Case 1:16-cr-00776-VEC Document 1037 Filed 02/03/22 Page 1 of 10
`Case 1:16-cr-00776-VEC Document 1036-1 Filed 02/03/22 Page 1 of 10
`GasselilbteciOOU7B66VEEC DoccuneettL0G671 AxeldOQ20G2222 AaagellobfL00
`
`USDC SDNY
`USDCSDNY
`DOCUMENT
`DOCUMENT
`ELECTRONICALLY FILED
`ELECTRONICALLY FILED
`DOC #:
`
`
`
`DOC#0
`(cid:19)(cid:16)(cid:20)(cid:16)(cid:19)(cid:17)(cid:19)(cid:19)
`
`DATE FILED:
`
`DATEFILED: 2/3/2022
`
` reTTTSTESSHREARS
`ROUEN
`
`Stearmaneentenenneenertevien
`SNORE
`
`SUNITED STATES DISTRICT COURT
`SOUTHERN DISTRICT OF NEW YORK
`eee ia
`
`UNITED STATES OF AMERICA
`
`-v. -
`
`STEVEN AIELLO,
`
`;
`
`;
`
`Defendant.
`
`= Fes eS
`
`aes = =
`
`——
`
`se:
`
`ae
`
`we
`
`es we x
`
`STIPULATION AND ORDER
`OF SETTLEMENT AS TO
`
`SUBSTITUTE ASSETS
`
`S2 16 Cr. 776 (VEC)
`
`WHEREAS, on September 19, 2017, STEVEN AIELLO,
`
`the
`
`defendant
`
`(the “Defendant”), was charged in a superseding
`
`Indictment, S2 16 Cr. 776 (VEC)
`
`(the “Indictment”) with, among
`
`other things, one count of conspiracy to commit wire fraud,
`
`in
`
`violation of Title 18, United States Code, Section 1349 (Count
`
`One) and one count of wire fraud,
`
`in violation of Title 18,
`
`United States Code, Sections 1343 and 2
`
`(Count Two);
`
`WHEREAS,
`
`the Indictment included a forfeiture
`
`allegation as to Counts One and Two of the Indictment, seeking
`
`forfeiture to the United States, pursuant to Title 18, United
`
`States Code, Section 981i(a)(1)(C), and Title 28, United States
`
`Code, Section 2461(c), of any and all property, real and
`personal, which constitutes, or is derived from, proceeds
`
`traceable to the commission of the offenses alleged in Counts
`
`One and Two of the Indictment,
`
`including but not limited to a
`
`sum of money in United States currency representing the amount
`
`
`
`
`
`
`
`
`
`Case 1:16-cr-00776-VEC Document 1036-1 Filed 02/03/22 Page 1 of 10
`GasselilbteciOOU7B66VEEC DoccuneettL0G671 AxeldOQ20G2222 AaagellobfL00
`
`USDC SDNY
`USDCSDNY
`DOCUMENT
`DOCUMENT
`ELECTRONICALLY FILED
`ELECTRONICALLY FILED
`DOC #:
`
`
`
`DOC#0
`(cid:19)(cid:16)(cid:20)(cid:16)(cid:19)(cid:17)(cid:19)(cid:19)
`
`DATE FILED:
`
`DATEFILED: 2/3/2022
`
` reTTTSTESSHREARS
`ROUEN
`
`Stearmaneentenenneenertevien
`SNORE
`
`SUNITED STATES DISTRICT COURT
`SOUTHERN DISTRICT OF NEW YORK
`eee ia
`
`UNITED STATES OF AMERICA
`
`-v. -
`
`STEVEN AIELLO,
`
`;
`
`;
`
`Defendant.
`
`= Fes eS
`
`aes = =
`
`——
`
`se:
`
`ae
`
`we
`
`es we x
`
`STIPULATION AND ORDER
`OF SETTLEMENT AS TO
`
`SUBSTITUTE ASSETS
`
`S2 16 Cr. 776 (VEC)
`
`WHEREAS, on September 19, 2017, STEVEN AIELLO,
`
`the
`
`defendant
`
`(the “Defendant”), was charged in a superseding
`
`Indictment, S2 16 Cr. 776 (VEC)
`
`(the “Indictment”) with, among
`
`other things, one count of conspiracy to commit wire fraud,
`
`in
`
`violation of Title 18, United States Code, Section 1349 (Count
`
`One) and one count of wire fraud,
`
`in violation of Title 18,
`
`United States Code, Sections 1343 and 2
`
`(Count Two);
`
`WHEREAS,
`
`the Indictment included a forfeiture
`
`allegation as to Counts One and Two of the Indictment, seeking
`
`forfeiture to the United States, pursuant to Title 18, United
`
`States Code, Section 981i(a)(1)(C), and Title 28, United States
`
`Code, Section 2461(c), of any and all property, real and
`personal, which constitutes, or is derived from, proceeds
`
`traceable to the commission of the offenses alleged in Counts
`
`One and Two of the Indictment,
`
`including but not limited to a
`
`sum of money in United States currency representing the amount
`
`
`
`
`
`
`
`
`
`
`Case 1:16-cr-00776-VEC Document 1037 Filed 02/03/22 Page 2 of 10
`Case 1:16-cr-00776-VEC Document 1036-1 Filed 02/03/22 Page 2 of 10
`GasselilbteciOOU766VEEC DoccuneenttL0G671 AxelOQ20G2222 Aaage2206fL00
`
`of proceeds traceable to the commission of the offenses charged
`
`in Counts One and Two of the Indictment;
`
`WHEREAS, on July 12, 2018,
`
`the Defendant was found
`
`guilty,
`
`following a jury trial, of Counts One and Two of the
`
`Indictment;
`
`WHEREAS, on December 7, 2018,
`
`the Defendant was
`
`sentenced and ordered to forfeit the amount of proceeds
`
`traceable to the commission of the offenses charged in Counts
`
`One and Two of the Indictment;
`
`WHEREAS, on or about February 11, 2019,
`
`this Court
`
`entered a Consent Preliminary Order of Forfeiture/Money Judgment
`
`imposing a forfeiture money judgment against the Defendant in
`
`the amount of $898,954.20 in United States currency (the “Money
`
`Judgment”), representing the amount of proceeds traceable to the
`
`offenses charged in Counts One and Two of the Indictment that
`
`the Defendant personally obtained;
`
`WHEREAS, pursuant to the Consent Preliminary Order of
`
`Forfeiture/Money Judgment,
`
`the Defendant agreed to make payment
`
`of the Money Judgment by 30 days after the mandate of the United
`
`States Court of Appeals for the Second Circuit is issued;
`
`WHEREAS,
`
`the mandate of the United States Court of
`
`Appeals for the Second Circuit was issued on or about December
`
`14, 2021, and therefore 30 days after the issuance of the
`
`mandate occurred on or about January 13, 2022;
`
`2
`
`neseesivneaceedemneoneannuetenent
`
`
`syRITEOEANINSTTINNOCESSVENIA
`sencesgacettecureanseytenstercne
`
`
`
`
`
`Case 1:16-cr-00776-VEC Document 1037 Filed 02/03/22 Page 3 of 10
`Case 1:16-cr-00776-VEC Document 1036-1 Filed 02/03/22 Page 3 of 10
`Gasselilb6ecOOU766VEEC DoccuneettL0G671 AxeldOQ20G2222 Haage33obfL00
`
`WHEREAS, by Order dated January 12, 2022,
`
`the Court
`
`granted the Defendant an extension until February 14, 2022 to
`
`Satisfy the Money Judgment;
`
`;
`
`WHEREAS,
`
`the Defendant has requested additional time
`
`to satisfy the Money Judgment;
`
`WHEREAS, pursuant to Title 21, United States Code,
`
`Section 853(p),
`
`the Government is entitled to forfeit other
`
`property of the Defendant up to the amount of the Money
`
`Judgment ;
`
`WHEREAS,
`
`the Defendant and his wife, Lori Aiello,
`
`possess real property located at 6520 North 63rd Place, Paradise
`
`Valley, Arizona 85253 (the “Paradise Valley Property”), which
`
`the parties agree is subject to forfeiture as substitute assets
`
`in order to satisfy an outstanding Money Judgment; and
`
`WHEREAS,
`
`the Government,
`
`the Defendant, and Lori
`
`Aiello have agreed to resolve their respective claims to those
`
`assets and satisfy the Money Judgment on the terms set forth
`
`below;
`
`IT IS HEREBY STIPULATED AND AGREED, by and between the
`
`United States of America, by its attorney, Damian Williams,
`
`United States Attorney, Assistant United States Attorneys Janis
`
`Echenberg and Matthew Podolsky, of counsel, and the Defendant,
`
`Steven Aiello, and the Defendant’s wife, Lori Aiello, and the
`
`Defendant’s counsel, Alexandra Shapiro, Esq.
`3
`
`that:
`
`RSSRERRAMUOEECORETY
`
`
`sreeurteamaMAROON
`nensarrpasuenonanenteyesainmeveaeett:
`
`
`
`
`
`
`
`
`Case 1:16-cr-00776-VEC Document 1037 Filed 02/03/22 Page 4 of 10
`Case 1:16-cr-00776-VEC Document 1036-1 Filed 02/03/22 Page 4 of 10
`GasselilféeciOOU7B6VEEC DoccuneettL0G671 AxelcOQ20G8222 Faage44obfL00
`
`1.
`
`The Defendant shall satisfy the Money Judgment by
`
`150 days after the issuance the mandate of the United States
`
`Court of Appeals for the Second Circuit, which was on December
`
`14, 2021;
`
`2
`
`The Defendant and Lori Aiello (together,
`
`the
`
`“Aiellos”) shall not sell,
`
`transfer, or encumber the Paradise
`
`Valley Property prior to payment of the Money Judgment in full
`
`without
`
`the prior written authorization of the Government,
`
`except as provided in paragraph 3 below.
`
`The government shall
`
`not unreasonably withhold such authorization.
`
`Should the
`
`Aiellos sell,
`
`transfer, or encumber the Paradise Valley Property
`
`with the Government's authorization prior to payment of the
`
`Money Judgment in full,
`the Aiellos shall pay any balance
`remaining on the Money Judgment to the United States from the
`
`proceeds of any sale,
`
`transfer or encumbrance of the Paradise
`
`Valley Property prior to making any other distribution of such
`
`proceeds.
`
`Such payment shall be made at either the time of
`
`closing of the sale or transfer in the manner directed by
`
`counsel for the Government.
`
`3.
`
`The Aitellos shall not incur any obligations
`
`secured by the Paradise Valley Property after the date of the
`
`entry of this Stipulation and Order, without the prior written
`
`authorization of the Government. However, notwithstanding
`
`anything else in this Stipulation and Order,
`
`the Aiellos are
`
`4
`
`
`
`
`
`
`
`
`
`etaHRDOUCLALAITUNESek&
`
`:R
`}E7
`
`iiizgéii
`
`Case 1:16-cr-00776-VEC Document 1037 Filed 02/03/22 Page 5 of 10
`Case 1:16-cr-00776-VEC Document 1036-1 Filed 02/03/22 Page 5 of 10
`GaaselllB6ec1O077B6VWEEC Doocumeentl0G5/1 Axec0@20G2222 Heajged5o06fL00
`
`permitted to refinance, obtain a home equity line of credit
`
`(*“HELOC”), or obtain a home equity loan using the Paradise
`
`Valley Property as collateral, provided that the Aiellos pay any
`balance remaining on the Money Judgment
`to the United States
`
`from the proceeds prior to making any other distribution of such
`
`proceeds.
`
`4,
`
`The Aiellos shall maintain the Paradise Valley
`
`Property at their expense in the same, or better, condition and
`
`repair as of the date of this Stipulation and Order.
`
`The term
`
`“maintain” shall include, but not be limited to, keeping the
`
`Paradise Valley Property free of hazards and/or structural
`
`defects; keeping all heating, air conditioning, plumbing,
`
`electrical, gas, oil, or other power facilities in good working
`
`condition and repair; keeping the Paradise Valley Property clean
`
`and performing necessary sanitation and waste removal;
`
`maintaining the Paradise Valley Property and grounds in good
`
`condition by providing snow removal,
`lawn mowing and all other
`ordinary and accompany routine maintenance. The Aiellos shall
`
`maintain casualty and fire insurance equal
`
`to the full
`
`replacement cost of the Paradise Valley Property and all
`
`improvements thereon, and shall maintain liability insurance for
`
`injuries occurring on or resulting from the use of the property,
`
`or activities or conditions thereon.
`
`The Aiellos shall also
`
`timely pay any and all mortgage, home equity loan, rent
`5
`
`
`
`Case 1:16-cr-00776-VEC Document 1037 Filed 02/03/22 Page 6 of 10
`Case 1:16-cr-00776-VEC Document 1036-1 Filed 02/03/22 Page 6 of 10
`GasselilftecOOU766VEEC DoccuneenttL0G671 AxeldOQ20G2222 HaagescobflL00
`
`utilities, sewer,
`
`trash, maintenance, cable television,
`
`tax
`
`and/or other obligations, otherwise necessary and due on the
`
`Paradise Valley Property. Moreover,
`
`the Aiellos shall abide by
`
`all laws, codes, regulations, ordinances, covenants, rules,
`
`bylaws, binding agreements and/or stipulations or conditions
`
`pertaining to the care, maintenance, control and use of the
`
`Paradise Valley Property.
`Bis
`Tf the Defendant fails to pay the Money Fodoment:
`
`in full by 150 days after the issuance of the mandate,
`
`the
`
`Aiellos consent to the following:
`
`a.
`
`The Paradise Valley Property shall be sold
`
`by the United States Marshals Service (the “Marshals”) (or its
`
`designee), and the unpaid portion of the Money Judgment shall be
`
`forfeited as a substitute asset from the net proceeds of that
`
`sale.
`
`b.
`
`The Aiellos shall expeditiously execute any
`
`and all paperwork and fulfill any other requirements in
`
`furtherance of a Marshals sale of the Paradise Valley Property,
`
`including vacating the Paradise Valley Property within 90 days
`
`after failure to satisfy the Money Judgment.
`
`Cis
`
`The Aiellos shall not file any petition or
`
`claim as to the portion of the net proceeds of the Marshals sale
`
`equal to the unpaid balance of the Money Judgment, or assist any
`
`other person in doing so.
`
`
`
`9ENGretPETSTROSSSONATE
`
`
`
`
`
`
`
`i
`
`Case 1:16-cr-00776-VEC Document 1037 Filed 02/03/22 Page 7 of 10
`Case 1:16-cr-00776-VEC Document 1036-1 Filed 02/03/22 Page 7 of 10
`GasselilféeciOOU766VEEC DoccuneettL0G671 AxelOQ20G2222 Haage//obfL00
`
`d.
`
`The net proceeds of the sale of the Paradise
`
`Valley Property shall include ail amounts received from the sale
`
`of the Paradise Valley Property after payment of outstanding
`
`taxes, valid prior liens, real estate commissions,
`
`insurance
`
`costs, escrow fees, document recording fees not paid by the
`
`buyer, title fees, county transfer fees,
`
`reasonable real estate
`
`attorney’s fees, if any, associated with the Marshals sale, and
`
`any and all expenses, if any,
`
`incurred by the Marshals or
`
`designees in connection with the custody, maintenance and sale
`
`of the Paradise Valley Property.
`
`e.
`
`Tf the net proceeds of the Paradise Valley
`
`Property are greater than the unpaid balance of the Money
`
`Judgment at the time of the sale,
`
`the excess proceeds shall be
`
`transferred by the Marshals to the Aiellos in the manner
`
`directed by the Defendant’s counsel.
`
`6.
`
`Except as set forth in Paragraph 5,
`
`the
`
`Government shall not take any action to seize or forfeit the
`
`Paradise Valley Property.
`
`7.
`
`Until
`
`the Money Judgment is fully paid,
`
`the
`
`United States Marshals Service or its designees shall have the
`
`right to enter and inspect the Paradise Valley Property, upon 72
`
`hours advance notice to the Defendant’s attorney,
`
`in order to
`
`ensure compliance with this Stipulation and Order of Settlement.
`
`The Aiellos shall fully cooperate with any persons and entities
`7
`
`
`
`Case 1:16-cr-00776-VEC Document 1037 Filed 02/03/22 Page 8 of 10
`Case 1:16-cr-00776-VEC Document 1036-1 Filed 02/03/22 Page 8 of 10
`GasselilbéeciOOU766VEEC DoccuneettL0G671 AxelOQ20G2222 Aeage8eobfL00
`
`designated by the Marshals to inspect the Paradise Valley
`
`Property.
`
`8,
`
`The Aiellos are barred from asserting, or
`
`assisting others in asserting, any claim against the Government,
`
`including the Department of Justice,
`
`the United States
`
`Attorney’s Office for the Southern District of New York, and the
`
`United States Marshals Service, and all employees, officers, and
`
`agents of the Government,
`
`in connection with the sale of the
`
`Paradise Valley Property pursuant to this Order.
`
`9.
`
`Notwithstanding anything else in this Stipulation
`
`and Order, if as a result of further proceedings in the United
`
`States Supreme Court the convictions of Defendant Steven Aiello
`
`on Counts One and’Two are reversed or vacated,
`
`the government
`
`shall have no entitlement to forfeiture against him based on
`
`those convictions. Accordingly,
`
`the Money Judgment shall be
`
`void, all restrictions on the Paradise Valley Property shall be
`
`lifted, and the government shall return to Steven Aiello any
`
`portion of the Money Judgment paid.
`
`10.
`
`The Court shall retain jurisdiction to enforce
`
`this Stipulation and Order, and to amend it as necessary,
`
`pursuant to Rule 32.2(e) of the Federal Rules of Criminal
`
`Procedure.
`
`11. Hach party shall bear its own costs and
`
`attorney’s fees.
`
`
`
`areaHARSHARHeNSERCeRatanNee
`
`
`
`
`
`Case 1:16-cr-00776-VEC Document 1037 Filed 02/03/22 Page 9 of 10
`Case 1:16-cr-00776-VEC Document 1036-1 Filed 02/03/22 Page 9 of 10
`GasselilféeciOOU766VEEC DoccuneettL0G671 AxelOQ20G2222 Feage9906fL00
`
`12. The Clerk of the Court shall forward three
`
`certified copies of this Stipulation and Order to the United
`
`States Attorney’s Office, Southern District of New York, Attn:
`
`Money Laundering and Asset Forfeiture Unit, One St. Andrew's
`
`Plaza, New York, New York 10007.
`
`13.
`
`The signature page of this Order may be executed
`
`in one or more counterparts, each of which will be deemed an
`
`original but all of which together will constitute one and the
`
`
`
`Sete
`
`
`(eeeRT
`
`
`ederimtirermeERRnaBATONS
`
`
`
`
`34
`
`
`
`Case 1:16-cr-00776-VEC Document 1037 Filed 02/03/22 Page 10 of 10
`Case 1:16-cr-00776-VEC Document 1036-1 Filed 02/03/22 Page 10 of 10
`GasselilféecO00766VEEC DoccuneentL03671 Axtelc0@20G2222 AeageLD00bfL00
`
`same instrument. Signature pages may be by email or fax and such
`
`signatures shall be deemed as valid originals.
`
`i
`
`eSSHRANANUNIEONOSAada
`
`aaratampscaapanamnaernoetetts
`
` CASSISERENT
`
`AGREED AND CONSENTED TO:
`
`DAMIAN WILLIAMS
`United States Attorney for the
`Southern District of New York
`
`By:
`
`
`
`ECHENBERG
`MATTHEW PODOLSKY
`Assistant United States Attorneys
`One St. Andrew’s Plaza
`New York, NY 10007
`Tel.:
`(212) 637-2597/1947
`
`L/3]r22
`DATE
`
`:
`:
`:
`|
`
`
`
`By: L/ 2dfgem
`DATE
`
`
`
`» AW
`
`
`By:
`
`a
`al
`i I)
`Py RM,
`[ALA
`LORI AIELLO
`
`may
`
`&
`
`H
`
`DATE
`
`
`VAC
`
`ALEXANDRA SHAPIRO, ESO.
`Shapiro Arato Bach LU
`500 Fifth Avenue, 40t® Floor
`New York, New York 10110
`Counsel for Steven Aiello
`
`SO ORDERED:
`
`\iQe en
`
`
`HONORABLE VALERIE|E. CAPRONI
`United States District Judge
`
`10
`
`DATE,
`
`2/3/2022
`
`(cid:19)(cid:16)(cid:20)(cid:16)(cid:19)(cid:17)(cid:19)(cid:19)
`DATE
`
`
`
`
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