Opinion ID: 1381671
Heading Depth: 2
Heading Rank: 2

Heading: Proceeding to Forfeit Property Under any Provision of Federal Law

Text: Even if the proceedings are civil, fees are available under 28 U.S.C. § 2465(b)(1) only if a § 853(n) proceeding is a proceeding to forfeit property under any provision of federal law. Most courts that have addressed this issue have concluded that § 853(n) proceedings do not satisfy this requirement, including courts that concluded the ancillary proceedings were civil in nature. See, e.g., Nolasco, 2008 WL 4388518, at  (D.N.J. Sept.29, 2008) (labeling the § 853(n) proceeding civil but stating that the forfeiture occurs in the underlying criminal case and not through the § 853(n) proceedings); United States v. Gardiner, 512 F.Supp.2d 1270, 1272 (S.D.Fla.2007) (refusing to award fees to a successful § 853(n) petitioner because CAFRA applies only in civil forfeiture proceedings). Relying on these cases, the government argues that a § 853(n) proceeding is not a proceeding to forfeit property because the entire forfeiture process is contained in the underlying criminal case and lies beyond the reach of any challenges from third parties. According to the government, the forfeiture is complete before the time arises for the government to post notices or for property owners to file § 853(n) petitions. See 21 U.S.C. § 853(n)(1) (Following entry of an order of forfeiture . . . the United States shall publish notice of the order . . . .); id. § 853(n)(2) (Any person, other than the defendant . . . may, within thirty days of the final publication of notice or his receipt of notice . . . petition the court for a hearing to adjudicate the validity of his alleged interest in the property.). The government characterizes the subsequent § 853(n) proceedings as nothing more than quiet title actions concerning property that has already been forfeited. We agree with the government to a limited extent. Forfeiture as to the defendant's rights to the seized property undoubtedly is complete prior to any § 853(n) proceedings. United States v. Porchay, 533 F.3d 704, 710 (8th Cir.2008) ([T]here is no provision in § 853(n) to relitigate the outcome of [the] proceedings [involving the criminal defendant.]). The issues determined in the earlier proceedings involving the criminal defendant relate to the tracing of property as proceeds of criminal activity or as property used in conducting criminal activity. 21 U.S.C. § 853(a)(1)-(3). In contrast, the issues that courts address within § 853(n) proceedings are claims of ownership and priorities of interest vis-a-vis the government and the petitioners. Id. § 853(n)(2). Still, the government does not possess clear title to the seized property until after the conclusion of § 853(n) proceedings (or until after the posting of notice in the absence of any petitions). Id. § 853(n)(7) (Following the court's disposition of all 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.). Accordingly, it is not entirely clear when we may characterize the forfeiture of property completeafter the extermination of the criminal defendants' rights (in which case the § 853(n) proceedings would not be proceedings to forfeit property) or after the government secures clear title. Given the context of the present inquiry, we need not conclusively resolve this question. Rather, the lack of a clear answer in the statutory text and the balanced arguments dictate an outcome.