Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 1 of 27
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`GARY M. RESTAINO
`United States Attorney
`District of Arizona
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`KEVIN M. RAPP (Ariz. Bar No. 014249, kevin.rapp@usdoj.gov)
`MARGARET PERLMETER (Ariz. Bar No. 024805, margaret.perlmeter@usdoj.gov)
`PETER S. KOZINETS (Ariz. Bar No. 019856, peter.kozinets@usdoj.gov)
`ANDREW C. STONE (Ariz. Bar No. 026543, andrew.stone@usdoj.gov)
`Assistant U.S. Attorneys
`40 N. Central Avenue, Suite 1800
`Phoenix, Arizona 85004-4408
`Telephone (602) 514-7500
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`DAN G. BOYLE (N.Y. Bar No. 5216825, daniel.boyle2@usdoj.gov)
`Special Assistant U.S. Attorney
`312 N. Spring Street, Suite 1400
`Los Angeles, CA 90012
`Telephone (213) 894-2426
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`NICOLE M. ARGENTIERI
`Acting Assistant Attorney General
`Criminal Division, U.S. Department of Justice
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`AUSTIN M. BERRY (Texas Bar No. 24062615, austin.berry2@usdoj.gov)
`U.S. Department of Justice
`Child Exploitation and Obscenity Section
`1301 New York Avenue, NW, 11th Floor
`Washington, D.C. 20005
`Telephone (202) 412-4136
`Attorneys for Plaintiff
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`IN THE UNITED STATES DISTRICT COURT
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`FOR THE DISTRICT OF ARIZONA
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`CR-18-422-PHX-DJH
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`PROPOSED FORFEITURE JURY
`INSTRUCTIONS
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`Plaintiff,
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`v.
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`United States of America,
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`Michael Lacey, et al.,
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`Defendants.
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 2 of 27
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`The United States, by and through undersigned counsel, hereby submits the
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`following proposed forfeiture jury instructions. The United States reserves the right to
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`conform these proposed instructions to any counts of conviction, including by adding or
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`removing any property identified in the forfeiture allegations of the Superseding Indictment
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`and related Bills of Particular
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`Respectfully submitted this 1st day of November, 2023.
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`GARY M. RESTAINO
`United States Attorney
`District of Arizona
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`
`NICOLE M. ARGENTIERI
`Acting Assistant Attorney General
`Criminal Division, U.S. Department of Justice
`
`
` /s/
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`KEVIN M. RAPP
`MARGARET PERLMETER
`PETER KOZINETS
`ANDREW STONE
`DAN G. BOYLE
`Assistant U.S. Attorneys
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`AUSTIN M. BERRY
`Trial Attorney
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 3 of 27
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`CERTIFICATE OF SERVICE
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`I hereby certify that on November 1, 2023, I electronically transmitted the attached
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`document to the Clerk’s Office using the CM/ECF System for filing and transmittal of a
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`Notice of Electronic Filing to the CM/ECF registrants who have entered their appearance
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`as counsel of record.
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`
`s/ Dan G. Boyle
`Dan G. Boyle
`U.S. Attorney’s Office
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 4 of 27
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`COURT’S FORFEITURE INSTRUCTION NO. ____
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`[PROPOSED FORFEITURE INSTRUCTION NO. 1]
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`[Criminal Forfeiture Phase of Trial]
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`[To be read to the jury immediately after its return of a verdict of guilty on any of Counts
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`One, Fifty-Two, Sixty-Nine, Seventy, Eighty-Three, Eighty-Four, Ninety-Nine, and One
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`Hundred of the Superseding Indictment, and prior to the commencement of the forfeiture
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`phase of the trial.]
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`Ladies and gentlemen of the jury, your verdict in this case doesn’t complete your
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`jury service as it would in most cases, because there is another matter you must now
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`consider. You must decide whether the defendants should forfeit certain property to the
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`United States as a part of the penalty for the crimes charged in Counts One, Fifty-Two,
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`Sixty-Nine, Seventy, Eighty-Three, Eighty-Four, Ninety-Nine, and One Hundred of the
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`Superseding Indictment.
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`In a portion of the Superseding Indictment not previously discussed or disclosed to
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`you, it is alleged that there is property involved in or derived from proceeds obtained,
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`directly or indirectly, as a result of the offenses for which Defendants were found guilty.
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`In view of your verdict finding the Defendants guilty of Counts One, Fifty-Two, Sixty-
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`Nine, Seventy, Eighty-Three, Eighty-Four, Ninety-Nine, and One Hundred Superseding
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`Indictment, you now must also decide what property, if any, should be forfeited to the
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`United States.
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`Federal law provides that where, as here, a defendant is convicted of a conspiracy
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`to violate the Travel Act, 18 U.S.C. § 1952, such a defendant is required to forfeit to the
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`United States all right, title and interest in any and all property, real or personal,
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`constituting, or derived from, any proceeds obtained, directly or indirectly, as a result of
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`the offense. In this case, since you have found the defendants guilty of Count One, you
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 5 of 27
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`must consider whether the property specified in the Superseding Indictment and Bills of
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`Particulars and identified in the Special Verdict Form I will give to you is of this character.
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`Federal law also provides that where, as here, a defendant is convicted of a money
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`laundering offense, such a defendant is required to forfeit to the United States all right, title
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`and interest in any and all property, real or personal, involved in the offense, and any
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`property traceable to such property. In this case, since you have found the defendants
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`guilty of money laundering offenses, you must consider whether the property specified in
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`the Superseding Indictment and Bills of Particulars and identified in the Special Verdict
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`Form I will give to you is of this character.
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`To “forfeit” a thing is to be divested or deprived of the ownership of it as a part of
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`the punishment allowed by the law for certain criminal offenses. To decide whether
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`property should be forfeited, you should consider all the evidence you have already heard
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`plus any additional evidence that will be presented to you after these instructions.
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`A copy of the forfeiture allegations of the Superseding Indictment will be given to
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`you to consider during your supplemental deliberations. The Superseding Indictment and
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`the accompanying Bill of Particulars describe in particular the property allegedly subject
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`to forfeiture to the United States.
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`Source: Eleventh Circuit Pattern Jury Instructions, T6 (2017 ed.) (Forfeiture Proceedings)
`(to be given before supplemental evidentiary proceedings or supplemental argument of
`counsel) (adapted); Federal Rule of Criminal Procedure 32.2(a) and (b); 18 U.S.C.
`§ 981(a)(1)(C); Libretti v. United States, 516 U.S. 29, 39 (1995) (“Our precedents have
`likewise characterized criminal forfeiture as an aspect of punishment imposed following
`conviction of a substantive criminal offense.”); United States v. Lazarenko, 476 F.3d 642,
`647 (9th Cir. 2007) (criminal forfeiture operates in personam against a defendant; it is
`part of his punishment following conviction); United States v. Lazarenko, 504 F. Supp.
`2d 791, 796-97 (N.D. Cal. 2007) (Rule 32.2(a) requires only that the indictment give
`notice of the forfeiture in generic terms; that the Government did not itemize all of the
`property subject to forfeiture until much later was of no moment).
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 6 of 27
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`COURT’S FORFEITURE INSTRUCTION NO. ____
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`[PROPOSED FORFEITURE INSTRUCTION NO. 2]
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`[Forfeiture Proceeding Follows Guilty Verdict]
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`[This Instruction and all following instructions to be read before the jury begins its
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`deliberations on forfeiture]
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`While deliberating concerning the issue of forfeiture you must not reexamine your
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`previous determination regarding the defendants’ guilt. However, all the instructions
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`previously given to you concerning duties of the jury, your consideration of the evidence,
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`what is and is not evidence, the credibility of the witnesses, expert testimony, your duty
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`to deliberate together, your duty to base your verdict solely on the evidence without
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`prejudice, bias, or sympathy, and the necessity of a unanimous verdict, will continue to
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`apply during these supplemental deliberations.
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`Source: Eleventh Circuit Model Jury Instructions, T6 (2017 ed.) (adapted); Federal Rule
`of Criminal Procedure 32.2; 18 U.S.C. § 981; United States v. Warshak, 631 F.3d 266,
`331 (6th Cir. 2010) (defendant is not permitted to relitigate the legality of his conduct or
`otherwise attempt to undermine the jury’s finding of guilt during the forfeiture phase;
`affirming district court’s refusal to let defendant introduce evidence tending to show his
`conduct was not illegal, and holding that in the forfeiture phase, the legality of the
`conduct is “no longer a live issue;” the only question is the nexus between the conduct
`and the offense).
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 7 of 27
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`COURT’S FORFEITURE INSTRUCTION NO. ____
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`[PROPOSED FORFEITURE INSTRUCTION NO. 3]
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`[Forfeiture – Scope of Jury’s Determination]
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`Your duty at this phase of the proceeding is solely to determine whether the
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`government has proven the required connection between the property sought for forfeiture
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`and the offense(s) for which you have found the defendant(s) guilty.
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`You should not consider what might happen to the property in determining whether
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`the property is subject to forfeiture; the disposition of any property that is declared forfeited
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`is exclusively a matter for the Court to decide. Similarly, if any property has been
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`transferred to a third party, the Court will later determine the rights of that third party to
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`the property.
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`Some of the property which the government claims is subject to forfeiture may be
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`in the name of one or more defendants and persons or business entities other than the
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`defendants. However, any interest that any person other than a defendant may claim to
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`such property will be taken into account by the Court in a separate proceeding. Interests
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`of persons or entities other than any of the defendants are not for your consideration.
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`Your sole task is to decide whether the defendants’ interest in the property, whatever
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`that interest may be, is subject to forfeiture under the applicable law.
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`Source: Fed. R. Crim. P. 32.2(b)(2)(A) (only question during forfeiture phase is whether
`evidence establishes requisite nexus between underlying crimes of conviction and property
`sought to be forfeited); United States v. Nava, 404 F.3d 1119, 1132 (9th Cir. 2005) (district
`court properly instructed jury that questions of ownership “were not before them”); United
`States v. Yeje-Cabrera, 430 F.3d 1, 15 (1st Cir. 2005) (explaining that the primary purpose
`of Rule 32.2(b)(2) was to preserve the resources of the court and third parties by deferring
`the ownership issue to the ancillary proceeding, thus avoiding duplicative litigation);
`United States v. Andrews, 530 F.3d 1232, 1236 (10th Cir. 2008) (once forfeitability is
`determined, the court does not – “and indeed may not” -- determine ownership, as that
`issue is deferred to the ancillary proceeding).
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 8 of 27
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`COURT’S FORFEITURE INSTRUCTION NO. ____
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`[PROPOSED FORFEITURE INSTRUCTION NO. 4]
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`[Standard of Proof]
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`With two important exceptions, all previous instructions will continue to apply to
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`your deliberations. The first exception is that during this phase, the government’s burden
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`is no longer proof beyond a reasonable doubt, but instead, is simply proof by a
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`preponderance of the evidence, which I will define for you.
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`The second exception is that during this phase, you will consider a component of
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`the potential punishment to be imposed on the defendant(s), but your sole task is to
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`determine whether the government has established, by a preponderance of the evidence,
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`the required connection between the crimes of which the defendants have been convicted
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`and the property sought for forfeiture.
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`Source: Libretti v. United States, 516 U.S. 29, 39 (1995) (“Our precedents have likewise
`characterized criminal forfeiture as an aspect of punishment imposed following conviction
`of a substantive criminal offense.”); United States v. Lazarenko, 476 F.3d 642, 647 (9th
`Cir. 2007) (criminal forfeiture operates in personam against a defendant; it is part of
`punishment following conviction); United States v. Garcia-Guizar, 160 F.3d 511, 518 (9th
`Cir. 1998) (preponderance standard is constitutional because criminal forfeiture is not a
`separate offense, but only an additional penalty for an offense that was established beyond
`a reasonable doubt).
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 9 of 27
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`COURT’S FORFEITURE INSTRUCTION NO. ____
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`[PROPOSED FORFEITURE INSTRUCTION NO. 5]
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`[Definition - Preponderance of the Evidence]
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`When a party has the burden of proof on any claim by a preponderance of the
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`evidence, it means you must be persuaded by the evidence that the claim is more probably
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`true than not true. You should base your decision on all of the evidence, regardless of
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`which party presented it.
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`Source: Ninth Circuit Model Jury Instructions, Civil, No 1.6 (2017 ed.) [Preponderance of
`the Evidence].
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 10 of 27
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`COURT’S FORFEITURE INSTRUCTION NO. ____
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`[PROPOSED FORFEITURE INSTRUCTION NO. 6]
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`[Reliance on Evidence Presented During Guilt Phase]
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`In making the forfeiture determination, you should consider all of the evidence
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`presented during the trial as well as the evidence presented during these post-verdict
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`forfeiture proceedings, regardless of who offered it. You should evaluate the evidence and
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`its credibility according to the instructions given to you earlier.
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`Source: Fed. R. Crim. P. 32. (b)(1)(B) (whether made by the Court or the jury, the nexus
`determination may be based upon “evidence already in the record, including any written
`plea agreement, and on any additional evidence or information submitted by the parties
`and accepted by the court as relevant and reliable.”); United States v. Capoccia, 503 F.3d
`103, 109 (2d Cir. 2007) (finder of fact may rely on evidence from the guilt phase; it is not
`necessary for the government to reintroduce that evidence in the forfeiture phase).
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 11 of 27
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`COURT’S FORFEITURE INSTRUCTION NO. ____
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`[PROPOSED FORFEITURE INSTRUCTION NO. 7]
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`[Forfeiture Allegations Not Evidence]
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`The forfeiture allegations set forth in the Superseding Indictment are not evidence
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`and do not create any inference that the property is subject to forfeiture. The defendants
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`have denied that the property is subject to forfeiture.
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`Source: Fed. Crim. Jury Instr. 7th Cir. (2023 ed.), at 1012 [Forfeiture Allegations
`Instruction]; cf. Ninth Circuit Model Jury Instructions, Civil, No. 6.2 (2022 ed.) [Charge
`Against Defendant Not Evidence—Presumption of Innocence—Burden of Proof].
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 12 of 27
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`COURT’S FORFEITURE INSTRUCTION NO. ____
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`[PROPOSED FORFEITURE INSTRUCTION NO. 8]
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`[Forfeiture – Multiple Bases]
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`I will soon describe the specific property the government seeks to forfeit and what
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`the government must prove to forfeit such property. You will be asked to consider whether
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`such property is subject to forfeiture, including on multiple grounds. You need not be
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`concerned with “double-counting” of monetary amounts or “overlapping” of properties.
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`Even if you find that a particular property is subject to forfeiture for more than one
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`reason, that does not mean the government will receive the property twice. However, it is
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`important that you indicate on the special verdict form all bases on which you find any
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`given property is subject to forfeiture.
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`Any issues of “double-counting” or “overlapping” will be considered by the Court
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`when imposing sentence.
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`Source: Fed. R. Crim. P. 32.2(b); 18 U.S.C. § 982; Fed. Crim. Jury Instr. 7th Cir. (2023
`ed.), at 1015 [Separate Consideration – Forfeiture Allegations].
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 13 of 27
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`COURT’S FORFEITURE INSTRUCTION NO. ____
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`[PROPOSED FORFEITURE INSTRUCTION NO. 9]
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`[Property Subject to Forfeiture for Travel Act Conviction or Conspiracy to Commit
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`Such Offense]
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`Under federal law, any defendant convicted of a conspiracy to violate the Travel
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`Act, title 18, United States Code, Section 1952, shall forfeit to the government all of the
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`defendant’s right, title and interest in any and all property, real or personal, constituting, or
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`derived from, any proceeds obtained, directly or indirectly, as a result of the offense.
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`Source: Federal Rule of Criminal Procedure 32.2; 18 U.S.C. § 981(a)(1)(C); 28 U.S.C.
`§ 2461(c).
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 14 of 27
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`COURT’S FORFEITURE INSTRUCTION NO. ____
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`[PROPOSED FORFEITURE INSTRUCTION NO. 10]
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`[Proceeds Defined]
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`Property subject to forfeiture as proceeds of a travel act conspiracy means property
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`of any kind obtained directly or indirectly, as the result of the commission of the offense
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`giving rise to forfeiture, and any property traceable thereto, and is not limited to the net
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`gain or profit realized from the offense.
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`Proceeds remain proceeds regardless of how many times the property may change
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`form. For example, the proceeds of a crime may start out as money in one bank account,
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`be moved to a second bank account, be converted to a check, and then used to buy property.
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`In that case, each of the items would be considered the proceeds of the offense, or property
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`derived from such proceeds.
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`The question of the present value of any property that constitutes proceeds, or was
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`obtained with proceeds, is not before you. If the property has the required connection to
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`an offense, it is subject to forfeiture whether or not its value has changed.
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`Source: 18 U.S.C. § 981(a)(2)(A); United States v. Real Property Located at 22 Santa
`Barbara Dr., 264 F.3d 860, 872-73 (9th Cir. 2001) (property traceable to criminal proceeds
`is forfeitable in its entirety even it has appreciated in value); United States v. Swanson, 394
`F.3d 520, 529 n.4 (7th Cir. 2005) (a change in the form of the proceeds does not prevent
`forfeiture; property traceable to the forfeitable property is forfeitable as well); United States
`v. Hawkey, 148 F.3d 920, 928 (8th Cir. 1998) (“Certainly if Hawkey misappropriated funds
`and used them to make a profit, the original funds and any profits are subject to
`forfeiture.”).
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 15 of 27
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`COURT’S FORFEITURE INSTRUCTION NO. ____
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`[PROPOSED FORFEITURE INSTRUCTION NO. 11]
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`[Forfeiture based on Travel Act Conspiracy Under 18 U.S.C. § 981(a)(1)(C)]
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`
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`The government seeks to forfeit the following property pursuant to the findings of
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`guilt on Count One:
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`1.
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`As to Defendant Lacey:
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`a. Real Property Located at 2755 Fillmore St, San Francisco, CA
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`94123;
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`b. Real Property Located at 3300 E. Stella Lane, Paradise Valley, AZ
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`85253;
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`c. Real Property Located at 3304 E. Stella Lane, Paradise Valley, AZ
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`85253;
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`d. Real Property Located at 3308 E. Stella Lane, Paradise Valley, AZ
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`85253;
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`e. Real Property Located at 6300 N. 33rd Street, Paradise Valley, AZ
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`85253;
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`f. Real Property Located at 6314 N. 33rd Street, Paradise Valley, AZ
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`85253;
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`g. Real Property Located at 2416 N. Foote Dr., Phoenix, AZ 85008;
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`h. $16,500,000.00 seized from or restrained in K&H account number
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`ending 1210 held in the name of Primus Trust and any proceeds
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`thereof;
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`i. $2,412,785.47 seized from or restrained in Midfirst Bank account
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`number ending 4139, held for the benefit of Lacey, and any proceeds
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`thereof;
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`j. $302,177.57 seized from or restrained in Republic Bank of Arizona
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`CDARS account number ending 8324 and any proceeds thereof;
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 16 of 27
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`
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`k. $305,127.89 seized from or restrained in Republic Bank of Arizona
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`CDARS account number ending 8332 and any proceeds thereof;
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`l. $500,000.00 seized from or restrained in Republic Bank of Arizona
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`account number ending 3126 and any proceeds thereof;
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`m. $140,711.61 seized from or restrained in Republic Bank of Arizona
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`account number ending 2485 and any proceeds thereof;
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`n. $601,827.10 seized from or restrained in Republic Bank of Arizona
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`Certificate of Deposit number ending 8316 and any proceeds thereof;
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`o. $484,745.72 seized from or restrained in SF Fire Credit Union
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`account number ending 2523 and any proceeds thereof;
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`p. $689,884.48 seized from or restrained in First Federal Savings &
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`Loan of San Rafael account number ending 3620 and any proceeds
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`thereof;
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`2.
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`As to Defendant Spear:
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`a. $613,573.28 seized from or restrained in National Bank of Arizona
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`account number ending 3645 and any proceeds thereof;
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`b. $404,374.12 seized from or restrained in National Bank of Arizona
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`account number ending 0178 and any proceeds thereof;
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`c. $260,283.40 seized from or restrained in Live Oak Bank account
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`number ending 6910 and any proceeds thereof;
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`d. $56,902.99 seized from or restrained in Ascensus Broker Services
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`account number ending 8001 and any proceeds thereof;
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`e. $64,552.82 seized from or restrained in Ascensus Broker Services
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`account number ending 4301 and any proceeds thereof;
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`f. $1,925.80 seized from or restrained in National Bank of Arizona
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`account number ending 0151 and any proceeds thereof;
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`3.
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`As to Defendant Brunst:
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`a. $5,848,729.00 seized from or restrained in Alliance Bernstein account
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 17 of 27
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`
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`number ending 6878 and any proceeds thereof;
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`b. $527,624.00 seized from or restrained in Alliance Bernstein account
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`number ending 6485 and any proceeds thereof;
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`c. $342,596.00 seized from or restrained in Alliance Bernstein account
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`number ending 7982 and any proceeds thereof;
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`d. $306,277.00 seized from or restrained in Alliance Bernstein account
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`number ending 7889 and any proceeds thereof;
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`e. $275,328.00 seized from or restrained in Alliance Bernstein account
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`number ending 7888 and any proceeds thereof;
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`f. $372,878.00 seized from or restrained in Alliance Bernstein account
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`number ending 4954 and any proceeds thereof;
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`g. $359,527.06 seized from or restrained in Compass Bank account
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`number ending 3825 and any proceeds thereof;
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`4.
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`As to Defendants Lacey, Spear, and Brunst:
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`a. $5,462,027.17 seized from or restrained in Compass Bank account
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`number ending 3873 held in the name of Cereus Properties and any
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`proceeds thereof;
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`b. $182,1 82.50 seized from or restrained in Amro Bank, N.V. account
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`number ending 6352 held in the name of Ad Tech BV with Stichting
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`Zencotrust;
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`c. $191,246.00 seized from or restrained in Western Alliance Bank
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`account number ending 6979 held in the name of Mitchell Stein
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`Carey Chapman PC. and any proceeds thereof;
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`d. $518,172.92 seized from or restrained in Wells Fargo Bank account
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`number ending 4455 in the name of Cardquiry and any proceeds
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`thereof;
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`e. 747,664.15 GBP seized from or restrained in SAXO Payments (UK)
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`account number ending 1262 held in the name of the Cashflows
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 18 of 27
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`
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`Europe Limited and any proceeds thereof;
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`f. $499,910.01 seized from or restrained in US Bank account number
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`ending 0239 held in the name of Affordable Bail Bonds LLC and any
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`proceeds thereof;
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`g. $1,600,705.61 seized from or restrained LHV Pank account number
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`ending 4431 held in the name of Olist OU and any proceeds thereof.
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`The government contends that the property described above constitutes or is derived
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`from proceeds obtained, directly or indirectly, as a result of the violation(s) of which one
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`or more defendant was found guilty under Count One of the SI, and is therefore subject to
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`forfeiture to the United States pursuant to Title 18, United States Code, Section
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`981(a)(1)(C).
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`If you conclude that the government has proved by a preponderance of the evidence
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`that the property listed above constitutes or is derived from proceeds one or more of the
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`defendants obtained, directly or indirectly, as a result of the violation(s) of which one or
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`more defendant has been found guilty under Count One of the SI, you must find that such
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`property is forfeitable to the United States.
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`Source: 18 U.S.C. § 981(a)(1)(C); 28 U.S.C. § 2641(c); Federal Rule of Criminal
`Procedure 32.2(b)(2)(A) (The only question to be determined during the forfeiture phase
`is whether the evidence submitted during the guilt phase, together with any additional
`evidence received during the forfeiture phase, establishes by a preponderance of the
`evidence that there is the requisite nexus between the underlying crime(s) of conviction
`and the property sought to be forfeited by the government. “If the court finds that the
`property is subject to forfeiture, it must promptly enter a preliminary order of forfeiture . .
`. directing the forfeiture of specific property . . . .”); United States v. Lazarenko, 504 F.
`Supp. 2d 791, 796-97 (N.D. Cal. 2007) (Rule 32.2(a) requires only that the indictment give
`notice of the forfeiture in generic terms; that the Government did not itemize all of the
`property subject to forfeiture until much later was of no moment); United States v.
`Monsanto, 491 U.S. 600, 607 (1989) (“Congress could not have chosen stronger words to
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 19 of 27
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`
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`express its intent that forfeiture be mandatory in cases where the statute applied.”); United
`States v. Newman, 659 F.3d 1235, 1240 (9th Cir. 2011) (following Monsanto: “When the
`Government has met the requirements for criminal forfeiture, the district court must impose
`criminal forfeiture, subject only to statutory and constitutional limits”); Lazarenko, 476
`F.3d at 648 (“Upon a finding that the property involved is subject to forfeiture, a court must
`promptly enter a preliminary order of forfeiture without regard to a third party’s interests
`in the property”); United States v. Christensen, 828 F.3d 763 (9th Cir. 2015) (The standard
`of proof regarding the criminal forfeitability of property is preponderance of the evidence).
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 20 of 27
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`COURT’S FORFEITURE INSTRUCTION NO. ____
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`[PROPOSED FORFEITURE INSTRUCTION NO. 12]
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`[Property Subject to Forfeiture for Money Laundering Conviction]
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`Under federal law, any defendant convicted of one or more violations of Title 18,
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`United States Code, Sections 1956 or 1957, shall forfeit to the government all of the
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`defendant’s right, title and interest in any and all property, real or personal, involved in
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`such offense, or any property traceable to such property.
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`Source: Federal Rule of Criminal Procedure 32.2; 18 U.S.C. § 982(a)(1).
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`Case 2:18-cr-00422-DJH Document 1935 Filed 11/01/23 Page 21 of 27
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`COURT’S FORFEITURE INSTRUCTION NO. ____
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`[PROPOSED FORFEITURE INSTRUCTION NO. 13]
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`[Scope of 18 U.S.C. § 982(a)(1)]
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`Property subject to forfeiture as property involved in a violation of Sections 1956(h)
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`or 1957 of Title 18 of the United States Code includes:
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`1. Money or other property that was the subject of the financial transaction that
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`constituted the money laundering violation;
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`2.
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`3.
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`Any property used to facilitate such a money laundering violation; and
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`Any fees or commissions paid to the money launderer.
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`Property may be the subject of the financial transaction in a number of ways. For
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`example, the property may be the proceeds of the underlying specified unlawful activity
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`which were used to conduct the transaction; it may be property that was commingled with
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`those proceeds at the time the financial transaction took place; or it may be property that
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`was obtained as part of an exchange or purchase that constitutes the violation for which a
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`defendant has been found guilty.
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`Property that was used to facilitate the money laundering transaction may include
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`property that was not part of the transaction itself, but was used to make the money
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`laundering offense easier to commit or harder to detect.
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`Property that is traceable to the property described in (1) through (3) above in this
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`instruction is also subject to forfeiture. The phrase “any property traceable to” such
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`property includes any property which was exchanged for, derived from, or obtained with
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`any of the property involved in the underlying money laundering crime. For example,
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`property involved in a money laundering violation may be used to acquire, improve, or
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`maintain real or personal property in a transac