Motion — United States v. Shibley (Dkt. 180-1, W.D. Wash. No. 2:20-cr-00174)

Record facts

U.S. District Court for the Western District of Washington · No. 2:20-cr-00174-JCC · Doc. 180-1 · 2022-09-07 · Docket on CourtListener

Full text

Final Order of Forfeiture - 1 
United States v. Shibley, CR20-174-JCC 
UNITED STATES ATTORNEY 
700 STEWART STREET, SUITE 5220 
SEATTLE, WASHINGTON 98101 
(206) 553-7970 
 
 
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The Hon. John C. Coughenour 
 
 
 
 
 
 
 
 
 
 
UNITED STATES DISTRICT COURT FOR THE 
WESTERN DISTRICT OF WASHINGTON 
AT SEATTLE 
 
 
UNITED STATES OF AMERICA, 
Plaintiff, 
v. 
ERIC SHIBLEY, 
Defendant 
No. CR20-174-JCC 
 
[PROPOSED] 
 
FINAL ORDER OF FORFEITURE  
 
 
 
THIS MATTER comes before the Court on the United States’ Motion for a Final 
Order of Forfeiture for the following property (collectively, the “Subject Property”): 
1. 
$49,500.86 in U.S. funds, seized on or about May 29, 2020 from Navy 
Federal Credit Union account #******7528, held in the name of Eric R. Shibley MD 
PLLC;   
2. 
$100,000.00 in U.S. funds, seized on or about May 29, 2020 from Wells 
Fargo account #******2378, held in the name of ES1 LLC; 
3. 
$804,816.63 in U.S. funds, seized on or about May 27, 2020 from Wells 
Fargo account #******3536, held in the name of The A Team Holdings LLC; 
4. 
$114,440.00 in U.S. funds, seized on or about June 30, 2020 from Verity 
Credit Union account #***5390, held in the name of Dituri Construction LLC; and 
Case 2:20-cr-00174-JCC     Document 180-1     Filed 09/07/22     Page 1 of 5

 
 
 
 
  
Final Order of Forfeiture - 2 
United States v. Shibley, CR20-174-JCC 
UNITED STATES ATTORNEY 
700 STEWART STREET, SUITE 5220 
SEATTLE, WASHINGTON 98101 
(206) 553-7970 
 
 
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5. 
$114,743.59 in U.S. funds, seized on or about June 30, 2020 from Verity 
Credit Union account #***5320, held in the name of SS1 LLC. 
The Court, having reviewed the United States’ motion, as well as the other 
pleadings and papers filed in this matter, HEREBY FINDS that entry of a Final Order of 
Forfeiture is appropriate for the following reasons:  
1. On November 18, 2021, Defendant Shibley was convicted of Wire Fraud, in 
violation of 18 U.S.C. §§ 1343 and 2; Bank Fraud, in violation of 18 U.S.C. 
§§ 1344(2) and 2; and Money Laundering, in violation of 18 U.S.C. §§ 1957 
and 2. The evidence at trial established that the Subject Property was 
forfeitable, pursuant to 18 U.S.C. § 981(a)(1)(C), by way of 28 U.S.C. 
§ 2461(c), and 18 U.S.C. § 982(a)(1) – (2), as property that constitutes or is 
traceable to proceeds of the Wire Fraud and Bank Fraud schemes or property 
that was involved in the Money Laundering offenses. Dkt. Nos. 140, 144. 
2. On December 17, 2021, the United States filed its Motion for Entry of a 
Combined Preliminary Order of Forfeiture and Order of Forfeiture (the 
“Combined Motion”). Dkt. No. 140. In the Combined Motion, the 
United States moved for a preliminary order of forfeiture as to the Subject 
Property, and a final order of forfeiture as to a sum of money in the amount of 
$254,199, reflecting the unrecovered proceeds of Defendant’s fraud schemes. 
Id. One of the entities that Defendant used to submit false and fraudulent PPP 
and EIDL applications as part of his scheme to defraud COVID-19 relief 
programs — ES1 LLC — attempted to intervene in the criminal case regarding 
the $100,000, discussed above; the United States opposed ES1 LLC’s attempt. 
Dkt. Nos. 142 - 143. 
3. On January 21, 2022, the Court granted the Combined Motion and entered an 
Order (the “Order”), finding the Subject Property forfeitable pursuant to 18 
U.S.C. § 981(a)(1)(C), by way of 28 U.S.C. § 2461(c), and 18 U.S.C. 
Case 2:20-cr-00174-JCC     Document 180-1     Filed 09/07/22     Page 2 of 5

 
 
 
 
  
Final Order of Forfeiture - 3 
United States v. Shibley, CR20-174-JCC 
UNITED STATES ATTORNEY 
700 STEWART STREET, SUITE 5220 
SEATTLE, WASHINGTON 98101 
(206) 553-7970 
 
 
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§ 982(a)(1) – (2), and forfeiting the Defendant’s interest in it. Dkt. No. 144. 
The Court overruled ES1 LLC’s objection to the preliminary forfeiture of the 
$100,000. Id. The Court also granted the United States’ request for the 
forfeiture of a sum of money reflecting the unrecovered proceeds of the 
Defendant’s fraud schemes. Id. The forfeiture of the sum of money is personal 
to the Defendant and is not at issue in the United States’ Motion for Final 
Order of Forfeiture of the above-identified property. Id. 
4. On March 8, 2022, the Court sentenced Defendant to 48-months of 
imprisonment, to be followed by three years of supervised release. Dkt. 
Nos. 151 – 152, 150. The Court ordered Defendant to pay restitution of 
$1,438,000.00 to his victims and ordered the forfeiture of Defendant’s interest 
in the Subject Property and the sum of money, as previously held in the Order. 
Dkt. Nos. 152, 159.  
5. The Defendant appealed his conviction and sentence to the Ninth Circuit Court 
of Appeals. Dkt. No 155. 
6. On June 10, 2022, Defendant filed a Motion for Clarification of Restitution 
Credit for Forfeited Funds or for Indicative Ruling, requesting the Court 
authorize credit against his restitution order for forfeited property (the 
“Motion”). Dkt. No. 170. After considering the opposition of the United States 
and the Defendant’s Reply, Dkt. Nos. 173 – 174, the Court held that it lacked 
jurisdiction to adjudicate the Motion due to the Defendant’s pending appeal of 
his conviction and sentence. Dkt. No. 175. The Court also issued an indicative 
ruling that if the Ninth Circuit were to remand the matter to the Court, then the 
Court would deny the Motion to credit the forfeited funds toward the 
restitution order. Id. The Defendant also appealed this Order. Dkt. No. 176. 
// 
Case 2:20-cr-00174-JCC     Document 180-1     Filed 09/07/22     Page 3 of 5

 
 
 
 
  
Final Order of Forfeiture - 4 
United States v. Shibley, CR20-174-JCC 
UNITED STATES ATTORNEY 
700 STEWART STREET, SUITE 5220 
SEATTLE, WASHINGTON 98101 
(206) 553-7970 
 
 
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7. The United States published notice of the pending forfeiture, as instructed by 
the Court and required by 21 U.S.C. § 853(n)(1) and Federal Rule of Criminal 
Procedure (“Fed. R. Crim. P.”) 32.2(b)(6)(C). Dkt. No. 147. The United States 
also sent notice of the pending forfeiture directly to six identified potential 
claimants – one individual and five businesses associated with Defendant – at 
their last known addresses and, where applicable, by sending notice to counsel. 
Declaration of Assistant U.S. Attorney Krista K. Bush in Support of Motion 
for Final Order of Forfeiture, ¶ 2, Exhibits A, B, C, D, E, & F;  
8. The time for filing third-party petitions has expired and none were filed; 
9. Neither the Defendant nor the United States have sought to stay enforcement of 
the sentence. 
NOW, THEREFORE, THE COURT ORDERS: 
1. 
No right, title, or interest in the Subject Property exists in any party other 
than the United States;  
2. 
The Subject Property is fully and finally condemned and forfeited, in its 
entirety, to the United States; and 
3. 
The United States Department of Justice, and/or their representatives, are 
authorized to dispose of the Subject Property in accordance with the law. 
 
IT IS SO ORDERED. 
 
DATED this   
day of  
 
 
 
, 2022. 
 
 
  
 
 
 
 
 
 
 THE HON. JOHN C. COUGHENOUR 
 UNITED STATES DISTRICT JUDGE 
 
Case 2:20-cr-00174-JCC     Document 180-1     Filed 09/07/22     Page 4 of 5

 
 
 
 
  
Final Order of Forfeiture - 5 
United States v. Shibley, CR20-174-JCC 
UNITED STATES ATTORNEY 
700 STEWART STREET, SUITE 5220 
SEATTLE, WASHINGTON 98101 
(206) 553-7970 
 
 
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Presented by: 
 
s/Krista K. Bush 
 
 
 
KRISTA K. BUSH 
Assistant United States Attorney 
United States Attorney’s Office 
700 Stewart Street, Suite 5220 
Seattle, WA 98101 
(206) 553-2242 
Krista.Bush@usdoj.gov  
 
 
Case 2:20-cr-00174-JCC     Document 180-1     Filed 09/07/22     Page 5 of 5

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