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Combined Preliminary Order of Forfeiture and 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]
COMBINED PRELIMINARY
ORDER OF FORFEITURE AND
ORDER OF FORFEITURE
THIS MATTER comes before the Court on the United States’ motion for entry of
a Combined Preliminary Order of Forfeiture and Order of Forfeiture, seeking to forfeit, to
the United States, Defendant Eric Shibley’s interest in 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 (“Subject Property 1”);
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 (“Subject
Property 2”);
Case 2:20-cr-00174-JCC Document 140-1 Filed 12/17/21 Page 1 of 7
Combined Preliminary Order of Forfeiture and 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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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 (“Subject Property 3”);
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 (“Subject Property 4”);
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 (“Subject
Property 5”); and
6.
A sum of money in the amount of $254,199, reflecting the remainder of the
proceeds the Defendant personally obtained from the offenses (“Subject
Property 6”).
I.
Preliminary Order of Forfeiture
The Court, having heard the United States’ motion, as well as the evidence
presented at trial, hereby FINDS entry of a Preliminary Order of Forfeiture regarding
Subject Properties 1-5 is appropriate because:
A.
Wire Fraud:
•
The Defendant has been convicted of Wire Fraud, in violation of 18
U.S.C. §§ 1343 and 2, as charged in Counts 1 – 7 of the Indictment
(Dkt. No. 31 at pp. 9 – 13);
•
Property that constitutes or is traceable to proceeds of a Wire Fraud
scheme is subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C),
by way of 28 U.S.C. § 2461(c);
•
The evidence presented at trial established that Subject Properties 1
– 5 constitute or are traceable to proceeds of the Defendant’s Wire
Fraud scheme;
Case 2:20-cr-00174-JCC Document 140-1 Filed 12/17/21 Page 2 of 7
Combined Preliminary Order of Forfeiture and 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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•
The evidence in the record established the requisite nexus between
Subject Properties 1 – 5 and the offense of conviction (Wire Fraud),
pursuant to Federal Rule of Criminal Procedure (“Fed. R. Crim. P.”)
32.2.(b)(1)(A)-(B).
B.
Bank Fraud:
•
The Defendant has been convicted of Bank Fraud, in violation of 18
U.S.C. §§ 1344(2) and 2, as charged in Counts 8 – 10 (Dkt. No. 31 at
pp. 14 – 15) of the Indictment;
•
Property that constitutes or is traceable to proceeds of a Bank Fraud
scheme is subject to forfeiture pursuant to 18 U.S.C. § 982(a)(2);
•
The evidence presented at trial established that Subject Properties
1 – 3 constitute or are traceable to proceeds of the Defendant’s Bank
Fraud scheme;
•
The evidence in the record established the requisite nexus between
Subject Properties 1 – 3 and the offense of conviction (Bank Fraud),
pursuant to Fed. R. Crim. P. 32.2.(b)(1)(A)-(B).
C.
Money Laundering:
•
The Defendant has been convicted of Money Laundering, in
violation of 18 U.S.C. §§ 1957 and 2, as charged in Counts 11 – 15
(Dkt. No. 31 at p. 16);
•
Property involved in Money Laundering is subject to forfeiture
pursuant to 18 U.S.C. § 982(a)(1);
•
The evidence presented at trial established that Subject Properties
4 – 5 are involved in, or traceable to property involved in, one or
more of the Defendant’s Money Laundering offenses;
Case 2:20-cr-00174-JCC Document 140-1 Filed 12/17/21 Page 3 of 7
Combined Preliminary Order of Forfeiture and 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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•
The evidence in the record established the requisite nexus between
Subject Properties 4 – 5 and the offense of conviction (Money
Laundering), pursuant to Fed. R. Crim. P. 32.2.(b)(1)(A)-(B).
II.
Order of Forfeiture
The Court also FINDS entry of an Order of Forfeiture regarding the sum of money
in the amount of $254,199, reflecting the unrecovered proceeds of the Defendant’s Wire
Fraud and Bank Fraud schemes (Subject Property 6), is appropriate because:
A.
Wire Fraud:
•
The proceeds of Wire Fraud, in violation of 18 U.S.C. §§ 1343 and
2, are subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C), by
way of 28 U.S.C. § 2461(c);
B.
Bank Fraud:
•
The proceeds of Bank Fraud, in violation of 18 U.S.C. §§ 1344(2)
and 2, are subject to forfeiture pursuant to 18 U.S.C. § 982(a)(2);
C.
Based on the evidence presented at trial:
•
The Defendant obtained proceeds of approximately $2,821,200 from
his Wire Fraud and Bank Fraud schemes;
•
The Defendant withdrew approximately $200,000 of these proceeds
in bulk cash;
•
The United States seized a total of approximately $1,183.501
(Subject Properties 1 - 5) with seizure warrants;
•
Financial institutions recovered a total of approximately $1,383,500;
and
•
A sum of money in the amount of $254,199 reflects the remaining
unrecovered proceeds received by the Defendant.
Case 2:20-cr-00174-JCC Document 140-1 Filed 12/17/21 Page 4 of 7
Combined Preliminary Order of Forfeiture and 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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NOW, THEREFORE, THE COURT ORDERS:
1.
Pursuant to 18 U.S.C. §§ 981(a)(1)(C), by way of 28 U.S.C. § 2641(c), 18
U.S.C. § 982(a)(1), and 18 U.S.C. § 982(a)(2), the Defendant’s interest in the Subject
Property is fully and finally forfeited, in its entirety, to the United States;
2.
Pursuant to Fed. R. Crim. P. 32.2(b)(4)(A)-(B), this Combined Preliminary
Order and Order will become final as to the Defendant at the time he is sentenced, it will
be made part of the sentence, and it will be included in the judgment;
3.
The United States Marshals Service, and/or its authorized agents or
representatives, shall maintain the Subject Property in its custody and control until further
order of this Court;
4.
No right, title, or interest in the above-identified sum of money in the
amount of $254,199 exists in any party other than the United States;
5.
Pursuant to Fed. R. Crim. P. 32.2(e), in order to satisfy the sum of money,
in whole or in part, the United States may move to amend this Order, at any time, to
include substitute property having a value not to exceed $254,199;
6.
The forfeiture of the $254,199 sum of money is separate and distinct from
any restitution that is ordered in this case.
7.
The forfeiture of the $254,199 sum of money is personal to the Defendant
and, pursuant to Fed. R. Crim. P. 32.2(c)(1), no third-party ancillary process is required
before forfeiting it.
8.
The Court will retain jurisdiction for the purpose of enforcing this Order
and amending the Order as necessary pursuant to Fed. R. Crim. P. 32.2(e).
9.
Pursuant to Fed. R. Crim. P. 32.2(b)(6) and 21 U.S.C. § 853(n), the
United States shall publish notice of this Preliminary Order and the United States’ intent
to dispose of the above-identified property as permitted by governing law. The notice
shall be posted on an official government website—www.forfeiture.gov—for at least 30
days. For any person known to have alleged an interest in this property, the United States
shall, to the extent possible, also provide direct written notice to that person. The notice
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Combined Preliminary Order of Forfeiture and Order of Forfeiture - 6
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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shall state that any person, other than the Defendant, who has or claims a legal interest in
this property must file a petition with the Court within 60 days of the first day of
publication of the notice (which is 30 days from the last date of publication), or within 30
days of receipt of direct written notice, whichever is earlier. The notice shall advise all
interested persons that the petition:
a.
shall be for a hearing to adjudicate the validity of the petitioner’s alleged
interest in this property;
b.
shall be signed by the petitioner under penalty of perjury; and
c.
shall set forth the nature and extent of the petitioner’s right, title, or interest
in this property, as well as any facts supporting the petitioner’s claim and
the specific relief sought;
10.
If no third-party petition is filed within the allowable time period, the
United States shall have clear title to this property, and this Preliminary Order shall
become the Final Order of Forfeiture as provided by Fed. R. Crim. P. 32.2(c)(2);
11.
If a third-party petition is filed, upon a showing that discovery is necessary
to resolve factual issues that it presents, discovery may be conducted in accordance with
the Federal Rules of Civil Procedure before any hearing on the petition is held.
Following adjudication of any third-party petitions, the Court will enter a Final Order of
Forfeiture, pursuant to Fed. R. Crim. P. 32.2(c)(2) and 21 U.S.C. § 853(n), reflecting that
adjudication; and
//
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Case 2:20-cr-00174-JCC Document 140-1 Filed 12/17/21 Page 6 of 7
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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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12.
The Court will retain jurisdiction for the purpose of enforcing the
Preliminary Order, adjudicating any third-party petitions, entering a Final Order of
Forfeiture, and amending the Preliminary or Final Order as necessary under Fed. R.
Crim. P. 32.2(e).
IT IS SO ORDERED.
DATED this
day of
, 2021.
THE HON. JOHN C. COUGHENOUR
UNITED STATES DISTRICT JUDGE
Presented by:
s/Krista K. Bush
BRIAN WERNER
KRISTA K. BUSH
Assistant United States Attorneys
United States Attorney’s Office
700 Stewart Street, Suite 5220
Seattle, WA 98101-1271
Telephone: (206) 553-7970
E-mail: brian.werner@usdoj.gov
E-mail: krista.bush@usdoj.gov
s/Laura Connelly
LAURA CONNELLY
Trial Attorney
U.S. Department of Justice
1400 New York Avenue NW
Washington, D.C. 20005
Telephone: (202) 307-1423
E-mail: laura.connelly@usdoj.gov
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