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Anne Chapman (#025969)

anne@mscclaw.com

MITCHELL | STEIN | CAREY | CHAPMAN, PC

One Renaissance Square

2 North Central Avenue, Suite 1450

Phoenix, AZ 85004

Telephone: (602) 388-1232

UNITED STATES DISTRICT COURT

DISTRICT OF ARIZONA

United States of America,

Plaintiff,

vs.

Michael Lacey, et al.,

Defendants.

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No. CR-18-00422-PHX-SPL (BSB)

EMERGENCY MOTION TO STAY 

SEIZURE OF ATTORNEYS’ FEES 

AND JOINDER IN DEFENDANT 

PADILLA AND VAUGHT’S 

EMERGENCY MOTION TO STAY 

SEIZURE OF ATTORNEYS’ FEES 

AND REQUEST FOR IMMEDIATE 

HEARING

Undersigned counsel hereby request this Court issue a stay of seizure warrants 

directed to funds held in counsel’s trust account for the payment of attorneys’ fees in 

connection with the representation of witnesses in the above-captioned criminal case and 

to determine the issues raised in Defendants’ Padilla and Vaughts’ Emergency Motion to 

Stay Seizure of Attorneys’ Fees and Request for Immediate Hearing (“Padilla and Vaught 

Motion”) currently set for hearing by this Court on November 16, 2018. 

On November 8, 2018 counsel was notified by an attorney from the United States 

Department of Justice’s Money Laundering and Asset Recovery Section that a warrant 

had been issued (but not yet served) for the seizure of funds being held in counsel’s 

IOLTA bank account to secure the payment of fees not yet earned in connection with the 

representation of various current and former Backpage employee witnesses in this case. 

Case 2:18-cr-00422-DJH Document 365 Filed 11/09/18 Page 1 of 3
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See Seizure Warrant attached hereto as Exhibit A. Counsel was directed to wire funds to 

the United States by no later than Tuesday, November 13, 2018. See Email from Patrick 

Reid attached hereto as Exhibit B. The government advised that unless the funds were 

received by November 13, 2018, the seizure warrants would be served, which may result 

in the freezing of counsel’s entire IOLTA account.

Counsel, having just received the communication yesterday, realizing Monday 

November 12 is a bank holiday and that the November 13 date would require immediate 

action to comply, requested a two-week continuance to permit contact with the eight 

clients impacted by the Warrant and to permit this Court to conduct the hearing set on 

November 16, 2018. See November 9, 2018 Letter from Anne Chapman attached hereto 

as Exhibit C. Undersigned counsel represented that the law firm would not move or

otherwise access the funds sitting in its IOLTA account that are subject to the Warrant 

during the period of any stay. Counsel did not receive a response to the letter and 

attempted to contact Mr. Reid and Mr. Kucera by phone. Reached by phone, Mr. Kucera 

refused the request for a brief continuance but deferred to his Department of Justice 

colleagues. Mr. Kucera followed up by email, copying yet another Department of Justice 

attorney, Ms. Wick, who likewise confirmed that no extension of time would be 

provided. See attached email chain with Ms. Wick and Mr. Kucera, attached hereto as 

Exhibit D.

Counsel now requests an emergency stay of the seizure of these funds because

counsel needs time to contact clients impacted by the Warrant and this Court needs time 

to determine the important issues raised in the Padilla and Vaught Motion. That Motion 

raises significant legal issues regarding the seizure of these assets and this Court is set to 

hear those issues on November 16. If the Court determines that the government’s novel 

theory of forfeiture, which has never been accepted on the merits by any court, is 

incorrect, the seizure of these funds is illegal and would be premature. A brief 

continuance to permit the Court to resolve these issues is appropriate and will permit

Case 2:18-cr-00422-DJH Document 365 Filed 11/09/18 Page 2 of 3
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undersigned counsel to contact the several impacted clients while the Court determines 

the legality of the seizure. 

Granting relief creates no harm to the government because counsel has agreed to 

maintain and not access the funds subject to the Warrant. A stay of brief duration will 

permit this Court to determine the validity of the Warrant and for counsel to contact 

impacted clients. 

RESPECTFULLY SUBMITTED this 9th day of November, 2018.

MITCHELL | STEIN | CAREY | CHAPMAN, PC

By: /s/ Anne M. Chapman

Anne M. Chapman

Attorneys for Witnesses

CERTIFICATE OF SERVICE

I certify that on November 9th, 2018, I electronically transmitted a PDF version of 

this document to the Clerk of Court, using the CM/ECF System, for filing and for 

transmittal of a Notice of Electronic Filing to all CM/ECF registrants:

/s/ Julie Greenwood

Case 2:18-cr-00422-DJH Document 365 Filed 11/09/18 Page 3 of 3