Federal Prosecutors Test the Extent of Supreme Court Ruling in Virginia Laundering Case

By Matt Squire

Federal prosecutors are appealing the dismissal of a conviction based on a recent Supreme Court ruling that narrowed the definition of money laundering. On July 1, Judge James Jones of the U.S. Court of Appeals for the Fourth Circuit overturned the March conviction of Pennington Gap, Virginia dentist Roy Shelburne on money laundering as part of a Medicaid fraud. Prosecutors failed to show that Shelburne laundered profits from the fraud by paying for building costs and dental supplies, Jones said. In the decision, Jones cited a June 2 Supreme Court ruling that said the profits from, but not operational expenses...