00, and a period of supervised
release to follow imprisonment of 2 to 3 years.
The felony offense of Failing to File a Currency Transaction Report
is punishable by imprisonment for up to 5 years, a $250,000.00 fine,
and a period of supervised release to follow imprisonment of 2 to 3
years.
This case was investigated by the Bureau of Immigration and Customs
Enforcement, the Drug Enforcement Administration, and the Internal Revenue
Service Criminal Investigation Division (IRS-CID). For additional information
please contact Emily Langlie, Public Affairs Officer for the United
States Attorney's Office, Western District of Washington, at (206) 553-4110.
