US v. Contents of Account

• Citation: 847 F. Supp. 329
• Decision Date: 31 March 1994
• Docket Number: No. 90 Civ. 5551 (MGC).,90 Civ. 5551 (MGC).
• Parties: UNITED STATES of America, Plaintiff, v. CONTENTS OF ACCOUNT NUMBERS XXX-XXXXX AND XXX-XXXXX-X-X, in the Names of Olimpia Concepcion and Christopher Matos at Gruntal & Co.; Contents of Account Numbers XX-XXXXXXX-X and XX-XXXXXXX-X, in the Names of Christopher Matos and Olympia Concepcion at Emigrant Savings Bank; Contents of Account Number XXXXXXXXXX, in the Names of Olimpia Concepcion and Christopher Matos at Citibank, N.A.; Contents of Account Number XX-XXXXXX-X, in the Names of Christopher Matos and Olimpia Concepcion, at Providence Savings; Contents of Account Numbers XX-XX-XXXXXX, XX-XX-XXXXXXXX, and 703320, in the Names of Christopher Matos and Barbara Matos at Dominion Bank; Contents of Account Numbers XXXXXXXX and 40594831, in the Names of Christopher Matos and/or Barbara Matos at First Virginia Bank; Contents of Account Number XX-XXX-XXX, in the Names of Christopher Matos and/or Barbara Matos at Riggs; Contents of Account Number XXXXXXX in the Names of Christopher Matos and/or Barbara Matos, at Riggs National Bank of Washington, D.C.; all Right, Title, and Interest in Real Property Known as 12211 Wye Oak Common Circle (Unit 64), Burke, Virginia; all Right, Title, and Interest in Real Property Known as 1089 Avenue K (Unit 22), Brooklyn, New York; Assorted Jewelry Valued at $19,540.00; Certificate of Deposit # XXXXXXXXXX, in the Amount of $2,000.00 at First Virginia, 6400 Arlington Blvd., Falls Church, Virginia; Certificate of Deposit # 146028, in the Amount of $24,000.00 at Dominion Bank, Roanoke, Virginia; Certificate of Deposit # 146029, in the Amount of $8,000.00 at Dominion Bank, Roanoke, Virginia; American Express Travelers Cheques Totalling $1,300.00; $750.00 in United States Savings Bonds; $68,400.00 in United States Currency, Defendants-in-rem.
• Court: U.S. District Court — Southern District of New York

847 F. Supp. 329

UNITED STATES of America, Plaintiff, v. CONTENTS OF ACCOUNT NUMBERS XXX-XXXXX AND XXX-XXXXX-X-X, in the Names of Olimpia Concepcion and Christopher Matos at Gruntal & Co.; Contents of Account Numbers XX-XXXXXXX-X and XX-XXXXXXX-X, in the Names of Christopher Matos and Olympia Concepcion at Emigrant Savings Bank; Contents of Account Number XXXXXXXXXX, in the Names of Olimpia Concepcion and Christopher Matos at Citibank, N.A.; Contents of Account Number XX-XXXXXX-X, in the Names of Christopher Matos and Olimpia Concepcion, at Providence Savings; Contents of Account Numbers XX-XX-XXXXXX, XX-XX-XXXXXXXX, and 703320, in the Names of Christopher Matos and Barbara Matos at Dominion Bank; Contents of Account Numbers XXXXXXXX and 40594831, in the Names of Christopher Matos and/or Barbara Matos at First Virginia Bank; Contents of Account Number XX-XXX-XXX, in the Names of Christopher Matos and/or Barbara Matos at Riggs; Contents of Account Number XXXXXXX in the Names of Christopher Matos and/or Barbara Matos, at Riggs National Bank of Washington, D.C.; all Right, Title, and Interest in Real Property Known as 12211 Wye Oak Common Circle (Unit 64), Burke, Virginia; all Right, Title, and Interest in Real Property Known as 1089 Avenue K (Unit 22), Brooklyn, New York; Assorted Jewelry Valued at $19,540.00; Certificate of Deposit # XXXXXXXXXX, in the Amount of $2,000.00 at First Virginia, 6400 Arlington Blvd.,

Falls Church, Virginia; Certificate of Deposit # 146028, in the Amount of $24,000.00 at Dominion Bank, Roanoke, Virginia; Certificate of Deposit # 146029, in the Amount of $8,000.00 at Dominion Bank, Roanoke, Virginia; American Express Travelers Cheques Totalling $1,300.00; $750.00 in United States Savings Bonds; $68,400.00 in United States Currency, Defendants-in-rem.

No. 90 Civ. 5551 (MGC).

United States District Court, S.D. New York.

March 31, 1994.

Mary Jo White, U.S. Atty., S.D.N.Y. New York City by Treby McL. Williams, for plaintiff.

Christopher Matos, pro se.

MEMORANDUM OPINION AND ORDER

CEDARBAUM, District Judge.

The government commenced this action, pursuant to 18 U.S.C. § 981, seeking forfeiture of the contents of various bank accounts, certificates of deposit, U.S. currency, and certain real and personal property as property involved in money laundering transactions or as property traceable thereto. Christopher Matos, who is currently incarcerated, filed a Notice of Claim to all properties listed in the amended complaint. Barbara Matos, Matos' wife, and Olimpia Concepcion, his mother, also filed Notices of Claim. Pursuant to a Stipulation and Order signed February 18, 1993 and two Stipulations and Orders signed February 25, 1993, the claims of Barbara Matos and Olimpia Concepcion were settled and dismissed with prejudice. In addition, the government withdrew its amended complaint against all property except the contents of twelve of the bank accounts and certificates of deposit and $68,400 in U.S. currency.

The government now moves for partial summary judgment against the contents of eight of the twelve accounts that remain in this action. With respect to six of the eight accounts, the government asserts that there is probable cause to believe that the contents of these accounts are forfeitable pursuant to 18 U.S.C. § 981 as property that was involved in money laundering in violation of 18 U.S.C. § 1956, or as property traceable thereto.

With respect to the other two accounts, the government asserts that Matos, the only remaining claimant, lacks standing to challenge these forfeitures because the accounts are in his wife's name only, and he has not submitted an affidavit establishing his interest. In addition, the government argues that even if Matos could establish standing to challenge these last two accounts, the contents of one of these accounts is still subject to forfeiture as property traceable to property involved in money laundering transactions in violation of 18 U.S.C. § 1956.

For the reasons discussed below, the government's motion for partial summary judgment is granted against the contents of the six accounts as property involved in money laundering transactions, as well as against the contents of the seventh account, as property traceable to property involved in money laundering transactions. However, summary judgment is denied against the contents of the eighth account because there remains a genuine issue of material fact regarding Matos' standing to challenge this forfeiture.

Background

Matos was employed by the Immigration and Naturalization Service from 1985 through May 1990. From sometime in 1986 through May 1990, Matos and others accepted bribes in exchange for fraudulently issuing alien registration receipt cards ("green cards"). (Answer to Am.Compl. ¶ 5; Williams Decl. ¶ 4.) Matos always received these bribes in cash and would then transfer the money to his home in Virginia. (Matos Dep. at 75, 99.)

From October 1987 through December 31, 1989, Matos deposited the proceeds of this green card scheme in various bank accounts controlled by Matos, his wife, or by Matos, jointly with his wife or mother. (Williams Decl. ¶ 8; Matos Plea at 15-16; Matos Dep. at 50, 54-57, 59-61, 64-66, 72-74, 77.) From 1986 through 1989, Matos maintained between seven and seventeen accounts at various banks and made numerous deposits of cash and cashiers checks, totalling at least $61,594 in 1986; $84,500 in 1987; $259,298.86 in 1988; and $116,257.77 in 1989. (Macchiaroli Aff. ¶¶ 6, 33.) The six accounts that the government contends contain property involved in money laundering transactions were opened in the years 1987, 1988 and 1989. (Id. ¶¶ 7, 10, 15, 19, 21, 24.)

On December 12, 1990 Matos pleaded guilty to conspiring to accept bribes and issue fraudulent green cards in violation of 18 U.S.C. §§ 201(b)(2)(B) & 1028(a)(2). In addition, Matos pleaded guilty to engaging in money laundering transactions from October 1987 through December 31, 1989 in violation of 18 U.S.C. §§ 1956(a)(1)(A)(ii) & (a)(1)(B)(i).

The six accounts against which the government seeks summary judgment as property involved in money laundering transactions are as follows: Citibank, N.A. account number XXXXXXXXXX, held in the names of Christopher Matos and Olimpia Concepcion, from which approximately $82,000.00 was seized (Macchiaroli Aff. ¶ 7); Emigrant Savings Bank account number XX-XXXXXXX-X, held in the names of Cristobal Matos or Olimpia Concepcion, from which $11,240.80 was seized (Id. ¶ 10); Emigrant Savings Bank account number XX-XXXXXXX-X, held in the names of Cristobal Matos or Olimpia Concepcion, from which $18,477.93 was seized (Id. ¶ 15); Gruntal & Company account number XXX-XXXXX, held in the names of Christopher Matos and Olimpia Concepcion from which $47,672.00 was seized (Id. ¶ 19); First Virginia Bank account number XXXXXXXX, held in the names of Christopher and Barbara Matos, from which $28,907.41 was seized (Id. ¶ 21); and Riggs National Bank of Virginia account number XX-XXX-XXX, held in the names of Christopher and Barbara Matos, from which $37,639.05 was seized (Id. ¶ 24) (hereinafter "the Six Accounts").

The two accounts as to which the government contends Matos lacks standing to challenge forfeiture are: First Virginia Bank account number XXXXXXXX ("First Virginia 31 Account"), held in the name of Barbara Matos, from which $36,020.95 was seized (Id. ¶ 29); and First Virginia Bank account number XXXXXXXXXX ("First Virginia 55 Account"), held in the name of Barbara Matos, from which $2,983.64 was seized. (Id. ¶ 27.) The government also argues that the contents of the First Virginia 31 Account are subject to summary judgment on the additional ground that they are traceable to property involved in money laundering transactions.

During his sentencing proceedings, Matos, through his attorney, withdrew his request for a hearing to determine the exact amount of money involved in his money laundering offenses and agreed to a four-point enhancement under the Sentencing Guidelines, which is appropriate when the amount of money involved exceeds $600,000. (Williams Aff. Ex.C, at 12.) However, in his Answer, Matos states that the forfeiture should be limited to the amount of $188,000, which he claims represents all the proceeds from his green card scheme.

Discussion

Summary judgment is authorized when "the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law." Fed.R.Civ.P. 56(c); see also Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986). "As to the materiality, the substantive law will identify which facts are material. Only disputes over facts that might affect the outcome of the suit under the governing law will properly preclude the entry of summary judgment. Factual disputes that are irrelevant or unnecessary will not be counted." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). In examining the record, the court "must resolve all ambiguities and draw all reasonable inferences in favor of the nonmoving party." Gibson v. American Broadcasting Cos., Inc., 892 F.2d 1128, 1132 (2d Cir.1989); see also Celotex, 477 U.S. at 330 n. 2, 106 S.Ct. at 2556 n. 2.

Section 981 of Title 18 subjects to forfeiture "any property real or personal, involved in a transaction or attempted transaction in violation of ... section 1956 ... of this title, or any property traceable to such property." 18 U.S.C. § 981(a)(1)(A) (1988 & Supp. IV 1992).¹ Section 1956, in turn, imposes a criminal penalty on any individual who:

(a)(1) ... knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity, conducts or attempts to conduct such a financial transaction which in fact involves

...