asset forfeiture - columbia law school
TRANSCRIPT
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Sharon Cohen Levin
Chief, Money Laundering and Asset Forfeiture Unit
United States Attorney’s Office
Southern District of New York
Asset Forfeiture
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Asset Forfeiture
• Takes the Profit
Out of Crime
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Forfeitable Property
Two categories of property subject to forfeiture
1. Proceeds of a crime
2. Property that facilitates a crime
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Proceeds
• Statutory definition — very broad
• 18 U.S.C. § 981 (a)(2)(A)
“ property of any kind obtained directly or indirectly, as the result of the commission of the offense giving rise to the forfeiture, and any property traceable thereto, and is not limited to the net gain or profit realized from the offense.”
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Facilitating Property
The car the defendant drove to the drug deal
The house where he stored the drugs
The plane he used in transporting the drugs
The apartment where cash earned from drug
trafficking was stored
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Victim Restitution
• No mechanism to seize or freeze property
obtained through fraud so that it is available
for victim restitution
---------------------BUT----------------------
• Can use Asset Forfeiture procedures to
seize or freeze fraud proceeds so that
they are available for restitution
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Equitable Sharing • State and Local law enforcement agencies working
together with federal agencies on an Asset Forfeiture
case share in the money forfeited
• Forfeited money is transferred directly to the state or
local agency
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The Castle at Tarrytown * Forfeit luxury hotel purchased and maintained with
fraud proceeds
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Two Types of Forfeiture
1. Criminal Forfeiture
2. Civil Forfeiture
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U.S. v. Bennett
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U.S. v. Bennett
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U.S. v. Bennett
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Forfeiture included his art
collection featuring works by
Mark Rothko
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Overview of Criminal Forfeiture
• Part of a Criminal Case
• Part of the sentence
• Requires a conviction on a criminal
count
• In personam – Only the defendant’s
property can be forfeited
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U.S. v. Dreier
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U.S. v. Dreier
•$ 10 Million Co-Op
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Lady Seascape
U.S. v. Dreier
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U.S. v. Dreier
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U.S. v. Dreier
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Post-Trial Issues
Preliminary Order of Forfeiture
– Sets forth the amount of the money
judgment or directs the forfeiture of
specific property
– Provides the notice to Third parties
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Ancillary Proceeding
• Third party has the burden of
establishing that he:
– Has a superior right, title or interest,
or
– Is a bona fide purchaser for value
• Hearing before Trial judge
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Relation Back Doctrine
21 U.S.C. § 853(c) – Third Party Transfers
“All right, title, and interest in property…vests in the United States upon the commission of the act giving rise to forfeiture….”
- Any property this is subsequently transferred shall be ordered forfeited unless the transferee establishes he is a BFP for value at the time of the purchase without cause to know property subject to forfeiture
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Civil Forfeiture United States v. Portrait of Wally
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Overview of Civil Forfeiture
• In rem – Brought directly against property because:
- proceeds of crime, or
- property that facilitates a crime
• Criminal conviction unnecessary
• No substitute assets- property must be linked to criminal
activity
• Except for RICO – civil forfeiture is available in same
cases as criminal forfeiture
• Standard of Proof- preponderance of evidence
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Civil Seizure
1. File a Civil complaint and obtain a Warrant of Arrest in Rem (Issued by the Clerk of the Court)
2. Seizure Warrant – obtained pursuant to Rule 41 (Probable Cause)
3. Without a warrant if incident to arrest or search
4. Without a warrant if an exception to the 4th Amendment
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United States v. Contents of Fleming
Isle of Man, LTD. Acct. •Not limited to Forfeiting Property in the U.S.
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Sharon Cohen Levin
Chief, Money Laundering and Asset Forfeiture Unit
United States Attorney’s Office
Southern District of New York
Asset Forfeiture