United States v. Chen
| Decision Date | 03 November 2011 |
| Docket Number | CR. No. 08–10065–EFH. |
| Citation | 821 F.Supp.2d 454 |
| Parties | UNITED STATES of America v. Stephen CHEN, Defendant,Jen Chen, Claimant. |
| Court | U.S. District Court — District of Massachusetts |
OPINION TEXT STARTS HERE
Neil J. Gallagher, Jr., Mary B. Murrane, United States Attorney's Office, Boston, MA, for United States of America.
This matter comes before the Court after an evidentiary hearing under 21 U.S.C. § 853(n)(2) to determine the ownership of a vehicle, forfeited to the United States following the guilty plea of defendant Stephen Chen. Claimant Jen Chen, Stephen's mother, brings this ancillary proceeding, seeking an amendment to this Court's November 12, 2009 Preliminary Order of Forfeiture reflecting, what she contends to be, her superior right to the vehicle under 21 U.S.C. § 853(n)(6)(A). Having heard the testimony of the witnesses and considered those exhibits which were admitted at the hearing, and having heard the arguments of counsel, the Court makes the following findings of fact and conclusions of law.
Finding of fact:
On March 20, 2008, a federal grand jury issued a five count indictment charging Stephen Chen and others with drug violations. Stephen was charged with one count of conspiracy to distribute marijuana in violation of 21 U.S.C. § 846 (Count One). Count One charged a conspiracy existing “at least from in or about May 2007, and continuing up to on or about February 15, 2008.” The indictment included a forfeiture allegation, pursuant to 21 U.S.C. § 853, which sought, upon conviction of any of the offenses alleged in Counts One through Five of the Indictment, the forfeiture of any and all property constituting, or derived from, any proceeds the defendants obtained directly or indirectly as a result of the charged offenses; and any and all property used or intended to be used in any manner or part to commit and to facilitate the commission of the offenses.
On July 1, 2008, the United States filed a bill of particulars giving notice that it intended to forfeit the following property: (a) one white 2006 Mercedes–Benz CLS500 Sedan, bearing Vehicle Identification Number WDDDJ75X66A050956 and Massachusetts Registration No. 48GS47 (the “Mercedes”).
On May 12, 2009, Stephen pled guilty to Count One of the Indictment. On November 12, 2009, this Court issued a Preliminary Order of Forfeiture, which stated that
The United States served notice of the Preliminary Order of Forfeiture, and on December 15, 2009, the Claimant filed a claim to the Mercedes asserting that she was the true owner of the vehicle. On September 12, 2011, this Court held a hearing on the matter.
The Mercedes was purchased on July 18, 2007, from Lynnway Auto Sales, Inc. The purchase price was $59,277. At the Hearing, Claimant testified that the Mercedes was purchased with an $8,000 trade-in on a GMC Yukon, payment of $35,000 from an account owned by both Claimant and her husband, and financing for the remainder of the purchase. The GMC Yukon was titled in the name of Stephen Chen, and was paid for by both Stephen and the Claimant.
The $35,000 payment, Claimant testified, came from bank accounts owned by Claimant and her husband, to which both Claimant and her husband contributed. Claimant further testified that the payment for the financed portion of the Mercedes was also paid out of accounts contributed to and owned by both Claimant and her husband.
Although Claimant and Stephen both signed the motor vehicle purchase contract, only Stephen's name was on the title and he kept possession of the paper title. Claimant's name was never on the title.
After the Mercedes was purchased, Stephen drove the Mercedes and kept it with him at his apartment. If he went to visit Claimant, he would drive the car to Claimant's home, and then would take the Mercedes with him when he left. Claimant testified that she drove the Mercedes on a couple of occasions. Stephen took the vehicle in for repairs. During the period of July of 2007 to February, 2008, Claimant gave Stephen the amount of $500.00 per month for his expenses, including the purchase of gas for the Mercedes.
On February 8, 2008, the day that the Mercedes was seized, Stephen had the title to the Mercedes with him in the car. Earlier that same day, he had a phone conversation with his co-defendant in the criminal case, Keith Ngan. On that call, Stephen said he would turn title for the Mercedes over to Ngan to pay off a debt. Stephen and Ngan agreed that Stephen would drive the Mercedes to meet Ngan later that day and bring the title with him to sign over ownership. Stephen was on his way to meet Ngan, with the Mercedes title in hand, when he was stopped by a Massachusetts State Trooper and the Mercedes was seized.
Claimant understood the Mercedes to be a gift to Stephen. Claimant was concerned about previous troubles Stephen had with staying in college programs and wanted to encourage him to attend college. Claimant told Stephen that she would provide funds for a vehicle if he agreed to enroll in school, attend classes, and graduate.
From the date of the gift to February 8, 2008, the date of seizure, Stephen was fulfilling the conditions outlined by Claimant, as he had enrolled in school and was attending classes.
Conclusions of law:
To amend the Court's Preliminary Order of Forfeiture under § 853(n)(6)(A), the relevant inquiry is whether, under Massachusetts law, the Claimant has established by a preponderance of the evidence that a legal right, title, or interest in the Mercedes vested in her, rather than in Stephen, at the time of the commission of the crime for which Stephen was convicted. Id. § 853(n)(6); 1 United States v. Nava, 404 F.3d 1119, 1129 (9th Cir.2005).
Under Massachusetts law, gift transfers with conditions attached are valid. Fuss v. Fuss, 373 Mass. 445, 368 N.E.2d 276, 279 (1977) ().2 “The owner of personal property may make a gift thereof to another person (the donee) in which the donor retains a reversionary interest by delivering the personal property to the donee, or to a third person for the donee, with the manifested intention that the donee acquire an ownership that terminates ... on the occurrence or nonoccurrence of some event or condition.” Restatement (Second) of Property: Donative Transfers § 31.2 (1992); see also Van Riper v. Van Riper, 445 Mass. 1007, 834 N.E.2d 239, 240 (2005) (); Bone v. Holmes, 195 Mass. 495, 81 N.E. 290, 291 (1907) ().
Massachusetts law considers a reversionary interest “ves...
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