United States' Motion for Preliminary Order of Forfeiture for Specific Assets and for a Personal Money Judgment — Chandler Simbeck — U.S. v. Foreman Simbeck

Record facts

U.S. District Court for the District of Colorado · No. 1:21-cr-00165-WJM · Doc. 118 · 2023-12-06 · Docket on CourtListener

Full text

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IN THE UNITED STATES DISTRICT COURT 
FOR THE DISTRICT OF COLORADO 
 
Criminal Case No. 21-cr-00165-RM-2 
 
UNITED STATES OF AMERICA, 
 
 
Plaintiff, 
 
v. 
  
2.  
CHANDLER SIMBECK, 
 
 
 
Defendant.  
______________________________________________________________________ 
 
UNITED STATES’ MOTION FOR PRELIMINARY ORDER OF FORFEITURE FOR 
SPECIFIC ASSETS AND FOR A PERSONAL MONEY JUDGMENT 
______________________________________________________________________  
 
COMES NOW the United States of America, (“United States”) by and through 
United States Attorney Cole Finegan and Assistant United States Attorney Elizabeth 
Young, pursuant to 18 U.S.C. § 981(a)(1)(C), 28 U.S.C. § 2461(c), and Fed. R. Crim. P. 
Rule 32.2(b), and incorporating the Plea Agreement entered into with defendant 
Chandler Simbeck, and respectfully requests that this Court enter a Preliminary Order of 
Forfeiture for Specific Assets and a Forfeiture Money Judgment in this case as to 
defendant Simbeck.  
I. 
Background 
1. 
On May 18, 2021, the grand jury charged defendant Chandler Simbeck by 
Indictment in Count 12 with conspiring to defraud the United States and any agency 
thereof in violation of 18 U.S.C. § 371, and in Count 13 with violations of 18 U.S.C. §§ 
1343 and 2. (Doc. 1 at 1, 9-13). 
2. 
The Indictment also contained a forfeiture allegation providing the 
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defendant with notice that the United States, pursuant to the provisions of 18 U.S.C. § 
981(a)(1)(C) and 28 U.S.C. § 2461(c)1, would seek forfeiture in all property constituting 
and derived from any proceeds he obtained directly and indirectly as a result of the 
alleged offenses and provided notice of the United States’ intent to seek a money 
judgment in the amount of the proceeds that he obtained as a result of the scheme 
charged in Counts 12 and 13 of the Indictment. (Doc. 1 at 13-15). 
3. 
On April 21, 2023, the United States and defendant Chandler Simbeck 
entered into a Plea Agreement, in which the defendant agreed, among other things, to 
plead guilty to Count 12, agreed to forfeiture of specific items identified below2, agreed to 
the entry of a money judgment in the amount of $151,000, admitted the forfeiture 
allegations, and agreed to facts that provide a nexus between the forfeiture order sought 
and the crime to which defendant has pleaded guilty. (Doc. 105 at 1-2, 4-6, 7-14). The 
specific items defendant Simbeck agreed to forfeit are:  
a. Approximately $36,106.22 seized from Citizens Bank account #6441 held 
in the name of Etola Leipply; and 
b. Approximately $282.49 seized from FanDuel account #5854 held in the 
name of Chandler Simbeck. 
(Doc. 105 at 4-6).   
 
1 Title 28, United States Code, Section 2461(c) provides for the criminal forfeiture of any 
property that may be forfeited civilly. Title 18, United States Code, Section 981(a)(1)(C) 
provides for the forfeiture of any property constituting or derived from proceeds 
traceable to a “specified unlawful activity” as defined in 18 U.S.C. § 1956(c)(7), which 
includes any act identified in 18 U.S.C. § 1961(1) within the definition of “specified 
unlawful activity.” Violation of 18 U.S.C. § 1343 is included in 18 U.S.C. § 1961.  
2 The parties agree that the appropriate forfeiture statutes are 18 U.S.C. § 981(a)(1)(C) 
and 28 U.S.C. § 2461(c), as listed in the Indictment. 
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4. 
As set forth in the Plea Agreement, the defendant and United States agree 
that between in or about June 2020 and on or about December 7, 2020, in the State and 
District of Colorado, defendant Chandler Simbeck and co-defendant Russell Foreman did 
knowingly and unlawfully conspire to defraud the United States by submitting 4 fraudulent 
EIDL loan applications and attempting to obtain 3 fraudulent PPP loans. (Doc. 105 at 9-
17). The defendant and United States further agree that the defendant then caused 
fraudulent proceeds to be transferred into bank accounts in his control and to accounts in 
the control of others. (Doc. 105 at 11-12).  
5. 
Specifically, defendant Simbeck submitted a fraudulent EIDL application to 
the Small Business Association containing materially false information, which was 
approved on August 27, 2020 in the amount of $150,000. (Doc. 111-2 at 35-40).  
6. 
Additionally, on March 30, 2020, defendant Simbeck submitted a fraudulent 
EIDL application, which was partially funded by the SBA on or about April 16, 2020, with 
a $1,000.00 EIDL Cash Advance Grant. (Doc. 105 at 12). In total, $151,000.00 represents 
the proceeds obtained by the defendant through commission of the conspiracy to commit 
violations of 18 U.S.C. § 1343. (Doc. 105 at 5).  
II. 
Analysis 
 
Pursuant to Fed. R. Crim. P. 32.2(b)(1)(A), the Court must determine what 
property is subject to forfeiture under 18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c), 
as soon as practicable after a plea of guilty. Once the property is determined to be 
subject to forfeiture, the Court must promptly enter a Preliminary Order of Forfeiture.  
Fed. R. Crim. P. 32.2(b)(2)(A). When a personal money judgment is sought, “the court 
must determine the amount of money that the defendant will be ordered to pay.” Fed. R. 
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Crim. P. 32.2(b)(1)(A).   
Pursuant to 18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c), any property, real 
or personal, which constitutes or is derived from proceeds traceable to a conspiracy to 
commit violations of 18 U.S.C. § 1343 is forfeitable to the United States.  
As explained in more detail above and in the Plea Agreement, there is a nexus 
between the crimes to which defendant Simbeck has pleaded guilty and the items 
identified for forfeiture. Further, defendant Simbeck agrees to forfeiture of (a) the 
approximately $36,106.22 seized from Citizens Bank account #6441 held in the name of 
Etola Leipply; and (b) the approximately $282.49 seized from FanDuel account #5854 
held in the name of Chandler Simbeck. In addition, defendant Simbeck has agreed to 
entry of a money judgment in the amount of $151,000.  
Accordingly, the defendant’s interest in the following assets is subject to forfeiture 
to the United States pursuant to 18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c): 
a. Approximately $36,106.22 seized from Citizens Bank account #6441 held 
in the name of Etola Leipply; and 
b. Approximately $282.49 seized from FanDuel account #5854 held in the 
name of Chandler Simbeck. 
In addition, entry of a money judgment in the amount of $151,000 is appropriate.  
A Preliminary Order of Forfeiture is necessary in order for the United States to 
seize the property subject to forfeiture. In addition, 21 U.S.C. § 853(n) requires that third 
parties who may have an interest in the property receive notice, via publication, or to the 
extent practical, direct written notice, of the forfeiture and the United States’ intent to 
dispose of the property. The United States cannot accomplish the seizure, notice, and 
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publication without a Preliminary Order of Forfeiture. 
III. 
Conclusion 
 Accordingly, the United States respectfully requests that this Court enter the 
Preliminary Order of Forfeiture for a Forfeiture Money Judgment and Specific Assets 
tendered herewith, for the reasons set forth above. 
Dated: December 6, 2023 
 
 
 
 
 
 
 
 
Respectfully submitted, 
 
 
 
 
 
 
 
 
COLE FINEGAN 
 
 
 
 
 
 
 
United States Attorney 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    By: s/ Elizabeth Young 
 
Elizabeth Young 
 
 
 
 
 
 
 
Assistant U.S. Attorney 
 
 
 
 
 
 
 
U.S. Attorney’s Office 
 
 
 
 
 
 
 
1801 California Street, Ste. 1600 
 
 
 
 
 
 
 
Denver, Colorado 80202 
 
 
 
 
 
 
 
Telephone: (303) 454-0100 
 
 
 
 
 
 
 
E-mail: Elizabeth.Young2@usdoj.gov 
 
 
 
 
 
 
 
Attorney for the United States 
 
 
CERTIFICATE OF SERVICE 
 
 
I hereby certify that on this 6th day of December 2023, I electronically filed the 
foregoing with the Clerk of Court using the ECF system which will send notification of 
such filing to all counsel of record. 
 
 
s/ Jody Gladura 
FSA Federal Paralegal 
 
 
 
 
 
 
 
Office of the U.S. Attorney 
 
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