United States v. Shelton
United States v. Shelton
Opinion of the Court
Currently before the Court are Defendant Randell G. Shelton, Jr.'s Motion to Set Aside the Forfeiture Order and Enter an Amended Forfeiture Order (Doc. 487) and Brief in Support (Doc. 492), as well as the Government's Response (Doc. 491). For the reasons given below, Mr. Shelton's Motion is DENIED .
I. BACKGROUND
Mr. Shelton was convicted by a jury on twelve felony counts of honest services fraud for his role in a conspiracy to bribe his codefendant, former state senator Jon Woods. Essentially, the Government proved at trial that Mr. Shelton used his company, Paradigm Strategic Consulting, to funnel cash bribes to Mr. Woods from their codefendant Oren Paris. In exchange for these bribes, Mr. Woods used his office to steer public grant monies from the state's General Improvement Fund ("GIF") to Ecclesia College, an institution of which Mr. Paris was then president. The Government also introduced evidence at trial that Mr. Shelton funneled additional bribes from Mr. Paris to Mr. Woods in exchange for non-GIF legislative action that was favorable to Ecclesia. Mr. Shelton was acquitted on two counts pertaining to the non-GIF part of the scheme.
The jury returned its verdict on May 3, 2018. See Doc. 378. Later that same day, the Government presented the Court and Mr. Shelton with a proposed money judgment, pursuant to the forfeiture allegation in the Second Superseding Indictment. See Exhibit 1, p. 2. In the email to which the proposed money judgment was attached, the Government explained that "[t]he amount for Shelton represents the amount of GIF directed to Ecclesia and the payments made to Paradigm that were not paid in coordination with GIF."Id. The Government further explained in that email that although Mr. Shelton was acquitted on some non-GIF counts, "it is the government's position that they were part of the conspiracy" of which Mr. Shelton was convicted, "and that the government proved as much by a preponderance of the evidence, which is the burden of proof for forfeiture."
*942Two days later, on September 6, Mr. Shelton's sentencing hearing was held. This Court sentenced Mr. Shelton to 72 months of incarceration in the Federal Bureau of Prisons. At the conclusion of Mr. Shelton's sentencing hearing, the Court stated that it had been presented with a proposed money judgment in the amount of $664,000, and asked counsel for Mr. Shelton whether she had an opportunity to review the precedent. She stated that she had not. The Court then found, by a preponderance of the evidence presented at trial, that GIF grants totaling $621,500 were procured through bribes in furtherance of the conspiracy of which Mr. Shelton had been convicted, and that an additional $42,500 in payments were made to Paradigm Strategic Consulting in furtherance of that same conspiracy, totaling $664,000 in proceeds from Mr. Shelton's offenses of conviction. The Court signed the proposed money judgment in open court, but stated that it would not file the money judgment until such time as counsel for Mr. Shelton had an opportunity to review it. The Court informed counsel for Mr. Shelton that if her review suggested that there was some error, either legal or factual or clerical, then she should bring it to the Court's attention.
The next day, on Friday, September 7, the Court emailed all counsel for Mr. Shelton, with the Government copied and the Money Judgment attached, and asked Mr. Shelton's counsel to "[p]lease review and let the Court know at your earliest convenience if you have any objection to the Order being entered." See id. at 1. Later that same day, counsel for Mr. Shelton responded to the email, saying "[i]t will be Monday or Tuesday for our response if that is acceptable." Id. At the close of business on Tuesday, September 11, having received no objection from Mr. Shelton, the Court filed the Money Judgment, which is located on the docket at Doc. 476.
The following morning, on Wednesday, September 12, counsel for Mr. Shelton emailed the Court and the Government, stating that Mr. Shelton objected to the amount of money being forfeited, and contending that "the amount subject to forfeiture for Randell Shelton is, at most, the total amount he was paid by Ecclesia College." See Doc. 487-1, pp. 2-3. The Government, and then the Court, responded to the email with reminders to counsel for Mr. Shelton that the Money Judgment had already been filed on the previous day.
One week later, on September 19, counsel for Mr. Shelton emailed the Court, with *943the Government copied, to inform the Court that "the Government has agreed to submit an amended forfeiture order in the amount of $267,500, which represents the total proceeds Mr. Shelton received from Ecclesia College." See Doc. 487-2, p. 4. The Government confirmed that this was their agreement. See id. The Court then inquired as to what the legal basis was for the proposed amendment to the Money Judgment. See id. at 3. The next day, September 20, several rounds of elaboration by the Government and follow-up questions by the Court were exchanged. See id. at 1-3. At the end of it all, the Court stated that it remained "unpersuaded," but that "regardless of what the Court may ultimately conclude on closer examination, we need to make a formal record. Accordingly, if the Government and/or Mr. Shelton believe that the money judgment was entered in error, then please timely file a motion (joint or otherwise) seeking appropriate relief." See id. at 1.
Four days later (yesterday, September 24), Mr. Shelton filed his Motion to Set Aside the Forfeiture Order and Enter an Amended Forfeiture Order. See Doc. 487. The following day (today), the Government filed its Response, see Doc. 491, after which Mr. Shelton filed a belated Brief in Support of his Motion, see Doc. 492. Mr. Shelton's Motion is now ripe for decision.
II. DISCUSSION
The forfeiture allegation and the Money Judgment against Mr. Shelton were filed pursuant to
In Honeycutt v. United States , the Supreme Court held that criminal forfeiture under
Mr. Shelton acknowledges, of course, that the money judgment in the instant case was obtained pursuant to
In the year since Honeycutt came down, a circuit split has already developed on the question of whether Honeycutt applies to criminal forfeitures under
This Court believes this is a very close and difficult issue, as evidenced not only by the circuit split but also by the Government's reversal of its own position in the instant case. On the one hand, this Court wholeheartedly agrees with the Sexton Court that the Gjeli and Carlyle Courts overlooked a critical difference between the two statutes' respective definitions of property subject to forfeiture. The Sexton Court is correct that
However, this Court ultimately agrees with the Sexton Court that *945
III. CONCLUSION
The Court has already found, by a preponderance of the evidence presented at trial, that the proceeds of Mr. Shelton's offenses of conviction total $664,000. The Court continues to believe that factual finding is correct, regardless of Honeycutt 's applicability. The Court has already entered the Money Judgment against Mr. Shelton on that factual basis. And for the reasons given above, the Court does not believe there is a legal basis for vacating or amending that Money Judgment. IT IS THEREFORE ORDERED that Defendant Randell G. Shelton, Jr.'s Motion to Set Aside the Forfeiture Order and Enter an Amended Forfeiture Order (Doc. 487) is DENIED .
IT IS SO ORDERED on this 25th day of September, 2018.
COURT EXHIBIT 1 *946*947--------
This, of course, is a much lower burden of proof than that which applied to the criminal charges against Mr. Shelton, which was proof beyond a reasonable doubt.
In Mr. Shelton's Motion, he omits any reference to his counsel's prior email to the Court that provided a self-imposed deadline of "Tuesday" to object to the money judgment. See Doc. 487, p. 2. He simply states that the Court emailed a copy of the proposed order to the parties on September 7, that Mr. Shelton "notified the Court and the Government" of his objection on September 12, and that "[t]he Court subsequently informed Mr. Shelton the order had been entered the previous day." See
Reference
- Full Case Name
- United States v. Randell G. SHELTON, Jr.
- Status
- Published