ORDER
ELIZABETH A. KOVACHEVICH, Senior District Judge.
This cause is before the Court on:
Dkt. 2025 Notice of Publication
Dkt. 2028 Motion for Final Order of Forfeiture
Pursuant to 21 U.S.C. Sec. 853(n)(7) and Fed. R. Crim P. 32.2(c)(2), the United States of America moves for a Final Order of Forfeiture for the real property located at 3175 San Mateo St., Clearwater, Florida, 33759, legally described as:
Lot 53, DEL ORO ESTATES, according to the
Map or plat thereof as recorded in Plat Book 46
Page 29, Public Records of Pinellas County, Florida.
Parcel Identification Number 09-29-20790-000-0530.
The United States further requests that the Court vest title to the property in the United States for sale, and after payment of sale costs and satisfaction of valid liens, direct that one-half of the net proceeds be paid to the Claimant, pursuant to 21 U.S.C. Sec. 853(h). See United States v. Dorman, 38 F.Supp.3d 1328, 1330 (M.D. Fla. 2014), aff'd 603 F. App'x 844 (11th Cir. 2015).
Defendant Gregory Schultz was ordered to pay $16,797,374. to his victims. Defendant's co-defendants are jointly and severally liable for various amounts of Restitution. Defendants have collectively paid less than $150,000 in restitution to date. The Government has obtained approval to use forfeited funds to pay restitution and has turned over $1,352,286.74 to the Clerk for distribution to the victims. The United States is seeking to liquidate its interest in the San Mateo property so that its share of the net sale proceeds can be distributed to the victims.
The Court incorporates the Statement of Facts in the Government's Motion into this Order, and has attached the Statement of Facts as Exhibit A.
The Court finds that in accordance with 21 U.S.C. Sec. 853(n) and Rule 32.2(b)(6)(C), the United States published notice of the forfeiture and of its Intent to dispose of the asset on the official government website, www.forfeiture.gov, from August 9, 2019 through September 7, 2019. (Dkt. 2025). The publication gave notice to all third parties with a legal interest in the asset to file with the Office of the Clerk, United States District Court, Sam Gibbons Federal Courthouse, 801 North Florida Avenue, 2nd Floor, Tampa, FL, 33602, a petition to adjudicate their interest within 60 days of the first date of publication.
The Court notes that the prior petition of June Schultz was fully adjudicated, and the Court concluded that Defendant Gregory Schultz held an undivided one-half interest in the San Mateo property. The Court ordered Claimant June Schultz to execute a quitclaim deed to the property reflect that Defendant Gregory Schultz held a one-half interest in the property, which was forfeited to the United States. On appeal, the Eleventh Circuit affirmed the district court's Order. Claimant June Schultz has not complied with the Order.
No other third party has filed a petition or claimed an interest in the real property, and the time for filing such a petition has expired. Accordingly, it is
ORDERED that the United States' Motion for Final Order of Forfeiture (Dkt. 2028) is granted. It is further
ORDERED that pursuant to 21 U.S.C. Sec. 853(n)(7) and Federal Rule of Criminal Procedure 32.2(c)(2), all right, title and interest in the asset identified above is CONDEMNED and FORFEITED to the United States for disposition according to law, subject to the payment of sale costs and valid liens.
One-half of the remaining net proceeds of the sale of the real property, after the satisfaction of the priorities listed above, shall be forfeited to the United States and one-half of the remaining net proceeds shall be returned to Claimant June Schultz;
Clear title to the real property is now vested in the United States of America.
DONE and ORDERED.
Exhibit A
I. Statement of Facts
1. Defendant Gregory Schultz was convicted of money laundering, securities fraud, mail and wire fraud, and other related crimes on December 15, 2005, and a forfeiture money judgment was issued by the Court in the amount of $18,624,173 on December 30, 2005. Docs. 1395 and 1420.
2. On January 13, 2006, the court entered a Preliminary Order of Forfeiture for substitute assets, stating that the Defendant had an interest in the San Mateo property, his marital home, and forfeiting all of his right, title and interest in the property to the United States as a substitute asset in partial satisfaction of his forfeiture money judgment. Doc. 1434.
3. Claimant, June Schultz (Defendant's wife), filed a Petition contesting the forfeiture and a motion for summary judgment. Docs. 1483 and 1560. Claimant essentially argued that because she and her husband transferred the property to her name alone, that he no longer had an interest in the property. Id.
4. The United States responded and filed a cross-motion for summary judgment. Docs. 1561 and 1562.
5. On April 5, 2007, the Court denied Claimant's motion for summary judgment and granted the United States' cross-motion for summary judgment. Doc. 1737. The Court concluded that the Defendant held an undivided one-half interest in the San Mateo property, which was held in trust for him by the Claimant. Id. Doc. 1737.1
6. In granting the United States' motion for summary judgment, the Court ordered Claimant to execute a quitclaim deed on the property to properly reflect that the Defendant held a one-half interest in the property, which was forfeited to the United States. Doc. 1737.
7. Claimant appealed the Court's decision. Doc. 1738. The United States filed a motion to compel Claimant to comply with the Court's order that she quitclaim the San Mateo property to herself and the Defendant. Doc. 1773. That motion was denied, however, because of Claimant's pending appeal. Doc. 1811.
8. The Eleventh Circuit affirmed the district court's order. Doc. 1882. Despite this resolution, Claimant never complied with the Court's order that she quitclaim the property to herself and the Defendant. As a result, the United States' ownership interest in the San Mateo property is not clear in the property records.2
9. For a number of years, the United States attempted to sell its one-half interest to the Claimant in order to finally resolve the case. Ultimately, no agreement was reached and her counsel advised he was no longer representing her.
10. Because it was unable to locate the proof of newpaper publication from 2006, and in accordance with 21 U.S.C. § 853(n) and Rule 32.2(b)(6)(C), from August 9, 2019 through September 7, 2019, the United States published notice of the forfeiture and of its intent to dispose of the San Mateo property on the official government website, www.forfeiture.gov. Doc. 2025. The publication gave notice to all third parties with a legal interest in the property to file with the Office of the Clerk, United States District Court, Middle District of Florida, Sam Gibbons Federal Courthouse, 2nd Floor, 801 North Florida Avenue, Tampa, Florida 33602, a petition to adjudicate their interest within 60 days of the first date of publication.
11. No third parties filed a claim asserting an interest in the property.
12. Because noticing is complete and no further claims have been filed, it is now appropriate for the Court to enter a final order of forfeiture for the United States' one-half interest in the San Mateo property. Following entry of the final order, the United States, pursuant to 21 U.S.C. § 853(h), may dispose of forfeited property by any commercially feasible means that protects the interests of innocent third parties.
