Cleveland v. United States, 531 U.S. 12, 6 (2000)

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Cite as: 531 U. S. 12 (2000)

Opinion of the Court

Goodson had violated § 1341 by fraudulently concealing that they were the true owners of TSG in the initial license application and three renewal applications mailed to the State. They concealed their ownership interests, according to the Government, because they had tax and financial problems that could have undermined their suitability to receive a video poker license. See La. Rev. Stat. Ann. § 27:310(B)(1) (West Supp. 2000) (suitability requirements).

Before trial, Cleveland moved to dismiss the mail fraud counts on the ground that the alleged fraud did not deprive the State of "property" under § 1341. The District Court denied the motion, concluding that "licenses constitute property even before they are issued." 951 F. Supp. 1249, 1261 (ED La. 1997). A jury found Cleveland guilty on two counts of mail fraud (based on the 1994 and 1995 license renewals) and on money laundering, racketeering, and conspiracy counts predicated on the mail fraud. The District Court sentenced Cleveland to 121 months in prison.

On appeal, Cleveland again argued that Louisiana had no property interest in video poker licenses, relying on several Court of Appeals decisions holding that the government does not relinquish "property" for purposes of § 1341 when it issues a permit or license. See United States v. Shotts, 145 F. 3d 1289, 1296 (CA11 1998) (license to operate a bail bonds business); United States v. Schwartz, 924 F. 2d 410, 418 (CA2 1991) (arms export license); United States v. Granberry, 908 F. 2d 278, 280 (CA8 1990) (school bus operator's permit); Toulabi v. United States, 875 F. 2d 122, 125 (CA7 1989) (chauffeur's license); United States v. Dadanian, 856 F. 2d 1391, 1392 (CA9 1988) (gambling license); United States v.

1341," § 1961(1). The money laundering statute prohibits various activities designed to conceal or promote "specified unlawful activity," § 1956, and defines "specified unlawful activity" to include (with an exception not relevant here) "any act or activity constituting an offense listed in section 1961(1) of this title," § 1956(c)(7)(A).

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