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United States v. Caspersen

Citation: 275 F. Supp. 3d 502Docket: 16 Cr. 414 (JSR)

Court: District Court, S.D. New York; August 25, 2017; Federal District Court

Narrative Opinion Summary

In a case involving the forfeiture of property derived from criminal activity, Andrew Caspersen, having pleaded guilty to securities and wire fraud, agreed to forfeit his interest in a residential co-op unit. His wife, Christina Caspersen, contested this forfeiture, asserting joint ownership rights. The court, however, recognized the application of the 'relation back doctrine,' which allowed the government to claim an interest in the apartment due to mortgage and HELOC payments made with crime proceeds. Under 18 U.S.C. § 981 and 28 U.S.C. § 2461, the law permits forfeiture of property acquired with illicit funds, and the court determined that Ms. Caspersen's interest was not superior under 18 U.S.C. § 853(n)(6)(A) because both spouses shared equal rights in a tenancy by the entirety. Notwithstanding, the court demonstrated equitable discretion by allowing Ms. Caspersen and her children to remain in the apartment until June 30, 2018, acknowledging her lack of knowledge about her husband's criminal actions and their potential impact on her family.

Legal Issues Addressed

Equitable Discretion in Forfeiture Proceedings

Application: The court exercised equitable discretion to allow Ms. Caspersen to remain in the apartment temporarily despite the forfeiture order.

Reasoning: The Court exercised its equitable discretion to allow Ms. Caspersen to remain in the Apartment until June 30, 2018, considering her ignorance of her husband's criminal activities and the resultant challenges for her and their children.

Forfeiture of Property Derived from Criminal Activity

Application: The court applied the principle that property purchased or paid for with the proceeds of criminal activity is subject to forfeiture to the government.

Reasoning: The Court noted that under 18 U.S.C. § 981 and 28 U.S.C. § 2461, property derived from criminal activity is subject to forfeiture, and the 'relation back doctrine' grants the government an interest in forfeitable property from the time the offense was committed.

Joint Ownership and Superiority of Interest

Application: The court concluded that as a tenant by the entirety, Ms. Caspersen did not have a superior interest over her husband's forfeitable interest.

Reasoning: Under 18 U.S.C. § 853(n)(6)(A), a court can amend forfeiture orders if a petitioner has a superior interest at the time of the relevant acts; however, as a tenant by the entirety, Ms. Caspersen held no superior claim to her husband's interest.

Relation Back Doctrine

Application: This doctrine was used to determine that the government's interest in the property related back to the time of the criminal act, thus validating the forfeiture of the apartment.

Reasoning: The 'relation back doctrine' grants the government an interest in forfeitable property from the time the offense was committed.