‘‘(2) has been transferred or sold to, or depos-
ited 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) of this subsection.
‘‘§ 1348. Civil forfeiture for violation of section 1341
or 1343
‘‘(a) PROPERTY SUBJECT TO CIVIL FORFEITURE.—
Any property, as defined by subsection (b) of section 413
of the Controlled Substances Act, constituting or derived
from any proceeds of a scheme in violation of sections
1341 or 1343 of this title shall be subject to forfeiture
to the United States.
‘‘(b) SEIZURE.—(1) Except as provided in paragraph
(4), any property subject to forfeiture to the United States
under this section may be seized by the Attorney General
or the Postal Service upon process issued pursuant to the
Supplemental Rules for Certain Admiralty and Maritime
Claims by a district court of the United States having ju-
risdiction over the property.
‘‘(2) The Attorney General or the Postal Service may
seize such property without such process when—
‘‘(A) the seizure is incident to a lawful arrest
or search; or
‘‘(B) such property has been the subject of a
prior judgment in favor of the United States in a
criminal injunction or forfeiture proceeding under
section 1347 of this title.
‘‘(3) The Government may seek the issuance of a
warrant authorizing the seizure of property subject to for-
feiture under this section in the same manner as provided
for a search warrant under the Federal Rules of Criminal
Procedure.
‘‘(4) No property shall be forfeited under this section
to the extent of the interest of an owner or lienholder by
reason of any act or omission established by that owner
or lienholder to have been committed without the knowl-
edge of that owner or lienholder.
‘‘(c) PROCEDURAL MATTERS.—(1) With respect to a
forfeiture of property under this section, the provisions of
subsections (c), (d), (h), and (j) of section 511 of the Con-
trolled Substances Act apply as they would to a forfeiture
of property under that section, and the Postal Service may
also perform any of the functions the Attorney General
may perform under such subsections.
‘‘(2) The filing of an indictment or information alleg-
ing a violation of section 1341 or 1343 of this title which
is also related to a civil forfeiture proceeding under either
section shall, upon motion of the United States and for
good cause shown, stay the civil forfeiture proceeding.
‘‘(d) DISPOSITION OF PROPERTY.—After a seizure of
property ordered forfeited under this section, the Attorney
General or the Postal Service shall dispose of the property
under section 1349 of this title.
‘‘§ 1349. Disposition of forfeited property
‘‘(a) IN GENERAL.—After making due provision for
the rights of any innocent persons, the Attorney General,
after deducting the costs incurred by the United States
in conducting the seizure, forfeiture, and identification of
victims, shall deposit the property forfeited or the proceeds
from the sale of property forfeited under sections 1347
or 1348 of this title in the Department of Justice Assets
Forfeiture Fund established by section 524(c) of title 28.
The Postal Service may exercise the authority of the At-
torney General in conducting administrative forfeitures
and shall deposit the property forfeited or the proceeds
of the property forfeited in the Postal Service Fund under
section 2003(b)(7) of title 39. Any property right or inter-
est not exercisable by, or transferable for value to, the
United States shall expire and shall not revert to the de-
fendant. Neither the defendant nor any person acting in
concert with the defendant or on the defendant’s behalf
is eligible to purchase forfeited property sold by the United
States.
‘‘(b) RESTRAINT PENDING APPEAL.—Upon applica-
tion of a person other than the defendant or a person act-
ing in concert with the defendant or on the defendant’s
behalf, the court may restrain or stay the sale or disposi-
tion of the property pending the conclusion of any appeal
in the case giving rise to the forfeiture, if the applicant
demonstrates that proceeding with the sale or disposition
will result in irreparable harm to the applicant.
‘‘(c) RULES FOR DISPOSITION.—The Attorney Gen-
eral and the Postal Service shall make rules providing for
the disposition of such property and proceeds. The rules
shall provide that the Attorney General or the Postal
Service may—
‘‘(1) retain the property for official use;
‘‘(2) transfer the property to Federal, State, or
local law enforcement agencies so as to reflect gen-
erally the contribution of such agencies to the sei-
zure or forfeiture of such property;
‘‘(3) sell any forfeited property which is not re-
quired to be destroyed by law and which is not
harmful to the public;
‘‘(4) require that the General Services Adminis-
tration take custody of the property and dispose of
it in accordance with law;
‘‘(5) restore forfeited property to victims of an
offense described in subsection (a);
‘‘(6) destroy the property if it is harmful to the
public or the expense of sale would exceed the
amount realized from the sale; or
‘‘(7) dispose of such funds or property as other-
wise provided by law.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for chapter 63 of title 18, United States Code, is amended
by adding at the end the following new items:
‘‘1347. Criminal forfeiture for violation of section 1341 or 1343.
‘‘1348. Civil forfeiture for violation of section 1341 or 1343.
‘‘1349. Disposition of forfeited property.’’.
SEC. 2. POSTAL SERVICE FUND AMENDMENT.
Section 2003(b)(7) of title 39, United States Code,
is amended to read as follows:
‘‘(7) amounts (including proceeds from the sale
of forfeited items) from any forfeiture conducted by
the Postal Service and from any forfeiture resulting
from an investigation conducted by the Postal Serv-
ice, except that nothing in this paragraph shall pre-
clude the Postal Service from sharing such amounts
with any Federal or State agency whose efforts in
investigating or litigating the forfeiture contributed
to the receipt of such funds.’’.
Æ