United States v. McLamb

Harry Godwin paid almost $14,000 in cash to salesman M. L. Stallings to buy a vehicle for Margie Jenkins from a dealership owned by Phillip McLamb (defendant). At McLamb’s instruction, Stallings created a receipt indicating that Godwin had paid $9,000 in cash, and Stallings wrote a check to the dealership for the remainder. McLamb then reimbursed Stallings in cash. No Form 8300 return pursuant to 26 U.S.C. § 6050I(a) reporting a cash transaction in excess of $10,000 was filed with the Internal Revenue Service (IRS). The IRS subsequently sent an undercover agent to the dealership. The agent told McLamb that his brother-in-law wanted to buy a car with cash but wished to avoid reporting the transaction to the government. McLamb responded that the buyer should pay approximately $9,000 in cash and the remaining approximately $21,000 with separate cashier’s checks in amounts less than $10,000. The United States charged McLamb with violating 26 U.S.C. § 6050I(f)(1) for (1) evading IRS reporting requirements via structuring and (2) causing a business not to file a § 6050I(a) return. The district court instructed the jury that it had to find that McLamb engaged in both structuring and causing a return not to be filed. The district court did not instruct the jury regarding whether McLamb or the dealership was obliged to file the return. The jury convicted McLamb. McLamb appealed, arguing that the evidence was insufficient to convict him of violating § 6050I(f)(1) regarding the Jenkins transaction because the reporting obligation arose when Stallings received the cash and McLamb acted afterwards. McLamb further argued that the district court erred in not instructing the jury regarding who was required to file a return. Finally, McLamb argued that the district court should not have admitted evidence regarding three other dealership sales that involved cash payments of approximately $9,000 and cashier’s checks under $10,000 because the United States failed sufficiently to connect McLamb to those transactions.