UNITED STATES OF AMERICA,

Plaintiff,

v.

JOHN WAYS, JR.,

Defendant.

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEBRASKA

8:12CR391

FINAL INITIAL JURY INSTRUCTIONS

INSTRUCTION NO. 1

DUTY

It is your duty to decide from the evidence whether the defendant is guilty or not

guilty of the crimes charged. From the evidence, you will decide what the facts are.

You are entitled to consider the evidence in the light of your own observations and

experiences in life. You may use reason and common sense to draw deductions or

conclusions from facts established by the evidence. You will then apply those facts to

the law which I give you in these and other instructions. In that way, you will reach your

verdict. You are the sole judges of the facts, but you must follow the law stated in my

instructions whether you agree or disagree with the law stated in the instructions.

In deciding what the facts are, you may have to decide what testimony you

believe and what testimony you do not believe. You may believe all of a witness’s

testimony, or you may believe part of a witness’s testimony, or you may decide that you

do not believe any of a witness’s testimony.

In deciding what testimony to believe, you may consider a witness’s intelligence,

the witness’s opportunity to have seen or heard the things involved in the witness’s

testimony, a witness’s memory, the motive a witness has for testifying a certain way, a

witness’s manner while testifying, whether a witness has said something different at an

earlier time, the general reasonableness of a witness’s testimony and the extent to

which the witness’s testimony is consistent with other evidence that you believe.

Do not allow sympathy or prejudice to influence you. The law requires that your

verdict be just, that is, unaffected by anything except the evidence, your common

sense, and the law stated in my instructions.

Anything that I may say or do during the trial must not be taken by you as an

indication of what I think of the evidence or what I think your verdict should be.

Finally, please remember that only the defendant , and not anyone else, are on

trial here, and the defendant is on trial only for the crime or crimes charged, and not for

anything else.

INSTRUCTION NO. 2

PRESUMPTION OF INNOCENCE

The law presumes that the defendant is innocent. The defendant has no burden

to prove that he is innocent. Hence, even though the defendant stands charged, the

trial begins with no evidence against him.

INSTRUCTION NO. 3

CONSTITUTIONAL RIGHT NOT TO TESTIFY

Because a defendant is not required to prove his or her innocence, a defendant’s

decision to exercise his or her constitutional right not to testify cannot be considered by

you or discussed among jurors in arriving at your verdict.

INSTRUCTION NO. 4

BURDEN OF PROOF

The government carries the burden to prove beyond a reasonable doubt each

essential element of the crimes charged against the defendant. A reasonable doubt is a

doubt based upon reason and common sense, and not the mere possibility of

innocence. A reasonable doubt is the kind of doubt that would make a reasonable

person hesitate to act. Proof beyond a reasonable doubt, therefore, must be proof of

such a convincing character that a reasonable person would not hesitate to rely and act

upon it. However, proof beyond a reasonable doubt does not mean proof beyond all

possible doubt.

INSTRUCTION NO. 5

EVIDENCE; LIMITATIONS

You should understand that a superseding indictment is simply an accusation. It

is not evidence of anything. The defendant has pled not guilty. The defendant is

presumed to be innocent unless proved guilty beyond a reasonable doubt.

The word “evidence” includes: the testimony of witnesses; documents and other

things received as exhibits; any facts that have been stipulated, that is, formally agreed

to by the parties; and any facts that have been judicially noticed, that is, facts which I

say you must accept as true.

The following things are not evidence:

1. Statements, arguments, questions and comments by lawyers are not

evidence.

2. Objections are not evidence.

Lawyers have a right to object when they believe something is improper under

the rules of evidence. You should not be influenced by the lawyer’s objection or by my

ruling on the objection. If I sustain an objection to a question, ignore the question. If I

overrule the objection, treat the answer like any other answer. Do not attempt to draw

any inference in favor of either side as the result of the objection.

3. Testimony that I strike from the record or tell you to disregard is not evidence.

You must not consider such information when reaching your verdict.

4. Anything you see or hear about this case outside the courtroom is not

evidence. You must disregard such information when reaching your verdict.

5. A particular item of evidence is sometimes received for a limited purpose. I

will tell you when that situation arises and will instruct you on the purpose for which the

evidence can and cannot be used.

6. Finally, you may have heard the phrases “direct evidence” and

“circumstantial evidence.” You should not be concerned with those phrases, since the

law makes no distinction between the weight to be given to direct or to circumstantial

evidence. You should give all the evidence the weight and value which you believe that

the evidence is entitled to receive.

INSTRUCTION NO. 6

BENCH CONFERENCES AND RECESSES

During this trial it may become necessary for me to talk with the lawyers outside

your hearing, either by having a bench conference while you are present in the

courtroom, or by calling a recess. Please understand that while you are waiting, we are

working. The purpose of the conference is to decide how certain evidence is to be

treated under the rules of evidence or to decide a particular procedure to be followed in

the case. We will do what we can to minimize the number and length of these

conferences.

INSTRUCTION NO. 7

NOTE-TAKING

If you wish, you may take notes to help you remember what witnesses said.

Notes may be helpful to you because at the end of the trial, you must make your

decision based on what you recall of the evidence. You will not have a written transcript

to consult, and it may not be practical for the court reporter to read back lengthy

testimony. Therefore, pay close attention to the testimony that is given.

If you do take notes, please keep your notes to yourself until you and the other

jurors go to the jury room to decide the case. Do not let note-taking distract you to the

point that you miss hearing other testimony from the witness.

During the trial, documents and other physical items may be received in

evidence. You will not be supplied with a list of exhibits which are received in evidence.

Therefore, you may wish to make notes about the exhibits, especially their description

and number, so that you can locate and refer to exhibits while you are deliberating.

When we take our recess each day for the lunch-time break and when we take

our recess each night, please take your notes to the jury room and leave your notes

there. The courtroom deputy will take custody of your notes and secure them.

No one will read your notes but you. Your notes will be destroyed after the trial is

over.

INSTRUCTION NO. 8

CONDUCT OF THE JURY

To insure fairness, you, as jurors, must obey the following rules:

1. Do not talk among yourselves about this case or about anyone involved with

this case until the end of the case when you go to the jury room to decide on your

verdict.

2. Do not talk with anyone else about this case or about anyone involved with it

until the trial has ended and you have been discharged as jurors.

3. During the course of this trial and when you are outside the courtroom, do not

listen to or allow anyone to tell you anything about this case. Do not allow anyone to

talk to you about anyone involved with this case until the trial has ended and I have

accepted your verdict. If anyone tries to talk to you about this case during the trial,

please promptly report the matter to me.

4. During the trial do not talk with or speak to any of the parties, lawyers, or

witnesses involved in this case. Do not even pass the time of day with any of them. You

must not only do justice in this case, but you must also give the appearance of doing

justice. For instance, if a person from one side of the lawsuit sees you talking to a

person from the other side, even if it is on a matter unconnected with this trial or simply

to pass the time of day, such contact might arouse unwarranted suspicion about your

fairness. If a lawyer, party, or witness does not speak to you when you pass in the hall,

ride the elevator, or encounter each other elsewhere while this trial is taking place,

remember that court rules prohibit those persons from talking or visiting with you as

well.

5. You must decide this case on the basis of evidence presented in the

courtroom. Therefore, do not read any news stories or articles about the case or about

anyone involved with this case. Do not listen to any radio or television reports about the

case or about anyone involved with it. Until the trial is over, avoid reading any

newspapers and avoid listening to any TV or radio newscasts. There may be news

reports of this case, and if there are, you might find yourself inadvertently reading or

listening to something before you realize what you are doing.

6. Do not do any research or make any investigation on your own concerning

this case. Do not use or refer to any dictionary, reference, or law book, or the Internet,

concerning any aspect of this case, including any evidence introduced. Do not visit the

scene of any incident mentioned in this case.

7. Do not form any opinion regarding any fact or issue in the case until you have

received the entire evidence, have heard arguments of counsel, have been instructed

as to the law of the case, and have retired to the jury room. Do not make up your mind

during the trial about what the verdict should be. Keep an open mind until after you

have gone to the jury room to decide the case and have discussed the evidence with

the other jurors.

8. Do not be influenced by sympathy or prejudice. Do not indulge in any

speculation, guess, or conjecture. Do not make any inferences unless they are

supported by the evidence.

INSTRUCTION NO. 9

OUTSIDE COMMUNICATIONS AND RESEARCH

You, as jurors, must decide this case based solely on the evidence presented

here within the four walls of this courtroom because the parties must have an

opportunity to respond to any information you consider in deciding this case. This

means that during the trial you must not conduct any independent research about this

case, the matters in the case, and the individuals or corporations involved in the case.

In other words, you should not consult dictionaries or reference materials, search the

Internet, Web sites, blogs, chat rooms, social networking Web sites including Facebook,

My Space, LinkedIn or YouTube, or use your cell phones, iPhones, text messaging,

Twitter or any other electronic tools or devices to obtain information about this case or

to help you decide the case.

Until you retire to deliberate, you may not discuss this case with anyone, even

your fellow jurors. After you retire to deliberate, you may begin discussing the case with

your fellow jurors, but you cannot discuss the case with anyone else until you have

returned a verdict and the case is at an end. I hope that for all of you this case is

interesting and noteworthy. However, until you have returned a verdict and the case is

at an end, you must not talk to anyone or communicate with anyone about the case by

any means, electronic or otherwise. This includes communications with your family and

friends. Such communication would compromise your fairness as jurors and may

require your removal from the case and a retrial of this matter at considerable expense

to the parties.

INSTRUCTION NO. 10

OUTLINE OF TRIAL

The trial will proceed in the following manner:

The government, through the Assistant United States Attorney, will make an

opening statement. The defendant may, but does not have to, make an opening

statement. An opening statement is not evidence but is simply a summary of what the

attorney expects the evidence to be.

The government will then present its evidence, and the defendant may cross-

examine witnesses who have testified in the government’s case. After the government

has presented its case, the defendant may, but does not have to, present evidence,

testify, or call witnesses. If the defendant calls witnesses, government counsel may

cross-examine those witnesses.

After presentation of evidence is completed, the attorneys will make their closing

arguments to summarize and interpret the evidence for you. As with opening

statements, closing arguments are not evidence. I will instruct you further on the law.

After that you will retire to deliberate on your verdict.

When you reach your verdict, we will return to the courtroom where your

foreperson will deliver the verdict to me. After the verdict is announced, one of the

lawyers may ask that the jury be polled, that is, that you each be asked individually

whether the verdict is your true verdict.

Once you have delivered your verdict, you will be discharged and will be free to

leave.

INSTRUCTION NO. 11

NATURE OF THE CASE; NATURE OF SUPERSEDING INDICTMENT

This is a criminal case brought by the United States of America against the

defendant, John Ways, Jr., Case No. 8:12CR391. The parties to this criminal lawsuit

are the government, represented by Assistant U.S. Attorney Nancy A. Svoboda, and the

defendant, John Ways, Jr., represented by counsel Donald Schense. The charges

against the defendant are set forth in a superseding indictment. You must understand

that the superseding indictment is simply an accusation. The superseding indictment is

not evidence. In order to help you follow the evidence in this case, I will now summarize

the crimes charged in the superseding indictment which the government must prove

beyond a reasonable doubt.

Generally, Count I of the superseding indictment charges the defendant with

conspiracy to sell drug paraphernalia, in violation of 21 U.S.C. § 863(a)(1).

Count II of the superseding indictment charges the defendant with conspiracy to

distribute or possess with intent to distribute the following Schedule I controlled

substances:

3,4-methylenedioxyprovalerone (“MDPV”), 3,4-methylenedioxy- methcathinone (“Methylone”), 1-pentyl-3-( 4-methly-1-naphthoyl) indole (“JWH-122”), 1-pentyl-3-(2-methoxyphenlacetyl) indole (“JWH-250”), 1- pentyl-3-(1-naphthoyl) indole (“JWH-0 18”), 1-pentyl-3-(2- chlorophenylacetyl) indole (“JWH-203”) and 1-(5-fluoropentyl)-3-(1- naphthoyl) indole (“AM2201”), in violation of 21 U.S.C. § § 841(a)(l) and 841(b)(1)(C).

Count III of the superseding indictment charges the defendant with conducting or

attempting to conduct an illegal financial transaction involving the proceeds of the

unlawful activities charged in Counts I and II, knowing the transaction was designed to

conceal or disguise the nature, location, source, ownership or control of such proceeds

of unlawful activity, or knowing the transaction was designed in whole or in part to avoid

a transaction reporting requirement under state or federal law, also known as “money

laundering,” in violation of 18 U.S.C. § 1956(a)(1)(B)(i) and (ii).

In Count IV of the superseding indictment, defendant John Ways, Jr., is charged

with being a felon in possession of ammunition, in violation of 18 U.S.C. § 922(g).

The superseding indictment also contains an allegation that any “property

constituting or derived from any proceeds the defendant obtained directly or indirectly

as the result of such violations, and any property used or intended to be used in any

manner or part to commit or to facilitate the commission of such violations, and any

property, real or personal, involved in such offenses, or any property traceable thereto,”

is subject to forfeiture to the United States under 18 U.S.C. § 982(a)(1) and 21 U.S.C.

§§ 853(a)(1) and (a)(2). You may be asked to make certain determinations in

connection with the forfeiture issue at the end of the trial. I will instruct you on that after

the close of evidence.

The defendant has pled not guilty to the charges of the superseding indictment.

Because he has pled not guilty, the law requires you to presume him to be innocent.

This presumption of innocence may be overcome only if the government proves,

beyond a reasonable doubt, each element of the crimes charged against the defendant.

INSTRUCTION NO. 12

COUNT I: CONSPIRING TO SELL DRUG PARAPHERNALIA

ELEMENTS OF OFFENSE

The crime of conspiracy as charged in Count I of the superseding indictment, has

three elements, which are:

1. From an unknown date but at least as early as February 25, 2010, up to and including December 21, 2012, two or more persons reached an agreement or came to an understanding to sell or offer for sale drug paraphernalia;

2. The defendant voluntarily and intentionally joined in the agreement or understanding, either at the time it was first reached or at some later time while it was still in effect; and

3. At the time the defendant joined in the agreement or understanding, he knew the purpose of the agreement or understanding.

If you find the government has proved all of these elements beyond a reasonable

doubt, then you must find the defendant guilty of the crime charged in Count I.

If you find the government has not proved all of these elements beyond a

reasonable doubt, you must find that defendant not guilty of this crime.

INSTRUCTION NO. 13A

COUNT I — CONSPIRING TO SELL DRUG PARAPHERNALIA

“DRUG PARAPHERNALIA” – DEFINED

The term “drug paraphernalia” means any equipment, product, or material of any

kind which is primarily intended or designed for use in manufacturing, compounding,

converting, concealing, producing, processing, preparing, injecting, ingesting, inhaling,

or otherwise introducing into the human body a controlled substance, possession of

which is unlawful under this subchapter. It includes items primarily intended or

designed for use in ingesting, inhaling, or otherwise introducing controlled substances

such as marijuana, cocaine, hashish, hashish oil, PCP, methamphetamine,

amphetamines, MDPV, Methylone, JWH-122, JWH-250, JWH-018, JWH-203, and

AM2201, into the human body, such as—

(1) metal, wooden, acrylic, glass, stone, plastic, or ceramic pipes with or without screens, permanent screens, hashish heads, or punctured metal bowls;

(2) water pipes;

(3) carburetion tubes and devices;

(4) smoking and carburetion masks;

(5) roach clips: meaning objects used to hold burning material, such as a marijuana cigarette, that has become too small or too short to be held in the hand;

(6) miniature spoons with level capacities of one-tenth cubic centimeter or less;

(7) chamber pipes;

(8) carburetor pipes;

(9) electric pipes;

(10) air-driven pipes;

(11) chillums;

(12) bongs;

(13) ice pipes or chillers;

(14) wired cigarette papers; or

(15) cocaine freebase kits.

In determining whether an item constitutes drug paraphernalia, in addition to all other

logically relevant factors, the following may be considered:

(1) instructions, oral or written, provided with the item concerning its use;

(2) descriptive materials accompanying the item which explain or depict its use;

(3) national and local advertising concerning its use;

(4) the manner in which the item is displayed for sale;

(5) whether the owner, or anyone in control of the item, is a legitimate supplier of like or related items to the community, such as a licensed distributor or dealer of tobacco products;

(6) direct or circumstantial evidence of the ratio of sales of the item(s) to the total sales of the business enterprise;

(7) the existence and scope of legitimate uses of the item in the community; and

(8) expert testimony concerning its use.

INSTRUCTION NO. 14A

COUNT II — CONSPIRING TO DISTRIBUTE CONTROLLED SUBSTANCES

ELEMENTS OF OFFENSE

The crime of conspiracy to distribute controlled substances, as charged in Count

II of the superseding indictment, has three elements, which are:

1. Between July 9, 2012, and September 13, 2012, two or more persons

reached an agreement or came to an understanding to distribute or possess with intent

to distribute controlled substances known as JWH-018, MDPV, Methylone, JWH-122,

JWH-250, JWH-203 and AM2201.

2. The defendant voluntarily and intentionally joined in the agreement or

understanding, either at the time it was first reached or at some later time while it was

still in effect; and

3. At the time the defendant joined in the agreement or understanding, he knew

the purpose of the agreement or understanding.

If you find the government has proved all of these elements beyond a reasonable

doubt, then you must find the defendant guilty of the crime charged in Count II.

If you find the government has not proved all of these elements beyond a

reasonable doubt with respect to each defendant, you must find the defendant not guilty

of this crime.

INSTRUCTION NO. 15

COUNTS I AND II

CONSPIRACY: “AGREEMENT” EXPLAINED

The government must prove that the defendant reached an agreement or

understanding with at least one other person. It makes no difference whether that

person is named in the superseding indictment. The “agreement or understanding”

need not be an express or formal agreement or be in writing or cover all the details of

how it is to be carried out. Nor is it necessary that the members have directly stated

between themselves the details or purpose of the scheme.

You should understand that merely being present at the scene of an event, or

merely acting in the same way as others or merely associating with others, does not

prove that a person has joined in an agreement or understanding. A person who has no

knowledge of a conspiracy but who happens to act in a way which advances some

purpose of one, does not thereby become a member. But a person may join in an

agreement or understanding, as required by this element, without knowing all the details

of the agreement or understanding, and without knowing who all the other members

are. Further it is not necessary that a person agree to play any particular part in

carrying out the agreement or understanding. A person may become a member of a

conspiracy even if that person agrees to play only a minor part in the conspiracy, as

long as that person has an understanding of the unlawful nature of the plan and

voluntarily and intentionally joins in it. You must decide, after considering all of the

evidence, whether the conspiracy or conspiracies alleged in the superseding indictment

existed.

If you find that the alleged conspiracy did exist, you must also decide, whether

the defendant voluntarily and intentionally joined the conspiracy, either at the time it was

first formed or at some later time while it was still in effect. In making that decision, you

must consider only evidence of the defendant’s own actions and statements. You may

not consider actions and pretrial statements of others, except to the extent that pretrial

statements of others describe something that had been said or done by the defendant.

INSTRUCTION NO. 16A

COUNT I — CONSPIRACY TO DISTRIBUTE DRUG PARAPHERNALIA:

SUBSTANTIVE OFFENSES – ELEMENTS

To assist you in determining whether there was an agreement or understanding

to sell or offer for sale drug paraphernalia, as charged in Count I of the Superseding

Indictment, you are advised that the elements of the crime of selling or offering for sale

drug paraphernalia are:

1. The defendant sold or offered for sale drug paraphernalia, as defined in

Instruction No. 13A; and

2. The defendant knew that the materials were likely to be used for

manufacturing, compounding, converting, concealing, producing, processing, preparing,

injecting, ingesting, inhaling, or otherwise introducing controlled substances, as defined

in Instruction No. 13A, into the human body.

Keep in mind that the superseding indictment charges a conspiracy to commit

this crimes and not that this crimes was committed.

INSTRUCTION NO. 16B

COUNT II — CONSPIRACY TO DISTRIBUTE OR POSSESS

WITH INTENT TO DISTRIBUTE CONTROLLED SUBSTANCES:

SUBSTANTIVE OFFENSES – ELEMENTS

To assist you in determining whether there was an agreement or understanding

to distribute or possess with intent to distribute controlled substances, as charged in

Count II of the Superseding Indictment, you are advised that the elements of the crime

of distribution or possession with intent to distribute controlled substances are:

1. The defendant was in possession of controlled substances known as JWH-

018, MDPV, Methylone, JWH-122, JWH-250, JWH-203 and AM2201;

2. The defendant knew that he was in possession of a controlled substance; and

3. The defendant intended to distribute some or all of the controlled substance

to another person.

Keep in mind that the superseding indictment charges a conspiracy to commit

this crimes and not that this crimes was committed.

INSTRUCTION NO. 17

COUNTS I AND II

CONSPIRACY: SUCCESS IMMATERIAL

It is not necessary for the government to prove that the conspirators actually

succeeded in accomplishing their unlawful plan.

INSTRUCTION NO. 18

COUNT III: MONEY LAUNDERING—FINANCIAL TRANSACTION TO CONCEAL

PROCEEDS OR AVOID REPORTING REQUIREMENTS

ELEMENTS OF OFFENSE

The crime of conducting or attempting to conduct an illegal financial transaction,

as charged in Count III of the superseding indictment has four elements, which are:

1. From an unknown date but at least as early as February 25, 2010, up to and including December 21, 2012, the defendant conducted or attempted to conduct financial transactions, that is, opening numerous business and individual bank accounts, making deposits and withdrawals of checks and currency, or instructing employees to do so, and commingling the proceeds of unlawful activities with the proceeds of the sale of other items, that in any way or degree affected interstate or foreign commerce;

2. The defendant conducted or attempted to conduct the financial transactions with currency and checks that involved the proceeds of a conspiracy to sell drug paraphernalia or a conspiracy to distribute controlled substances;

3. At the time the defendant conducted or attempted to conduct the financial transaction, the defendant knew the checks and currency represented the proceeds of some form of unlawful activity; and

4. The defendant conducted or attempted to conduct the financial transactions knowing that the transaction was designed in whole or in part to conceal or disguise the nature, location, source, ownership or control of the proceeds of drug paraphernalia or controlled substance conspiracies.

The crime charged in Count III of the superseding indictment alleges multiple

purposes for the crime, that is, that the defendant knew that the transaction was

designed, in whole or in part, to conceal and disguise the nature, location, source,

ownership and control of the proceeds of said specified unlawful activity. To find the

defendant guilty of the offense, you must agree unanimously that the objective charged

was proved beyond a reasonable doubt.

If you find the government has proved all of these elements beyond a reasonable

doubt, then you must find the defendant guilty of the crime charged in Count III.

If you find the government has not proved all of these elements beyond a

reasonable doubt, you must find the defendant not guilty of this crime.

INSTRUCTION NO. 19

COUNT III – MONEY LAUNDERING

DEFINITIONS

Regarding the crime charged in Count III of the superseding indictment, you are

instructed that the following definitions apply:

Conducted - The term “conducted” includes initiating, concluding or participating in initiating or concluding a transaction.

Financial Transaction - The phrase “financial transaction,” as used in these Instructions means a transaction which in any way or degree affects interstate or foreign commerce involving the movement of funds by wire or other means, involving one or more monetary instruments, involving the transfer of title to any real property, vehicle, vessel or aircraft or a transaction involving the use of a financial institution which is engaged in, or the activities of which affect, interstate or foreign commerce in any way or degree. The term “transaction,” as used above, means a purchase, sale, loan, pledge, gift, transfer, delivery, or other disposition of property, with respect to a financial institution, a deposit, withdrawal, transfer between accounts, exchange of currency, loan, extension of credit, purchase or sale of any stock, bond, certificate of deposit, or other monetary instrument, use of a safe deposit box or any other payment, transfer, or delivery by, through, or to a financial institution, by whatever means.

Interstate and Foreign Commerce - The phrase “interstate commerce” means commerce between any combination of states, territories, and possessions of the United States, including the District of Columbia. The phrase “foreign commerce,” as used above, means commerce between any state, territory or possession of the United States and a foreign country. The term “commerce” includes, among other things, travel, trade, transportation and communication. It is not necessary for the government to show that the defendant’s transactions with a financial institution, that is with banks or credit unions themselves affected interstate or foreign commerce. All that is necessary is that at the time of the alleged offense the bank or credit union was engaged in or had other activities which affected interstate or foreign commerce in any way or degree. You may

find an effect on interstate or foreign commerce has been proven if you find from the evidence beyond a reasonable doubt that the transaction involved the use of a financial institution that the financial institution engaged in or affected interstate or foreign commerce, e.g., that it sent checks for clearing to another state or transferred funds to another country.

Funds - The term “funds” includes money, notes, bills, checks, drafts, stocks, and bonds.

Monetary Instrument - The phrase “monetary instrument,” means, among other things, coin or currency of the United States or of any other country, traveler’s checks, cashier’s checks, personal checks, bank checks, money orders, investment securities, negotiable instruments in bearer form or otherwise in such form that title thereto passes upon delivery.

Financial Institution - The phrase “financial institution,” means, among other things, an FDIC insured bank, a commercial bank or trust company, a private banker, an agency or branch of a foreign bank in the United States, and any credit union.

Proceeds - The term “proceeds” means any property, or any interest in property, that someone derives from, or obtains or retains, either directly or indirectly, as a result of the conspiracy to sell drug paraphernalia or the conspiracy to distribute or possess with intent to distribute controlled substances. Proceeds can be any kind of property, not just money. Proceeds can include personal property, like a car or a piece of jewelry, or real property, like an interest in land. It does not matter whether or not the person who committed the underlying crime, and thereby acquired or retained the proceeds, was a defendant. It is a crime to conduct a financial transaction, transport, transmit or transfer monetary instruments or funds involving property that is the proceeds of a crime, even if that crime was committed by another person, as long as all of the elements of the offense are satisfied.

Knowledge - The phrase “knew the checks and currency represented the proceeds of some form of unlawful activity,” means that the defendant knew the property involved in the transaction represented proceeds from some form, though not necessarily which form, of activity that constitutes a felony offense under State or Federal or Foreign law. Thus, the government need not prove that the defendant specifically knew that the

check and currency involved in the financial transactions represented the proceeds of the drug paraphernalia and drug distribution conspiracies or any other specific offense; it need only prove that he knew it represented the proceeds of some form, though not necessarily which form, of felony under State or Federal or Foreign law. I instruct you as a matter of law the conspiring to sell drug paraphernalia and conspiring to distribute drugs are felonies under Federal law.

INSTRUCTION NO. 20A

COUNT III – MONEY LAUNDERING

WILLFUL BLINDNESS/DELIBERATE IGNORANCE

With respect to the crime charged in Count III of the superseding indictment, you

may find that the defendant acted knowingly if you find beyond a reasonable doubt that

the defendant was aware of a high probability that the purpose of the financial

transaction was to conceal or disguise the nature, location, source, ownership or control

of the proceeds of the unlawful conspiracies. Knowledge may be inferred if a defendant

deliberately closed his eyes to what would otherwise have been obvious to him.

You may not find the defendant acted “knowingly” if you find he was merely

negligent, careless or mistaken as to whether the purpose of the financial transaction

was to conceal or disguise the nature, location, source, ownership or control of the

proceeds of the unlawful conspiracies.

INSTRUCTION NO. 21

COUNT IV: FELON IN POSSESSION OF AMMUNITION

ELEMENTS OF OFFENSE

It is a crime for a felon to possess ammunition as charged in Count IV of the

superseding indictment. This crime has three elements, which are:

1. The defendant had been convicted of a crime punishable by imprisonment for more than one year;

2. After that, the defendant knowingly possessed ammunition, that is, 800 rounds of 5.56mm ammunition; and

3. The ammunition was transported across a state line at some time during or before the defendant’s possession of it.

If you find the government has proved all of these elements beyond a reasonable

doubt, then you must find defendant guilty of the crime charged in Count IV.

If you find the government has not proved all of these elements beyond a

reasonable doubt, you must find defendant not guilty of this crime.

INSTRUCTION NO. 22

POSSESSION: ACTUAL, CONSTRUCTIVE, SOLE, JOINT

The law recognizes several kinds of possession. A person may have actual

possession or constructive possession. A person may have sole or joint possession. A

person who knowingly has direct physical control over a thing, at a given time, is then in

actual possession of it. A person who, although not in actual possession, has both the

power and the intention at a given time to exercise dominion or control over a thing,

either directly or through another person or persons, is then in constructive possession

of it. If one person alone has actual or constructive possession of a thing, possession is

sole. If two or more persons share actual or constructive possession of a thing,

possession is joint. Whenever the word “possession” has been used in these

instructions it includes actual as well as constructive possession and also sole as well

as joint possession.

INSTRUCTION NO. 23

“DISTRIBUTE” EXPLAINED

The term “distribute” as used in these instructions means the actual, constructive

or attempted delivery or transfer of a controlled substance to another person. “Transfer”

means to convey or remove from one place or one person to another; to pass or hand

over from one to another, especially to change over the possession or control of.

INSTRUCTION NO. 24

PROOF OF INTENT OF KNOWLEDGE

Intent or knowledge may be proved like anything else. You may consider any

statements made and acts done by the defendant, and all the facts and circumstances

in evidence which may aid in a determination of the defendant’s knowledge or intent.

INSTRUCTION NO. 25

KNOWLEDGE GENERALLY

An act is done knowingly if the defendant is aware of the act and does not act or

fails to act through ignorance, mistake, or accident. You may consider evidence of the

defendant’s words, acts, or omissions, along with all the other evidence, in deciding

whether the defendant acted knowingly.

INSTRUCTION NO. 26

MULTIPLE COUNTS

Keep in mind that you must consider, separately, each crime charged against the

defendant and you must return a separate verdict for each of those crimes charged.

INSTRUCTION NO. 27

CREDIBILITY - COOPERATING WITNESSES

You may hear evidence that some witnesses hope to receive a reduced

sentence on criminal charges pending against them in return for their cooperation with

the government in this case. Those witnesses may have entered into an agreement

with the government which may provide, for example, that in return for the witness’s

assistance, the government will dismiss certain charges, or recommend a less severe

sentence for the crime with which the witness is charged.

You may give the testimony of this witness such weight as you think it deserves.

Whether or not testimony of a witness may have been influenced by his or her hope of

receiving a reduced sentence is for you to decide.