D.D.C. Notes Split Re Definition of the Term "Proceeds"

Per U.S. v. Palfrey, --- F.Supp.2d ----, 2007 WL 2327078 (D.D.C . Aug 16, 2007) (NO. CRIM.07-46GK):

The Indictment in this case alleges facts that are more than sufficient to inform Defendant of the offense charged as required by Hamling. Specifically, the Indictment alleges that Defendant hired women to perform prostitution activities for customers of Pamela Martin and Associates; that Defendant directed those women to convert a portion of the funds from those activities into money orders and send them via the United States mail to Defendant in California; that Defendant maintained United States Post Office Box 1211 in Benicia, California 94510 for receipt of portions of the proceeds of said prostitution activities; and that Defendant would receive the money orders and deposit them into her own accounts in California and use them to support the enterprise. Indictment ¶¶ 10, 17-18. As Defendant concedes, the Indictment "contain[s] a modest description of the alleged organizational structure of Ms. Palfrey's business." Def.'s Mot. (Dkt. No. 65) at 6. Although modest, the Court finds that the description is constitutionally sufficient.

Defendant further argues that ambiguity of the term "proceeds," as evidenced by a circuit split on the precise definition of that term, deprives her of constitutionally required notice of the charge. Def.'s Mot (Dkt. No. 65) at 7-8; compare United States v. Santos, 461 F.3d 886 (7th Cir.2006), cert. granted, --- U.S. ----, 127 S.Ct. 2098, 167 L.Ed.2d 812 (2007) (defining "proceeds" as "gross income") and United States v. Iacoboni, 363 F.3d 1, 4 (1st Cir.2004) (same) with United States v. Scialabba, 282 F.3d 475 (7th Cir.2000) (defining "proceeds" as "net income"). Since "proceeds" is not further defined in the Indictment, she argues, it is unclear whether the Grand Jury considered her "net income" or her "gross income" to return the Indictment in this case. She contends that this ambiguity undercuts her ability to fight the charges against her.