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IN THE UNITED STATES DISTRICT COURT FOR THE

NORTHERN DISTRICT OF FLORIDA

GAINESVILLE DIVISION

UNITED STATES OF AMERICA,

v. CASE NO. 1:02-cr-00038-MP

MAHMOUD ELDICK,

Defendant.

___________________________/

O R D E R 

This matter is before the Court on claims under 21 U.S.C. § 853(n), filed by the

defendant's brother, Moustafa Eldick, challenging the government's forfeiture of various assets

as a result of the conviction of defendant. Both the government and Claimant Moustafa Eldick

have moved for summary judgment, (the government at doc. 122, and Claimant at doc. 123). 

The parties have also jointly moved the Court (docs. 108 and 113) to defer any ruling on the

admissibility of polygraph evidence until after the Court decides summary judgment. For the

reasons which follow, the government's motion for summary judgment is granted and the

Claimant's is denied.

The Preliminary Order of Forfeiture lists a total of 30 assets that are subject to forfeiture.

(Doc. 66). Claimant Moustafa Eldick has filed a claim on asset numbers 1 through 23, most of

which involve the false medical practice of Defendant Mahmoud Eldick. (Doc. 82) Claimant

argues that his brother deceived him about whether he was a doctor and therefore the oral

contract between the brothers was void. Since the contract between the Claimant and Mahmoud

Eldick was void ab initio, Claimant argues, he is an innocent owner and entitled to judgment as a

matter of law with respect to the determination that Claimant is the true owner of all money paid

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to Community Rural Health and directly attributable to the services performed by the Claimant. 

As discussed more fully below, the Court rejects this argument, and finds that all assets are

properly forfeited.

The Preliminary Order of Forfeiture was published on December 16, 23, and 30, 2003,

and January 6, 2004, in the Palatka Daily News, a newspaper of general circulation. No claims

have been filed as to asset numbers 24 through 30. There being no third party claims to be

adjudicated, these assets should be ordered forfeited and disposed of according to law. The

disposition of assets 1 through 23 is discussed below.

Asset #1, real property located at 126 South County Road 315, Interlachen, Putnam

County, Florida, is one of the clinics that Defendant Mahmoud Eldick worked out of. (Ex. D, p.

82, Ex. F) This property was originally placed in Defendant Mahmoud Eldick’s name. (Ex. F,

H). While it was later purchased by Saadedine Aldick (Defendant Mahmoud Eldick’s brother),

the documentary stamps (.70¢) show that it, along with another property, were not arms length

transactions. Id. Moreover, Saadedine Aldick has made no claim to any property in this

proceeding. As noted above, the Claimant argues that Defendant Mahmoud Eldick purchased

this asset using funds collected while the Defendant pretended to be a medical doctor. Claimant

further argues that when Defendant collected payments fraudulently, the Defendant was in effect

taking funds that should have been paid to Claimant. Thus, Claimant concludes, Claimant

should be considered the rightful owner of the property, not Defendant. The Claimant offers no

case law supporting this point, and the Court agrees with the government that even if Defendant

breached some kind of contract with the Claimant, that would merely make the Claimant an

unsecured creditor of the Defendant. Unsecured creditors do not have standing to challenge

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forfeiture under 21 U.S.C. § 853(n). U.S. v. Watkins, 320 F.3d 1279, 1283-84 (11th Cir. 2003). 

Because Claimant has no other argument to support his claim to this asset, his claim should be

denied.

Likewise, Asset #4, real property located at 1419 Husson Avenue, Palatka, Florida, was

originally placed in Defendant Mahmoud Eldick’s name, and later deeded to Saadedine Aldick

for no consideration on August 29, 2002. (Ex. B, p. 37, 38; Ex. F, I) The Court agrees that this

was not an arms length transaction and Saadedine Aldick has made no claim to the property.

Having been purchased by Defendant Mahmoud Eldick during the commission of his crimes,

these properties should be forfeited as Claimant offers no argument for ownership other than the

one rejected in the discussion of Asset #1.

Asset #2, real property located at 2179 Bass Capital Drive, Crescent City, was the marital

residence of Defendant Mahmoud Eldick and his wife Rola. (Ex. F, Doc 74) The property was

purchased on April 16, 1999, during the time period of Defendant Mahmoud Eldick’s crimes,

and placed in Rola’s name. Id. On December 29, 2003, Rola filed a Letter Motion for

Reconsideration and to Set Aside Forfeiture of Property located at 217 Bass Capital Drive,

Crescent City, Florida, 32112 (Doc. 74) The government responded (Doc. 79) and the Court

denied the motion on March 1, 2004. (Doc 85) Rola Eldick has not filed a claim other than the

letter. There being no claim filed other than that of Claimant, and since the Claimant offers no

argument for ownership other than the one rejected in the discussion of Asset #1, the marital

home should be forfeited. 

Asset #3 is real property located at 897 N. Summit St., Crescent City, Putnam County,

Florida. This property was purchased by Defendant Mahmoud Eldick on July 15, 1999, during

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the time he was committing the crimes he was convicted of. (Ex. F) Since the Claimant offers no

argument for ownership other than the one rejected in the discussion of Asset #1, the property

should be forfeited. 

Assets # 5, 6, 7, and 8 are real properties known as: 304-A and 304-B Cypress Ave.,

Crescent City; Parcel Number 30-12-28-1750-0020-0032, Putnam County, Florida; real property

located at 33 South Summit Street, Crescent City, Putnam County, Florida; and real property

located at 40 South Prospect Street, Crescent City, Putnam County, Florida. These properties

were purchased by ETRA Enterprises, Inc., on November 9, 2001. Id. Defendant Mahmoud

Eldick is both a Director and President of this corporation. Id. Furthermore, the address for

ETRA is 215 Bass Capital Drive, Crescent City, Florida, Defendant Mahmoud Eldick’s marital

address. Id. The Claimant has testified that he has no interest in the corporation at all. (See The

Corporate Entity section and record citation above) Since no claim has been filed by any person

or entity other than Claimant, and since the Claimant offers no argument for ownership other

than the one rejected in the discussion of Asset #1, these parcels should be forfeited. 

Assets # 9, 10, 11, 12, 13, 14, and 15 are: parcels of real property known as 315 Central

Ave., Crescent City; 31 South Summit Street, Crescent City; 311 Central Ave., Crescent City;

Parcel # 30-12-28-1750-0020-0041, Putnam County; 301 Central Ave., Crescent City; Parcel

Number 30-12-28-1750-0020-0013; and 1 South Summit Street, Crescent City. According to the

documentary stamps, these seven parcels were purchased by ETRA on October 26, 2001, for

$150,000. (Ex. F) This is during the time period Defendant Mahmoud Eldick was committing the

crimes he was convicted of. Other than Claimant’s claim, no other claim has been filed on the

parcels. Since Claimant offers no argument for ownership other than the one rejected in the

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discussion of Asset #1, these properties should be forfeited. 

Asset #16 is $192,530.62 in United States Currency. This currency was found in a safe

located in Defendant Mahmoud Eldick’s home during a consent search. (Doc. 49; Ex. B, p. 42)

Defendant Mahmoud Eldick admitted that this money came from Community Pharmacy. Id.

Claimant has admitted that he had no ownership or other interest in the pharmacy other than

money he allegedly paid to pharmacy creditors to keep it open after Defendant Mahmoud

Eldick’s arrest. As discussed above, Claimant's voluntary payment at most makes him an

unsecured creditor of Defendant and therefore does not satisfy the requirements of a third party

under 21 U.S.C. 853(n)(6). Thus, the currency should be forfeited. 

Assets # 17, 18 and 19 are bank accounts located at Mercantile Bank. Account

#8600168841 was opened on August 14, 2002, in the name of Defendant Mahmoud Eldick and

his wife, Rola. (Ex. F) Both are authorized to sign on the account. Id. Rola filed a claim on this

account based on her receipt of $29,354.08 from an insurance company settlement on a vehicle

owned by her that was involved in an accident. (Ex. A) The Federal Bureau of Investigation has

advised that the government does not object to the Court awarding her $29,354.08 from this

account with the balance being forfeited. Account #7600010165 (asset #18) is an account opened

on March 25, 2002, in the name of Community Rural Health, Inc., Clinic Account. (Ex. F) The

only authorized signature on the account is Defendant Mahmoud Eldick’s. Claimant could not

even write a check on the account. Id. While the corporate paperwork lists both Defendant

Mahmoud Eldick and Claimant as directors until March 4, 2004, Claimant has testified that he

was not aware of any involvement he had with that entity other than he worked there. (See

record citations above) As such, since the Claimant offers no argument for ownership other than

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the one rejected in the discussion of Asset #1, this account should be forfeited. Account #

7600010176 (Asset #19) was opened on March 25, 2002, in the name of Community Rural

Health, Inc., Pharmacy Account. (Ex. F) Defendant Mahmoud Eldick is the only person

authorized to sign on the account. Id. Claimant has testified he had nothing to do with the

pharmacy. Since the Claimant offers no argument for ownership other than the one rejected in

the discussion of Asset #1, this account should be forfeited. 

Assets 20 and 21 are accounts located at First Federal Bank of North Florida. (Ex. F)

Account #0000185821 was opened in the name of Community Rural Health, Inc., Pharmacy

Account. Id. The only person authorized to sign on it is Defendant Mahmoud Eldick. Id.

Claimant has already disavowed any connection with the pharmacy. As such, and since the

Claimant offers no argument for ownership other than the one rejected in the discussion of Asset

#1, the account should be forfeited. Account #0000184279 was opened in the name of

Community Rural Health, Inc. Id. The only person authorized to sign is Defendant Mahmoud

Eldick. Id. Since the Claimant offers no argument for ownership other than the one rejected in

the discussion of Asset #1, this account should be forfeited. 

Assets 22 and 23 are Ameri-Trade accounts in the name of Defendant Mahmoud Eldick.

The only person authorized to sign on the account is Defendant Mahmoud Eldick. Id. In one of

the accounts, Defendant Mahmoud Eldick used the alias Mahmoud “Aldique.” Since these are

personal accounts of Defendant Mahmoud Eldick, and since the Claimant offers no argument for 

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ownership other than the one rejected in the discussion of Asset #1, these accounts should be

forfeited.

Accordingly, it is hereby 

ORDERED AND ADJUDGED:

The motions to defer ruling, etc. (doc. 108 and 113) are granted to the extent that the

Court has deferred ruling on the admissibility issues, and denied as moot based on the

instant order.

Doc. 122, the Government's motion for summary judgment, is granted, and all 23 assets

discussed above are declared properly forfeitable.

Doc. 123, the Claimant's motion for partial summary judgment, is denied.

DONE AND ORDERED this 1st day of November, 2005

 s/Maurice M. Paul 

 Maurice M. Paul, Senior District Judge

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