Opinion ID: 77422
Heading Depth: 2
Heading Rank: 1

Heading: The Residence, Hotel, and Delray Beach Property

Text: 15 On appeal, Lynn Soreide challenges the summary judgment and final order of forfeiture as to the residence, the hotel, and the Delray Beach property based on both 21 U.S.C. § 853(n)(6)(A) (the superior interest provision) and 21 U.S.C. § 853(n)(6)(B) (the bona fide purchaser provision). We address these challenges in turn.
16 Lynn Soreide argues now, as she did in response to the Government's motion for summary judgment, that the properties should not have been forfeited to the United States because she had some (unquantified) interests separate and apart from (and therefore, superior to) Arne Soreide's interests in the properties. She asserts the superiority of these interests based on her contentions that she signed the purchase contracts for the properties, she incurred liabilities by signing mortgages on the properties, she held title to the properties in her own name, and she had interests in the properties created under Florida law (namely, a spousal interest in the properties as marital assets and a homestead right in the residence). The district court addressed these arguments in its summary judgment order and found each to be meritless. For the reasons stated below, we do not reach the merits of these arguments. 17 The criminal forfeiture statute allows third parties to assert their interests in properties subject to forfeiture through the filing of a sworn petition, within thirty days of the publication of the impending forfeiture or of the third party actually receiving notice of the impending forfeiture, whichever is earlier. 21 U.S.C. § 853(n)(2). The petition must state the basis for the third party's claim to any interest in the subject property. 21 U.S.C. § 853(n)(3). 18 Lynn Soreide filed two timely petitions pursuant to 21 U.S.C. § 853(n). In neither petition did she assert that she held an interest in any of the properties superior to (or to the exclusion of) her husband's interest in those properties at the time of the acts giving rise to forfeiture. Rather, both petitions recount the facts of Lynn Soreide's purchases of the properties and base her claims of interest in the properties solely on her alleged status as bona fide purchaser. Thus, to the extent that Lynn Soreide's claims to the properties rest on her contention that she held interests in those properties that were superior to the interests of Arne Soreide at the time of the acts giving rise to forfeiture, those claims are belated. We will not vacate the summary judgment nor provide relief from the final order of forfeiture based upon a claim that was not asserted as required by the statute. C.f. United States v. Strube, 58 F.Supp.2d 576, 585 (M.D.Pa.1999) (denying claims of third parties as untimely when those claims were not made in petitions but in response to government's motion to dismiss).
19 We do address the merits of the claims that were included in the petitions— that Lynn Soreide acquired an interest in each of the forfeited properties because she purchased them as a bona fide purchaser for value. The criminal forfeiture statutes allow a third party to avoid forfeiture of her interest in an asset if that third party establishes that she purchased that interest for fair market value without reasonable notice that the asset was subject to forfeiture. 21 U.S.C. § 853(n)(6)(B). 20 However, 21 U.S.C. § 853(n)(6)(B) is of no help to Lynn Soreide in this case. That provision exists only to protect subsequent purchasers of  the defendant's interest  in an asset. Kennedy, 201 F.3d at 1330 (emphasis in original); see also Reckmeyer, 836 F.2d at 208 (interpreting the statute to reach persons who [gave] value to the defendant in an arms'-length transaction with the expectation that they would receive equivalent value in return.) (emphasis added). Lynn Soreide does not contend that she purchased an interest in any of the properties from Arne Soreide. Indeed, she admits that each of the properties was purchased from a third party seller. Thus, Lynn Soreide is not the type of bona fide purchaser that 21 U.S.C. § 853(n)(6)(B) protects. 21 For the foregoing reasons, we affirm the grant of summary judgment as to the residence, hotel, and Delray Beach property.