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relating to the seizure, forfeiture, or disposition of for-
feited property brought under this subchapter.’’
SEC. 412. CERTIFICATE OF REASONABLE CAUSE.
Section 2465 of title 28, United States Code, is
amended—
(1) by striking ‘‘property seized’’ and inserting
‘‘property seized or arrested’’; and
(2) by striking ‘‘seizure’’ each time it appears
and inserting ‘‘seizure or arrest’’.
SEC. 413. CONFORMING TREASURY AND JUSTICE FUNDS.
(a) Section 9703(c0 of title 31, United States Code,
is amended by striking ‘‘subsection (g)(2)’’ and inserting
‘‘subsection (g)(1)’’ and by deleting ‘‘in excess of
$10,000,000 for a fiscal year.’’
(b) Section 9703(g) of title 31, United States Code,
is amended—
(1) in paragraph (1), by striking ‘‘subsection
(a)(1)’’ and inserting ‘‘subsections (a)(1) and (c)’’;
and
(2) in paragraph (2), by striking ‘‘subsections
(a)(2) and (c)’’ and inserting ‘‘subsection (a)(2)’’.
(c) DEPOSIT FROM SETTLEMENT IN LIEU OF FOR-
FEITURE.—Section 9703(d) of title 31, United States
Code, is amended by inserting ‘‘or from any settlement
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in lieu of forfeiture,’’ before ‘‘under any law’’ each time
it appears.
(d) Subsection 524(c)(6) of title 28, United States
Code, is amended by adding the following sentence to the
end thereof: ‘‘Amounts transferred by the Secretary of
Treasury pursuant to section 9703 of title 31, or by the
Postmaster General pursuant to section 2003 of title 39,
shall be available to the Attorney General for Federal law
enforcement and criminal prosecution purposes of the De-
partment of Justice.’’
SEC. 414. DISPOSITION OF PROPERTY FORFEITED UNDER
CUSTOMS LAWS.
Section 616A of the Tariff Act of 1930 (19 U.S.C.
1616a) is amended—
(1) by adding the following new paragraph to
subsection (c):
‘‘(4) Whenever property is civilly or criminally
forfeited by or for the United States Customs Serv-
ice, including administrative forfeiture under the
provisions of this title, the Secretary of the Treasury
may dispose of the property in accordance with law,
including—
‘‘(A) by selling the property through any
commercially feasible means, provided that the
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property is not required to be destroyed by law
and is not harmful to the public; or
‘‘(B) by requesting the General Services
Administration to take custody of the property
and to dispose of it in accordance with law.’’;
and
(2) by amending the title of the section to read
as follows: ‘‘RETENTION, TRANSFER, OR
DIS-
POSITION OF FORFEITED PROPERTY’’.
SEC. 415. TECHNICAL AMENDMENTS RELATING TO OBLIT-
ERATED MOTOR VEHICLES IDENTIFICATION
NUMBERS.
Section 512 of title 18, United States Code, is
amended—
(1) in subsection (b), by inserting ‘‘and the pro-
visions of chapter 46 of this title relating to civil ju-
dicial forfeitures’’ before ‘‘shall apply’’; and
(2) in subsection (a)(1), by striking ‘‘does not
know’’ and all that follows up to the semicolon and
inserting ‘‘is an innocent owner as defined in section
983 of this title’’.
SEC. 416. FUGITIVE DISENTITLEMENT.
(a) IN GENERAL.—Chapter 163 of title 28, United
States Code, is amended by inserting the following new
section:
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§ 2467. Fugitive disentitlement
‘‘Any person who, in order to avoid criminal prosecu-
tion, purposely leaves the jurisdiction of the United States,
declines to enter or reenter the United States to submit
to its jurisdiction, or otherwise evades the jurisdiction of
the court where a criminal case is pending against the per-
son, may not use the resources of the courts of the United
States in furtherance of a claim in any related civil forfeit-
ure action or a claim in third-party proceedings in any
related criminal forfeiture action.’’
(b) CONFORMING AMENDMENT.—The chapter analy-
sis for chapter 163 of title 28, United States Code, is
amended by inserting the following at the end:
‘‘2467. Fugitive disentitlement.’’
SEC. 417. ADMISSIBILITY OF FOREIGN BUSINESS RECORDS.
(a) IN GENERAL.—Chapter 163 of title 28, United
States Code, is amended by adding at the end the follow-
ing new section:
§ 2468. Foreign records
‘‘(a) In a civil proceeding in a court of the United
States, including civil forfeiture proceedings and proceed-
ings in the United States Claims Court and the United
States Tax Court, a foreign record of regularly conducted
activity, or copy of such record, obtained pursuant to an
official request, shall not be excluded as evidence by the
hearsay rule of a foreign certification, also obtained pursu-
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ant to the same official request or subsequent official re-
quest that adequately identifies such foreign record, at-
tests that—
‘‘(1) such record was made, at or near the time
of the occurrence of the matters set forth, by (or
from information transmitted by) a person with
knowledge of those matters;
‘‘(2) such record was kept in the course of a
regularly conducted business activity;
‘‘(3) the business activity made such a record
as a regular practice; and
‘‘(4) if such record is not the original, such
record is a duplicate of the original;
unless the source of information or the method or cir-
cumstances of preparation indicate lack of trust-
worthiness.
‘‘(b) A foreign certification under this section shall
authenticate such record or duplicate.
‘‘(c) As soon as practicable after a responsive plead-
ing has been filed, a party intending to offer in evidence
under this section a foreign record of regularly conducted
activity shall provide written notice of that intention to
each other party. A motion opposing admission in evidence
of such record shall be made by the opposing party and
determined by the court before trial. Failure by a party
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to file such motion before trial shall constitute a waiver
of objection to such record or duplicate, but the court for
cause shown may grant relief from the waiver.
‘‘(d) As used in this section, the term—
‘‘(1) ‘foreign record of regularly conducted ac-
tivity’ means a memorandum, report, record, or data
compilation, in any form, of acts, events, conditions,
opinions, or diagnoses, maintained in a foreign coun-
try;
‘‘(2) ‘foreign certification’ means a written dec-
laration made and signed in a foreign country by the
custodian of a record of regularly conducted activity
or another qualified person, that if falsely made,
would subject the maker to criminal penalty under
the law of that country;
‘‘(3) ‘business’ includes business, institution,
association, profession, occupation, and calling of
every kind whether or not conducted for profit; and
‘‘(4) ‘official request’ means a letter rogatory, a
request under an agreement, treaty or convention, or
any other request for information or evidence made
by a court of the United States or an authority of
the United States having law enforcement respon-
sibility, to a court or other authority of a foreign
country.’’
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(b) CONFORMING AMENDMENT.—The chapter analy-
sis for chapter 163 of title 28, United States Code, is
amended by inserting the following at the end:
‘‘2468. Foreign records.’’
SEC. 418. DESTRUCTION OR REMOVAL OF PROPERTY TO
PREVENT SEIZURE.
(a) Section 2232(a) of title 18, United States Code,
is amended by—
(1) inserting ‘‘or seizure’’ after ‘‘Physical inter-
ference with search’’;
(2) inserting ‘‘, including seizure for forfeit-
ure,’’ after ‘‘after seizure’’;
(3) striking ‘‘searches and seizures’’ after ‘‘au-
thorized to make’’ and inserting ‘‘searches or sei-
zures’’;
(4) striking ‘‘or’’ after ‘‘wares,’’; and
(5) inserting ‘‘, or other property, real or per-
sonal,’’ after ‘‘merchandise.’’
(b) Section 2232(b) of title 18, United States Code,
is amended by—
(1) inserting ‘‘or seizure’’ after ‘‘Notice of
search’’;
(2) striking ‘‘searches and seizures’’ after ‘‘au-
thorized to make’’ and inserting ‘‘searches or sei-
zures’’;
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(3) inserting ‘‘, including seizure for forfeit-
ure,’’ after ‘‘likely to make a search or seizure’’; and
(4) inserting ‘‘real or personal,’’ after ‘‘mer-
chandise or other property,’’.
SEC. 419. PROSPECTIVE APPLICATION
(a) IN GENERAL.—Unless otherwise specified in this
section or in another provision of this Act, all amendments
in this Act shall apply to forfeiture proceedings com-
menced on or after the effective date of this Act.
(b) ADMINISTRATIVE FORFEITURES.—All amend-
ments in this Act relating to seizures and administrative
forfeitures shall apply to seizures and forfeitures occurring
on or after the sixtieth day after the effective date of this
Act.
(c) CIVIL JUDICIAL FORFEITURES.—All amendments
in this Act relating to the judicial procedures applicable
once a civil forfeiture complaint is filed by the government
shall apply to all cases in which the forfeiture complaint
is filed on or after the sixtieth day after the effective date
of this Act.
(d) CRIMINAL FORFEITURE.—All amendments in
this Act relating to the procedures applicable in criminal
forfeiture cases shall apply to cases in which the indict-
ment or information is filed on or after the effective date
of this Act.
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(e) SUBSTANTIVE LAW.—All amendments in this Act
expanding substantive forfeiture law to make property
subject to civil or criminal forfeiture which was not pre-
viously subject to forfeiture shall apply to offenses occur-
ring on or after the effective date of this Act.
TITLE V—CRIMINAL FORFEITURE
SEC. 501. UNIFORM PROCEDURES FOR CRIMINAL FORFEIT-
URE
(a) IN GENERAL.—Section 982(b)(1) of title 18,
United States Code, is amended to read as follows:
‘‘(b)(1) The forfeiture of property under this section,
including any seizure and disposition of the property and
any related administrative or judicial proceeding, shall be
governed by the provisions of section 413 of the Com-
prehensive Drug Abuse Prevention and Control Act of
1970 (21 U.S.C. 853), except for subsection 413(d) which
shall not apply to forfeitures under this section.’’
(b) RICO.—Section 1963 of title 18, United States
Code, is amended by repealing subsections (b) through
(m) and inserting the following after subsection (a):
‘‘(b) The forfeiture of property under this section, in-
cluding any seizure and disposition of the property and
any related administrative or judicial proceeding, shall be
governed by the provisions of section 413 of the Com-
prehensive Drug Abuse Prevention and Control Act of
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1970 (21 U.S.C. 853), except for subsection 413(d) which
shall not apply to forfeitures under this section.’’
(c) OBSCENITY.—Section 1466 of title 18, United
States Code, is amended by repealing subsections (b)
through (n) and inserting the following after subsection
(a):
(b) The forfeiture of property under this section, in-
cluding any seizure and disposition of the property and
any related administrative or judicial proceeding, shall be
governed by the provisions of section 413 of the Com-
prehensive Drug Abuse Prevention and Control Act of
1970 (21 U.S.C. 853), except for subsection 413(d) which
shall not apply to forfeitures under this section.’’
(d) CHILD PORNOGRAPHY.—Section 2253 of title 18,
United States Code, is amended by repealing subsections
(b) through (o) and inserting the following after sub-
section (a):
‘‘(b) The forfeiture of property under this section, in-
cluding any seizure and disposition of the property and
any related administrative or judicial proceeding, shall be
governed by the provisions of section 413 of the Com-
prehensive Drug Abuse Prevention and Control Act of
1970 (21 U.S.C. 853), except for subsection 413(d) which
shall not apply to forfeitures under this section.’’
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(e) ESPIONAGE.—Section 794(d)(3) of title 18, Unit-
ed States Code, is amended to read as follows:
‘‘(3) The forfeiture of property under this section, in-
cluding any seizure and disposition of the property and
any related administrative or judicial proceeding, shall be
governed by the provisions of section 413 of the Com-
prehensive Drug Abuse Prevention and Control Act of
1970 (21 U.S.C. 853), except for subsection 413(d) which
shall not apply to forfeitures under this section.’’
(f) FIREARMS.—Section 3665 of title 18, United
States Code, is amended by—
(1) redesignating the first unnumbered para-
graph as subsection (a)(1) and the second unnum-
bered paragraph as subsection (a)(2); and
(2) by adding the following subsection at the
end:
‘‘(b) The forfeiture of property under this section, in-
cluding any seizure and disposition of the property and
any related administrative or judicial proceeding, shall be
governed by the provisions of section 413 of the Com-
prehensive Drug Abuse Prevention and Control Act of
1970 (21 U.S.C. 853), except for subsection 413(d) which
shall not apply to forfeitures under this section.’’
(g) FOOD STAMP FRAUD.—15(h) of the Food Stamp
Act of 1977 (7 U.S.C. 2024(h)) is amended—
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(1) by striking paragraphs (1), (2) and (3) and
inserting the following:
‘‘(1) The court, in imposing sentence on any
person convicted of a violation of subsection (b) or
(c), shall order, in addition to any other sentence
imposed under this section and irrespective of any
provision of State law, that the person forfeit to the
United States—
‘‘(A) any of such person’s property used in
a transaction or attempted transaction, to com-
mit or to facilitate the commission of such vio-
lation (other than a misdemeanor); and
(B) any property, real or personal, con-
stituting, derived from, or traceable to any pro-
ceeds such person obtained directly or indirectly
as a result of such violation.
‘‘(2) All property subject to forfeiture under
this subsection, any seizure and disposition thereof,
and any proceeding relating thereto, shall be gov-
erned by section 413 of the Comprehensive Drug
Abuse Prevention and Control Act of 1970 (21
U.S.C. 853, with the exception of subsection (d)
which shall not apply to forfeitures under this sec-
tion.’’; and
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(2) by redesignating paragraph (4) as para-
graph (3).
(h) IMMIGRATION OFFENSES.—The second para-
graph (6) of subsection 982(a) of title 18, United States
Code, is amended by striking ‘‘(A)’’ and all of subpara-
graph (B).
SEC. 502. USE OF CRIMINAL FORFEITURE AS AN ALTER-
NATIVE TO CIVIL FORFEITURE.
Section 2461 of title 28, United States Code, is
amended by adding the following subsection:
‘‘(c) Whenever a forfeiture of property is authorized
in connection with a violation of an Act of Congress, and
any person is charged in an indictment or information
with such violation but no specific statutory provision is
made for criminal forfeiture upon conviction, the govern-
ment may include the forfeiture in the indictment or infor-
mation in accordance with the Federal Rules of Criminal
Procedure, and upon conviction, the court shall order the
forfeiture of the property in accordance with the proce-
dures set forth in section 413 of the Comprehensive Drug
Abuse Prevention and Control Act of 1970 (21 U.S.C.
853).’’
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SEC. 503. FEDERAL RULES OF CRIMINAL PROCEDURE.
(a) IN GENERAL.—The Federal Rules of Criminal
Procedure are amended by inserting the following new rule
after rule 32.1:
§ 32.2 Criminal forfeiture
‘‘(a) INDICTMENT AND INFORMATION.—No judgment
of forfeiture may be entered in a criminal proceeding un-
less the indictment or the information alleges that the de-
fendant or defendants have an interest in property that
is subject to forfeiture in accordance with the applicable
statute.
‘‘(b) HEARING AND ENTRY OF PRELIMINARY ORDER
OF FORFEITURE AFTER VERDICT.—Within 10 days of en-
tering a verdict of guilty or accepting a plea of guilty or
nolo contendere on any count in the indictment or infor-
mation for which criminal forfeiture is alleged, the court
must determine what property is subject to forfeiture be-
cause of its relationship to the offense. The determination
may be based on evidence already in the record, including
any written plea agreement, or on evidence adduced at a
post-trial hearing. If the court finds that property is sub-
ject to forfeiture, it must enter a preliminary order direct-
ing the forfeiture of whatever interest each defendant may
have in the property, without determining what that inter-
est may be. A determination of the extent of each defend-
ant’s interest in the property will be deferred until any
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third party claiming an interest in the property has peti-
tioned the court pursuant to statute for consideration of
the claim. If no such petition is timely filed, the property
is presumed to be the property of the defendant or defend-
ants and is forfeited in its entirety.
‘‘(c) PRELIMINARY ORDER OF FORFEITURE.—The
entry of a preliminary order of forfeiture will authorize
the Attorney General to seize the property subject to for-
feiture, to conduct such discovery as the court may deem
proper to facilitate the identification, location or disposi-
tion of the property, and to commence proceedings consist-
ent with any statutory requirements pertaining to third-
party rights. At the time of sentencing (or at any time
before sentencing if the defendant consents), the order of
forfeiture becomes final as to the defendant, and must be
made a part of the sentence and included in the judgment.
The court may include in the order of forfeiture whatever
conditions are reasonably necessary to preserve the prop-
erty value pending any appeal.
‘‘(d) ANCILLARY PROCEEDINGS.—(1) If, as pre-
scribed by statute, a third party files a petition asserting
an interest in the forfeited property, the court must con-
duct an ancillary proceeding. In that proceeding, the court
may entertain a motion to dismiss the petition for lack
of standing, for failure to state a claim upon which relief
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could be granted, or for any other ground. For purposes
of the motion, all facts set forth in the petition must be
assumed to be true.
‘‘(2) If a motion referred to in paragraph (1) is de-
nied, or if no such motion is made, the court may permit
the parties to conduct discovery in accordance with the
Federal Rules of Civil Procedures to the extent that the
court determines such discovery to be necessary or desir-
able to resolve factual issues before conducting an evi-
dentiary hearing. At the conclusion of this discovery, ei-
ther party may seek to have the court dispose of the peti-
tion on a motion for summary judgment in the manner
described in rule 56 of the Federal Rules of Civil Proce-
dure.
‘‘(3) At the conclusion of the ancillary proceeding, the
court must enter a final order of forfeiture amending the
preliminary order as necessary to take into account the
disposition of any third-party petition.
‘‘(4) If multiple petitions are filed in the same case,
an order dismissing or granting fewer than all of the peti-
tions is not appealable until all petitions are resolved, un-
less the court determines that there is no just reason for
delay and directs the entry of final judgment with respect
to one or more but fewer than all of the petitions.
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‘‘(e) STAY OF FORFEITURE PENDING APPEAL.—If
the defendant appeals from the conviction or order of for-
feiture, the court may stay the order of forfeiture upon
such terms as the court finds appropriate to ensure that
the property remains available in case the conviction or
order of forfeiture is vacated. But the stay will not delay
the conduct of the ancillary proceeding or the determina-
tion of the rights or interests of any third party. If the
defendant’s appeal is still pending when the court deter-
mines that the order of forfeiture must be amended to rec-
ognize third party’s interest in the property, the court
must amend the order of forfeiture but must refrain from
directing the transfer of any property or interest to the
third party until the defendant’s appeal is final, unless the
defendant, in writing, consents to the transfer of the prop-
erty or interest to the third party.
‘‘(f) SUBSTITUTE PROPERTY.—If the applicable for-
feiture statute authorizes the forfeiture of substitute prop-
erty, the court may at any time entertain a motion by the
Government to order forfeiture of substitute property. If
the Government makes the requisite showing, the court
must enter an order forfeiting the substitute property, or
must amend an existing preliminary or final order to in-
clude that property.’’
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(b) CONFORMING AMENDMENTS.—(1) Rules 7(c)(2),
31(e), and 32(d)(2), Federal Rules of Criminal Procedure,
are repealed.
(2) Rule 38(e), Federal Rules of Criminal Procedure,
is amended by striking ‘‘3554,’’ and by striking ‘‘Criminal
Forfeiture’’ in the heading.
(c) ORDER OF FORFEITURE.—Section 3554 of title
18, United States Code, is amended—
(1) by striking ‘‘an offense described in section
1962 of this title or in title II or III of the Com-
prehensive Drug Abuse Prevention and Control Act
of 1970’’ and inserting ‘‘an offense for which crimi-
nal forfeiture is authorized’’; and
(2) by inserting ‘‘pursuant to the Federal Rules
of Criminal Procedure,’’ after ‘‘shall order,’’.
SEC. 504. PRE-TRIAL RESTRAINT OF SUBSTITUTE ASSETS.
Section 413(e)(1) of the Controlled Substances Act
(21 U.S.C. 853(e)(1)) is amended by striking ‘‘(a)’’ and
inserting ‘‘(a) or (p)’’.
SEC. 505. REPATRIATION OF PROPERTY PLACED BEYOND
THE JURISDICTION OF THE COURT.
(A) ORDER OF FORFEITURE.—Section 413(p) of the
Controlled Substance Act (21 U.S.C. 853(p)) is amended
by inserting the following at the end: ‘‘In the case of prop-
erty described in paragraph (3), the court may, in addi-
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tion, order the defendant to return the property to the
jurisdiction of the court so that it may be seized and for-
feited.’’
(b) 
PRE-TRIAL
RESTRAINING
ORDER.—Section
413(e) of the Controlled Substance Act (21 U.S.C. 853(e))
is amended by adding the following after paragraph (3):
‘‘(4) Pursuant to its authority to enter a pre-trial re-
straining order under this section, including its authority
to restrain any property forfeitable as substitute assets,
the court may also order the defendant to repatriate any
property subject to forfeiture pending trial, and to deposit
that property in the registry of the court, or with the Unit-
ed States Marshals Service or the Secretary of the Treas-
ury, in an interest-bearing account. Failure to comply with
an order under this subsection, or an order to repatriate
property under subsection (p), shall be punishable as a
civil or criminal contempt of court, and may also result
in an enhancement of the sentence for the offense giving
rise to the forfeiture under the obstruction of justice provi-
sion of section 3C1.1 of the United States Sentencing
Guidelines.’’.
SEC. 506. HEARINGS ON PRE-TRIAL RESTRAINING ORDERS;
ASSETS NEEDED TO PAY ATTORNEY’S FEES.
Section 413(e) of the Controlled Substances Act (21
U.S.C. 853(e)) is amended—
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(1) in paragraph (3), by adding the following
after the period: ‘‘The court shall issue any protec-
tive order necessary to prevent the premature disclo-
sure of any ongoing law enforcement operation or in-
vestigation or the identity of any witness at the
hearing. In addition, in any case involving an ongo-
ing investigation, the court shall permit the presen-
tation of evidence in camera or under seal. Rule 65,
Federal Rules of Civil Procedure, shall not apply to
restraining orders issued under this subsection.’’;
and
(2) by adding the following new paragraph:
‘‘(5)(A) When property is restrained pre-trial
subject to paragraph (1)(A), the court may, at the
request of the defendant, hold a pre-trial hearing to
determine whether the restraining order should be
vacated or modified with respect to some or all of
the restrained property because—
‘‘(i) it restrains property that would not be
subject to forfeiture even if all of the facts set
forth in the indictment were established as true;
‘‘(ii) it causes a substantial hardship to the
moving party and less intrusive means exist to
preserve the subject property for forfeiture; or
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‘‘(iii) the defendant establishes that he or
she has no assets, other than the restrained
property, available to exercise his or her con-
stitutional right to retain counsel, and there is
no probable cause to believe that the restrained
property is subject to forfeiture.
‘‘(B) If the defendant files a motion under sub-
paragraph (A)(iii), the court shall require the de-
fendant to establish that he has no access to other
assets adequate for the payment of criminal defense
counsel before conducting any probable cause in-
quiry. The Government shall have an opportunity to
cross-examine the defendant and any witnesses he or
she may present on this issue. If the court deter-
mines that the defendant has established that he has
no access to other assets, it shall hold a hearing to
determine whether there is probable cause for the
forfeiture of the defendant’s property. If the court
determines that no probable cause exists for the for-
feiture of an asset, it shall modify the restraining
order to the extent necessary to permit the defend-
ant to use that asset to retain counsel.
‘‘(C) In any hearing under this paragraph
where probable cause is at issue, the court shall
limit its inquiry to the existence of probable cause
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for the forfeiture, and shall neither entertain chal-
lenges to the validity of the indictment, nor require
the Government to produce additional evidence re-
garding the facts of the case to support the grand
jury’s finding of probable cause regarding the crimi-
nal offense giving rise to the forfeiture. In all cases,
the party requesting the modification of the restrain-
ing order shall bear the burden of proof.
‘‘(D) A person other than the defendant who
has a legal interest in the restrained property may
move to modify or vacate the restraining order for
the reasons stated in subparagraph (A)(ii). In ac-
cordance with subsection (k), however, such person
may not object to a restraining order on grounds
that may be asserted only in the ancillary hearing
pursuant to subsection (n).
‘‘(E) If the property restrained is subject to for-
feiture as substitute assets, the court shall exempt
from the restraining order assets needed to pay at-
torneys fees, other necessary cost-of-living expenses,
and expenses of maintaining the restrained assets.’’.
SEC. 507. CRIMINAL SEIZURE WARRANTS.
Section 413(f) of the Controlled Substances Act (21
U.S.C. 853(f)) is amended to read as follows:
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‘‘(f) Property subject to forfeiture under this section
may be seized pursuant to section 981(b) of title 18,
United States Code. If property subject to criminal forfeit-
ure under this section is already in the custody of the
United States or any agency thereof, it shall not be nec-
essary to seize or restrain the property for the purpose
of criminal forfeiture.’’.
SEC. 508. STANDARD OF PROOF FOR CRIMINAL FORFEIT-
URE.
Section 413 of the Controlled Substances Act (21
U.S.C. 853) is amended by adding the following new sub-
section after subsection (p):
‘‘(q) STANDARD OF PROOF.—In any forfeiture action
under this section, the party bearing the burden of proof
shall be required to prove the matter at issue by a prepon-
derance of the evidence.’’.
SEC. 509. DISCOVERY PROCEDURE FOR LOCATING FOR-
FEITED ASSETS.
(a) POST-CONVICTION DISCOVERY.—Section 413(m)
of the Controlled Substances Act (21 U.S.C. 853(m)) is
amended by—
(1) adding the following at the end before the
period: ‘‘to the extent that the provisions of the rule
are consistent with the purposes for which discovery
is conducted under this subsection’’; and
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(2) adding the following additional sentence:
‘‘Because this subsection applies only to matters oc-
curring after the defendant has been convicted and
his property has been declared forfeited, the provi-
sions of rule 15 requiring the consent of the defend-
ant and the presence of the defendant at the deposi-
tion shall not apply.’’
(b) BANK RECORDS.—Section 986 of title 18, United
States Code, is amended—
(1) in subsection (a) by striking ‘‘in rem’’; and
(2) in subsection (c) by inserting ‘‘or Criminal’’
after ‘‘Civil’’.
SEC. 510. COLLECTION OF CRIMINAL FORFEITURE JUDG-
MENT.
Section 413 of the Controlled Substances Act (21
U.S.C. 853) is amended by adding the following sub-
section after subsection (q):
‘‘(r) COLLECTION OF CRIMINAL FORFEITURE JUDG-
MENT.—In addition to the authority otherwise provided
in this section, an order of forfeiture may be enforced—
‘‘(1) in the manner provided for the collection
and payment of fines in subchapter B of chapter
229 of title 18, United States Code; or
‘‘(2) in the same manner as a judgment in a
civil action.’’
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SEC. 511. APPEALS IN CRIMINAL FORFEITURE CASES.
(a) 
PRE-TRIAL
DISMISSAL
OF
FORFEITURE
COUNT.—Section 3731 of title 18, United States Code,
is amended in the first unnumbered paragraph by insert-
ing ‘‘, or dismissing a forfeiture count in whole or in part,’’
after ‘‘order of a district court dismissing an indictment
or information’’.
(b) REVIEW OF A SENTENCE.—Section 3742 of title
18, United States Code, is amended by inserting the fol-
lowing new subsection:
‘‘(i) FORFEITURE ORDERS.—The Government may
file a notice of appeal in the district court of any decision,
judgment, or order of a district court denying a forfeiture
in whole or in part, or mitigating a forfeiture for constitu-
tional reasons, except that no appeal shall lie where the
double jeopardy clause of the United States Constitution
prohibits further prosecution.’’
SEC. 512. NON-ABATEMENT OF FORFEITURE WHEN DE-
FENDANT DIES PENDING APPEAL.
Section 413 of the Controlled Substances Act (21
U.S.C. 853) is amended by adding at the end the following
new subsection:
‘‘(s) NONABATEMENT OF FORFEITURE ORDER.—An
order of forfeiture under this section shall not abate by
reason of the death thereafter of any or all of the defend-
ants or petitioners or potential petitioners.’’
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SEC. 513. STANDING OF THIRD PARTIES TO CONTEST
CRIMINAL FORFEITURE ORDERS.
Section 413(n)(2) of the Controlled Substances Act
(21 U.S.C. 853(n)(2)), is amended by designating the
present matter as subparagraph (A) and by adding the
following paragraphs at the end:
‘‘(B) Notwithstanding any provision of this section,
no person may assert a legal right, title or interest under
this section in contraband or other property that it is ille-
gal to possess. In addition, except as set forth in sub-
section (n)(6)(B), no person may assert an ownership in-
terest under this section in the illegal proceeds of a crimi-
nal act, irrespective of State property law.
‘‘(C) For the purposes of this section, a ‘legal inter-
est’ includes, but is not limited to, a lien, mortgage, re-
corded security device or valid assignment of an ownership
interest. A ‘legal interest’ does not include: (i) a general
unsecured interest in, or claim against, the property or
estate of the defendant; (ii) a bailment; (iii) a possessory
interest or title held by a nominee who exercises no domin-
ion or control over the property; or (iv) a constructive
trust.’’
SEC. 514. MOTION AND DISCOVERY PROCEDURES FOR AN-
CILLARY HEARINGS.
Section 413(n)(4) of the Controlled Substances Act
(21 U.S.C. 853(n)(4)) is amended by designating the
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present matter as subparagraph (A), and by inserting the
following new subparagraphs:
‘‘(B) Before conducting a hearing, the court
may entertain a motion to dismiss the petition for
lack of standing, for failure to state a claim upon
which relief could be granted under this section, or
for any other ground. For the purposes of such mo-
tion, all facts set forth in the petition shall be as-
sumed to be true.
‘‘(C) If a motion referred to in subparagraph
(B) is denied, or if no such motion is made, the
court may, in its discretion, permit the parties to
conduct discovery in accordance with the Federal
Rules of Civil Procedure to the extent that the court
determines such discovery to be necessary or desir-
able to resolve factual issues before the hearing. At
the conclusion of such discovery, either party may
seek to have the court dispose of the petition on a
motion for summary judgment in the manner de-
scribed in rule 56 of the Federal Rules of Civil Pro-
cedure.
‘‘(D) Any order disposing of a petition pursuant
to a motion or pursuant to a hearing on the merits
of the claim shall be appealable in accordance with
the Federal Rules of Appellate Procedure applicable
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to civil cases. However, where multiple petitions are
filed in the same case, an order dismissing or grant-
ing fewer than all of the petitions shall not be ap-
pealable until all petitions are resolved, unless the
court expressly determines that there is no just rea-
son for delay and directs the entry of final judgment
with respect to one or more but fewer than all of the
petitions.
‘‘(E) The district court shall retain jurisdiction
over a petition filed pursuant to this subsection not-
withstanding any appeal filed by the defendant in
the criminal case.’’
SEC. 515. INTERVENTION BY THE DEFENDANT IN THE AN-
CILLARY PROCEEDING.
Section 413(n) of the Controlled Substances Act (21
U.S.C. 853(n)) is amended by adding the following after
paragraph (7):
‘‘(8) If the defendant has filed a timely appeal
from a conviction under this section and the appeal
is pending, any person filing a petition under this
subsection shall serve a copy of the petition upon the
defendant, and the defendant shall have a right to
intervene in the ancillary proceeding with respect to
the petition in accordance with rule 24 of the Fed-
eral Rules of Civil Procedure solely for the purpose
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of contesting the petitioner’s alleged interest in the
property ordered forfeited. The defendant shall have
20 days from the date of service of the petition to
intervene. If the defendant does not intervene within
such time period, he or she shall have waived the
right to challenge in any forum any adjudication of
the petitioner’s interest in the property pursuant to
this subsection, regardless of the outcome of the ap-
peal.
‘‘(9) A hearing provided for in this subsection
shall be limited to an adjudication of the validity of
the petitioner’s legal right, title or interest in the
property ordered forfeited, and shall not provide a
forum to relitigate the forefeitability of the prop-
erty.’’
SEC. 516. IN PERSONAM JUDGMENTS.
Section 413(n)(1) of the Controlled Substances Act
(21 U.S.C. 853(n)(1)) is amended by adding the following
sentence at the end ‘‘To the extent that the order of for-
feiture includes only an in personam money judgment
against the defendant, or includes only property constitut-
ing contraband, no proceeding under this subsection shall
be necessary.’’
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SEC. 517. RIGHT OF THIRD PARTIES TO CONTEST FORFEIT-
URE OF SUBSTITUTE ASSETS.
(a) IN GENERAL.—Section 413(c) of the Controlled
Substances Act (21 U.S.C. 853(c)), as amended by this
Act, is further amended by—
(1) inserting the following after the first sen-
tence: ‘‘All right, title and interest in property de-
scribed in subsection (p) of this section vests in the
United States at the time an indictment, informa-
tion or bill of particulars specifically describing the
property as substitute assets is filed.’’; and
(2) by striking ‘‘Any such property that is sub-
sequently transferred to a person other than the de-
fendant’’ and inserting ‘‘Any property that is trans-
ferred to a person other than the defendant after the
United States’ interest in the property has vested
pursuant to this subsection’’.
(b) CONFORMING AMENDMENT.—Section 413(n)(6)
of the Controlled Substances Act (21 U.S.C. 853(n)(6))
is amended by adding at the end the following sentence:
‘‘In the case of substitute assets, the petitioner must show
that his interest in the property existed at the time the
property vested in the United States pursuant to sub-
section (c), or that he subsequently acquired his interest
in the property as a bona fide purchaser for value as pro-
vided in this subsection.’’
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SEC. 518. FORFEITABLE PROPERTY TRANSFERRED TO
THIRD PARTIES.
Section 413(c) of the Controlled Substances Act (21
U.S.C. 853(c)), as amended by this Act, is further amend-
ed by designating the present matter as paragraph (1) and
adding the following new paragraph:
‘‘(2) If, as provided in paragraph (1), property
transferred to a transferee is ordered forfeited and
the transferee fails to establish that he is a bona fide
purchaser, but the transferee is unable, due to the
transferee’s act or omission, to turn the property
over to the United States, the transferee shall owe
the United States a sum of money up to the value
of the property transferred by the defendant, plus
interest from the time of the transfer. Once the an-
cillary proceedings regarding the transferee’s claim
to be a bona fide purchaser are concluded, the dis-
trict court that issued the order of forfeiture shall
issue a judgment in favor of the United States and
against the transferee for the amount of money to
which the United States is entitled.’’
SEC. 519. FORFEITURE THIRD PARTY INTERESTS IN CRIMI-
NAL CASES.
(a) IN GENERAL.—Section 413 of the Controlled
Substances Act (21 U.S.C. 853) is amended by adding the
following after subsection (s):
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‘‘(t) FORFEITURE OF THIRD PARTY INTERESTS.—In
lieu of filing a parallel civil forfeiture action, the govern-
ment may seek the forfeiture of a third party’s interest
in property subject to forfeiture under this section at the
conclusion of the ancillary proceeding described in sub-
section (n). Such proceeding shall be an in rem proceeding
in which the third party shall first have the burden of es-
tablishing a legal interest in the property pursuant to sub-
section (n), after which the government shall have the bur-
den of establishing the forfeitability of the third party’s
interest in the manner provided for civil forfeitures in
chapter 46, title 18, United States Code, and the third
party shall have the burden of establishing an innocent
owner defense pursuant to such chapter.’’
(b) CONFORMING AMENDMENT.—Section 413(n)(6)
of the Controlled Substances Act (21 U.S.C. 853(n)(6))
is amended by adding ‘‘, unless the government notifies
the court that it will seek to forfeit the petitioner’s interest
pursuant to subsection (t)’’ after ‘‘in accordance with its
determination’’.
SEC. 520. SEVERANCE OF JOINTLY HELD PROPERTY.
Section 413 of the Controlled Substances Act (21
U.S.C. 853) is amended by adding the following after sub-
section (t):
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‘‘(u) SEVERANCE OF JOINTLY HELD PROPERTY.—
If the court determines, pursuant to subsection (n) or (t),
that a third party had a partial interest in property other-
wise subject to forfeiture, or a joint tenancy or tenancy
by the entirety in such property, the court shall enter an
appropriate order (1) severing the property; (2) transfer-
ring the property to the government with a provision that
the government compensate the third party to the extent
of his or her ownership interest once a final order of for-
feiture has been entered and the property has been re-
duced to liquid assets, or (3) permitting the third party
to retain the property subject to a lien in favor of the Gov-
ernment to the extent of the forfeitable interest in the
property. To effectuate the purposes of this subsection, a
joint tenancy or tenancy by the entireties shall be con-
verted to a tenancy in common by order of the court, irre-
spective of State law.’’
SEC. 521. VICTIM RESTITUTION.
Section 413 of the Controlled Substances Act (21
U.S.C. 853) is amended by adding at the end the following
new subsection:
‘‘(v) VICTIMS AND RESTITUTION.—
‘‘(1) The defendant may not use property sub-
ject to forfeiture under this section to satisfy an
order of restitution. However, if there are identifi-
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able victims entitled to restitution from the defend-
ant, and the defendant has no assets other than the
property subject to forfeiture with which to pay res-
titution to the victims, the Government may move to
dismiss the forfeiture allegations before entry of a
judgment of forfeiture to allow the property to be
used by the defendant to pay restitution in whatever
manner the court determines to be appropriate if it
grants the Government’s motion.
‘‘(2) If an order of forfeiture is entered pursu-
ant to this section and the defendant has no assets
other than the forfeited property to pay restitution
to identifiable victims who are entitled to restitution,
the Government shall restore the forfeited property
to the victims pursuant to subsection (i)(1) once the
ancillary proceeding under subsection (n) has been
completed and the costs of the forfeiture action have
been deducted. On the motion of the Government,
the court may enter any order necessary to facilitate
the distribution of the property under this sub-
section.
‘‘(3) For purposes of this subsection, a ‘victim’
is a person other than a person with a legal right,
title, or interest in the forfeited property sufficient
to satisfy the standing requirements of subsection
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(n)(2) who may nevertheless be entitled to restitu-
tion from the forfeited funds pursuant to 28 CFR
part 9.8. A person shall be considered a ‘victim’ if
the person is the victim of the offense giving rise to
the forfeiture, or of any offense that was part of the
same scheme, conspiracy, or pattern of criminal ac-
tivity, including in the case of a money laundering
offense, any offense constituting the underlying
specified unlawful activity.’’.
SEC. 522. DELIVERY OF PROPERTY TO THE MARSHALS
SERVICE.
Section 413(j) of the Controlled Substances Act (21
U.S.C. 853(j)) is amended by inserting ‘‘, and rule C(5)
of the Supplemental Rules for Certain Admiralty and Mar-
itime Claims,’’ before ‘‘shall apply to a criminal forfeit-
ure’’.
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