US v. Knowles

Rule of Law:

The distribution of the proceeds of a conspiracy, such as paying a co-conspirator for their role, is an act in furtherance of the conspiracy's central objectives and occurs during its pendency. Such acts are not considered mere concealment that takes place after the conspiracy has terminated.

Facts:

• Beginning in the mid-1970s, a large criminal organization, led by the Rodriguez brothers and others, imported and distributed vast quantities of marijuana, cocaine, and hash oil into the United States.
• In early 1987, law enforcement seized several of the organization's vessels, including the 'Suntimes' on February 3, 1987, and arrested its crew, which included Daniel Hamm.
• Michael Knowles, a lawyer, was contacted to represent Hamm after his arrest.
• Hamm informed Knowles about his role in the drug smuggling business and that he was owed $150,000 by a senior member of the organization, Terry Fitzwater, for completing the final smuggling voyage.
• Fitzwater delivered $185,000 in cash to Knowles—$150,000 for Hamm and $35,000 for Knowles's fee.
• After the charges against Hamm were dismissed, Knowles gave Hamm an initial small payment and instructed him to 'lay low' and leave town.
• Knowles subsequently delivered approximately $100,000 of the owed money to Hamm in various installments, including a $50,000 cash payment in Las Vegas and several wire transfers sent to third parties on Hamm's behalf.
• Knowles also met with high-ranking members of the conspiracy to apprise them of Hamm's status and unavailability as a potential witness.

Procedural Posture:

• A federal grand jury in the Northern District of Florida returned a superseding indictment charging Michael Knowles, James Squires, and Daniel Wright with conspiracy to import and distribute controlled substances.
• Knowles was additionally charged with obstruction of justice and being an accessory after the fact.
• The three defendants were tried jointly before a jury in the U.S. District Court for the Northern District of Florida.
• The jury found all three defendants guilty of the conspiracy charges but acquitted Knowles of the substantive obstruction and accessory charges.
• The district court entered judgments of conviction and sentenced the defendants.
• Defendants Knowles, Squires, and Wright (the appellants) appealed their convictions and sentences to the U.S. Court of Appeals for the Eleventh Circuit.