United States v. Messino
Opinion of the Court
Under 21 U.S.C. § 853(a), the government is entitled to forfeiture of assets constituting or derived from proceeds of certain illegal drug transactions. Forfeiture under this section of the United States Code is known as criminal forfeiture because the gov
On April 26, 1995, Christopher Richard (“Dick”) Messino and Clement Messino (along with Paul Messino and Christopher B. Messino) were convicted by a jury of several crimes including conspiracy to distribute and possess with intent to distribute cocaine in violation of 21 U.S.C. § 846. Based on this conviction, the government sought criminal forfeiture against the Messinos and successfully proved to the jury that a number of assets either constituted or were derived from the proceeds of the Messinos’ drug operations. Relevant to this case, the jury found the following items forfeitable as proceeds: a Pro-Mod 1957 race car known as the “Shake Rattle and Run,” a 1987 pickup truck, real property located at 17027 South Forest, Oak Forest, Illinois (the “Forest property”), and a 1963 Corvette.
In addition to specific items of property, the government argued to the jury that $630,000 in currency was forfeitable as proceeds of Clement Messino’s drug activities. The jury agreed that Clement obtained cash proceeds, but found only $315,000 to be forfeitable as such. When the government moved for an order of forfeiture, however, it claimed that it could not locate this cash and thus the court should order the forfeiture of other property as a substitute for the $315,000 in currency under 21 U.S.C. § 853(p). Section 853(p) of the criminal forfeiture statute provides that in five specified circumstances the government may obtain forfeiture of a “substitute” asset to take the original asset’s place, for example, when an asset ordered forfeited cannot be located upon the exercise of due diligence.
Three people waited in the wings during the criminal trial: Ted Borowski, Joseph Messino, and Biagio Messino,
All three challenge the district court’s fact finding.
Joseph Messino also raises an interesting challenge to the forfeiture of the motorcycle as a substitute asset. The district court found that Joseph failed to prove by a preponderance of the evidence that he owned the motorcycle and instead held that the method of purchase was typical of the way one launders money. Joseph claims it was error for the court to put the burden on him to prove ownership, as statutorily required in third-party hearings, because it did not properly issue the order of forfeiture in the first place. According to Joseph, before the court may order forfeiture, and thus shift the burden of proof to third parties to defeat the forfeiture, the government must prove by a preponderance of the evidence that the claimed item is forfeitable in the first instance. In the case of substitute property, this would mean that the government must prove that one of the five prerequisites for seeking substitute property is met. Joseph focuses elsewhere, however, and claims that the government also must prove that the claimed property is “property of the defendant.” 21 U.S.C. § 853(p). In the instant case, the government apparently did not present any evidence with its motion for forfeiture of substitute assets either that one of the five circumstances for seeking substitute assets was met or that the property sought was Clement’s property. The government potentially could have cited to evidence presented in the criminal trial to support its motion, but it did not. Nor did the court make an explicit finding that Clement was the owner of the motorcycle. Joseph presents a strong argument that, because the district court did not require the government
Last, Borowski raises the challenging question of whether the Seventh Amendment requires a jury in § 853(n) proceedings on third-party claims.
After coming so far, the reader must be impatient for a resolution of these thought-provoking issues. Unfortunately, we cannot satisfy. We must confess that we presented the above discussion only to flag these tricky questions which are likely to rise again. We lost the opportunity to treat any of these interesting matters when we reversed the underlying convictions of Clement and Dick Messino in United States v. Underwood, et al., 122 F.3d 389 (7th Cir. 1997). As elaborated in that opinion, because the defendants’ rights to the intelligent exercise of their peremptory strikes were impaired, we reversed the convictions of all the defendants convicted in that jury trial. Having reversed the convictions because of the improper jury selection, ah of the jury’s findings and all of the resulting criminal forfeiture orders also must fall. Thus, the necessary consequence of reversing the defendants’ convictions was that we also vacated the criminal forfeiture orders based on those convictions. Under § 853(k) and (n), as discussed above, third parties cannot petition the court for an adjudication of their interests in property subject to criminal forfeiture until after preliminary orders of forfeiture have been entered. Because there are no forfeiture orders left for these third parties to challenge, the appeals
. The government sought, and the court ordered, forfeiture of only a one-half interest in the 1963 Corvette because it was the subject matter of an appeal pending in this court, United States v. Michelle's Lounge, No. 95-1411.
. Section 853(p) stales:
If any of the property described in subsection (a) of this section, as a result of any act or omission by the defendant—
(1) cannot be located upon the exercise of due diligence;
(2) has been transferred or sold to, or deposited with, a third party;
(3) has been placed beyond the jurisdiction of the court;
(4) has been substantially diminished in value; or
(5) has been commingled with other property which cannot be divided without difficulty;
the court shall order the forfeiture of any other property of the defendant up to the value of any property described in paragraphs (1) through (5).
. Biagio died prior to the hearing on his claim. Thus, his claim and this appeal were brought by his estate. For the sake of simplicity, however, we will hereinafter, refer to the claimant as Biagio or Biagio Messino.
. Joseph and Biagio also argued that the district judge should have recused himself from the third-party hearings and Borowski claimed that the forfeiture of the race car violated the Eighth Amendment.
. The Seventh Amendment states:
In Suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury, shall be otherwise reexamined in any Court of the United States, than according to the rules of the common law.
Reference
- Full Case Name
- United States v. Christopher R. MESSINO and Clement Messino, Appeals of: Estate of Biagio Messino, Joseph Messino, and Ted Borowski, Claimants-Appellants
- Cited By
- 8 cases
- Status
- Published