Sentence upheld for Arizona sovereign citizens movement activist

CARSON CITY — The 9th U.S. Circuit Court of Appeals on Thursday upheld the convictions of Arizona resident Shawn Rice, who was an activist in the anti-government “sovereign citizens” movement.

But the court also ordered a recalculation of his sentence and remanded the case back to U.S. District Court in Las Vegas.

Rice was sentenced in 2013 to 98 months in federal prison for his role in a $1.3 million money laundering scheme.

On appeal, a panel of the court found that Rice’s Sixth Amendment right to represent himself at a March 6, 2009, hearing were not violated. The panel also found no violation in his right to a speedy trial.

The panel upheld the convictions for conspiracy, money laundering and failure to appear charges, but vacated the sentence and remanded the matter for resentencing and recalculation of restitution and forfeiture.

The court said federal prosecutors acknowledged that the sentence imposed on Rice, along with the restitution and forfeiture, included money that was laundered before he joined the scheme and so required the recalculation.

U.S. District Judge James Mahan had previously ordered Rice to forfeit $1.3 million in assets to the government, pay $95,782 in restitution and serve three years of supervised release after prison.

Rice represented himself in the case and told Mahan in a 25-minute narrative at his 2013 sentencing that he refused to accept the sentence. He said the court lacked jurisdiction and his conviction was obtained by “coercion and fraud” and the result of a fraudulent grand jury proceeding.

Mahan found Rice guilty of one count of conspiracy to commit money laundering and 13 counts of money laundering after a bench trial. Rice also was convicted of four separate failure to appear counts stemming from 654 days Rice spent as a fugitive in the criminal case.

Rice and co-defendant Samuel Davis of Idaho were charged in March 2009 with laundering the $1.3 million for undercover FBI agents posing as shady businessmen. Rice, a self-proclaimed rabbi and lawyer who represented himself during the trial, argued he was entrapped and had no predisposition to become involved in the conspiracy.

Contact Sean Whaley at swhaley@reviewjournal.com or 775-687-3900. Find him on Twitter: @seanw801.