Opinion ID: 2981974
Heading Depth: 2
Heading Rank: 1

Heading: Criminal forfeiture procedure

Text: “To obtain title to property through criminal forfeiture, the government must give third parties a chance to assert competing interests in the property.” United States v. Erpenbeck, 682 F.3d 472, 475 (6th Cir. 2012). To do so, 21 U.S.C. § 853 and Federal Rule of Criminal Procedure 32.2 prescribe a two-track criminal-forfeiture procedure. As soon as possible after a verdict or a guilty plea, a district must enter a “preliminary order of forfeiture,” which sets forth the amount of any money forfeiture and lists any specific property to be forfeited. Fed. R. Crim. P. 32.2(b). That preliminary order becomes final as to the defendant “[a]t sentencing—or at any time before sentencing if the defendant consents[.]” Fed. R. Crim. P. 32.2(b)(4)(A). If the defendant appeals either the conviction or the forfeiture order, “the court may stay the order of forfeiture on terms appropriate to ensure that the property remains available pending appellate review.” Fed. R. Crim. P. 32.2(d). The preliminary order is entered “without regard to any third party’s interest in the property,” Fed. R. Crim. P. 32.2(b)(2)(A), and the district court considers whether third parties may have superior interest in the property using separate “ancillary proceedings.” After the preliminary order is entered, § 853(n) requires the government to provide notice of the proceedings to third parties, 7 giving them thirty days to file a petition asserting their claims. 21 U.S.C. § 853(n)(1)–(2); 18 U.S.C. § 1963(l)(2). “If anyone files a petition, the court must hold an ancillary hearing to determine the bona fides of his alleged interest.” Erpenbeck, 682 F.3d at 475 (citing § 853(n)(2)). “If no one files a petition within the statutory time frame, ‘clear title’ vests in the United States, extinguishing all other parties’ interests in the property.” Id. (quoting 21 U.S.C. § 853(n)(7)). If a third party does file a petition for an ancillary proceeding, the court may dismiss the petition for lack of standing or for failure to state a claim; may allow discovery; and may consider motions for summary judgment. Fed. R. Crim. P. 32.2(c). After the ancillary proceedings end, the court enters a final order of forfeiture (“Final Order”) that accounts for any third-party rights. Fed. R. Crim. P. 32.2(c)(2).