Motion for preliminary order of forfeiture

Summary

A motion of the United States for entry of a preliminary order of forfeiture money judgment in United States v. Kurt Sieu Ly, Criminal No. 1:26-CR-00016, in the U.S. District Court for the Northern District of West Virginia, filed August 6, 2026 as Document 40. The motion states that on March 3, 2026, a grand jury returned an Indictment alleging a violation of Title 18, United States Code, Section 1343, and that on July 27, 2026, the defendant pled guilty to Count One. It states that the plea agreement includes a stipulation that substitute property is subject to forfeiture, and that law enforcement has not located all property subject to forfeiture. A proposed order is submitted with the motion, which is signed /s/ by Morgan S. McKee, Assistant United States Attorney.

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Case 1:26-cr-00016-TSK-MJA            Document 40       Filed 08/06/26      Page 1 of 4 PageID #:
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                       IN THE UNITED STATES DISTRICT COURT
                   FOR THE NORTHERN DISTRICT OF WEST VIRGINIA

UNITED STATES OF AMERICA,

                        Plaintiff,

v.                                                            Criminal No. 1:26-CR-00016

KURT SIEU LY,

                        Defendant.


                     MOTION OF THE UNITED STATES FOR
        ENTRY OF PRELIMINARY ORDER OF FORFEITURE MONEY JUDGMENT

          The United States requests entry of a Preliminary Order of Forfeiture. In support of this

motion, the United States asserts:

          1.     Rule 32.2(b)(1)(A) mandates the entry of a preliminary order of forfeiture after a

plea of guilty is accepted on any Count in an Indictment regarding which criminal forfeiture is

sought.

          2.     On March 3, 2026, the grand jury returned an Indictment alleging that the defendant

violated Title 18, United States Code, Section 1343. The Forfeiture Allegation in the Indictment

contains notice to the defendant that the government intends to forfeit property in this criminal

case.

          3.     Title 18, United States Code, Sections 981(a)(1)(C), 1956(c)(7)(A), 1961(1), and

Title 28, United States Code, Section 2461(c) mandate forfeiture of any property constituting, or

derived from, proceeds obtained directly or indirectly, as a result of a violation of Title 18, United

States Code, Section 1343.

         4.      On July 27, 2026, during the Rule 11 hearing, the defendant pled guilty to Count

One of the Indictment, alleging the defendant violated Title 18, United States Code, Section 1343.
Case 1:26-cr-00016-TSK-MJA                Document 40           Filed 08/06/26          Page 2 of 4 PageID #:
                                                  89



The plea agreement includes the defendant’s stipulation that the amount of proceeds of the offense

conduct underlying the conviction is $197,866.00. 1 The defendant further stipulated that substitute

property is subject to forfeiture, because, as a result of the defendant’s acts and omissions, all

property subject to direct forfeiture is unavailable for the reasons described in Title 21, United

States Code, Section 853(p)(1), subparagraphs (A)-(E).

        5.       The record made during the Rule 11 hearing established that the United States is

entitled to the entry of a judgement ordering the defendant to pay $197,766.00.

        6.       Although the law enforcement agency responsible for the investigation of this case

has exercised due diligence, it has not been able to locate all property subject to forfeiture. One

reason why all such property cannot be located is that the defendant presumptively has used cash

proceeds to purchase consumables. Another reason why the law enforcement has not been able to

locate all property subject to forfeiture is that the defendant may have prevented the government

from locating property that would otherwise be forfeited by transferring, selling, or depositing

such property with a third party, or by commingling tainted and untainted property. In any event,

the likelihood that any specific property subject to forfeiture will be located before the defendant

is sentenced is remote. Accordingly, it appears that the Court will not be able to identify all the

specific property subject to forfeiture before the defendant is sentenced.

        7.       When a defendant has not preserved for forfeiture all property, which the applicable

forfeiture statutes mandate be forfeited, the Court is required by Title 21, United States Code,

Section 853(p) 2 to forfeit other property in which the defendant has an interest.




1
  This amount was a typographical error. The correct amount is $197,766.00.
2
  With one exception not material to this case, Title 28, United States Code, Section 2461(c) makes the procedures
included in Title 21 United States Code, Section 853 applicable to all stages of this criminal forfeiture proceeding.


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Case 1:26-cr-00016-TSK-MJA                  Document 40           Filed 08/06/26          Page 3 of 4 PageID #:
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         8.       Rule 32.2(b)(1)(C)(iii) authorizes the Court to include in the Preliminary Order of

Forfeiture a provision stating that the order will be amended under Rule 32.2(e)(1) when additional

property is identified. A proposed Order is submitted herewith.

         9.       Any forfeited property transferred to a victim by the Attorney General pursuant to

Title 18, United States Code, Section 982(b)(1) (incorporating Title 21, United States Code,

Section 853(i)(1)) may be set off against the restitution order included in the judgment and

commitment order. 2



                                                                Respectfully submitted,

                                                                MATTHEW L. HARVEY
                                                                United States Attorney

                                                       By:      /s/ Morgan S. McKee
                                                                Morgan S. McKee
                                                                WV Bar No. 12669
                                                                Assistant United States Attorney




2
  The Attorney General has established internal guidelines and procedures – authorized by Title 18, United States
Code, Section 982(b)(1) (incorporating Title 21, United States Code, Section 853(i)(1)) – to transfer forfeited property
to the victims of crimes underlying forfeiture, and related offenses. The procedure through which the Department of
Justice is able to expeditiously transfer forfeited property to victims has been named “restoration”. The restoration
procedure enables the government to release forfeited property in appropriate forfeiture-related criminal cases to
victims identified in the criminal judgment. The amount transferred to the victims will either be the amounts described
in the court’s restitution order, or as a pro rata percentage based on such amounts. The funds are transferred through
the Marshals Service, which issues a check payable to the Clerk to be applied against the restitution Order contained
in the Judgment.



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Case 1:26-cr-00016-TSK-MJA             Document 40        Filed 08/06/26      Page 4 of 4 PageID #:
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                                    CERTIFICATE OF SERVICE

          I hereby certify that on this 6th day of August 2026, I have electronically filed the attached

documents with the Clerk of the Court using the CM/ECF system, to be served upon counsel of

record.



                                                         MATTHEW L. HARVEY
                                                         United States Attorney

                                                 By:     /s/ Morgan S. McKee
                                                         Morgan S. McKee
                                                         WV Bar No. 12669
                                                         Assistant United States Attorney
                                                         United States Attorney's Office
                                                         1225 Chapline Street, Suite 3000
                                                         Wheeling, WV 26003
                                                         Phone: (304) 234-0100
                                                         morgan.mckee@usdoj.gov




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