Friday, August 3, 2012

Nevada U.S. District Court Convicts Fugitive on Money Laundering Charges


After two years on the lam, a leading member of the anti-government “Sovereign Movement” was convicted July 24 in federal court in connection with a $ 1.3 million money laundering scheme.

Nevada U.S. District Judge James Mahan found Shawn Rice, 49, of Seligman, Arizona, guilty on one count of conspiracy to commit money laundering, 13 counts of money laundering and four counts of failure to appear after a two-day trial. He could receive up to 20 years and a $250,000 fine on the conspiracy and money laundering counts, and 10 years for each count of failure to appear. Rice will be sentenced October 24.

Based on testimonies during the trial, Rice and co-defendant Samuel Davis, 57, of Council, Idaho, had laundered $1.3 million, believed to have come from theft and forgery of stolen official bank checks, from March 2008 to March 2009. The two accused laundered the money through a nominee trust account controlled by Davis and a religious organization controlled by Rice. Reportedly, Davis received $74,000 for the laundering while Rice got $22,000.

Rice had originally been charged in March 2009, but he failed to show up in court for the next two years until he was rearrested in December 2011. Davis until now is still a fugitive.

Rice,a self-proclaimed rabbi and lawyer, waived his right to a jury and represented himself during the 1½-day trial before Judge  Mahan. He contended that he was entrapped and that the federal court had no authority to take action against him.

The evidence presented during the trial showed that Rice had laundered more than $705,000 of $1.3 million for undercover FBI agents. Rice argued that he had no predisposition to get involved in the conspiracy and was the victim of "unscrupulous" federal agents.