United States v. $47,000 in U.S. Funds ( 2018 )

81,7('67$7(6',675,&7&2857 )257+(',675,&72)&2/80%,$ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB  81,7('67$7(62)$0(5,&$    3ODLQWLII    Y  &LYLO$FWLRQ1R$%-  ,186)81'6$662&,$7('  :,7+-3025*$1&+$6($&&2817  126;;;;;;;;;;;   'HIHQGDQW  BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 0(025$1'8023,1,21  3ODLQWLII WKH 8QLWHG 6WDWHV RI $PHULFD ILOHG D YHULILHG FRPSODLQW LQ WKLV FDVH VHHNLQJ IRUIHLWXUH RI  LQ IXQGV DVVRFLDWHG ZLWK WZR -3 0RUJDQ &KDVH DFFRXQW QXPEHUV  DQG  ³GHIHQGDQW IXQGV´  9HULILHG &RPSO IRU )RUIHLWXUH In Rem >'NW@ ³&RPSO´ˆˆ±  3ODLQWLII FODLPV WKDW GHIHQGDQW IXQGV DUH VXEMHFW WR IRUIHLWXUH SXUVXDQWWR86&†D&DVSURSHUW\FRQVWLWXWLQJRUGHULYHGIURPSURFHHGVRIZLUH IUDXG LQ YLRODWLRQ RI  86& †  DQG VXEMHFW WR IRUIHLWXUH SXUVXDQW WR  86&†D$DVSURSHUW\LQYROYHGLQPRQH\ODXQGHULQJLQYLRODWLRQRI86&†† RUId.ˆˆ±± 3HQGLQJ EHIRUH WKH &RXUW LV SODLQWLII¶V PRWLRQ IRU GHIDXOW MXGJPHQW SXUVXDQW WR )HGHUDO 5XOHRI&LYLO3URFHGXUHESee3O¶V0RWIRU(QWU\RI'HIDXOW-DQG2UGHURI)RUIHLWXUH >'NW@³3O¶V0RW´DW0HPRI/DZLQ6XSSRI3O¶V0RW>'NW@³3O¶V0HP´ 8SRQFRQVLGHUDWLRQRIWKHUHFRUGLQWKLVFDVHSODLQWLII¶VXQRSSRVHGPRWLRQZLOOEHJUDQWHGDQG WKH8QLWHG6WDWHVZLOOEHHQWLWOHGWRIRUIHLWXUHRIWKHGHIHQGDQWIXQGV %$&.*5281'  7KHLQVWDQWFDVHLQYROYHVDQ³HPDLOVSRRILQJ´VFKHPHZKLFKLQGXFHGWZRKRPHEX\HUV WKH³YLFWLPV´WRZLUHPRQH\WRWZREDQNDFFRXQWVWKDWZHUHSXUSRUWHGO\RZQHGE\&ROGZHOO %DQNHU5HDO(VWDWH//&³&ROGZHOO´&RPSOˆ7KHYLFWLPVDUHPDUULHGDQGUHVLGHLQ9LUJLQLD Id.ˆ,QWKHSURFHVVRISXUFKDVLQJDKRPHWKH\FRUUHVSRQGHGZLWKD&ROGZHOOUHDOWRUXVLQJWKH HPDLOGRPDLQQDPH³#FEPRYHFRP´Id.7KH\DOVROHJLWLPDWHO\ZLUHGWR&ROGZHOODV SDUWRIWKHUHDOHVWDWHSXUFKDVHId.ˆˆ±  2Q1RYHPEHUWKHYLFWLPVUHFHLYHGDVSRRIHGHPDLOIURPWKHHPDLOGRPDLQQDPH ³#FEUQRYHFRP´ ZKLFK KDG UHSODFHG WKH ³P´ LQ WKH GRPDLQ QDPH ZLWK DQ ³U´ DQG DQ ³Q´ &RPSOˆˆ±:KHQSODFHGQH[WWRHDFKRWKHUWKHVHOHWWHUVDSSHDUWREHDQ³P´Id.ˆ 7KLVHPDLOLQVWUXFWHGWKHYLFWLPVWRZLUHWRDEDQNDFFRXQWLQ(ONKDUW,QGLDQDId.ˆ %HOLHYLQJ WKDW WKLV HPDLO ZDV IURP WKH &ROGZHOO UHDOWRU WKH YLFWLPV FRPSOLHG  Id. ˆ  6XEVHTXHQWO\RQ'HFHPEHUWKHYLFWLPVUHFHLYHGDVHFRQGHPDLOIURPWKHVDPHVSRRIHG HPDLOGRPDLQQDPH³#FEUQRYHFRP´LQVWUXFWLQJWKHYLFWLPVWRZLUHDQDGGLWLRQDOWRD EDQNDFFRXQWLQ0F.LQQH\7H[DVId.ˆˆ7KHYLFWLPVDJDLQFRPSOLHGZLWKWKHUHTXHVWDQG VHQWWRDQDFFRXQWWKDWWKHJRYHUQPHQWKDVVLQFHGHWHUPLQHGWREHLQWKHQDPHRI³0RQH\ 0RYHU´Id.ˆˆ±  2Q 'HFHPEHU   0RQH\ 0RYHU  UHTXHVWHG D FDVKLHU¶V FKHFN LQ WKH DPRXQW RI WREHPDGHSD\DEOHWRDQRWKHUNQRZQSRWHQWLDOFODLPDQW³0RQH\0RYHU´&RPSOˆ 0RQH\ 0RYHUV  DQG  GHSRVLWHG WKH PRQH\ DFURVV WZR MRLQW -3 0RUJDQ &KDVH DFFRXQWV QXPEHUHGDQGId.ˆˆ±$VRI'HFHPEHUWKHUHZDV   (PDLOVSRRILQJLQFOXGHV³PRGLI\LQJWKHLQIRUPDWLRQRQDQHPDLOKHDGHUVRWKDWWKHHPDLO DSSHDUVWRKDYHRULJLQDWHGIURPRQHVRXUFHRUVHQGHUZKHQDFWXDOO\LWRULJLQDWHGIURPDGLIIHUHQW VRXUFH´&RPSOˆ   LQDFFRXQWQXPEHUDQGLQDFFRXQWQXPEHUWRWDOLQJ Id.ˆˆ±7KHJRYHUQPHQWVHL]HGWKHVHIXQGVRQ'HFHPEHUSXUVXDQWWRDMXGLFLDOO\ DXWKRUL]HGVHL]XUHZDUUDQWId.ˆ:DUUDQWIRU$UUHVWIn Rem>'NW@  2Q2FWREHUSODLQWLIIFRPPHQFHGWKLVIRUIHLWXUHin remDFWLRQE\ILOLQJDYHULILHG FRPSODLQW VHHNLQJ WKH IRUIHLWXUH RI GHIHQGDQW IXQGV  See generally &RPSO  %HJLQQLQJ RQ 1RYHPEHUSODLQWLIISXEOLVKHGQRWLFHRIWKLVDFWLRQRQWKHRIILFLDOJRYHUQPHQWIRUIHLWXUH ZHEVLWHKWWSZZZIRUIHLWXUHJRYIRUWKLUW\FRQVHFXWLYHGD\VSXUVXDQWWR6XSSOHPHQWDO5XOHIRU $GPLUDOW\RU0DULWLPH &ODLPVDQG $VVHW )RUIHLWXUH $FWLRQV *D$IILQ6XSS RI'HIDXOW >'NW@³$II´ˆsee also )HG5&LY36XSS5IRU$GPLUDOW\RU0DU&ODLPV $VVHW )RUIHLWXUH$FWLRQV³6XSSOHPHQWDO5XOHV´*6HUYE\3XEOLFDWLRQ>'NW@3ODLQWLIIDOVR SURYLGHGGLUHFWQRWLFHWR0RQH\0RYHUVDQGWKHRQO\NQRZQSRWHQWLDOFODLPDQWVRIGHIHQGDQW IXQGVYLD)HGHUDO([SUHVVRQDSSUR[LPDWHO\1RYHPEHUSXUVXDQWWR6XSSOHPHQWDO5XOH *E$IIˆ1RSDUW\KDVFRPHIRUZDUGWRFODLPDQLQWHUHVWLQGHIHQGDQWIXQGVDQGWKHWLPH IRUILOLQJDFODLPKDVH[SLUHG Id.ˆˆ   7KH6XSSOHPHQWDO5XOHVDSSO\WRin remIRUIHLWXUHDFWLRQVWKDWDULVHIURPWKHYLRODWLRQRI YDULRXV VWDWXWHV See 6XSSOHPHQWDO 5XOH $% ³7KHVH 6XSSOHPHQWDO 5XOHV DSSO\ WRIRUIHLWXUHDFWLRQVLQUHPDULVLQJIURPDIHGHUDOVWDWXWH´United States v. $17,900.00 in U.S. Currency)G±'&&LU³>&@RQWHPSRUDU\FLYLOIRUIHLWXUHLQWKH IHGHUDOV\VWHPLVDFUHDWXUHRIVWDWXWHWKH6XSSOHPHQWDO5XOHVIRU$GPLUDOW\RU0DULWLPH&ODLPV DQG $VVHW )RUIHLWXUH $FWLRQV DQG WKH )HGHUDO 5XOHV RI &LYLO 3URFHGXUH´ FLWDWLRQ RPLWWHG 6XSSOHPHQWDO5XOH*JRYHUQVQRWLFHSURFHGXUHVIRUin remIRUIHLWXUHDFWLRQVSee 6XSSOHPHQWDO 5XOH*   7KH GHDGOLQH IRU ILOLQJ D FODLP DJDLQVW D GHIHQGDQW SURSHUW\ XQGHU 6XSSOHPHQWDO 5XOH *DLVVL[W\GD\VDIWHUWKHILUVWGD\RISXEOLFDWLRQRQWKHRIILFLDOJRYHUQPHQWIRUIHLWXUHVLWH 6XSSOHPHQWDO 5XOH *DLL%  7KH GHDGOLQH IRU ILOLQJ D FODLP XQGHU 6XSSOHPHQWDO 5XOH *ELVWKLUW\ILYHGD\VDIWHUQRWLFHLVVHQWId.*ELL%   2Q )HEUXDU\   WKH &OHUN RI &RXUW HQWHUHG GHIDXOW DJDLQVW GHIHQGDQW SXUVXDQW WR )HGHUDO5XOHRI&LYLO3URFHGXUHD&OHUN¶V(QWU\RI'HIDXOW>'NW@3ODLQWLIIKDVUHTXHVWHG WKDWWKH&RXUWHQWHUDGHIDXOWMXGJPHQWSee generally 3O¶V0RW3O¶V0HP 67$1'$5'2)5(9,(:  $FFRUGLQJ WR )HGHUDO 5XOH RI &LYLO 3URFHGXUH D ³>Z@KHQ D SDUW\ DJDLQVW ZKRP D MXGJPHQWIRUDIILUPDWLYHUHOLHILVVRXJKWKDVIDLOHGWRSOHDGRURWKHUZLVHGHIHQGDQGWKDWIDLOXUHLV VKRZQE\DIILGDYLWRURWKHUZLVHWKHFOHUNPXVWHQWHUWKHSDUW\¶VGHIDXOW´)HG5&LY3D 2QFH WKH &OHUN RI &RXUW HQWHUV D GHIDXOW D SDUW\ PD\ PRYH IRU GHIDXOW MXGJPHQW SXUVXDQW WR )HGHUDO5XOHRI&LYLO3URFHGXUHESee)HG5&LY3E$OWKRXJKWKHUHLVDJHQHUDO ³IHGHUDOSROLF\IDYRULQJWULDORYHUGHIDXOWMXGJPHQW´Whelan v. Abell)G'& &LU³ZKHQWKHDGYHUVDU\SURFHVVKDVEHHQKDOWHGEHFDXVHRIDQHVVHQWLDOO\XQUHVSRQVLYH SDUW\     WKH GLOLJHQW SDUW\ PXVW EH SURWHFWHG´ E\ DZDUGLQJ D GHIDXOW MXGJPHQW  Gilmore v. Palestinian Interim Self-Gov’t Auth.)G'&&LUTXRWLQJH.F. Livermore Corp. v. Aktiengesellschaft Gebruder Loepfe)G'&&LUSHUFXULXP RPLVVLRQLQRULJLQDO  $WULDOFRXUWKDVGLVFUHWLRQWRGHWHUPLQHZKHWKHUDGHIDXOWMXGJPHQWLVDSSURSULDWHInt’l Painters & Allied Trades Indus. Pension Fund v. R.W. Amrine Drywall Co.)6XSSG ''&FLWLQJKeegel v. Key West & Caribbean Trading Co.)GQ '&&LU8SRQHQWU\RIGHIDXOWE\WKH&OHUNRI&RXUWDGHIDXOWLQJGHIHQGDQWLVFRQVLGHUHG WR³DGPLWHYHU\ZHOOSOHDGHGDOOHJDWLRQLQWKHFRPSODLQW´Id.FLWLQJ Trans World Airlines, Inc. v. Hughes  )G   G &LU  rev’d on other grounds  86   ³$OWKRXJK WKH GHIDXOW HVWDEOLVKHV D GHIHQGDQW¶V OLDELOLW\ WKH FRXUW LV UHTXLUHG WR PDNH DQ LQGHSHQGHQWGHWHUPLQDWLRQRIWKHVXPWREHDZDUGHGXQOHVVWKHDPRXQWRIGDPDJHVLVFHUWDLQ´ Id.FLWLQJAdkins v. Teseo)6XSSG''&$FFRUGLQJO\ZKHQPRYLQJIRU   D GHIDXOW MXGJPHQW D SODLQWLII PXVW SURYH LWV HQWLWOHPHQW WR WKH DPRXQW RI PRQHWDU\ GDPDJHV UHTXHVWHGId.FLWLQJOberstar v. FDIC)GQWK&LU³,QUXOLQJRQVXFK D PRWLRQ WKH FRXUW PD\ UHO\ RQ GHWDLOHG DIILGDYLWV RU GRFXPHQWDU\ HYLGHQFH WR GHWHUPLQH WKH DSSURSULDWHVXPIRUWKHGHIDXOWMXGJPHQW´Id.FLWLQJUnited Artists Corp. v. Freeman)G WK&LU $1$/ IRU XQNQRZQ SRWHQWLDO FODLPDQWV@ ZLWKLQ D UHDVRQDEOH WLPH DIWHU ILOLQJ WKH FRPSODLQW´6XSSOHPHQWDO5XOH *DL6XSSOHPHQWDO5XOH*DLYOLVWVDFFHSWDEOH PHDQVRISXEOLFDWLRQLQFOXGLQJSXEOLVKLQJQRWLFHRQDQRIILFLDOJRYHUQPHQWIRUIHLWXUHZHEVLWHIRU DWOHDVWWKLUW\FRQVHFXWLYHGD\VId.*DLY&    VHQGLQJQRWLFHWRWKHRQO\NQRZQSRWHQWLDOFODLPDQWV0RQH\0RYHUVDQGYLD)HGHUDO([SUHVV $IIˆ6XSSOHPHQWDO5XOH *ELLL$  1RSDUW\KDVVRXJKWWRFODLPRUGHIHQGWKHIXQGVFRQWDLQHGLQWKHEDQNDFFRXQWVDQGWKH WLPHWRILOHDFODLPKDVORQJVLQFHH[SLUHGSXUVXDQWWRWKH6XSSOHPHQWDO5XOHV$IIˆˆsee 6XSSOHPHQWDO5XOH*DLL%%DVHGRQWKHUHFRUGRIWKLVFDVHWKHUHIRUHWKH&RXUWILQGVWKDW SODLQWLIILVHQWLWOHGWRIRUIHLWXUHRIWKHGHIHQGDQWIXQGV    7KHJRYHUQPHQWPXVWVHQGGLUHFWQRWLFHRIWKHDFWLRQDQGDFRS\RIWKHFRPSODLQWWRDQ\ NQRZQ SRWHQWLDO FODLPDQW  6XSSOHPHQWDO 5XOH *EL  ³>1@RWLFH PXVW EH VHQW E\ PHDQV UHDVRQDEO\FDOFXODWHGWRUHDFKWKHSRWHQWLDOFODLPDQW´Id.*ELLL$7KLVVWDQGDUGGHULYHV IURPWKHFRQVWLWXWLRQDOQRWLFHVWDQGDUGSee Mullane v. Centr. Hanover Bank & Trust Co. 86    ³$Q HOHPHQWDU\ DQG IXQGDPHQWDO UHTXLUHPHQW RI GXH SURFHVV LQ DQ\ SURFHHGLQJ ZKLFK LV WR EH DFFRUGHG ILQDOLW\ LV QRWLFH UHDVRQDEO\ FDOFXODWHG XQGHU DOO WKH FLUFXPVWDQFHV WR DSSULVH LQWHUHVWHG SDUWLHV RI WKH SHQGHQF\ RI WKH DFWLRQ DQG DIIRUG WKHP DQ RSSRUWXQLW\WRSUHVHQWWKHLUREMHFWLRQV´FLWDWLRQVRPLWWHGsee also6XSSOHPHQWDO5XOH*E $GYLVRU\&RPP1RWHV$GRSWLRQ³5XOH*H[SUHVVO\UHFRJQL]HVWKHGXHSURFHVVREOLJDWLRQ WRVHQGQRWLFHWRDQ\SHUVRQZKRUHDVRQDEO\DSSHDUVWREHDSRWHQWLDOFODLPDQW´$QGQRWLFHE\ PDLO LV VXIILFLHQW WR VDWLVI\ WKH GLUHFW QRWLFH UHTXLUHPHQW  See United States v. $4,620 in U.S. Currency  ) 6XSS G   ''&  ILQGLQJ WKDW QRWLFH YLD GLUHFW PDLOWR NQRZQ FODLPDQWVZDVVXIILFLHQWWRVDWLVI\WKHGLUHFWQRWLFHUHTXLUHPHQWVRI6XSSOHPHQWDO5XOH*E    &21&/86,21  $FFRUGLQJO\SXUVXDQWWR5XOHEWKH&RXUWZLOOJUDQWSODLQWLII¶VPRWLRQIRUGHIDXOW MXGJPHQW DV WR GHIHQGDQW in rem  LQ 86 )XQGV $VVRFLDWHG ZLWK -3 0RUJDQ &KDVH $FFRXQW1XPEHUVDQGDQGLWZLOORUGHUIRUIHLWXUHRIWKHVXPFRQWDLQHG ZLWKLQWKRVHDFFRXQWVWRSODLQWLIIZLWKLQVWUXFWLRQVWRUHWXUQWKHVXPWRWKHYLFWLPVLQWKHLQVWDQW FDVH  $VHSDUDWHRUGHUZLOOLVVXH      $0 G@HIHQGDQW>I@XQGVEHGLVEXUVHGWRWKH>Y@LFWLPV´3O¶V0HPDW