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ORDER OF FORFEITURE (MONEY JUDGMENT) AND PRELIMINARY ORDER OF… — PPP Attempt Conspiracy Legal Filings (Dkt. 116)

No. 1:21-cr-00061-LEK · Doc. 116 · Docket on CourtListener

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An Order of Forfeiture (Money Judgment) and Preliminary Order of Forfeiture (Specific Property) in United States v. Martin Kao, No. 1:21-cr-00061-LEK, in the U.S. District Court for the District of Hawaii, filed August 31, 2023 (Doc. 116). It enters a forfeiture money judgment of $12,841,490.00 against Kao and forfeits four sums seized on September 30, 2020: $693,986.72, $8,000,000.00, $2,000,000.00 and $20,200.00. The order recites Kao's guilty plea on or about September 7, 2022 to three wire fraud counts and five money laundering counts. It directs publication of notice for at least 30 consecutive days, allows third-party petitions within 30 days, and credits any final forfeiture of the seized funds against the money judgment. The order becomes final as to Kao on entry and is made part of his sentence.

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Case 1:21-cr-00061-LEK Document 116 Filed 08/31/23 Page 1 of 10 PageID.966

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, ) Crim. No. 21-00061 LEK
)
Plaintiff, ) ORDER OF FORFEITURE
) (MONEY JUDGMENT) AND
vs. ) PRELIMINARY ORDER OF
) FORFEITURE (SPECIFIC
MARTIN KAO, ) PROPERTY)
)
Defendant. )
)

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.
Case 1:21-cr-00061-LEK Document 116 Filed 08/31/23 Page 2 of 10 PageID.967

§ 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:

2
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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

3
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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;

(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

4
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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

5
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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

6
Case 1:21-cr-00061-LEK Document 116 Filed 08/31/23 Page 7 of 10 PageID.972

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

7
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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

8
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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

9
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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)”

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