United States' Motion for Preliminary Order of Forfeiture — United States v. Anthony Zaghab (D. Colo.)

Record facts

U.S. District Court, District of Colorado · No. 1:21-cr-00188-RBJ · Doc. 15 · 2021-10-12 · 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-00188-RBJ 
 
UNITED STATES OF AMERICA, 
 
 
Plaintiff, 
 
v. 
  
1.  
ANTHONY ZAGHAB, 
 
 
 
Defendant.  
______________________________________________________________________ 
 
UNITED STATES’ MOTION FOR PRELIMINARY ORDER OF FORFEITURE FOR A 
PERSONAL MONEY JUDGMENT AND SPECIFIC ASSETS 
______________________________________________________________________  
 
COMES NOW the United States of America, by and through Acting United States 
Attorney Matthew T. Kirsch and Assistant United States Attorney Laura B. Hurd, 
pursuant to the provisions of Title 18, United States Code, Section 981(a)(1)(C), Title 
28, United States Code, Section 2461(c), and Rule 32.2(b) of the Federal Rules of 
Criminal Procedure, and moves this Court to enter a Preliminary Order of Forfeiture.   
In support, the United States sets forth the following: 
I. 
Procedural Background 
1. 
On June 8, 2021, the United States charged defendant Anthony Zaghab 
by Information with wire fraud in Count 1, a violation of Title 18, United States Code, 
Section 1343.   (Doc. 1 at p. 9).  The Information also contained a forfeiture allegation 
providing the defendant with notice that the United States, pursuant to the provisions of 
Title 18, United States Code, Section 981(a)(1)(C) and Title 28, United States Code, 
Case 1:21-cr-00188-RBJ   Document 15   Filed 10/12/21   USDC Colorado   Page 1 of 5

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Section 2461(c), would seek forfeiture of the following assets:  
a) $120,070 in fraud proceeds the defendant voluntarily returned to the 
United States Secret Service (USSS);  
b) More than $250,000 in fraud proceeds that were applied to the mortgage 
for a home held in the defendant’s wife’s name; and  
c) A money judgment in the amount of the proceeds obtained by the 
defendant’s scheme.  (Doc. 1 at pp. 9-10) 
2. 
On August 9, 2021, the United States and defendant Anthony Zaghab 
entered into a Plea Agreement, in which the defendant pleaded guilty to Count 1 and 
agreed to forfeit to the United States any and all interest the defendant may have in the 
property described above.  The United States further agreed that the defendant’s  
money judgment would be credited with any net proceeds obtained from judicially 
forfeited assets.1  (Doc. 11, p. 3-4). 
3. 
Pursuant to Title 18, United States Code, Section 981(a)(1)(C) and Title 
28, United States Code, Section 2461(c), the Court shall order criminal forfeiture of 
property constituting, or derived from, proceeds obtained directly or indirectly as a result 
of violation of Title 18, United States Code, Section 1343.   
4. 
Pursuant to Rule 32.2(b)(1)(A) of the Federal Rules of Criminal Procedure, 
the Court must determine what property is subject to forfeiture as soon as practicable 
 
1 The United States has a civil forfeiture action against the residence that received more than 
$250,000.00 in fraud proceeds, in civil case number 21-cv-01400-STV.  That case has not yet 
been resolved.  Any judicially forfeited funds from the civil forfeiture case would also be credited 
toward the defendant’s money judgment. 
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after a plea of guilty. 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. 
Crim. P. 32.2(b)(1)(A).   
5. 
The Court’s determination may be based on any plea agreement, any 
other evidence already in the record, and any other additional evidence submitted by 
the parties that the Court deems relevant and reliable.  Fed. R. Crim. P. 32.2(b)(1)(B). 
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).   
6. 
The facts as set forth in the Plea Agreement provide an ample basis for an 
order of forfeiture.  More specifically, defendant Anthony Zaghab knowingly engaged in 
a scheme to defraud the United States in order to obtain pandemic-relief funds to which 
he was not entitled. The defendant submitted false and fraudulent Economic Injury 
Disaster Loan (“EIDL”) and Paycheck Protection Program (“PPP”) applications and was 
paid approximately $666,630 on those fraudulent applications. The defendant also 
claimed and received approximately $41,511 in unemployment insurance benefits on 
behalf of ineligible family members without their knowledge or consent. In total, the 
defendant obtained $708,141.00 in proceeds as a result of the scheme.  The defendant 
also voluntarily turned over $120,070.00 in fraud proceeds and agreed that more than 
$250,000.00 in fraud proceeds were applied to the mortgage for a home held in the 
defendant’s wife’s name.  (Doc. 11, p. 3-4).  Accordingly, the defendant’s interest in the 
$120,070.00, more than $250,000.00 in fraud proceeds applied to the mortgage of the 
residence, and a money judgment in the amount of $588,071.00 ($708,141.00 - 
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$120,070.00 = $588,071.00), is subject to forfeiture pursuant to Title 18, United States 
Code, Section 981(a)(1)(C) and Title 28, United States Code, Section 2461(c). (Doc. 
11).    
7. 
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 publication without a Preliminary Order of Forfeiture. 
 
WHEREFORE, the United States moves this Court to enter the Preliminary Order 
of Forfeiture for the $120,070.00, a money judgment in the amount of $588,071.00, and  
the defendant’s interest in the more than $250,000.00 in fraud proceeds applied to the 
mortgage of the residence held in the defendant’s wife’s name tendered herewith, for 
the reasons set forth above. 
 
 
DATED this 12th day of October 2021.  
 
 
 
 
 
 
 
 
Respectfully submitted, 
 
 
 
 
 
 
 
 
MATTHEW T. KIRSCH 
 
 
 
 
 
 
 
Acting United States Attorney 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    By: s/ Laura B. Hurd 
 
Laura B. Hurd 
 
 
 
 
 
 
 
Assistant U.S. Attorney 
 
 
 
 
 
 
 
U.S. Attorney’s Office 
 
 
 
 
 
 
 
1801 California Street, Ste. 1600 
 
 
 
 
 
 
 
Denver, Colorado 80202 
 
 
 
 
 
 
 
Telephone: (303) 454-0100 
 
 
 
 
 
 
 
E-mail: Laura.Hurd@usdoj.gov   
 
 
 
 
 
 
 
Attorney for the United States 
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CERTIFICATE OF SERVICE 
 
 
I hereby certify that on this 12th day of October 2021, 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/ Jasmine Zachariah 
FSA Data Analyst 
 
 
 
 
 
 
 
Office of the U.S. Attorney 
 
 
 
Case 1:21-cr-00188-RBJ   Document 15   Filed 10/12/21   USDC Colorado   Page 5 of 5

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