Petition to Contest the Forfeiture of Property as to Charles Hill, IV — USA v. Thomas et al. (Dkt. 967, N.D. Ga.)

Summary

New Horizon Real Estate, LLC filed this petition on 04/15/24 as Document 967 in Case 1:20-cr-00296-JPB-CMS (Northern District of Georgia) to contest the forfeiture of a Fulton County, Georgia property that the United States seeks under a Consent Preliminary Order of Forfeiture tied to defendant Charles Hill. The petition says New Horizon bought the property, then vacant land, for $62,500.00 on October 14, 2021, about a week after that order was entered, spent almost $400,000 to build a house on it, and was never told of the lis pendens recorded on May 6, 2021 naming All Legal Hustles, LLC.

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Case 1:20-cr-00296-JPB-CMS     Document 967     Filed 04/15/24     Page 1 of 12
IN THE UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION

UNITED STATES OF
AMERICA,

VS.

RICKY DIXON,

MEGHAN THOMAS,

JESIKA BLAKELY,

AMANDA CHRISTIAN,
DWAN ASHONG A/K/A DWAN
GILPIN,

JOHN GAINES A/K/A MARTY
GAINES,

CHARLES PETTY A/K/A
CHARLES KNIGHT,

JERRY BAPTISTE,

CARLA JACKSON,

DEREK PARKER,

DAVID BELGRAVE II,
CHARLES HILL IV,

RYAN WHITTLEY,

EL HADJ SALL, AND

RICK MCDUFFIE

Nemeet” Suaper” Noimmmee” “msee”Sommee”Commee”Nomee”oruae””“rmeeSomee”Nemmme” Neem” Segue” “oem” me” “Smt” me” Neer “Seer” Seer “Noumea” Sue”

Criminal Action No.
Case No. 1:20-CR-296-JPB-CMS

PETITION TO CONTEST THE FORFEITURE OF PROPERTY

Pursuant to 21 U.S.C. § 853({n), Petitioner New Horizon Real Estate, LLC

(“New Horizon”) files this Petition to Contest the Forfeiture of Property. In support

of this Petition, and under penalty of perjury,! New Horizon states as follows:

| See infra, Verification of Petition at p.10.
Case 1:20-cr-00296-JPB-CMS     Document 967     Filed 04/15/24     Page 2 of 12
I. BACKGROUND

New Horizon brings this Petition to challenge the forfeiture of property
located at 503-505 Rockwell Street, Fulton County, Georgia (the “Property”). The
United States of America (“United States”) seeks forfeiture of the Property based on
a lis pendens filed on the Property and Consent Preliminary Order of Forfeiture
related to this criminal proceeding. New Horizon is not involved in the underlying
criminal proceeding.

New Horizon purchased the Property in an arms-length transaction on
October 14, 2021. See Affidavit of Angelina Banks, attached hereto as Exhibit A,
at para. 3. New Horizon’s principal, Angelina Banks, saw the Property’s listing on
Zillow and worked with an agent to purchase the Property. /d. at para. 4. Ms. Banks
is a real estate investor by trade. Jd. at para. 5. New Horizon paid $62,500.00 for the
Property. /d. at para. 6. Based on Ms. Banks’s experience, $62,500.00 was the fair
market valuation of the Property at the time New Horizon purchased it. /d. at para.
7. Specifically, at the time New Horizon purchased the Property, it was vacant land.
Id. at para. 8. Ms. Banks regularly purchases property, invests in renovations of or
additional buildings on said property, and then sells the property for profit. /d. at
para. 9. After New Horizon purchased the Property, it spent almost $400,000 to build
a house on the Property and is now under contract to sell the Property. /d. at para.
Case 1:20-cr-00296-JPB-CMS     Document 967     Filed 04/15/24     Page 3 of 12
No one informed New Horizon or Ms. Banks of the lis pendens or Consent
Preliminary Order of Forfeiture as part of the purchase or closing of the sale of the
Property. /d. at para. 11. Had they done so, New Horizon would not have purchased
and invested hundreds of thousands of dollars in improving the Property. /d. at para.
12. New Horizon first became aware that the United States claimed an interest in the
Property as part of its efforts to sell the Property to a third party. /d. at para. 13.

New Horizon purchased the Property in fee simple from The Atlanta 10
Group, LLC on October 14, 2021, and is the current title holder of the Property. Jd.
at para. 14; Limited Warranty Deed to New Horizon, attached hereto as Exhibit B.
The Atlanta 10 Group, LLC had previously purchased the property from All Legal
Hustles, LLC on April 19, 2021. See Warranty Deed to The Atlanta 10 Group,
attached hereto as Exhibit C. Al! Legal Hustles, LLC had no interest in the Property
after April 19, 2021. See id.

Based on review of the docket in the above-captioned matter, the United
States filed an original indictment on August 4, 2020, and then a superseding
indictment on July 13, 2021. See Docket Report as of April 11, 2024, attached hereto
as Exhibit D, at 38 [Dkt. 1], 51 [Dkt. 135]. The original indictment does not name
Charles Hill, the defendant involved in the Consent Preliminary Order of Forfeiture,
nor All Legal Hustles, LLC. [Dkt. 1]. Upon information and belief, Charles Hill was

the principal of All Legal Hustles, LLC.
Case 1:20-cr-00296-JPB-CMS     Document 967     Filed 04/15/24     Page 4 of 12
A superseding indictment naming Charles Hiil was filed on July 13, 2021.
[Dkt. 135]. Prior to that superseding indictment, on May 6, 2021, the United States
recorded a lis pendens in the records of Fulton County, Georgia naming Al! Legal
Hustles, LLC as the owner of the Property. See Lis Pendens, attached hereto as
Exhibit E. But that lis pendens is outside the chain of title because All Legal Hustles,
LLC did not own the Property at the time the lis pendens was recorded on the
Property. Rather, The Atlanta 10 Group, LLC was the owner of the Property when
the lis pendens was recorded on May 6, 2021. On October 6, 2021, the Consent
Preliminary Order of Forfeiture was entered on the criminal docket in this matter,
and New Horizon purchased the Property approximately a week later, on October
14, 2021. Consent Preliminary Order of Forfeiture [Dkt. 386]; Ex. B. New Horizon
received written notice of the Consent Preliminary Order of Forfeiture from the
United States Attorney for the Northern District of Georgia on April 1, 2024, and
timely files this Petition to contest the forfeiture of the Property based on its interest
as set forth above and discussed further below. See April 1, 2024 Letter from N.
Barnett to B. Gram, attached hereto as Exhibit F.

Ms. Banks does not know Charles Hill or any of the defendants in the
underlying proceeding. See Ex. A at para. 15. Ms. Banks and New Horizon have no

relation or connection to All Legal Hustles, LLC. /d. at para. 16.
Case 1:20-cr-00296-JPB-CMS     Document 967     Filed 04/15/24     Page 5 of 12
Il. ARGUMENT AND CITATION TO LEGAL AUTHORITY

A. Relevant Law

“Under 21 U.S.C. § 853(n), a third party asserting a legal interest in property
that has been ordered forfeited may petition the court to adjudicate the validity of
his alleged interest in the property.” United States v. Suarez, 716 F. App’x 937, 938
(11th Cir. 2018) (citing 21 U.S.C. § 853(n)(2)). As relevant here, “a third party may
establish his interest in forfeited property by showing that he is (i) a bona fide
purchaser for value, (ii) who ‘was at the time of purchase reasonably without cause
to believe that the property was subject to forfeiture under this section.”” /d. (quoting
21 U.S.C. § 853 (n)(6)(B)) (citing United States v. Watkins, 320 F.3d 1279, 1282
(1 1th Cir. 2003)).

In the criminal forfeiture context, the Eleventh Circuit has “stated that ‘bona
fide purchaser’ is generally understood to mean ‘one who has purchased property
for value without notice of any defects in the title of the seller.’” Suarez, 716 F.
App’x at 938 (quoting United States v. Watkins, 320 F.3d 1279, 1282 (11th Cir.
2003)). Whether a petitioner is a bona fide purchaser for value is determined by
reference to state law. /d. (“[S]tate law determines the nature of a claimant’s interest
in forfeited property.”); United States v. Harris, 246 F.3d 566, 571 (6th Cir. 2001).

“To qualify as a bona fide purchaser [under Georgia law], an individual must

have neither actual nor constructive notice of the encumbrance at issue.” Deutsche
Case 1:20-cr-00296-JPB-CMS     Document 967     Filed 04/15/24     Page 6 of 12
Bank Nat'l Trust Company v. Kelley, 615 B.R. 940, 945 (2020); VATACS Group v.
Homeside Lending, 276 Ga. App. 386, 391 (2005) (citations and punctuation
omitted) (“To qualify as a bona fide purchaser for value without notice, a party must
have neither actual nor constructive notice of the matter at issue. A purchaser of land
is charged with constructive notice of the contents of a recorded instrument within
its chain of title.”). With respect to a lis pendens, “[u]nder OCGA § 44—14-610, a
lis pendens becomes effective upon filing in the office of the superior court clerk.”
Rolan v. Glass, 305 Ga. App. 217, 218 (2010). “If notice of the suit is filed on the
lis pendens docket in the office of the clerk of the superior court where the land lies,
the action is notice to the world, and one who thereafter acquires an interest in the
property would be affected by the relief granted in the suit.” Meadow Springs v. [H
Riverdale, 296 Ga. App. 551, 554 (2009) (citations and punctuation omitted), rev'd
on other grounds, 286 Ga. 701 (2010).

A document recorded outside the chain of title, however, does not impart
constructive notice. /n re Municipal Corrections, LLC, 501 B.R. 119, 132 (N.D. Ga.
Sept. 30, 2013) (relying on Georgia law). “The chain of title for real property
includes all recorded instruments that are executed by an entity holding a recorded
interest in the property at the time of the execution of the instrument.” /d.; see also
Gallagher v. Buckhead Community Bank, 299 Ga. App. 622, 626-27 (2009)

(purchaser of real property did not have constructive notice of a judgment lien
Case 1:20-cr-00296-JPB-CMS     Document 967     Filed 04/15/24     Page 7 of 12
against the seller that fell outside of the chain of title and, unbeknownst to purchaser,
was filed under a name different from that used by the seller during the transaction);
Hopkins v. Virginia Highland Associates, L.P., 247 Ga. App. 243, 246-47 (2000) (a
deed that fails to comport with the statutory requirements, even if recorded, is not
constructive notice to a subsequent bona fide purchaser).

B. |New Horizon was a bona purchaser for value of the Property
reasonably without cause to know that the Property was subject
to forfeiture.

New Horizon purchased the Property for value in an arms-length transaction.

See Ex. A at para. 17. New Horizon and Ms. Banks have no relationship with Charles
Hill or his entity All Legal Hustles, LLC. /d. at para. 16. It is not in dispute that New
Horizon is a bona fide purchaser for value.

Importantly, New Horizon had no actual knowledge of the lis pendens nor the
Consent Preliminary Order of Forfeiture related to the Property at the time it
purchased the Property. /d. at para. 17. Ms. Banks’s significant monetary investment
in development of the Property after the purchase further supports that New Horizon
had no actual knowledge of the lis pendens or potential forfeiture of the Property.
Id. at para. 10, 12. It would be unreasonable for New Horizon to invest hundreds of

thousands of dollars to build a home on the Property if it had any knowledge the

Property could be subject to forfeiture.
Case 1:20-cr-00296-JPB-CMS     Document 967     Filed 04/15/24     Page 8 of 12
Last, New Horizon did not have constructive notice or reasonable cause to
know the Property was subject to forfeiture. While the lis pendens was recorded on
May 6, 2021, prior to New Horizon’s purchase of the Property, the lis pendens was
outside the chain of title. Specifically, the lis pendens names All Legal Hustles, LLC
as the property owner when All Legal Hustles, LLC was not the entity holding a
recorded interest in the Property at the time of the execution of the lis pendens. All
Legal Hustles, LLC had transferred its interest in the Property to The Atlanta 10
Group, LLC as of April 19, 2021. See Ex. C. Because the lis pendens is defective
and otherwise outside the chain of title, the fact that the lis pendens was recorded
does not constitute constructive notice of the potential forfeiture based on that lis
pendens. Jn re Municipal Corrections, LLC, 501 B.R. at 132 (relying on Georgia
law); Gallagher, 299 Ga. App. at 626-27; Hopkins, 247 Ga. App. at 246-47.
Accordingly, with respect to the Property, New Horizon is a bona fide purchaser for
value reasonably without cause to believe the Property was subject to forfeiture
under 21 U.S.C. § 853. 21 U.S.C. § 853(n)(6)(B).

Ill. CONCLUSION

For the reasons outlined above, Petitioner requests the Court grant the Petition
to Contest the Forfeiture of Property, cancel the lis pendens, and amend the Consent
Preliminary Order of Forfeiture in accordance with 21 U.S.C. § 853(n)(6) to prevent

any forfeiture of the Property by the United States. To the extent 21 U.S.C. § 853(n)
Case 1:20-cr-00296-JPB-CMS     Document 967     Filed 04/15/24     Page 9 of 12
requires a hearing to adjudicate these issues, New Horizon requests the Court hold
such hearing within 30 days of the filing of this Petition and, subsequently, order the
relief requested above. 21 U.S.C. § 853(n)(4).

Respectfully submitted this 15th day of April, 2024.

/s/ Brooke W. Gram
Brooke W. Gram

Georgia Bar No. 810901
Katherine K. Carey
Georgia Bar No. 475454
Balch & Bingham LLP

30 Ivan Allen, Jr. Boulevard, N.W., Suite 700
Atlanta, Georgia 30308
Telephone: (404) 261-6020
Facsimile: (404) 261-3656
E-mail: bgram@baich.com
E-mail: kcarey@balch.com

Attorneys for New Horizon Real Estate, LLC
Case 1:20-cr-00296-JPB-CMS     Document 967     Filed 04/15/24     Page 10 of 12
VERIFICATION OF PETITION
Pursuant to 21 U.S.C. § 853(n)(3), the undersigned, Angelina Banks, in her
capacity as Principal of Petitioner New Horizon Real Estate, LLC, signs under
penalty of perjury the foregoing Petition to Contest Forfeiture and affirms that the
facts stated in the foregoing Petition and the Exhibits attached thereto are true and
correct to the best of her knowledge and belief.

FURTHER AFFIANT SAYETH NOT this /SAday of April, 2024.

ngefina Banks

Principal
New Horizon Real Estate, LLC

Sworn to and subscrtbed before me
This /STrtay of 2024.
Case 1:20-cr-00296-JPB-CMS     Document 967     Filed 04/15/24     Page 11 of 12
CERTIFICATE OF COUNSEL REGARDING FONT SIZE

Counsel certifies that the foregoing has been prepared using Times New
Roman font size 14 in accordance with Local Rules 5.1(C) and 7.1(D).
This 15th day of April, 2024.
/s/ Brooke W_Gram

Brooke W. Gram
Georgia Bar No. 810901
Case 1:20-cr-00296-JPB-CMS     Document 967     Filed 04/15/24     Page 12 of 12
CERTIFICATE OF SERVICE

I hereby certify that on the 15 th day of April, 2024, I caused the foregoing
to be electronically filed with the Clerk of Court using the CM/ECF system, which
will automatically send email notifications of such filing to all counsel of record.

/s/ Brooke W. Gram

Brooke W. Gram
Georgia Bar No. 810901


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