United States v. Bangiyev

359 F. Supp. 3d 435
CourtDistrict Court, E.D. Virginia
DecidedFebruary 14, 2019
DocketCivil No. 1:14-cr-206
StatusPublished
Cited by1 cases

This text of 359 F. Supp. 3d 435 (United States v. Bangiyev) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Bangiyev, 359 F. Supp. 3d 435 (E.D. Va. 2019).

Opinion

Liam O'Grady, United States District Judge

This matter comes before the Court on Defendant Arkadiy Bangiyev's Petition for a Writ of Audita Querela Pursuant to 28 U.S.C. § 1651, Dkt. 914, and Defendant Eduard Bangiyev's Petition for a Writ of Coram Nobis/Audita Querela. Dkt. 918. For the following reasons the Petitions are denied.

*437I. Background

From 2004 to 2014, Defendants were the leaders and partners in a counterfeiting scheme that manufactured over $ 70,000,000 in counterfeit currency over an almost ten year period. This Court found that Arkadiy Bangiyev reasonably knew about at least $ 20,000,000 of counterfeit currency as he was involved at the higher levels of the conspiracy and financed some of the operations. Dkt. 736. This Court found that Eduard Bangiyev was also a leader and "knew that between $ 7,000,000 and $ 20,000,000 was generated by the conspiracy." Dkt. 733.

Defendants pleaded guilty to participating in a RICO conspiracy, in violation of 18 U.S.C. § 1962(d). Dkt. 504, 507. In their plea agreements, Defendants agreed to "waive all constitutional and statutory challenges to forfeiture in any manner (including direct appeal, habeas corpus, or any other means) to any forfeiture carried out in accordance with this Plea Agreement on any grounds, including that the forfeiture constitutes an excessive fine or punishment." Dkt. 505, 507.

Each Defendant contested the loss amount identified in their Presentence Reports and therefore the Court held an evidentiary hearing to establish the loss amount on May 28, 2015. Two of the lead law enforcement agents involved in the case testified and were cross-examined. While the Court was concerned that a portion of coconspirator Loz's statements to the agents were not corroborated (December 2013 shipments to the Bangiyevs), the Court found that other testimony was corroborated and credible, and established that the brothers, partners, and leaders of this counterfeit conspiracy had received between $ 2,500,000 to $ 3,000,000 a month from Loz between 2008 to 2011. This sum equaled $ 30,000,000 to $ 36,000,000 and fully supported the $ 20,000,000 loss figure. Further, each Defendant agreed that the loss figure was $ 7,000,000 to $ 20,000,000. So there is no question that each Defendant obtained $ 20,000,000 in proceeds.

After Defendants were sentenced, Preliminary Orders of Forfeiture were entered against each Defendant on October 27, 2015. Dkt. 730, 733. This was followed by an amended order pertaining to Arkadiy Bangiyev entered October 28, 2015, Dkt. 736, and an amended order pertaining to Eduard Bangiyev entered December 23, 2015. Dkt. 757. No appeal of a forfeiture order was ever filed.

Both Defendants filed motions pursuant to 28 U.S.C. § 2255 to vacate, set aside, or correct their sentences. Dkt. 781, 800. This Court denied both motions. Dkt. 845, 861. The Fourth Circuit dismissed both appeals. Dkt. 883, 886.

On June 5, 2017, the Supreme Court issued its decision in Honeycutt v. United States. In Honeycutt , the Court held joint and several liability is inconsistent with the statutory language in 21 U.S.C. § 853(a). Honeycutt v. United States , --- U.S. ----, 137 S.Ct. 1626, 1633, 198 L.Ed.2d 73 (2017). Under Honeycutt , criminal forfeiture under § 853(a) is limited to "proceeds the person obtained." Id. The Court went on to clarify that only persons in control of distributing the criminal proceeds in a conspiracy can be found to have "obtained" all the tainted property produced by the criminal enterprise such that they could be held liable for more than the property they physically possessed. Id.

In 2018, the Fourth Circuit extended Honeycutt to apply to 18 U.S.C. § 982, a general forfeiture statute with substantially similar language to the statute at issue in Honeycutt. United States v. Chittenden , 896 F.3d 633, 640 (4th Cir. 2018).

*438Defendants' forfeitures were entered under 18 U.S.C. § 1963. Although this is not the statute that was at issue in either Honeycutt or Chittenden , Defendants argue the language of the statute is substantively identical to the relevant statutory language in Honeycutt and Chittenden. Therefore, Defendants argue that as in Honeycutt and Chittenden , their forfeiture orders cannot be premised on joint and several liability.

Defendants have petitioned for writs of audita querela , asking the Court to vacate the Amended Preliminary Forfeiture Order and to resentence them in light of Honeycutt. The Government opposes the Petitions, arguing (1) a defendant may only challenge forfeiture on direct appeal, (2) Defendants waived their rights to challenge their forfeiture orders in the language of their plea agreement, (3) a writ of audita querela is not available, (4) Honeycutt does not apply retroactively, and (5) even if Honeycutt did apply retroactively it would not preclude joint and several liability in this case. The Court will take each of these arguments in turn.

II. Analysis

A. A defendant must challenge forfeiture on direct appeal

If a defendant wishes to challenge a forfeiture order entered against him, he must file an appeal within fourteen days of entry of the order. FED. R. APP. P. 4(b). Forfeiture may only be challenged on direct appeal. United States v. Filice

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Related

Saccoccia v. United States
955 F.3d 171 (First Circuit, 2020)

Cite This Page — Counsel Stack

Bluebook (online)
359 F. Supp. 3d 435, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-bangiyev-vaed-2019.