United States v. Neff

303 F. Supp. 3d 342
CourtDistrict Court, E.D. Pennsylvania
DecidedMarch 29, 2018
DocketCRIMINAL ACTION NO. 16–130–02
StatusPublished
Cited by4 cases

This text of 303 F. Supp. 3d 342 (United States v. Neff) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Neff, 303 F. Supp. 3d 342 (E.D. Pa. 2018).

Opinion

EDUARDO C. ROBRENO, J.

Following a jury trial, Defendant Wheeler K. Neff was convicted of conspiracy to violate the Racketeer Influenced and Corrupt Organization ("RICO") Act, conspiracy to commit fraud, and mail and wire fraud. The Government now seeks to forfeit Neff's alleged proceeds of the RICO conspiracy and Neff's residence, which contains his home office, pursuant to 18 U.S.C. § 1963(a). Neff contests both the Government's proposed forfeiture money judgment amount and the forfeiture of his residence. The Court held a hearing pursuant to Federal Rule of Criminal Procedure 32.2(b)(1)(B), and is now ready to issue a preliminary order of forfeiture. This memorandum constitutes the Court's findings of fact and conclusions of law in support of the preliminary order of forfeiture.

*345For the reasons that follow, the Court finds that the Government is entitled to the forfeiture of (1) $323,856.75 as proceeds of the RICO conspiracy pursuant to 18 U.S.C. § 1963(a)(3) ; and (2) Defendant Neff's right, title and interest in 12.11% of his Wilmington, Delaware, residence as property that afforded a source of influence over the RICO enterprise pursuant to 18 U.S.C. § 1963(a)(2)(D).

I. PROCEDURAL HISTORY

On March 31, 2016, Neff was indicted by a grand jury on two counts of conspiracy to violate the RICO Act in violation of 18 U.S.C. § 1962(d), one count of conspiracy to commit fraud, in violation of 18 U.S.C. § 371, two counts of mail fraud and aiding and abetting mail fraud, in violation of 18 U.S.C. §§ 1341 and 2, and three counts of wire fraud and aiding and abetting wire fraud, in violation of 18 U.S.C. §§ 1343 and 2. ECF No. 1. Neff's co-defendants, Charles M. Hallinan and Randall P. Ginger, were indicted on the same charges as well as nine counts of money laundering. See id. A second grand jury was later empaneled and returned a superseding indictment on December 1, 2016. ECF No. 87.

Defendant Hallinan and Defendant Neff filed a motion to dismiss the charges against them on February 8, 2017, ECF No. 149, which the Court denied on August 15, 2017, ECF No. 203. A jury trial commenced on September 26, 2017, against Defendant Hallinan and Defendant Neff.1

On November 27, 2017, the jury returned a guilty verdict against both Defendants on all counts of the superseding indictment. On December 4, 2017, on the basis of Defendant Neff's conviction, the Government filed a motion for a preliminary order of forfeiture and proposed findings of fact and conclusions of law in support of the proposed order. ECF No. 326. On December 9, 2017, Defendant Neff filed a response to the Government's motion for a preliminary order of forfeiture, including Defendant Neff's alternate proposed findings of fact and conclusions of law. ECF No. 329.

On December 12, 2017, the Court ordered the Government to file a reply in further support of its motion for a preliminary order of forfeiture and proposed findings of fact and conclusions of law, see ECF No. 338, which the Government filed on January 10, 2018, ECF No. 342. The Court also permitted Defendant Neff to file a sur-reply to the Government's motion, see ECF No. 338, which Defendant Neff filed on January 31, 2018, ECF No. 357. On March 23, 2018, the Court held a hearing on the Government's motion for a preliminary order of forfeiture. ECF No. 384.

The Court has reviewed the relevant trial testimony and exhibits, the parties' proposed findings of fact and conclusions of law, the parties' memoranda in support of their proposed findings of fact and conclusions of law and the responses and replies thereto, the arguments made at the forfeiture hearing held on March 23, 2018, and the exhibits introduced at that hearing. Upon this record, as well as credibility findings, the Court makes its findings of fact and conclusions of law.

II. FINDINGS OF FACT

1. The Government properly signaled its intent to seek a forfeiture judgment as part of the punishment in this case through its filing of three notices of forfeiture, as well as a Bill of Particulars. See ECF No. 87 at 47-54; ECF No. 158; ECF No. 202; ECF No. 253.

2. The evidence at trial proved that Defendant Neff's legal services were instrumental to the success of the RICO

*346enterprises charged in Counts One and Two of the Superseding Indictment. Although Defendant Neff was neither an owner nor a manager of the RICO enterprises, he participated in the conduct of both enterprises by advising Adrian Rubin and Defendant Hallinan regarding how to create the sham partnerships with the tribes, and then preparing fraudulent contracts and other documents to support the RICO enterprises. Defendant Neff also wrote fraudulent contracts and documents for the Hallinan Payday Lending Companies to create the sham ownership of Apex 1 Processing, Inc. by Defendant Ginger. See Gov't Exs. 1-8, 9-10, 31-50, 61-76, 81-85, 87-93, 99-101, 186, 209-10, 213-16, 219, 220-23, 226-28, 230, 307-09, 317-355, 400, 447-471, 541-582, 668, 671, 721, 750, 889, 892, 893, 899, 927, 931, 933, 936, 943, 948, 951.

3. Defendant Neff was paid $331,158 from the Hallinan Payday Lending Companies during the course of the RICO conspiracy charged in Count One. See Gov't Exs. 307-08, 2167-71, 2180-82, 2214. Some of these payments related to Defendant Neff's participation in the conduct of the RICO conspiracy charged in Count One. See Gov't Exs. 307-08, 2167-71, 2180-82, 2214. However, some of these payments related to other legal services that Defendant Neff provided for the Hallinan Payday Lending Companies that were not related to the RICO conspiracy charged in Count One. See

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Bluebook (online)
303 F. Supp. 3d 342, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-neff-paed-2018.