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High Court Sets New Standard

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The Associated Press

Published: June 3, 2008

WASHINGTON - The Supreme Court ruled Monday that federal prosecutors have gone too far in their use of money laundering charges to combat drug traffickers and organized crime.

In two decisions - one a 5-4 split, the other unanimous - the justices found that money laundering charges apply only to profits of an illegal gambling ring and cannot be used when the only evidence of a possible crime is when someone hides large amounts of cash in his car when heading for the border.

The government brings money laundering cases against more than 1,300 people annually and the justices appeared to agree with defense lawyers who said government prosecutors have been stretching the bounds of the law. The Justice Department drew little sympathy from Justice Antonin Scalia.

"The government exaggerates the difficulties" of enforcing a narrowed interpretation of money laundering, Scalia wrote of a gambling case involving an illegal lottery. Four justices joined Scalia, including John Paul Stevens from the court's liberal wing.

Justices took pains to say that they were engaging in carefully calibrated adjustments, not radical change.

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