United States v. Factor

321 F. Supp. 3d 274
CourtUnited States District Court
DecidedJuly 31, 2018
DocketCriminal No. 12-922 (FAB)
StatusPublished

This text of 321 F. Supp. 3d 274 (United States v. Factor) is published on Counsel Stack Legal Research, covering United States District Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Factor, 321 F. Supp. 3d 274 (usdistct 2018).

Opinion

FRANCISCO A. BESOSA, UNITED STATES DISTRICT JUDGE

Defendant Oleg Factor ("Factor") moves the Court to compel specific performance of a proposed forfeiture payment agreement. (Docket No. 1651.) For the reasons set forth below, Factor's motion to compel is DENIED .

I. Background

On December 2, 2012, a federal grand jury charged Factor and seventeen other individuals with prescription drug diversion in violation of, among other offenses, 18 U.S.C. § 1314 ("section 1341"). (Docket No. 3.) After entering into a plea agreement with the United States, Factor pled guilty to count fourteen of the indictment. (Docket Nos. 592 and 594.)

Factor's plea agreement contained a forfeiture provision. (Docket No. 592 at p. 5.) Factor agreed to surrender, forfeit, and "relinquish all rights, title and interest [he] may have in the sum of $300,000 in satisfaction of the money judgment to be issued at sentencing." Id. at 5. Subsequently, the United States moved for an in personam order of forfeiture. (Docket No. 747.) The United States emphasized that failure to satisfy the in personam judgment could result in an "Order to forfeit specific property." (Docket No. 747 at p. 2) (citing United States v. Hall, 434 F.3d 42, 59 (1st Cir. 2006) ("[C]riminal forfeiture may take several forms including an in personam judgment against the defendant for the amount of money the defendant obtained as proceeds of the offense.") (citation and internal quotation marks omitted) ). On August 31, 2015, the Court ordered Factor to forfeit $300,000, reiterating that the United States may, at any time, move to "amend this money judgment to substitute property having a value not to exceed $300,000." (Docket No. 921 at p. 2.)

Factor received a sentence of twenty-one months imprisonment. (Docket Nos. 1171 and 1175.) The judgment issued against Factor provided that "[u]nless the court has expressly ordered otherwise, if *276this judgment imposes imprisonment, payment of criminal monetary penalties is due during imprisonment." (Docket No. 1175 at p. 5); see Hall, 434 F.3d at 59 (holding that criminal forfeiture is a "sanction against the individual defendant").

Nearly three years after the Court ordered Factor to forfeit $300,000, the United States moved to "substitute assets in satisfaction of the money judgment." (Docket No. 1539 at p. 1.) According to Deputy United States Marshal Carlos Fuentes ("Fuentes"), Factor "failed to make payments towards the forfeiture in this case." (Docket No. 1539, Ex. 1 at p. 2.) Fuentes asserts that "[d]espite due diligence, the United States has been unable to locate the $300,000.00 in gross proceeds that Factor received as a result of the fraud." Id. at p. 3.

The United States requested an in rem judgment against Factor's property in Los Angeles, California. (Docket No. 1539 at pp. 1-2.) Factor opposed the United States' motion, contending that "the Government expressed an interest in entering into a payment plan with Mr. Factor, [but] the Government did not respond to Mr. Factor's latest offer of a monthly figure." (Docket No. 1548 at p. 3.) The United States replied, asserting that it rejected the proposed payment plan. (Docket No. 1549.) Defense counsel informed the United States that "[m]eanwhile, [Factor] will be looking into the process of borrowing money against his house." (Docket No. 1549 at p. 1.)1 The Court ordered the forfeiture of Factor's Los Angeles property as a substitute asset pursuant to Federal Rule of Criminal Procedure 32.2 (" Rule 32.2") and 21 U.S.C. § 853(p) (" section 853(p)"). (Docket No. 1596.)2

II. Discussion

Factor moves to compel specific performance of a proposed settlement agreement. (Docket No. 1651.) According to Factor, the parties agreed that he would pay $1,250.00 a month for twenty years in satisfaction of the $300,000 forfeiture. Id. at p 2. Indeed, the parties engaged in negotiations regarding a monthly payment plan. (Docket No. 1651, Ex. 1.) In an e-mail to defense counsel on March 15, 2018, the United States nonetheless clarified that the negotiations "for a payment plan [do] not represent a waiver of the Government's right to forfeit the property as provided by law." Id. at p. 4.

The United States drafted and signed a proposed settlement agreement memorializing the terms of the payment plan, specifying that Factor's "signature is required." (Docket No. 1651, Ex. 1 at p. 2.) On June 11, 2018, the United States submitted the proposed settlement agreement for Factor's *277review and signature. (Docket No. 1651, Ex. 2.) Less than hour later, the United States informed Factor that the Money Laundering Asset Recovery Section of the Department of Justice disapproved any settlement agreement, and required the United States to "pull back the settlement document forthwith." (Docket No. 1651, Ex. 1 at p. 1.) The United States repeated its intention to seek an in rem judgment, suggesting that Factor "take the loan guaranteed by the property and pay the United States [because], the equity on the property is higher than the money judgment owed." Id.

Factor moves to enforce the proposed settlement agreement pursuant to California law, setting forth a breach of contract action against the United States. (Docket No. 1651 at pp. 2-9.) According to Factor, the Court "must order the Government to abide by the contract it had entered into with Mr. Factor, namely $1,250 per month for 20 years." Id. at p 9.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. Candelaria-Silva
166 F.3d 19 (First Circuit, 1999)
United States v. Hall
434 F.3d 42 (First Circuit, 2006)
United States v. Edison Misla-Aldarondo
478 F.3d 52 (First Circuit, 2007)
United States v. 939 Salem Street
917 F. Supp. 2d 151 (D. Massachusetts, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
321 F. Supp. 3d 274, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-factor-usdistct-2018.