Order of Forfeiture (Money Judgment) and Preliminary Order of Forfeiture (Specific Property) — United States v. Kao (Dkt. 116, D. Haw. No. 1:21-cr-00061)

Record facts

U.S. District Court for the District of Hawaii · No. 1:21-cr-00061-LEK · Doc. 116 · 2023-08-31 · Docket on CourtListener

Full text

CLARE E. CONNORS #7936  
      GLENN S. LEON 
United States Attorney 
 
 
      Chief, Fraud Section 
District of Hawaii  
 
 
      Criminal Div., U.S. Dept. of Justice 
 
CRAIG S. NOLAN 
 
 
       
SYDNEY SPECTOR #11232  
 
 JENNIFER BILINKAS 
Assistant U.S. Attorney  
 
      Trial Attorney 
Room 6100, PJKK Federal Building       U.S. Dept. of Justice 
 
300 Ala Moana Blvd. 
 
 
      Criminal Division, Fraud Section 
Honolulu, Hawaii  96850 
 
 
 1400 New York Avenue, N.W. 
Telephone:  (808) 541-2850 
 
      Washington, D.C. 20005 
Facsimile:  (808) 541-2958 
 
      Telephone:  (202) 305-3928 
Email: Craig.Nolan@usdoj.gov     
      Email: Jennifer.Bilinkas@usdoj.gov 
 
 Sydney.Spector@usdoj.gov 
 
Attorneys for Plaintiff 
UNITED STATES OF AMERICA 
 
 
UNITED STATES DISTRICT COURT 
 
 
FOR THE DISTRICT OF HAWAII 
 
UNITED STATES OF AMERICA, 
 
 
 
 
Plaintiff, 
 
 
 
vs. 
 
MARTIN KAO, 
 
 
 
 
Defendant.   
                                          
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Crim. No. 21-00061 LEK 
 
ORDER OF FORFEITURE  
(MONEY JUDGMENT) AND 
PRELIMINARY ORDER OF 
FORFEITURE (SPECIFIC 
PROPERTY) 
 
ORDER OF FORFEITURE (MONEY JUDGMENT) AND  
PRELIMINARY ORDER OF FORFEITURE (SPECIFIC PROPERTY) 
 
 
WHEREAS a multi-count Indictment was filed on May 6, 2021, charging 
defendant Martin Kao with three counts of wire fraud, in violation of 18 U.S.C. 
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§ 1343 (Counts 1 through 3) and five counts of money laundering, in violation of 
18 U.S.C § 1957 (Counts 4 through 8), and providing notice that, upon conviction, 
the government would seek forfeiture; and 
 
WHEREAS, on or about September 7, 2022, without a plea agreement, 
defendant Martin Kao pled guilty to all the charges in the Indictment; and 
 
WHEREAS, pursuant to 18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461, a 
person convicted of a violation of 18 U.S.C. § 1343, which is an offense 
constituting specified unlawful activity as defined in 18 U.S.C. § 1956(c)(7), shall 
forfeit to the United States any property, real or personal, which constitutes or is 
derived from proceeds traceable to that offense; and 
 
WHEREAS, pursuant to 18 U.S.C. § 982(a)(1), a person convicted of a 
violation of 18 U.S.C. § 1957 shall forfeit any property, real or personal, involved 
in such violation and property traceable to such violation; and  
 
WHEREAS the United States seeks the entry of a forfeiture money 
judgment in the amount of $12,841,490.00 in United States currency (the 
“Forfeiture Money Judgment”) and the forfeiture of all of defendant Martin Kao’s 
right, title, and interest in the following property (the “Specific Forfeitable 
Property”), which was seized on or about September 30, 2020:   
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i. 
$693,986.72 seized from defendant’s business operating 
account Central Pacific Bank Account No. xxxxxx9145; 
ii. 
$8,000,000.00 seized from defendant’s business investment 
account Merrill Lynch Account No. xxx-x3506; 
iii. 
$2,000,000.00 seized from defendant’s personal investment 
account Merrill Lynch Account No. xxx-x2641; and 
iv. 
$20,200.00 from defendant’s personal checking account First 
Hawaiian Bank Account No. xx-xx1787; and 
 
WHEREAS the Court has considered the defendant’s plea of guilty, other 
evidence already in the record, and any additional evidence and information 
submitted by the parties; and 
 
WHEREAS the item i. of the Specific Forfeitable Property and the value of 
the Forfeiture Money Judgment are subject to forfeiture pursuant to 18 U.S.C. 
§ 981(a)(1)(C) and 28 U.S.C. § 2461 as property, real or personal, which 
constitutes or is derived from proceeds traceable to the offenses in violation of 18 
U.S.C. § 1343 to which defendant Martin Kao has pled guilty, and the Court so 
finds; and 
 
WHEREAS the items ii., iii., and iv. of the Specific Forfeitable Property and 
the value of the Forfeiture Money Judgment up to $10,020,200 are subject to 
forfeiture pursuant to 18 U.S.C. § 982(a)(1) as property, real or personal, involved 
in the offenses in violation of 18 U.S.C. § 1957 to which defendant Martin Kao has 
pled guilty, and the Court so finds; and 
 
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WHEREAS, pursuant to the Indictment and 21 U.S.C. § 853(p), as 
incorporated by 28 U.S.C. § 2461 and 18 U.S.C. § 982(b)(1), it is the intent of the 
United States to seek forfeiture of any other property of the defendant up to the 
value of the property subject to forfeiture if, as a result of any act or omission of 
the defendant, any property subject to forfeiture: 
(A) 
cannot be located upon the exercise of due diligence; 
(B) 
has been transferred or sold to, or deposited with, a third party; 
(C) 
has been placed beyond the jurisdiction of the court; 
(D) 
has been substantially diminished in value; or 
(E) 
has been commingled with other property which cannot be 
divided without difficulty; and 
 
WHEREAS Rule 32.2(c)(1) of the Federal Rules of Criminal Procedure 
provides that no ancillary proceeding is required to the extent that the forfeiture 
consists of a money judgment; and 
 
WHEREAS good and sufficient cause has been shown, 
 
It is hereby ORDERED, ADJUDGED, AND DECREED: 
 
THAT, pursuant to Rule 32.2(b)(4) of the Federal Rules of Criminal 
Procedure, this Order shall become final as to defendant Martin Kao on the date it 
is entered by the Court, and it shall be made part of the sentence of defendant 
Martin Kao and shall be included in the judgment of conviction of defendant 
Martin Kao; and 
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Money Judgment 
THAT, pursuant to 18 U.S.C. § 981(a)(1)(C), 18 U.S.C. § 982(a)(1), and 28 
U.S.C. § 2461, defendant Martin Kao shall forfeit to the United States the sum of 
$12,841,490.00; and  
THAT a money judgment in the amount of $12,841,490.00 (the “Forfeiture 
Money Judgment”) is hereby entered against the defendant pursuant to 18 U.S.C. 
§ 981(a)(1)(C), 18 U.S.C. § 982(a)(1), and 28 U.S.C. § 2461 and Rule 32.2(b) of 
the Federal Rules of Criminal Procedure; and  
THAT all payments on the Forfeiture Money Judgment shall be made by 
postal money order, bank check, or certified check made payable to the U.S. 
Department of the Treasury and delivered to the United States Attorney’s Office, 
District of Hawaii, Attn: Asset Forfeiture Coordinator, PJKK Federal Building, 
300 Ala Moana Boulevard, Suite #6-100, Honolulu, Hawaii 96850, with the 
defendant’s name and criminal docket number noted on the face of the check; and  
THAT upon execution of this Order, and pursuant to 21 U.S.C. § 853(p), as 
incorporated by 28 U.S.C. § 2461 and 18 U.S.C. § 982(b)(1), the U.S. Department 
of the Treasury shall be authorized to deposit the payments on the Forfeiture 
Money Judgment into the Treasury Forfeiture Fund, and the United States shall 
have clear title to such forfeited property; and  
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THAT, pursuant to Rule 32.2(b)(3) of the Federal Rules of Criminal 
Procedure, upon entry of this Order, the United States Attorney’s Office is 
authorized to conduct any discovery needed to identify, locate, or dispose of 
forfeitable property, including depositions, interrogatories, requests for production 
of documents, and issuance of subpoenas; and  
THAT the United States may move at any time pursuant to Rule 32.2(e) of 
the Federal Rules of Criminal Procedure and 21 U.S.C. § 853(p) to amend this 
Order to include substitute property having a value not to exceed $12,841,490 in 
United States currency to satisfy the Forfeiture Money Judgment in whole or in 
part; and  
THAT, if this Order is amended to include such substitute property, the 
United States is authorized to seize that property pursuant to 21 U.S.C. § 853(g) 
and Rule 32.2(b)(3) of the Federal Rules of Criminal Procedure; and 
THAT the value of any substitute assets, including any forfeited money and 
the net proceeds derived from the sale of any forfeited property, will be applied to 
the Forfeiture Money Judgment until the Forfeiture Money Judgment is satisfied in 
full; and  
Specific Property 
 
THAT, pursuant to 18 U.S.C. § 981(a)(1)(C), 18 U.S.C. § 982(a)(1) and 28 
U.S.C. § 2461, any and all interests of defendant Martin Kao in the following 
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Specific Forfeitable Property, which was seized on September 30, 2020, from 
defendant's various personal and business bank and investment accounts: 
i. 
$693,986.72 seized from defendant’s business operating 
account Central Pacific Bank Account No. xxxxxx9145; 
ii. 
$8,000,000.00 seized from defendant’s business investment 
account Merrill Lynch Account No. xxx-x3506; 
iii. 
$2,000,000.00 seized from defendant’s personal investment 
account Merrill Lynch Account No. xxx-x2641; and 
iv. 
$20,200.00 from defendant’s personal checking account First 
Hawaiian Bank Account No. xx-xx1787 
are hereby forfeited to the United States of America; and 
THAT the Specific Forfeitable Property shall be held by the appropriate 
United States agency in its secure custody and control until the appropriate 
disposition of the Specific Forfeitable Property; and 
THAT, pursuant to 21 U.S.C. § 853(n)(1), as incorporated by 28 U.S.C. 
§ 2461 and 18 U.S.C. § 982(b)(1), the United States shall publish notice of this 
Order, and of its intent to dispose of the Specific Forfeitable Property in such a 
manner as the Attorney General may direct, including posting notice on the official 
internet government forfeiture site, namely www.forfeiture.gov, for at least 30 
consecutive days; and 
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THAT the United States may also, to the extent practicable, provide written 
notice to any person known to have an alleged interest in the Specific Forfeitable 
Property as a substitute for published notice as to those persons so notified; and  
THAT, pursuant to 21 U.S.C. § 853(n), any person, other than the above-
named defendant, asserting a legal interest in the Specific Forfeitable Property 
may, within 30 days of the final publication of notice or receipt of notice, 
whichever is earlier, petition the Court for a hearing without a jury to adjudicate 
the validity of his or her alleged interest in the Specific Forfeitable Property; and  
THAT, pursuant to 21 U.S.C. § 853(n)(3), any petition filed by a third party 
asserting an interest in the Specific Forfeitable Property shall be signed by the 
petitioner under penalty of perjury and shall set forth the nature and extent of the 
petitioner’s right, title, or interest in the Specific Forfeitable Property, the time and 
circumstances of the petitioner’s acquisition of the right, title, or interest in the 
Specific Forfeitable Property, any additional facts supporting the petitioner's claim, 
and the relief sought; and 
THAT if no third party files a timely claim, this Order shall become the 
Final Order of Forfeiture as to the Specific Forfeitable Property, as provided by 
Fed. R. Crim. P. 32.2(c)(2); or, upon adjudication of all third-party interests, this 
Court will enter a Final Order of Forfeiture for the Specific Forfeitable Property 
pursuant to 21 U.S.C. § 853(n), in which all interests will be addressed; and 
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THAT if the forfeiture of the Specific Forfeitable Property, or any portion of 
it, becomes final, defendant Martin Kao will be entitled to a credit against the 
amount remaining due on the Forfeiture Money Judgment in the net amount of the 
Specific Forfeitable Property that is forfeited; and 
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THAT this Court shall retain jurisdiction to enforce this Order, and to amend 
it as necessary, pursuant to Rule 32.2(e) of the Federal Rules of Criminal 
Procedure. 
ORDERED this August 31, 2023, at Honolulu, Hawaii. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
USA v. Martin Kao; Criminal No. 21-00061 LEK; “Order of Forfeiture (Money 
Judgment) and Preliminary Order of Forfeiture (Specific Property)”  
Case 1:21-cr-00061-LEK     Document 116     Filed 08/31/23     Page 10 of 10  PageID.975

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