WASHINGTON - The Supreme Court agreed Monday to decide whether merely hiding money can constitute money laundering.
The case involves the conviction of a man arrested in Texas while traveling toward Mexico with a large sum of cash hidden in his car.
Humberto Fidel Regalado Cuellar was sentenced to 78 months in prison for international money laundering.
Federal law makes it a crime to engage in a financial transaction with proceeds from an unlawful activity in order to conceal the illicit source of the money.
A three-judge panel reversed Cuellar's conviction on a 2-1 vote, saying that prosecutors had to show that the defendant's activities were designed to create the appearance of legitimate wealth.
The full 5th U.S. Circuit Court of Appeals rejected that decision and affirmed the conviction, declaring that it makes no sense to say that Congress chose the word "conceal" to apply only in a certain way.
In asking the justices to take the case, Cuellar's lawyers said the appeals court decision incorrectly expands the scope of the money laundering law.
The case is Cuellar v. U.S., 06-1456.
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