Is Phil Mickelson in serious legal trouble if today's report is true?

[Linden_Arden]

As I am not a lawyer I am more than curious for several reasons.

According to the report, Mickelson transferred the money to 56-year-old Greg Silveira of La Quinta, Calif., who has pleaded guilty to three federal counts of money laundering as part of a plea deal. Silveira pled guilty to laundering $2.75 million that he says belonged to Mickelson, according to the report.

The plea deal centers around three wire transfers from March 2010 to February 2013 connected to Silveira. In 2010, Silveira first accepted a $2.75 million wire transfer into a Wells Fargo Bank account from a “gambling client,” identified in the report as Mickelson. That money was then transferred in two installments – first $2.475 million, then $275,000 – into another of Silveira’s bank accounts. Finally, Silveira transferred $2.475 million into another account he controlled with JP Morgan Chase Bank. Those transfers constitute money laundering.

Report: Mickelson tied to money laundering, gambling case

Thanks

[Mr.Nylock]

If all such vague allegations with such poorly defined descriptions of wrongdoing had any real basis, there would hardly be a celebrity alive who was not in serious legal trouble.

[astro]

It sounds like Mickelson is making big sports bets with his own cash with a bookie. Maybe illegal but usually not got to jail illegal. If the bookie is somehow also mixed up in washing dirty money that’s not Mickelson’s issue.

If Mickelson is having the bookie wash undeclared winnings for him then that’s another story, but Mickelson makes tens of millions a year why would he risk jail and ruin to process a few million of undeclared cash. It’s petty cash to him at his level.

[TallTrees]

The question is well phrased. If the allegations are true, I’d say he most certainly is in serious trouble. Especially with his cohort having made a plea bargain, which might include agreeing to testify against others involved.

[Saint_Cad]

I would say that if Phil did not declare his gambling winnings on his taxes that yes he is going to jail on tax evasion.

[Tom_Tildrum]

Deadspin says Phil is not a target of the investigation. They’re not interested in the gambling because they go after the organization, not the bettor, and he’s not on the hook for money laundering because all he did was supply the funds; he didn’t move them around.

[denquixote]

What about the procedures that have been recently in the news regarding forfeiture of assets where the legal procedure is actually brought against the money itself? They may not be able to prove any illegality on Phil’s part but they may be able to show the money was part of illegal transactions.

Oh wait that is just for poor people without high powered attorneys. Never mind.

[astorian]

I don’t think Phil is in trouble with the law (obviously I could be wrong). But for consorting with seedy characters who are heavily involved in gambling and tied closely to the Mob, Phil could DEFINITELY be suspended from the PGA for a long time. Perhaps permanently.

If I were Phil, I’d be more worried about getting booted out of golf than about going to prison.

[Boyo_Jim]

@Tom_Tildrum

Deadspin says Phil is not a target of the investigation. They’re not interested in the gambling because they go after the organization, not the bettor, and he’s not on the hook for money laundering because all he did was supply the funds; he didn’t move them around.

Just because he wasn’t the “target” of the investigation doesn’t mean he’s not in deep shit. Let’s say the cops were targeting a fence for buying and selling stolen goods. They’re absolutely also gonna go after the theives who bring in swag while the cops are watching the fence.

So mabe Phil just stumbled into an investigation of somebody else. If he uses the illegal services provided by the target and the cops document it, he’s gonna face charges.

[Really_Not_All_That_Bright]

@astorian

I don’t think Phil is in trouble with the law (obviously I could be wrong). But for consorting with seedy characters who are heavily involved in gambling and tied closely to the Mob, Phil could DEFINITELY be suspended from the PGA for a long time. Perhaps permanently.

If I were Phil, I’d be more worried about getting booted out of golf than about going to prison.

I expect this is probably the worst sanction Phil will face. However, I don’t think the following is accurate:

…he’s not on the hook for money laundering because all he did was supply the funds; he didn’t move them around.

From my non-criminal-practitioner perspective it would appear that Phil’s conduct meets all the elements of laundering:

The actual source of the funds must be one of the specified forms of criminal activity identified by the statute, in 18 U.S.C. § 1956(c)(7), or those incorporated by reference from the RICO statute (18 U.S.C. § 1961(1)). Section 1956(c)(7)(B) includes in the list of specified unlawful activity certain offenses against a foreign nation. Thus, proceeds of certain crimes committed in another country may constitute proceeds of a specified unlawful activity for purposes of the money laundering statutes.

To prove a violation of § 1956(a)(1), the prosecutor must prove, either by direct or circumstantial evidence, that the defendant knew that the property involved was the proceeds of any felony under State, Federal or foreign law. The prosecutor need not show that the defendant knew the specific crime from which the proceeds were derived; the prosecutor must prove only that the defendant knew that the property was illegally derived in some way. See § 1956(c)(1).

The prosecutor must also prove that the defendant initiated or concluded, or participated in initiating or concluding, a financial transaction. A “transaction” is defined in § 1956(c)(3) as a purchase, sale, loan, pledge, gift, transfer, delivery, other disposition, and with respect to a financial institution, a deposit, withdrawal, transfer between accounts, loan, exchange of currency, extension of credit, purchase or sale safe-deposit box, or any other payment, transfer or delivery by, through or to a financial institution.

A “financial transaction” is defined in § 1956(c)(4) as a transaction which affects interstate or foreign commerce and: (1) involves the movement of funds by wire or by other means; (2) involves the use of a monetary instrument; or (3) involves the transfer of title to real property, a vehicle, a vessel or an aircraft; or (4) involves the use of a financial institution which is engaged in, or the activities of which affect, interstate or foreign commerce.

<snip>

In conducting the financial transaction, the defendant must have acted with one of the following four specific intents:

§ 1956(a)(1)(A)(i): intent to promote the carrying on of specified unlawful activity;

§ 1956(a)(1)(A)(ii): intent to engage in tax evasion or tax fraud;

§ 1956(a)(1)(B)(i): knowledge that the transaction was designed to conceal or disguise the nature, location, source, ownership or control of proceeds of the specified unlawful activity; or

§ 1956(a)(1)(B)(ii): knowledge that the transaction was designed to avoid a transaction reporting requirement under State or Federal law [e.g., in violation of 31 U.S.C. §§ 5313 (Currency Transaction Reports) or 5316 (Currency and Monetary Instruments Reports), or 26 U.S.C. § 6050I (Internal Revenue Service Form 8300)].

The RICO statute makes gambling proceeds one of the sources which falls under the laundering statute.

[md2000]

The actual source of the funds must be one of the specified forms of criminal activity identified by the statute, in 18 U.S.C. § 1956(c)(7), or those incorporated by reference …

If it’s his money, made from golfing and endorsing, it’s hardly “source of funds … criminal activity.” So he is not giving money from criminal proceeds.

As for his winnings, “knowledge that the transaction was designed to conceal or disguise the nature, location, source, ownership or control of proceeds of the specified unlawful activity” - he gets the money into his account so its hard to say he’s concealing ownership or control - source, maybe. Transactions outside of him getting the money - the prosecution would have to show he was involved in those.

[Boyo_Jim]

@md2000

If it’s his money, made from golfing and endorsing, it’s hardly “source of funds … criminal activity.” So he is not giving money from criminal proceeds.

As for his winnings, “knowledge that the transaction was designed to conceal or disguise the nature, location, source, ownership or control of proceeds of the specified unlawful activity” - he gets the money into his account so its hard to say he’s concealing ownership or control - source, maybe. Transactions outside of him getting the money - the prosecution would have to show he was involved in those.

That’s true, but they can do a lot to cost him millions and maybe wreck his career whether or not they get any convictions.

[Saint_Cad]

@astorian

I don’t think Phil is in trouble with the law (obviously I could be wrong). But for consorting with seedy characters who are heavily involved in gambling and tied closely to the Mob, Phil could DEFINITELY be suspended from the PGA for a long time. Perhaps permanently.

If I were Phil, I’d be more worried about getting booted out of golf than about going to prison.

Guarantied he won’t get into the Baseball HoF now.

[Really_Not_All_That_Bright]

@md2000

If it’s his money, made from golfing and endorsing, it’s hardly “source of funds … criminal activity.” So he is not giving money from criminal proceeds.

Perhaps I misunderstood the story but I was until the impression these were gambling winnings.

[puddleglum]

@Really_Not_All_That_Bright

Perhaps I misunderstood the story but I was until the impression these were gambling winnings.

My understanding is that they are gambling losses. If that is all they are then he could be prosecuted for gambling, which almost never happens.
If further evidence shows that he had gambling winnings that he either tried to conceal or did not pay taxes on, he could be in trouble then.

[Aji_de_Gallina]

We get one good leftie and they go after him.
Thanks, Obama

[astro]

@puddleglum

My understanding is that they are gambling losses. If that is all they are then he could be prosecuted for gambling, which almost never happens.
If further evidence shows that he had gambling winnings that he either tried to conceal or did not pay taxes on, he could be in trouble then.

This was my understanding as well re he was paying the bookie to bet or for a loss. The bookie was laundering this money for his own purposes. If Mickelson is actually stupid enough to be laundering a few million which is a rounding error relative to his overall wealth he deserves to lose everything.

[MacCat]

Poor Phil, he’s probably just gambling to make up for the income taxes he’s not happy about having to pay.