Title 18 United States Code – Crime and Criminal Procedures

Part I - Crimes

Chapter 96 – Racketeer Influenced and Corrupt Organizations

Section 1963 – Criminal Penalties 

• (a) Whoever violates any provision of section 1962 of this chapter shall be 

fined under this title or imprisoned not more than 20 years (or for life if the 

violation is based on a racketeering activity for which the maximum 

penalty includes life imprisonment), or both, and shall forfeit to the United 

States, irrespective of any provision of State law -

• (1) any interest the person has acquired or maintained in 

violation of section 1962; 

• (2) any -

• (A) interest in; 

• (B) security of; 

• (C) claim against; or 

• (D) property or contractual right of any kind affording a 

source of influence over; 

any enterprise which the person has established, operated, 

controlled, conducted, or participated in the conduct of, in 

violation of section 1962; and 

(3) any property constituting, or derived from, any proceeds 

which the person obtained, directly or indirectly, from 

racketeering activity or unlawful debt collection in violation of 

section 1962. The court, in imposing sentence on such 

person shall order, in addition to any other sentence 

imposed pursuant to this section, that the person forfeit to 

the United States all property described in this subsection. In 

lieu of a fine otherwise authorized by this section, a 

defendant who derives profits or other proceeds from an 

offense may be fined not more than twice the gross profits or 

other proceeds. 

• (b) Property subject to criminal forfeiture under this section includes -

• (1) real property, including things growing on, affixed to, and 

found in land; and 

(2) tangible and intangible personal property, including 

rights, privileges, interests, claims, and securities. 

• (c) All right, title, and interest in property described in subsection (a) vests 

in the United States upon the commission of the act giving rise to forfeiture 

under this section. Any such property that is subsequently transferred to a 

person other than the defendant may be the subject of a special verdict of 

forfeiture and thereafter shall be ordered forfeited to the United States, 

unless the transferee establishes in a hearing pursuant to subsection (l) 

that he is a bona fide purchaser for value of such property who at the time 

of purchase was reasonably without cause to believe that the property 

was subject to forfeiture under this section. 
• (d) 

• (1) Upon application of the United States, the court may enter a 

restraining order or injunction, require the execution of a 

satisfactory performance bond, or take any other action to preserve 

the availability of property described in subsection (a) for forfeiture 

under this section -

• (A) upon the filing of an indictment or information charging a 

violation of section 1962 of this chapter and alleging that the 

property with respect to which the order is sought would, in 

the 

event of conviction, be subject to forfeiture under this 

section; 

or 

• (B) prior to the filing of such an indictment or information, 

if, after notice to persons appearing to have an interest in the 

property and opportunity for a hearing, the court determines 

that 

-

• (i) there is a substantial probability that the United 

States 

will prevail on the issue of forfeiture and that failure to 

enter the order will result in the property being 

destroyed, 

removed from the jurisdiction of the court, or 

otherwise made 

unavailable for forfeiture; and 

(ii) the need to preserve the availability of the property 

through the entry of the requested order outweighs 

the hardship 

on any party against whom the order is to be entered: 

Provided, however, That an order entered pursuant to 

subparagraph (B) shall be effective for not more than 

ninety days, unless extended by the court for good 

cause shown or unless an indictment or information 

described in subparagraph (A) has been filed. 

• (2) A temporary restraining order under this subsection may be 

entered upon application of the United States without notice or 

opportunity for a hearing when an information or indictment has not 

yet been filed with respect to the property, if the United States 

demonstrates that there is probable cause to believe that the 

property with respect to which the order is sought would, in the 

event of conviction, be subject to forfeiture under this section and 

that provision of notice will jeopardize the availability of the property 

for forfeiture. Such a temporary order shall expire not more than ten 

days after the date on which it is entered, unless extended for good 

cause shown or unless the party against whom it is entered 
consents to an extension for a longer period. A hearing requested 

concerning an order entered under this paragraph shall be held at 

the earliest possible time, and prior to the expiration of the 

temporary order. 

• (3) The court may receive and consider, at a hearing held pursuant 

to this subsection, evidence and information that would be 

inadmissible under the Federal Rules of Evidence. 

• (e) Upon conviction of a person under this section, the court shall enter a 

judgment of forfeiture of the property to the United States and shall also 

authorize the Attorney General to seize all property ordered forfeited upon 

such terms and conditions as the court shall deem proper. Following the 

entry of an order declaring the property forfeited, the court may, upon 

application of the United States, enter such appropriate restraining orders 

or injunctions, require the execution of satisfactory performance bonds, 

appoint receivers, conservators, appraisers, accountants, or trustees, or 

take any other action to protect the interest of the United States in the 

property ordered forfeited. Any income accruing to, or derived from, an 

enterprise or an interest in an enterprise which has been ordered forfeited 

under this section may be used to offset ordinary and necessary expenses 

to the enterprise which are required by law, or which are necessary to 

protect the interests of the United States or third parties. 

• (f) Following the seizure of property ordered forfeited under this section, 

the Attorney General shall direct the disposition of the property by sale or 

any other commercially feasible means, making due provision for the 

rights of any innocent persons. Any property right or interest not 

exercisable by, or transferable for value to, the United States shall expire 

and shall not revert to the defendant, nor shall the defendant or any 

person acting in concert with or on behalf of the defendant be eligible to 

purchase forfeited property at any sale held by the United States. Upon 

application of a person, other than the defendant or a person acting in 

concert with or on behalf of the defendant, the court may restrain or stay 

the sale or disposition of the property pending the conclusion of any 

appeal of the criminal case giving rise to the forfeiture, if the applicant 

demonstrates that proceeding with the sale or disposition of the property 

will result in irreparable injury, harm or loss to him. Notwithstanding 31 

U.S.C. 3302(b), the proceeds of any sale or other disposition of property 

forfeited under this section and any moneys forfeited shall be used to pay 

all proper expenses for the forfeiture and the sale, including expenses of 

seizure, maintenance and custody of the property pending its disposition, 

advertising and court costs. The Attorney General shall deposit in the 

Treasury any amounts of such proceeds or moneys remaining after the 

payment of such expenses. 

• (g) With respect to property ordered forfeited under this section, the 

Attorney General is authorized to -

• (1) grant petitions for mitigation or remission of forfeiture, 

restore forfeited property to victims of a violation of this 
chapter, or take any other action to protect the rights of 

innocent persons which is in the interest of justice and which is 

not inconsistent with the provisions of this chapter; 

• (2) compromise claims arising under this section; 

• (3) award compensation to persons providing information 

resulting in a forfeiture under this section; 

• (4) direct the disposition by the United States of all property 

ordered forfeited under this section by public sale or any other 

commercially feasible means, making due provision for the rights 

of innocent persons; and 

(5) take appropriate measures necessary to safeguard and 

maintain property ordered forfeited under this section pending 

its disposition. 

• (h) The Attorney General may promulgate regulations with respect to -

• (1) making reasonable efforts to provide notice to persons who 

may have an interest in property ordered forfeited under this 

section; 

• (2) granting petitions for remission or mitigation of 

forfeiture; 

• (3) the restitution of property to victims of an offense 

petitioning for remission or mitigation of forfeiture under this 

chapter; 

• (4) the disposition by the United States of forfeited property 

by public sale or other commercially feasible means; 

• (5) the maintenance and safekeeping of any property forfeited 

under this section pending its disposition; and 

(6) the compromise of claims arising under this chapter. Pending 

the promulgation of such regulations, all provisions of law relating 

to the disposition of property, or the proceeds from the sale thereof, 

or the remission or mitigation of forfeitures for violation of the 

customs laws, and the compromise of claims and the award of 

compensation to informers in respect of such forfeitures shall apply 

to forfeitures incurred, or alleged to have been incurred, under the 

provisions of this section, insofar as applicable and not inconsistent 

with the provisions hereof. Such duties as are imposed upon the 

Customs Service or any person with respect to the disposition of 

property under the customs law shall be performed under this 

chapter by the Attorney General. 

• (i) Except as provided in subsection (l), no party claiming an interest in 

property subject to forfeiture under this section may -

• (1) intervene in a trial or appeal of a criminal case involving 

the forfeiture of such property under this section; or 

• (2) commence an action at law or equity against the United 

States concerning the validity of his alleged interest in the 

property subsequent to the filing of an indictment or information 
alleging that the property is subject to forfeiture under this 

section. 

• (j) The district courts of the United States shall have 

jurisdiction to enter orders as provided in this section without 

regard to the location of any property which may be subject 

to forfeiture under this section or which has been ordered 

forfeited under this section. 

• (k) In order to facilitate the identification or location of 

property declared forfeited and to facilitate the disposition of 

petitions for remission or mitigation of forfeiture, after the 

entry of an order declaring property forfeited to the United 

States the court may, upon application of the United States, 

order that the testimony of any witness relating to the 

property forfeited be taken by deposition and that any 

designated book, paper, document, record, recording, or 

other material not privileged be produced at the same time 

and place, in the same manner as provided for the taking of 

depositions under Rule 15 of the Federal Rules of Criminal 

Procedure. 

• (l) 

• (1) Following the entry of an order of forfeiture under 

this section, the United States shall publish notice of 

the order and of its intent to dispose of the property in 

such manner as the Attorney General may direct. The 

Government may also, to the extent practicable, 

provide direct written notice to any person known to 

have alleged an interest in the property that is the 

subject of the order of forfeiture as a substitute for 

published notice as to those persons so notified. 

• (2) Any person, other than the defendant, asserting a 

legal interest in property which has been ordered 

forfeited to the United States pursuant to this section 

may, within thirty days of the final publication of notice 

or his receipt of notice under paragraph (1), 

whichever is earlier, petition the court for a hearing to 

adjudicate the validity of his alleged interest in the 

property. The hearing shall be held before the court 

alone, without a jury. 

• (3) The petition shall be signed by the petitioner under 

penalty of perjury and shall set forth the nature and 

extent of the petitioner's right, title, or interest in the 

property, the time and circumstances of the 

petitioner's acquisition of the right, title, or interest in 

the property, any additional facts supporting the 

petitioner's claim, and the relief sought. 
• (4) The hearing on the petition shall, to the extent 

practicable and consistent with the interests of justice, 

be held within thirty days of the filing of the petition. 

The court may consolidate the hearing on the petition 

with a hearing on any other petition filed by a person 

other than the defendant under this subsection. 

• (5) At the hearing, the petitioner may testify and 

present evidence and witnesses on his own behalf, 

and cross-examine witnesses who appear at the 

hearing. The United States may present evidence and 

witnesses in rebuttal and in defense of its claim to the 

property and cross-examine witnesses who appear at 

the hearing. In addition to testimony and evidence 

presented at the hearing, the court shall consider the 

relevant portions of the record of the criminal case 

which resulted in the order of forfeiture. 

• (6) If, after the hearing, the court determines that the 

petitioner has established by a preponderance of the 

evidence that -

• (A) the petitioner has a legal right, title, or 

interest in the 

property, and such right, title, or interest 

renders the order of 

forfeiture invalid in whole or in part because the 

right, title, 

or interest was vested in the petitioner rather 

than the 

defendant or was superior to any right, title, or 

interest of the 

defendant at the time of the commission of the 

acts which gave 

rise to the forfeiture of the property under this 

section; or 

• (B) the petitioner is a bona fide purchaser for 

value of the 

right, title, or interest in the property and was at 

the time of 

purchase reasonably without cause to believe 

that the property 

was subject to forfeiture under this section; the 

court shall amend the order of forfeiture in 

accordance with its determination. 

• (7) Following the court's disposition of all petitions 

filed under this subsection, or if no such petitions are 

filed following the expiration of the period provided in 

paragraph (2) for the filing of such petitions, the 
United States shall have clear title to property that is 

the subject of the order of forfeiture and may warrant 

good title to any subsequent purchaser or transferee. 

• (m) If any of the property described in subsection (a), as a 

result of any act or omission of the defendant -

• (1) cannot be located upon the exercise of due diligence; 

• (2) has been transferred or sold to, or deposited with, a third 

party; 

• (3) has been placed beyond the jurisdiction of the court; 

• (4) has been substantially diminished in value; or 

• (5) has been commingled with other property which cannot be

divided without difficulty; the court shall order the forfeiture of any 

other property of the defendant up to the value of any property 

described in paragraphs (1) through (5).