UNITED STATES of America, Plaintiff-Appellee, v. Kevin Lee NELSON, Defendant-Appellant

Kevin Lee Nelson appeals his conviction for attempting and conspiring to structure a money laundering transaction. Undercover government agents posing as drug dealers came to the car dealership where Nelson worked, proposing to buy a car with cash. Nelson suggested ways to structure the cash purchase of a car to avoid the dealership’s requirement under federal law to report cash transactions over $10,000. We reverse Nelson’s attempt conviction, but affirm his conviction for conspiracy.

FACTS

In 1992, the Internal Revenue Service (“IRS”) learned that two Montana drug dealers had used cash proceeds from drug transactions to purchase cars from Prestige Toyota (“Prestige”), a car dealership in Billings. The IRS also had information that the sales had been structured to avoid the IRS requirement that a retail business file a reporting form whenever it receives more than $10,000 in cash, and that Prestige salesperson William Rahlf was involved in one of the sales.

The IRS began an undercover investigation. IRS Special Agent Pam White and Raymond Malley, an agent of the Montana Criminal Investigation Bureau, set up an appointment with Rahlf and arrived at Prestige on May 29, 1992.…