Legal Definitions - criminal forfeiture

Criminal forfeiture is a legal process initiated by the government to seize property, assets, or money from an individual who has been found guilty and convicted of a crime. This action is a direct consequence of the criminal conviction and serves as a form of punishment.

For criminal forfeiture to occur, two key conditions must be met:

• First, the individual must have been convicted of a criminal offense. Without a conviction, criminal forfeiture cannot proceed.
• Second, the property, assets, or money targeted for seizure must be directly linked to the criminal activity. This means the items were either used to commit the crime, or they represent the profits or proceeds gained from the crime. The prosecution must demonstrate, more likely than not, that this connection exists.

Here are some examples to illustrate criminal forfeiture:

• Example 1: Investment Fraud

  Imagine a financial advisor who is convicted of orchestrating a large-scale investment fraud scheme. He convinced numerous clients to invest their life savings into fictitious companies, and he used the stolen funds to purchase a luxury penthouse apartment and a collection of vintage sports cars. After his conviction for fraud, the government can pursue criminal forfeiture of the penthouse and the cars. These assets represent the proceeds of his criminal activity, directly purchased with the money he illegally obtained from his victims. The forfeiture is a direct result of his criminal conviction.

• Example 2: Organized Crime and Money Laundering

  Consider a situation where the leader of an organized crime syndicate is convicted of racketeering and money laundering. Evidence presented during the trial showed that the syndicate used a seemingly legitimate chain of restaurants to "wash" illegal cash generated from their various illicit operations, such as illegal gambling and extortion. Following the conviction, the government can initiate criminal forfeiture proceedings against the restaurant businesses themselves, their equipment, and the bank accounts used to process the laundered money. These businesses were instrumentalities of the crime, used to facilitate the money laundering, and their assets represent the proceeds of the criminal enterprise. This forfeiture is entirely dependent on the leader's criminal conviction.