United States v. Messino

122 F.3d 427, 1997 WL 473280
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 20, 1997
DocketNos. 96-1718, 96-1719, and 96-2167
StatusPublished
Cited by8 cases

This text of 122 F.3d 427 (United States v. Messino) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Messino, 122 F.3d 427, 1997 WL 473280 (7th Cir. 1997).

Opinion

ESCHBACH, Circuit Judge.

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[428]*428ernment must first convict a defendant of a drug crime and then prove by a preponderance of the evidence that the property— which had to be identified in the criminal indictment, Fed.R.Crim.P. 7(c)(2) — either constitutes or was purchased with proceeds from the crime. See United States v. Simone, 931 F.2d 1186, 1199 (7th Cir.1991). If a jury finds that property is forfeitable as drug proceeds under 21 U.S.C. § 853(a), the court will enter a preliminary order of forfeiture. Third parties who have claims to property which the government seeks to have criminally forfeited cannot intervene in the criminal action against the defendant. 21 U.S.C. § 853(k). Instead, they must wait until the court has entered a forfeiture order based on a criminal conviction, and then petition the court under 21 U.S.C. § 853(n) for a hearing to adjudicate their interest in the property. To succeed, third parties must prove by a preponderance of the evidence either that they had superior title to the property at the time of the crime or that they are bona fide purchasers of the property. 21 U.S.C. § 853(n)(6). If third parties make such proof, the court will amend the preliminary order of forfeiture it entered following the jury finding of forfeitability. Id. Once the third-party hearings have been held, or the time for filing third-party claims has passed, the government has clear title to the property forfeited. 21 U.S.C. § 853(n)(7).

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.1 The court subsequently entered preliminary orders of forfeiture with regard to these items of property. Also relevant to this appeal, the jury found that a 1991 Harley Davidson motorcycle sought by the government was not forfeitable as drug proceeds.

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.2 21 U.S.C. § 853(p)(l). Based on this provision, the court granted the government’s motion and entered a preliminary order of forfeiture of several pieces of property as substi[429]*429tute assets, the only one relevant to this case being the 1991 Harley Davidson motorcycle which the jury had found was not criminally forfeitable as drug proceeds.

Three people waited in the wings during the criminal trial: Ted Borowski, Joseph Messino, and Biagio Messino,3 who all claim an interest in the property discussed above. Their claims form the subject of this appeal. As mentioned, however, it was not until the preliminary orders of forfeiture were entered, based on the convictions of Dick and Clement Messino and the jury findings of forfeitability, that they could assert their claims under 21 U.S.C. § 853. Once the court entered these preliminary forfeiture orders, the three appellants filed petitions with the court under § 853(n) asserting then-interests in the above property. Ted Borowski claimed a 100 percent interest in the “Shake Rattle and Run” race car, or in the alternative, that he owned certain car components which he allegedly paid for and built himself. Biagio Messino claimed a 25.37 percent interest in the 1987 pickup truck and a 9.76 percent interest in the Forest property. Finally, Joseph Messino claimed a 19.15 percent interest in the Corvette and asserted that he owned the Harley Davidson. After holding hearings on the third-party interests pursuant to § 853(n), the district court rejected all of these claims and Borowski, Biagio, and Joseph appealed to this court.

All three challenge the district court’s fact finding.4 In addition to claiming that the findings were so obviously incorrect as to be clearly erroneous, Biagio and Joseph challenged the judge’s fact-finding method. The district judge for the § 853(n) hearings also presided over the criminal trial. As required by the statute, the judge considered evidence both from the criminal trial and the § 853(n) hearings when making his findings on the third-party claims. 21 U.S.C. § 853(n)(5). Although the judge was the fact finder at the § 853(n) proceedings, he stated he was unable to assess the credibility of the witnesses at the criminal trial because the jury, not he, was the fact finder there. Joseph and Biagio say this was a mistake, made worse by the fact that the judge then erroneously inferred from the jury’s verdicts that certain witnesses were credible (usually the government’s) and other witnesses were not credible (usually the defendants’).

Joseph Messino also raises an interesting challenge to the forfeiture of the motorcycle as a substitute asset.

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Bluebook (online)
122 F.3d 427, 1997 WL 473280, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-messino-ca7-1997.