The government also proved that the Hovinds structured their cash withdrawals to avoid federal reporting requirements. Although the Hovinds challenge the validity of their convictions on the ground that the statute does not penalize transactions below $10,000, this interpretation does not comport with the language of the statute. Congress enacted Section 5324(a)(3) to penalize “any transaction” structured to “avoid triggering [a] bank’s duty to file a [Currency Transaction Report] in the first place.” Phipps, 81 F.3d at 1059–60. By its plain language, the statute prohibits transactions of less than $10,000 that are intended to evade reporting requirements. Id. at 1060–61. That reading comports with the regulations that define structuring to penalize cash transactions designed “in any manner, . . . including transactions . . . below $10,000 . . . for the purpose of evading the reporting requirements . . . .” 31 C.F.R. § 103.11(gg).
Evidence established that Kent and Jo Hovind structured cash transactions with knowledge of, and the intent to avoid, reporting of those transactions by AmSouth Bank. See United States v. MacPherson, 424 F.3d 183, 189 (2d Cir. 2005); United States v. Cassano, 371 F.3d 868, 878 (7th Cir. 2004). A former employee of Evangelism Enterprises, Brian Popp, testified that Kent knew of and complained about the bank reporting requirements and that Jo, often at Kent’s direction, regularly obtained cash to pay employees of the organization. Other employees and associates of Kent testified that the Hovinds openly disputed the validity of the tax laws. Various documents established that Jo withdrew cash in increments of $9500 and $9600 from AmSouth Bank as often as four or five times a month, for a total of 45 transactions between July 2001 and August 2002.
