Adams v. United States

178 F. Supp. 3d 377, 2016 WL 1576331
CourtDistrict Court, N.D. West Virginia
DecidedApril 6, 2016
DocketCivil Action No. 3:15-CV-127; Case Number 3:09-MJ-24; Criminal Case No. 3:08-CR-77
StatusPublished

This text of 178 F. Supp. 3d 377 (Adams v. United States) is published on Counsel Stack Legal Research, covering District Court, N.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adams v. United States, 178 F. Supp. 3d 377, 2016 WL 1576331 (N.D.W. Va. 2016).

Opinion

ORDER RESOLVING MOTIONS

JOHN PRESTON BAILEY, UNITED STATES DISTRICT JUDGE

Pending before this Court are Barton Adams and Josephine Adams’ Emergency Motion for Release and Return of Property [3:15-cv-127, Doc. 1], filed November 17, 2015, petitioners’ Motion to Strike Government’s Response [Id., Doc. 12], filed February 5, 2016, petitioners’ Motion for an Expedited Summary Judgment [Id., Doc. 17], filed February 22, 2016, Barton Adams’ Motion to Unseal Case Number 3:09-MJ-24-JES [3:09-MJ-24, Doc. 6], and petitioners’ letter motion seeking unsealing of case number 3:09-MJ-24 [3:15— CV-127, Doc. 22; 3;09-MJ-24, Doc. 7; and 3:08-CR-77, Doc. 1522],

BACKGROUND

In their Emergency Motion, the petitioners seek the return of the sum of $24,764.32, which is the proceeds of HSBC Official Bank Check # 410465177, which check was payable to Josephine Adams and the Adams’ son, BA, identifying what the petitioners view as irregularities in the forfeiture of the money. In order to properly analyze the Motion, it is necessary to recount portions of the time line of this case.

Petitioner Barton Adams was originally indicted on November 18, 2008. The original Indictment contained 157 counts, including a number of money laundering counts [3:08-CV-77, Doc. 19]. On March 17, 2009, the Grand jury returned a Su[379]*379perseding Indictment, containing 161 counts, including money laundering counts [3:08-CR-77, Doc. 94]. The Indictment reflects that the Grand Jury specifically found probable cause to believe that Mr. Adams had wire transferred $2,635,033.10 of fraud proceed to foreign bank accounts with the intent to conceal and disguise the funds [Id.].

On July 7, 2009, IRS Special Agent Ryan Komer filed an Application and Affidavit for a Seizure Warrant seeking authority to seize the check for $24,764.32 [3:09-mj-24, Doc. 1]. In his affidavit sup: porting probable cause for the issuance of the warrant, Agent Korner stated the following:

1. That the funds in question were maintained on deposit at HSBC Bank in Washington, D.C., and are represented by Official Check No. 410465177 dated December 16, 2008. The check is made payable to “BA” and Josephine A. Adams, from the closing balance of account number ***** *888, an account held in the names of BA abd Josephine Adams;
2. That the Grand Jury specifically found probable cause to believe that Mr. Adams had wire transferred $2,635,033.10 of fraud proceeds to foreign bank accounts with the intent to conceal and disguise the funds;
3. That under In re Billman, 915 F.2d 916, 919 (4th Cir.1990), “for ‘the purposes of issuing a restraining order, the probable cause established in the indictment ... is to be determinative of any issue regarding the merits of the Government’s case on which the forfeiture is to be based.’ ”
4. On November 21, 2008, this Court issued a Protective Order which prohibited the defendant from disposing of any funds without prior permission of the Court. The Order further required the defendant to repatriate the sum of $2,635,033.10 on or before December 15, 2008 or account for the same [3:08-CR-77, Doc. 25];
5. On November 28, 2008, one week after the entry of the Protective Order and without authorization from the Court, Barton Adams entered an HSBC branch office in Washington, D.C. and opened account number ***** *888. The account was opened in the names of BA and Josephine Adams.
6. The opening deposit into account number ***** *888 was a $9,000 check drawn upon Barton Adams’ foreign bank account at HSBC Hong Kong. The only other deposit to the account was a $15,964.32 international bank check/wire transfer from an account controlled by Barton Adams at HSBC Hong Kong.
7. On December 16, 2008, Barton Adams entered the HSBC branch office and closed account number ****** 888. The balance at the time the account was closed was $33,764.32. In violation of this Court’s Protective Order, Barton Adams received $9,000 in cash, with the remainder being represented by HSBC Official Check Number 410465177.

[3:09-mj-24, Doc. 1],

On July 9, 2009, the seizure warrant was executed, and the sum of $24,764.32 was wired to the United States Marshal’s bank account.

On September 9, 2009, the Government wrote to Barton Adams, in care of his then attorney, and advised him that administrative proceedings1 had been initiated to perfect the forfeiture. The letter further informed Mr. Adams that notice of the forfeiture would be published in the Washington Times beginning September 16, 2009 [3:15-CV-127, Doc. 21-1].

[380]*380By letter dated August 9, 2009, the Government wrote to Barton Adams’ counsel, Barry Beck, and reminded him that he had been requested to disclose the address of BA and Josephine A. Adams, “which the government heeds to send notices of the seizure of $24,764.32 underlying HSBC Official Check No. 410465177, dated December 16, 2008.” [3:15-CV-127, Doc. 21-2].

By letter dated August 10, 2009, Barry Beck informed the Government that he was “not at liberty to provide the Government with Mrs. Adams’ mailing address.” [3:15-CV-127, Doc. 21-3].

The Notice" of Seizure was, in fact, published in the Washington Times on September 16, 23, and 30, 2009 [3:15-CV-127, Doc. 21-4].

On March 16, 2010, the Grand Jury returned a Second Superseding Indictment, this time against Barton Joseph Adams and Josephine Artillaga Adams. The Second Superseding Indictment contained 169 counts, including money laundering counts against both defendants. [3:08-CR-77, Doc. 449],

On September 10, 2012, the Internal Revenue Service administratively forfeited the subject property. [3.-15-CV-127, Doc. 11-1],

On September 7, 2011, a separate Indictment was brought against Barton Joseph Adams and Josephine Artillaga Adams [3:11 — CR—54, Doc. 1], The Indictment contained 16 counts against Mrs. Adams, including conspiracy to obstruct an official proceeding, conspiracy to obstruct the administration of justice, and obstruction of justice.

On November 17, 2011, Josephine Adams was convicted of all 16 counts contained in the Indictment in 3:ll-CR-54 [Doc.120].

By Order entered August 1, 2012, the Indictment against Barton Joseph Adams in 3:ll-CR-54 was dismissed [Doc. 184].

A Third Superseding Indictment was brought against Barton Joseph Adams and Josephine Artillaga Adams on September 18, 2012 [3:08-CR-77, Doc. 1084],

On November 8, 2012, Barton Joseph Adams entered a plea of guilty to Counts Ten (health care fraud) and Thirteen (tax evasion), pursuant to written plea agreement [3:08-CR-77, Doc. 1154], The plea agreement provides, in part, that the “penalty includes forfeiture of defendant’s interest in all property falling within the ambit of the Forfeiture Allegation included in the Third Superseding Indictment,” and that the “defendant agrees to the entry of a forfeiture money judgment in the amount of $3,724,721.” [3:08-CR-77, Doc. 1152].

On June 19, 2014, the Indictment against Josephine Adams in 3:08-CR-77 was dismissed [Doc. 1329].

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Bluebook (online)
178 F. Supp. 3d 377, 2016 WL 1576331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adams-v-united-states-wvnd-2016.