Barnes & Thornburg LLP Attorney Lands U.S. Supreme Court Victory Arguing Pro Bono Case
INDIANAPOLIS – In an interesting turn of events, a pro bono case ends in victory before the Supreme Court of the United States. Indianapolis attorney Todd Vare, a partner at Barnes & Thornburg LLP, began representing Efrain Santos in 2005 on a pro bono basis relating to Santos’ convictions for illegal gambling and money laundering. Today, in a split decision in U.S. v. Santos, the Supreme Court, in an opinion authored by Justice Scalia, held that money laundering requires proof of the use of “profits,” not merely “gross receipts.”
This case involved the federal prosecution of an illegal lottery business operated by Santos in northwest Indiana from the 1970s to 1994. After being convicted for illegal gambling and money laundering, Santos was sentenced to 17 ½ years in prison. He was later released after his money laundering conviction was overturned by the Seventh Circuit Court of Appeals in Chicago based on interpreting the term “proceeds” as “profits.” Because the Seventh Circuit’s interpretation conflicted with that of several other federal appellate courts, the government sought review by the Supreme Court, and an oral argument was held on Oct. 3, 2007.
In his opinion, Justice Scalia wrote that the term “proceeds” is ambiguous and, therefore, the more narrow meaning as “profits” must be adopted. Because the money laundering conviction of Santos was based on merely paying gambling winners and “collectors” who collected bets—transactions paid out of gross receipts, not profits—Santos and his co-defendant (Diaz, a collector) did not engage in transactions involving profits.
“We are very pleased with the result in this case. The Court acknowledged the fundamental problems with the money laundering statute—especially as applied to our case—and the opinion of Justice Scalia, and even the dissenting opinions of Justices Breyer and Alito, reflect various ways to try to alleviate those problems,” Vare said. “Fortunately, the majority’s way of resolving the problem was in our favor.”
Vare, an intellectual property attorney who normally litigates patent infringement and technology cases, represented Santos pro bono through the Seventh Circuit Court of Appeals Criminal Justice Act, a program through which willing attorneys are assigned to represent parties in need of legal representation in federal disputes. Paul Jefferson, an associate with the firm, also assisted Vare with the case.
“It was incredible to play a part in helping Mr. Santos reclaim his life and avoid additional jail time,” Vare said. “This case enabled me to help someone in need but also broadened my legal experience by allowing me to argue before the nation’s highest court. I consider this ruling a win for my colleagues at Barnes & Thornburg, too, several of whom provided invaluable assistance and guidance throughout the life of this case,” Vare added.
It is a rare opportunity to argue before the U.S. Supreme Court. Of the 7,000 or so certiorari (cert) petitions filed each year, the Supreme Court agrees to hear about 100 cases.