Opinion ID: 77396
Heading Depth: 2
Heading Rank: 1

Heading: Forfeiture Verdict

Text: 82 After finding Appellants guilty of bank fraud and conspiracy to commit bank fraud, the jury was asked to reach a verdict with respect to the forfeiture count of the indictment, Count Three. See 18 U.S.C. § 982(a)(2)(A). Section 982 requires that a defendant convicted of bank fraud forfeit to the United States any property the defendant obtained directly or indirectly as a result of that bank fraud violation. 18 U.S.C. § 982(a)(1). 83 The district court instructed the jury that it would have to decide the value of the property Appellants obtained in connection to the bank fraud violation [of] which you have already found the defendants guilty. The district court explained that the jury need only base its forfeiture finding upon the preponderance of the evidence, as opposed to on facts proven beyond a reasonable doubt, and that the jury was bound by its finding of guilt on the fraud charges. See United States v. Hasson, 333 F.3d 1264, 1277 (11th Cir. 2003) (noting that the elements of forfeiture under 18 U.S.C. § 982(a) must be proven only by a preponderance of the evidence). 84 The district court informed the jury that the government sought a money judgment of $1,686,407, which the government believed constituted the value of proceeds derived from the defendants' fraud violation, but that it was the jury's responsibility to reach its own determination regarding the proper amount. The government then presented its case. Referencing trial testimony from financial analyst Odom, the government argued that the defendants had received $3,122,977 in revenues from Community Bank, the victim of their fraud. Of that amount, 54% was, according to the government, fraudulently presented to the bank in the form of false construction invoices. 85 Appellants, in contrast, asked the jury to consider just how much of the money charged was for illicit purposes, because at many of the construction sites, the defendants performed actual work and actual labor, resulting in actual, tangible constructions that were of good quality. Appellants asked the jury to separate out money they received legitimately and pointed to their tax returns as proof that they received little to no profit from any fraudulent activity. 86 After closing arguments, the district court met with the parties' counsel and formulated an additional jury instruction that it read to the jury as follows: 87 As you have heard[,] the government claims approximately one point six million dollars to be forfeited based on the Heritage Valley Farm fraud. . . . If, however, the basis of your guilty verdict under count two was fraud other than for work done on Heritage Valley Farms, then your verdict of forfeiture must be based on the value of that fraud or based on the amount of proceeds directly attributable to that fraud; that is, the amount of your forfeiture verdict should be connected to the basis of your verdict of guilty of bank fraud. 88 No objections were lodged to the jury instruction. The jury returned a forfeiture verdict of $178,500.