U.S. v. Beckner, Criminal Action No. 93-60.

• Decision Date: 23 July 1998
• Docket Number: Criminal Action No. 93-60.
• Citation: 16 F.Supp.2d 677
• Parties: UNITED STATES of America v. Donald L. BECKNER.
• Court: U.S. District Court — Middle District of Louisiana

16 F.Supp.2d 677

UNITED STATES of America v. Donald L. BECKNER.

Criminal Action No. 93-60.

United States District Court, M.D. Louisiana.

July 23, 1998.

MEMORANDUM OPINION

DUPLANTIER, United States Magistrate Judge.

Donald Beckner, formerly a defendant in this criminal case, has filed a "Motion for Return of Seized Funds." There appears to be no dispute as to any material fact; thus there is no need for an evidentiary hearing. Both Beckner and the United States have set forth their legal contentions fully in memoranda and neither has requested oral argument. For the following reasons, the motion is GRANTED.

In the second of his three trials¹, Donald Beckner was convicted of four counts of wire fraud and one count of perjury. He was sentenced to a term of imprisonment, a fine of $50,000, and a special assessment of $250. Also, he was ordered to make restitution in the amount of $450,000 to certain designated victims of the fraudulent scheme in which he was convicted of participating. Several days after Beckner filed a notice of appeal, the United States recorded the judgment, which included the order of restitution, in the real estate records of East Baton Rouge Parish, creating under Louisiana law an encumbrance on all of Beckner's real estate in that parish. The government also filed a notice of lien in the amount of $450,000 "in favor of the United States upon all property and rights to property, movable and immovable, belonging to" Beckner.

Beckner had a loan from City National Bank secured by a first mortgage on an office building which he owned. Following his conviction and incarceration, Beckner was unable to make the loan payments. In an attempt to generate income to make the payments, Beckner's agent located a potential lessor for the building, who required as a prerequisite to leasing the building that the government subordinate its lien to the lease. The government refused to do so. Several months later, in order to avoid foreclosure by the bank, Beckner sold the building. The government agreed to release its lien on the building, on the condition that it receive all of the net proceeds of the sale. From the proceeds of the sale the government received a cashier's check in the amount of $134,484.46 payable to the U.S. Courts, National Fine Center. The funds were sent to the Administrative Office of the United States, National Fine Center.

Beckner alleges, and the government does not dispute, that he requested that the government not distribute the money pending appeal. Despite that request, the National Fine Center disbursed the funds to the victims identified in the judgment. However, approximately $24,000 was not deliverable and was returned to the National Fine Center.

After the National Fine Center distributed the funds, the Fifth Circuit reversed Beckner's conviction and remanded the case for a new trial. United States v. Beckner, 69 F.3d 1290 (5th Cir.1995). Thereafter Beckner requested that the government return the amounts paid. The government returned the $250 special assessment but declined to return the rest of the money.

Following a third trial Beckner was again convicted. The resulting judgment included the same order of restitution as in the judgment after his first conviction and a special assessment of $200. No additional restitution payments were made; however, Beckner did pay the $200 special assessment. Finding insufficient evidence of guilt, the Fifth Circuit reversed Beckner's conviction. United States v. Beckner, 134 F.3d 714 (5th Cir. 1998).

Pursuant to a recent court order, the government returned to Beckner the non-disbursed funds totalling $24,022.40. The United States still refuses to repay to Beckner the funds disbursed by it to the victims, the sum of $110,639.11. In the motion under consideration Beckner seeks the return of that amount.²

JURISDICTION

The government contends that the court lacks subject matter jurisdiction. The government urges that if Beckner's claim sounds in tort, there is no jurisdiction because Beckner has not filed an administrative claim, as required by the Federal Tort Claims Act (28 U.S.C. § 2675(a)), and that if the claim sounds in contract, the court lacks jurisdiction under the Tucker Act (28 U.S.C. § 1346(b)), because the claim exceeds $10,000.

However Beckner's claim is classified, the All Writs Act (28 U.S.C. § 1651) confers jurisdiction on this court to adjudicate it:

The Supreme Court and all courts established by Act of Congress may issue all writs necessary or appropriate in aid of their respective jurisdictions and agreeable to the usages and principles of law.

In United States v. Lewis, 478 F.2d 835 (5th Cir.1973), the Fifth Circuit stated:

We can see no reason why a person who has paid a fine pursuant to an unconstitutional statute should be required to resort to a multiplicity of actions in order to obtain reimbursement of money to which he is entitled. Since the...