Drug Tunnel—Landowner Enters Plea

A Washington State woman entered a guilty plea last week in which she admitted to illegally structuring a financial transaction in violation of 31 U.S.C. § 5324(a)(3) and (d).^[1] The money was allegedly used to make the down payment on a house that served as the terminus for one end of a drug tunnel between the United States and Canada.^[2] As we have discussed previously, the U.S. legislature is contemplating strengthening border security laws in the future to include criminal penalties for owning the land connected to a drug tunnel.^[3]

The 360‑foot U.S.‑Canada tunnel was discovered last year.^[4] In July 2006, three Canadians were sentenced to nine years in prison each for conspiring to smuggle marijuana through the tunnel, the first ever found on the U-S-Canada border.^[5]

In her plea agreement, Kurum Patel admitted to making 12 separate cash deposits to the Farmers and Merchants Bank in Spokane, Washington during 2003.^[6] Each transaction involved less than $10,000, thus avoiding reporting requirements by the bank.^[7] Illegal structuring of financial transaction is a violation of 31 U.S.C. § 5324(a)(3) and (d) and is punishable by up to five years in prison, or fine of up to $250,000, or both.

Ms. Patel is a Canadian citizen and legal resident of the United States.^[8] She has not been and, pursuant to her plea agreement, will not be charged with any other crimes in connection with ongoing investigation into the alleged drug tunnel.^[9] After surrendering her Canadian passport last week, Ms. Patel remains free pending sentencing.^[10] The sentencing hearing is scheduled for February 9, 2006.^[11]

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[1] Woman Sentenced for Buying House in Border Drug-Tunnel Scheme, Associated Press, Oct. 13, 2006 [hereinafter AP].
[2] Id.
[3] Senator Feinstein Unveils Tough New Legislation Criminalizing the Construction or Financing of Border Tunnels, U.S. Senator Dianne Feinstein Press Release, Feb. 21, 2006.
[4] Woman Involved in Border Drug Tunnel Pleads Guilty, TCV News, Oct. 18, 2006.
[5] Id.
[6] U.S. v. Patel, 2:06-cr-00332-JCC, Plea Agreement, Docket Entry No. 7, (W.D. WA, Oct. 13, 2006) [hereinafter Plea Agreement].
[7] Id. at para. 9.
[8] AP supra note 1.
[9] Plea Agreement supra note 6 at para. 10.
[10] U.S. v. Patel, Docket Entries No. 9 and 10, (W.D. WA, Oct. 13, 2006).
[11] U.S. v. Patel, Docket Entry No. 5, (W.D. WA, Oct. 13, 2006).