United States v. Boyer

58 F. Supp. 3d 173, 2014 U.S. Dist. LEXIS 158724, 2014 WL 5810655
CourtDistrict Court, D. Massachusetts
DecidedNovember 10, 2014
DocketCivil Action No. 14-10163-NMG
StatusPublished

This text of 58 F. Supp. 3d 173 (United States v. Boyer) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Boyer, 58 F. Supp. 3d 173, 2014 U.S. Dist. LEXIS 158724, 2014 WL 5810655 (D. Mass. 2014).

Opinion

MEMORANDUM & ORDER

GORTON, District Judge.

In June, 2014, defendant Edward Boyer (“Boyer”) was charged with conspiring to distribute and to possess with intent to distribute marijuana in violation of 21 U.S.C. § 846. The one-count Indictment includes a forfeiture allegation pursuant to 21 U.S.C. § 853 which states that, if convicted, Boyer and his codefendants shall forfeit any property obtained as a result of the charged offense or used to commit that offense. The allegation also notifies defendants that the government will seek the forfeiture of substitute assets up to the value of the unavailable property pursuant to 21 U.S.C. § 853(p). It specifically identifies as a substitute asset

the real property located at 159 Bay State Road, Rehoboth, Massachusetts, including all buildings and appurtenances theréon, more particularly described in a deed recorded at Book 18756, Page 111 at the Northern Bristol County Registry of Deeds.

Boyer owns the subject property (“the Re-hoboth Property”) in joint tenancy with his girlfriend.

The government seeks to record a lis pendens against the Rehoboth Property to facilitate its forfeiture as a substitute asset, if necessary, upon Boyer’s conviction. A lis pendens is a notice recorded in a real property’s chain of title that warns all persons that such property is the subject matter of litigation and that “any interests acquired during the pendency of the suit are subject to its outcome.” Speleos v. BAC Home Loans Servicing, L.P., 755 F.Supp.2d 304, 312 (D.Mass.2010).

The government contends that its forfeiture allegation constitutes a claim of right to title or for the use or occupation of the [175]*175Rehoboth Property and an endorsement of that finding on a memorandum of lis pen-dens. For the reasons that follow, that motion will be denied.

I. Motion for Finding and Endorsement of Memorandum of Lis Pendens

The central issue in this case is whether the government has the authority to record a Us pendens against the Rehoboth Property where any claim against that property is contingent on the government first obtaining a conviction against Boyer and then an order permitting the forfeiture of substitute property. The Court will consider whether the government has such authority, under either federal law or state law.

A. 21 U.S.C. § 853

The federal criminal forfeiture statute, 21 U.S.C. § 858, authorizes the government to seek criminal forfeiture against a defendant who is convicted of violating 21 U.S.C. § 846 and who is subject to a sentence of more than one year. 21 U.S.C. § 853(a). Property that is directly traceable to the crime is generally forfeitable upon a conviction and the imposition of sentence of more than one year. Id. The forfeiture statute specifically identifies as forfeitable property “constituting, or derived from, any proceeds ... obtained, directly or indirectly, as the result of’ the crime and property “used, or intended to be used ... to commit, or to facilitate the commission of,” the crime. Id. If the government is unable to obtain such property as a result of any act or omission of the defendant, it may seek the forfeiture of “substitute assets” of the defendant. Id. § 853(p).

The government may obtain a restraining order or injunction to preserve the availability of property that is directly traceable to the crime, either because it constitutes proceeds or is used in its commission. Id. § 853(e). While the First Circuit Court of Appeals has not addressed whether similar remedies are available with respect to substitute assets, a majority of Circuit Courts of Appeals agree that § 853(e) does not authorize the government to restrain substitute assets prior to a conviction because the statute does not provide for “relation-back,” a doctrine that would allow the government’s interest in the property to vest when the defendant commits the act giving rise to the forfeiture. See United States v. Parrett, 530 F.3d 422, 429-31 (6th Cir.2008) (applying majority approach and collecting cases from the Second, Third, Fifth, Eighth and Ninth Circuits which have not allowed pretrial restraint of substitute assets); United States v. Jarvis, 499 F.3d 1196, 1204 & n. 8 (10th Cir.2007) (same); but see In re Billman, 915 F.2d 916, 920-21 (4th Cir.1990) (construing the RICO forfeiture statute, 18 U.S.C. § 1963(d)(1)(A), liberally in light of its remedial purpose and finding it to authorize pretrial restraint of substitute assets). This Court, following the majority approach, concludes that the government is not authorized to restrain the Rehoboth Property pursuant to § 853(e).

The government argues, however, that a lis pendens does not amount to a restraint of property. While a notice of lis pendens filed by the government, “practically speaking, denudes the subject property of its alienability,” many courts that have addressed this issue have nonetheless concluded that such a notice is not a restraint as a matter of law. United States v. Kramer; 2006 WL 3545026, at *10 (E.D.N.Y. Dec. 8, 2006); see also United States v. Lebed, 2005 WL 2495843, at *10 (E.D.Pa. Oct. 7, 2005) (holding that lis pendens do not amount to an impermissible restraint on Defendants’ assets); Unit[176]*176ed States v. Miller, 26 F.Supp.2d 415, n. 15 (N.D.N.Y.1998) (“The filing of a lis pen-dens does not constitute a ‘restraint’ or ‘seizure’ within the meaning of 21 -U.S.C. §§ 853(e) or (f), respectively.”)

Nonetheless, even if a notice of lis pen-dens is not a pretrial restraint, the federal statute is, at best, silent with respect to the authority to file such a notice on substitute forfeiture property. The Court will therefore proceed to consider whether the government is authorized by the laws of the Commonwealth of Massachusetts to file a notice of lis pendens against the Rehoboth Property.

B. M.G.L. c. 184, § 15

The government contends that M.G.L. c. 184, § 15 permits it to file a lis pendens against a substitute asset prior to a conviction. That statute provides that

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Bluebook (online)
58 F. Supp. 3d 173, 2014 U.S. Dist. LEXIS 158724, 2014 WL 5810655, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-boyer-mad-2014.