IN RE: ROTHSTEIN

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United States Court of Appeals,Eleventh Circuit.

IN RE: ROTHSTEIN, ROSENFELDT, ADLER, P.A., a.k.a. RRA, Debtors. United States of America, Plaintiff–Appellee, v. Scott W. Rothstein, Defendant–Appellee. Todd D. Snyder, Intervenor–Interested Party–Appellee, Herbert Stettin, Chapter 11 Trustee, Interested Party–Appellant, Regions Bank, Petitioner, Solar Air, Inc., Interpleader.

No. 11–10676.No. 11–10676 D.C. Docket No. 0:09–cr–60331–JIC–1

-- June 12, 2013

Before TJOFLAT and MARTIN, Circuit Judges, and BUCKLEW,District Judge.*

A number of criminal statutes within the Federal Code mandate that a defendant, when convicted, forfeit to the United States as part of his sentence the lucre he acquired as a result of his criminal activity. In this case, the defendant, a lawyer, deposited the lucre in his law firm's bank accounts, where it was commingled with the firm's receipts from legitimate clients. The question this appeal presents is whether the money in the bank accounts at the time the defendant was charged is subject to forfeiture. We hold that it is not.

I.

A.

On November 10, 2009, four creditors of a Miami, Florida, law firm of seventy attorneys, Rothstein, Rosenfeldt and Adler P.A. (RRA), petitioned the Bankruptcy Court for the Southern District of Florida to reorganize the law firm under Chapter 11 of the United States Bankruptcy Code.1 Two weeks later, the Bankruptcy Court appointed Herbert Stettin trustee of the bankruptcy estate (the Trustee). On December 1, 2009, the United States Attorney for the Southern District of Florida filed a five-count information charging Scott Rothstein, a shareholder, Chairman and CEO of RRA,2 with conspiring to violate the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. § 1962(c),3 by employing RRA to engage in a pattern of racketeering activity, principally mail and wire fraud and money laundering, and with conspiring to commit those substantive offenses.4 These charges were based on a common allegation that Rothstein operated a Ponzi scheme5 by

fraudulently inducing investors through the use of false statements, documents, and computer records to (1) loan money to purported borrowers based upon fraudulent promissory notes and fictitious bridge loans, and (2) invest funds based upon anticipated pay-outs from purported confidential settlement agreements which had been reached between and among certain individuals and business entities. These settlement agreements were falsely presented as having been reached between putative plaintiffs in civil cases and putative defendants based upon the forbearance of civil claims in sexual harassment and/or whistle-blower cases.

Information, Record, vol. 1, no. 1, at 4, ¶ 7.A. In addition to seeking Rothstein's conviction for these offenses, the information sought the forfeiture of his interests in the numerous properties, including RRA's bank accounts at Gibraltar Private Bank and Trust (Gibraltar Bank) and Toronto Dominion Bank, N.A. (TD Bank), listed in the information (and the Appendix of this opinion), on the theory that such interests constituted proceeds of Rothstein's Ponzi scheme or property acquired with such proceeds.6

Five days after filing the information against Rothstein, the Government moved the District Court pursuant to 18 U.S.C. § 1963(d)(1)(A)7 and 21 U.S.C. § 853(e)(1)(A)8 to enter an order restraining Rothstein and RRA from disposing of any of the property listed in the information, including RRA's accounts at Gibraltar Bank and TD Bank. The court entered the order the next day.9 The Trustee promptly moved the District Court to lift the restraining order to the extent that it applied to these bank accounts on the ground that the bank accounts, and the funds they held, were part of the RRA bankruptcy estate.10 The court denied his motion.

On January 27, 2010, Rothstein, pursuant to a plea agreement, pled guilty to all charges and forfeited to the United States all of his right, title and interest to all assets listed in the Information. Record, vol. 2, no. 69, at 3. On April 19, 2010, the District Court issued a preliminary order of forfeiture, in which Rothstein forfeited to the United States [a]ll right, title and interest ․ in the property set forth in [the information]. Record, vol. 3, no. 134, at 3.11 Pursuant to §§ 853(n)(1) and 1963(l)(1), notice of forfeiture was published on May 5, 2010. On June 9, 2010, the court sentenced Rothstein to concurrent prison terms of fifty years and, as part of his sentence, ordered that his right, title and interest to the property identified in the preliminary order of forfeiture be forfeited to the United States. Record, vol. 8, no. 290, at 6. Immediately after Rothstein was sentenced, the Government attempted to seize the funds RRA held in some of the listed bank accounts. TD Bank rejected the attempt—because of the dispute between the Government and the Trustee—and appeared before the court on June 11 seeking guidance. Following a hearing at which the Trustee was represented, the court ordered the bank to turn over to the Government the bank accounts described in the preliminary order of forfeiture and held by RRA.

B.

Before sentencing, on May 24, 2010, the Trustee petitioned the District Court pursuant to the ancillary hearing procedure provided by 21 U.S.C. § 853(n)12 to order the Government to return the RRA accounts held in Gibraltar Bank and TD Bank. His petition pointed out that, as the information stated, the TD Bank accounts were held in the name of RRA and that he could establish that the Gibraltar Bank accounts were likewise held in the name of RRA. As for the other properties listed in the preliminary order of forfeiture,13 he requested that the court declare that the bankruptcy estate held an interest in such properties—because they were acquired with funds from RRA's bank accounts—that was vested in the [law firm] rather than [Rothstein or the Government]. See § 853(n).

On June 11, 2010, the Government moved to dismiss the Trustee's petition, arguing, in effect, that the preliminary order of forfeiture forfeited to the United States the funds RRA held in the bank accounts. On July 9, 2010, the court denied its motion with respect to the bank accounts. It granted the motion, however, as it related to the other properties listed in the information, agreeing with the Government that (1) because the United States unequivocally represented that [it would] use all forfeited property, less administrative costs, to reimburse qualified victims through restitution ․ the restitution process provides the Trustee with an adequate remedy at law; and (2)[i]t would be patently unequitable to return money to RRA's estate when it can be returned directly to the clients and qualified investors. Record, vol. 10, no. 400, at 22.

On August 12, the Trustee moved the District Court for summary judgment as to the RRA accounts with Gibraltar Bank and TD Bank on the ground that it was undisputed that the accounts were RRA accounts.15 While the motion was pending, the court held a § 853(n) ancillary hearing regarding the Trustee's claim to the bank accounts.16 At the conclusion of the hearing, on August 25, the court denied the Trustee's motion, but ordered some portion of six of the bank accounts returned to the Trustee after finding that the funds on deposit did not constitute proceeds of Rothstein's criminal conduct.17 The Government then moved the court to reconsider its ruling as to three of the bank accounts. On October 14, the court entered an order granting the motion with respect to two of the accounts on the ground that the funds in those accounts more likely than not were proceeds of fraud. Record, vol. 14, no. 637, at 6. The funds in those two accounts thus remain in the Government's custody subject to further order of the court.

The Trustee now appeals the District Court's denial of his petition. He challenges, specifically, the court's orders of July 9, August 25, and October 14, 2010, arguing that the bank accounts and the properties listed in the information that were purchased with funds from those accounts constitute assets of the bankruptcy estate. We address first the Trustee's claims with respect to the RRA bank accounts and, second, his claims with respect to the remaining properties—tangible and intangible personal property and real estate. We review the district court's factual findings for clear error and its legal conclusions de novo. United States v. Shefton, 548 F.3d 1360, 1363 (11th Cir.2008).

II.

The Trustee contends, in essence, that the bank accounts could not be forfeited because the funds they held did not constitute proceeds of Rothstein's Ponzi scheme. Further, in his responsive briefing to our questions at oral argument, he contends that the RRA bank accounts contained commingled assets and thus were not subject to proceeds forfeiture.

A.

While the plea agreement and preliminary order of forfeiture both equivocate on the point, it seems to us from the surrounding documents that, in seeking the forfeiture of the law firm's bank accounts, the Government proceeded under the theory that the accounts comprised the proceeds of Rothstein's Ponzi scheme. We have said that proceeds of crime constitute a defendant's interest in property, United States v. Conner, 752 F.2d 566, 575–76 (11th Cir.1985); for this reason, they can be forfeited in an in personam proceeding in a criminal case.

Though RICO does not define proceeds, see 18 U.S.C. § 1961, the only other statutory provision that the Government has cited that makes reference to proceeds forfeiture, 18 U.S.C. § 981(a)(1)(C), defines it as property of any kind obtained directly or indirectly, as the result of the commission of the offense giving rise to forfeiture, and any property traceable thereto, and ․ not limited to the net gain or profit realized from the offense, 18 U.S.C. § 981(a)(2)(A). Therefore, whatever money Rothstein obtained as a result of his criminal activity, and any property that can be traced to that money, is forfeitable. Under the relation-back rule, where such money or property is subsequently transferred to a person other than the defendant, that money or property vests in the United States upon the commission of the act giving rise to forfeiture unless the third party can demonstrate his right to the property in an § 853(n) hearing. 21 U.S.C. § 853(c).

B.

Property can only be forfeited as proceeds, however, where the Government establishe[s] the requisite nexus between the property and the offense. Fed.R.Crim.P. 32.2(b)(1)(A). The Advisory Committee notes to Federal Rule of Criminal Procedure 32.2 offer the money on deposit in a bank account as one example of specific property that requires such a showing:

To the extent that the government is seeking forfeiture of a particular asset, such as the money on deposit in a particular bank account that is alleged to be the proceeds of a criminal offense, or a parcel of land that is traceable to that offense, the court must find that the government has established the requisite nexus between the property and the offense.

Fed.R.Crim.P. 32.2(b) advisory committee's note, 2000 adoption. Where no such showing can be made, the Government must resort to the substitute asset provision of sections 1963 and 853, which provides that the court shall order the forfeiture of any other property of the defendant where as a result of any act or omission of the defendant, forfeitable property, such as proceeds, has been commingled with other property which cannot be divided without difficulty. 21 U.S.C. § 853(p).18 The Government may seek forfeiture under this provision of property up to the value of commingled property. Id.

We have not previously addressed the question of when property becomes so commingled that it may not be forfeited directly such that substitute property must be forfeited instead.19 The Third Circuit, however, has offered instructive guidance in a pair of cases, United States v. Voigt, 89 F.3d 1050 (3d Cir.1996), and United States v. Stewart, 185 F.3d 112 (3d Cir.1999). In Voigt, that court held that the government must prove by a preponderance of the evidence that the property it seeks under § 982(a)(1) in satisfaction of the amount of criminal forfeiture to which it is entitled has some nexus to the property ‘involved in’ the money laundering offense. Id. at 1087. Commenting that this burden may be very difficult to meet where property is commingled in an account with untainted property, the court rejected the government's effort to forfeit items of jewelry purchased with funds from an account into which money laundering proceeds had been commingled with other funds, and after numerous intervening deposits and withdrawals. Id. at 1087–88. The court held that, in such a situation, funds cannot be traced as a matter of law, and therefore the government must satisfy its forfeiture judgment through the substitute asset provision. Id. at 1088 (emphasis added).

Three years later, in Stewart, the Third Circuit was confronted with the question of whether the government may forfeit directly tainted funds from an account that has been frozen from the time of the illegal transfer but that also contains untainted money. Stewart, 185 F.3d at 129. Observing that Stewart involved one $3 million transfer into a single account that previously contained only $160,000 and that, before that account was frozen almost immediately after the transfer, only one withdrawal was made, with the government's permission, to pay the defendant's trial attorney, the Third Circuit found the case to be distinguishable from Voigt. Id. In Stewart, the government clearly traced laundered funds forfeited by the jury to Stewart's Account. Stewart does not contest this tracing, which in any event the government clearly established. The court found that the difficulty alluded to by the substitute asset provision, and in turn in Voigt, was not present in Stewart. The court thus carved out an exception to its earlier holding in Voigt: in a very simple case involving few individual deposits, traced proceeds within a commingled account may be directly forfeited without resort to the substitute asset provision, without render[ing] the substitute asset provision a nullity. Voigt, 89 F.3d at 1087.

In the case at hand, Rothstein's investors' funds were deposited in RRA bank accounts and commingled with legitimate income RRA received from the billings of its seventy lawyers, $12 million in the first ten months of 2009 alone. This commingling went on for four years—the duration of Rothstein's Ponzi scheme. The sheer volume of financial information available and required to separate tainted from untainted monies in this case leads us to the conclusion that it is far more appropriate to apply the Third Circuit's rule in Voigt than the exception to that rule it lays out in Stewart.

Quite unlike the situation in the latter case, here, the Government revealingly presented as an exhibit to the brief it filed in support of its motion for a preliminary order of forfeiture an FBI agent's affidavit that included twenty-one pages detailing transfers in and out of the RRA bank accounts made on behalf of Rothstein's investors, RRA, and other depositors. Even these, the agent noted, did not comprise each and every fact known to me but instead a one-page summary of all deposits, transfers and withdrawals for the subject accounts during a one-month period and twenty pages regarding my review of the subject accounts and other accounts for the purpose of attempting to identify non-investor clients of RRA. Record, vol. 2, no. 133–1, 1–3. The District Court itself expressed frustration with the tracing methodology the parties employed at the ancillary hearing, which focused on the timing of deposits and withdrawals. The methodology, borrowed from the law of trusts and referred to as the lowest intermediate balance rule (LIBR), attempts to divide tainted and untainted money by considering, where a set amount of proceeds is deposited into an account and commingled with other funds, the account to be ‘traceable proceeds' to the extent of [the deposited proceeds] as long as the account balance never falls below that sum. United States v. Banco Cafetero Panama, 797 F.2d 1154, 1159 (2d Cir.1986). The court dubbed the LIBR a legal fiction, Record, vol. 13, no. 579, at 12, but acknowledged that, according to the Government's representation in open court, all of the interested parties believe LIBR provides the appropriate legal rule here, id. at 13 n. 8. The Court therefore honor[ed] the parties' accord. Id. at 13 n. 8.

In sum, if ever there was a case where commingled proceeds c[ould not] be divided without difficulty and that therefore required the Government to seek forfeiture pursuant to the statutes' substitute property provisions, §§ 1963(m) and 853(p), this is that case. For us to conclude otherwise would render the substitute asset provision a nullity, Voigt, 89 F.3d at 1087, contrary to the time-honored canon of construction that we ‘should disfavor interpretations of statutes that render language superfluous,’ In re Griffith, 206 F.3d 1389, 1393 (11th Cir.2000) (quoting Connecticut Nat'l Bank v. Germain, 503 U.S. 249, 253, 112 S.Ct. 1146, 1149, 117 L.Ed.2d 391 (1992)). We therefore hold that the District Court erred in ordering forfeiture of the funds as proceeds. Consequently, all proceedings the court held subsequent to the imposition of Rothstein's sentence must be vacated.

C.

Our conclusion that the bank accounts did not contain forfeitable proceeds does not foreclose the Government's attempt to forfeit a property interest held by Rothstein, individually; that is, a property interest that is neither proceeds of his criminal activity nor derived therefrom. An example of such interest is Rothstein's shareholder's interest in RRA and hence in the firm's bank accounts. The Government, as the court in Voigt made clear, may on remand move the District Court to amend the judgment to reflect that [Rothstein's interest in the law firm and thus its bank accounts] is forfeitable as a substitute asset, Voigt, 89 F.3d at 1088.

The District Court must be mindful that a substitute property interest may be forfeited only up to the value of any forfeitable proceeds that have been commingled and are accordingly unavailable for forfeiture as proceeds. 18 U.S.C. § 1963(m); 21 U.S.C. § 853(p)(2). The Government must identify and establish the value of the proceeds that were commingled. Since a substitute property interest is not within the District Court's jurisdiction as it would be were the court proceeding in rem, the District Court, to effectuate forfeiture of the property interest, exercises its in personam jurisdiction over the defendant and orders the defendant to convey the interest to the United States. So, if the court orders Rothstein's shareholder interest in RRA forfeited as a substitute property interest, it will order Rothstein to assign the interest—which encompassed the accounts—to the Government subject, of course, to any claims third parties may have against such interest. Then, with that assignment in hand, the Government, standing in Rothstein's shoes, may appear in the Chapter 11 proceeding and lay claim to Rothstein's share of law firm assets that survive bankruptcy.

III.

The Trustee claims that the District Court erred in forfeiting to the United States other properties listed in the information and the preliminary order of forfeiture because such properties were neither proceeds nor properties derived from proceeds. The Trustee bases his claim on the fact that these other properties were purchased with funds contained in the RRA bank accounts. The District Court refused to consider the Trustee's claim, accepting the Government's position that considerations of equity precluded the claim. The court erred. If the funds used to acquire the other properties came from one or more RRA bank accounts, the Trustee prevails as a matter of law since the funds consisted of proceeds commingled with legitimate RRA funds and, as such, were not forfeitable as proceeds. And because the funds were not proceeds, it follows that any properties purchased with them were not properties derived from proceeds.

Whether RRA bank account funds were used to acquire the other properties at issue is a question of fact. We accordingly vacate the District Court's decision dismissing the Trustee's claims to such properties and remand the case so that the District Court may resolve the fact issue. In doing so, the court must bear in mind the fact that Rothstein's forfeiture of all of his right, title and interest to all assets listed in the Information, Record, vol. 2, no. 69, at 3, coupled with the Government's representation in the plea agreement that it could prove by a preponderance of the evidence that Rothstein's interest was forfeitable, id. at 14–15, established a mere presumption that the properties so listed constituted forfeitable proceeds or properties derived from such proceeds.20 If the Trustee introduces credible evidence that the properties were acquired with funds from RRA's bank accounts, that presumption will vanish and, in order to establish its right to forfeiture, the Government will have to produce credible evidence that the properties were acquired with proceeds of Rothstein's criminal activity.21

The judgment of the District Court is

VACATED and REMANDED

APPENDIX

ATTACHMENT A TO PRELIMINARY ORDER OF FORFEITURE

A. Real Properties (RP):

(RP1) 2307 Castilla Isle, Fort Lauderdale, Florida, hereafter also referred to as Defendant RPl, includes all buildings, improvements, fixtures, attachments and easements found therein or thereon, and is more particularly described as Lauderdale Shores Reamen Plat 15–31 B Lot 2 Blk 5 with a Folio Number of 5042 12 13 0210;

(RP2) 2308 Castilla Isle, Fort Lauderdale, Florida, hereafter also referred to as Defendant RP2, includes all buildings, improvements, fixtures, attachments and easements found therein or thereon, and is more particularly described as: Lauderdale Shores Reamen Plat 15–31 B Lot 2 Blk 4 with a Folio Number of 5042 12 13 0020;

(RP3) 2316 Castilla Isle, Fort Lauderdale, Florida, hereafter also referred to as Defendant RP3, includes all buildings, improvements, fixtures, attachments and easements found therein or thereon, and is more particularly described as: Lauderdale Shores Reamen Plat 15–31 B Lot 3 & Lot 4 W1/212 Blk 4 with a Folio Number of 5042 12 13 0030;

(RP4) 30 Isla Bahia Drive, Fort Lauderdale, Florida, hereafter also referred to as Defendant RP4, includes all buildings, improvements, fixtures, attachments and easements found therein or thereon, and is more particularly described as: Isla Bahia 47–27 B Lot 63 with a Folio Number of 5042 13 16 0640;

(RP5) 29 Isla Bahia Drive, Fort Lauderdale, Florida, hereafter also referred to as Defendant RP5, includes all buildings, improvements, fixtures, attachments and easements found therein or thereon, and is more particularly described as: Isla Bahia 47–27 B Lot 35 with a Folio Number of 5042 13 16 0360;

(RP6) 350 SE 2 nd Street, Unit 2840, Fort Lauderdale, Florida, hereafter also referred to as Defendant RP6, includes that portion of the condominium, improvements, fixtures, attachments and easements found therein or thereon, and is more particularly described as: 350 Las Olas Place Condo Unit 2840 with a Folio Number of 5042 10 AN 1490;

(RP7) 380 Carrington Drive, Weston, Florida, hereafter also referred to as Defendant RP7, includes all buildings, improvements, fixtures, attachments and easements found therein or thereon, and is more particularly described as: Sector 4 North 153–46 B Lot 24 Blk A with a Folio Number of 5039 01 02 0240;

(RP8) 2133 Imperial Point Drive, Fort Lauderdale, Florida, hereafter also referred to as Defendant RP8, includes all buildings, improvements, fixtures, attachments and easements found therein or thereon, and is more particularly described as: Imperial Point 1 Sec 53–44 B Lot 11 Blk 22 with a Folio Number of 4942 12 07 2020;

(RP9) 2627 Castilla Isle, Fort Lauderdale, Florida, hereafter also referred to as Defendant RP9, includes all buildings, improvements, fixtures, attachments and easements found therein or thereon, and is more particularly described as: Lauderdale Shores Reamem Plat 15–31 B Lot 22 Blk 5 with a Folio Number of 5042 12 13 0380;

(RP 10) 10630 NW l4 th Street, Apt. 110, Plantation, Florida, hereafter also referred to as Defendant RP10, includes that portion of the condominium/townhome, improvements, fixtures, attachments and easements found therein or thereon, and is more particularly described as: OPTIMA VILLAGE 1–C CONDO UNIT 201 BLDG 2 with a Folio Number of 4941 31 AC 0110;

(RP11) 227 Garden Court, Lauderdale by the Sea, Florida, hereafter also referred to as Defendant RP11, includes that portion of the buildings, improvements, fixtures, attachments and easements found therein or thereon, and is more particularly described as: SILVER SHORES UNIT A 28–39 B POR of Lot 4, BLK 5 DESC AS TO BEG AT SE COR SAID LOT 4, N 79.37 W 37.75, S 79.37, E 35.75 TO POB AKA: UNIT E MARINA VILLAGE TOWNHOMES 227GARDEN with a Folio Number of 4943 18 24 0050;

(RP12) 708 Spangler Boulevard, Bay 1, Hollywood, Florida, hereafter also referred to as Defendant RP12, includes all buildings, improvements, fixtures, attachments and easements found therein or thereon, and is more particularly described as: HARBOR VIEW 10–5 B PORTION OF LOTS 1 & 2 BLK 2 DESC AS COMM 25 S OF NE COR OF LOT 2 ON E/L, W 20.52 ALG S/R/W/L OF ST RD 84, S 15.72 TO POB, S 7.25, E 12.59, S 24.40, W 29.92, N 7.66, W 31.74, N 24.00, E 49.07 TO POB AKA: BAY I PORTSIDE with a Folio Number of 5042 23 28 0010;

(RP13) 1012 East Broward Boulevard, Fort Lauderdale, Florida, hereafter also referred to as Defendant RP13, includes all buildings, improvements, fixtures, attachments and easements found therein or thereon, and is more particularly described as: BEVERLY HEIGHTS 1–30 B LOT 1 W 100, LOT 2 W 100 BLK I7 with a Folio Number of 5042 I1 07 0540;

(RP14) 950 N Federal Highway, Pompano Beach, Florida, hereafter also referred to as Defendant RP14, includes all buildings, improvements, fixtures, attachments and easements found therein or thereon, and is more particularly described as: 31–48–43 S 150 OD FOL DESC, BEG INTER E R/W/L ST RD 5, N TO POB with a Folio Number of 4843 31 00 0401;

(RP 15) 350 SE 2 nd Street, Commercial Unit 2, Fort Lauderdale, Florida, hereafter also referred to as Defendant RP15, includes all portion of that condominium, improvements, fixtures, attachments and easements found therein or thereon, and is more particularly described as: 350 LAS OLAS PLACE COMM CONDO UNIT CU2 with a Folio Number of 5042 10 AP 0020;

(RP 16) 361 SE 9 Lane, Boca Raton, Florida hereafter also referred to as Defendant RP16, includes all buildings, improvements, fixtures, attachments and easements found therein or thereon more particularly described as Lot 5, Mizner Lake Estates, P.U.D.;

(RP17) 1198 N Old Dixie Highway, Boca Raton, Florida hereafter also referred to as Defendant RP17, includes all buildings, improvements, fixtures, attachments and easements found therein or thereon;

(RP18) 1299 N Federal Highway, Boca Raton, Florida hereafter also referred to as Defendant RP18, includes all buildings, improvements, fixtures. attachments and easements found therein or thereon;

(RP19) 151 East 58 Street, Apartment 42D, New York, New York hereafter also referred to as Defendant RP19, includes all portion of that condominium, improvements, fixtures, attachments and easements found therein or thereon;

(RP20) 11 Bluff Hill Cove Farm, Narragansett, Rhode Island hereafter also referred to as Defendant RP20, includes all buildings, improvements, fixtures, attachments and easements found therein or thereon;

(RP21) 15 Bluff Hill Cove Farm, Narragansett, Rhode Island hereafter also referred to as Defendant RP21, includes all buildings, improvements, fixtures, attachments and easements found therein or thereon;

(RP22) 353 4 Ave., Unit 12–H, Brooklyn, N.Y. hereafter also referred to as Defendant RP22, includes all portion of that condominium, improvements, fixtures, attachments and easements found therein or thereon;

(RP23) 290W l1th St # 1C, NY, N.Y. hereafter also referred to as Defendant RP23, includes all portion of that condominium, improvements, fixtures, attachments and easements found therein or thereon; and

(RP24) Versace Mansion/Casa Casuarina–10% Ownership hereafter also referred to as Defendant RP24, includes all buildings, improvements, fixtures, attachments and easements found therein or thereon more particularly described as 1116 Ocean Drive, Miami Beach, FL Folio Number 02–3234–008–0310;

B. Vehicles and Vessels (VV):

(VVI) 1990 Red Ferrari F40 Coupe, VIN: ZFFMN34A5L0087066;

(VV2) 2009 White Bentley Convertible, VIN: SCBDR33W29C059672;

(VV3) 2008 Yellow McLaren Mercedes Benz SLR, VIN: WDDAK76F98M001788;

(VV4) 2007 Black Limousine Ford Expedition, VIN: 1F1FK15557LA59223;

(VV5) 2008 Red Ferrari 430 Spider, VIN: ZFFEW59A380163011;

(VV6) 2007 Silver Rolls Royce Convertible, VIN: SCA1L68557UX23044;

(VV7) 2006 Silver Hummer H1, VIN: 137PH84396E220665;

(VV8) 2008 Cadillac Escalade, VIN: 1GYEC63858R234458;

(VV9) 1967 Red Convertible Corvette, VIN: 194677S104745;

(VV10) 2008 Black Bugatti Veyron EB 16.4, VIN: VF9SA25C28M795153;

(VV11) 2008 Blue Rolls Royce Drophead Convertible, VIN: SCA2D68528UX16071;

(VV12) 2006 Red Ferrari F430 Spider, VIN: ZFFEW59A560148863;

(VV13) 2008 Chevrolet Corvette, VIN: 1G1YY26W485120085;

(VV14) 2009 Chevrolet Corvette Z06, VIN: 1G1YZ26E995111923;

(VV15) 2009 Blue Gray Maserati Granturismo Coupe, VIN: ZAMGJ45A090042326;

(VV16) 2009 White Mercedes Benz, VIN WDBSK71F59F149477;

(VV17) 2007 87' Warren, Hull # WAR87777B707;

(VV18) 33' Aquariva, Hull # XFA33R74G405;

(VV19) 2009 11' Yamaha Jet Ski, Hull # YAMA3661I809;

(VV20) 2009 11' Yamaha VS, Hull # YAMA3626I809;

(VV21) 2009 11' Yamaha VS, Hull # YAMA2679G809;

(VV22) I999 55' Sea Ray 540 Sundancer, SERY0500I899;

(VV23) 2009 Yamaha Jet Ski, Hull # YAMA4288K809;

(VV 24) 2010 White Lamborghini lp–670sv, VIN: ZHWBU8AHXALA03837;

(VV25) Mercedes Benz S65 VR Byturbo, VIN: WDDEJ79XX8A015189;

(VV26) 2009 RED BMW CONVERTIBLE, VIN: WBALM53529El60836;

(VV27)2009 MERCEDES BENZ SLK 350 CONVRTBL VIN:WDBWK58Fl9Fl90779;

C. Tangibles (T)

(T1) Approximately 304 pieces of jewelry, watches, necklaces and earrings seized on or about Monday, November 9, 2009 from the residence of Scott and Kimberly Rothstein;

(T2) 16 DuPont Lighters seized on or about Monday, November 9, 2009 from the residence of Scott and Kimberly Rothstein;

(T3) 3 pieces sports memorabilia seized on or about Monday, November 9, 2009 from the residence of Scott and Kimberly Rothstein;

(T4) $271,160 in United States currency seized on or about Monday, November 9, 2009 from the residence of Scott and Kimberly Rothstein;

(T5) $1,500 in United States currency, seized on about Wednesday, November 4, 2009, from the office of Scott W. Rothstein at the law firm of Rothstein, Rosenfeldt and Adler, P.A.;

(T6) $30,000 in American Express Gift Cards to the attention of Scott Rothstein, obtained from UPS on or about November 12, 2009;

(T7) $50,000 in American Express Gift Cards to the attention of Scott Rothstein, obtained from UPS on or about November 13, 2009;

(T8) 5 additional watches being turned over to the United States by Les Stracher; and

(T9) Guitar collection of Scott W. Rothstein, located at the residence of Scott and Kimberley Rothstein, valued between $10,000 and $20,000.

D. Bank Accounts (BA)

(BA1) Fidelity Investments Stock Account, in the name of Scott W. Rothstein, valued at approximately $1,263,780, in the actual amount of$1,270,302.32;

(BA2) Gibraltar Bank account 50010085, in the approximate amount of $484,900.68;

(BA3) Gibraltar Bank account 50010093, in the approximate amount of $53,448.51;

(BA4) Gibraltar Bank account 50011253, in the approximate amount of $71,793.06;

(BAS) Gibraltar Bank account 50015214, in the approximate amount of $995,521.42;

(BA6) Bank account 178780211819923220000187 at Banque Populaire, Morocco, in the name of Scott Rothstein, in the approximate amount of $12,000,000 up to the amount of $16,000,000;

(BA 7) Bank account at Banque Populaire, Morocco, in the name of Ahnick Khalid, up to the amount of $2,000,000;

(BAS) Bank account at Banque Populaire, Morocco, in the name of Steve Caputi, up to the amount of $1,000,000;

(BA9) Toronto Dominion Bank, N.A. account 6860291266 in the name of Rothstein Rosenfeldt Adler, P.A. which, on or about November 11, 2009, contained the approximate amount of $54,021.27;

(BA10)Toronto Dominion Bank, N.A. account 6861011556 in the name of Rothstein Rosenfeldt Adler, P.A. which, on or about November 11, 2009, contained the approximate amount of $10,085.00;

(BA11)Toronto Dominion Bank, N.A. account 6860420923 in the name of Rothstein Rosenfeldt Adler, P.A, Attorney Trust Account 3, which, on or about November 11, 2009, contained the approximate amount of $720,892.08;

(BA12)Toronto Dominion Bank, N.A. account 6860422200 in the name of DJB Financial Holding, which, on or about November 11, 2009, contained the approximate amount of $64,970.00;

(BA13)Toronto Dominion Bank, N.A. account 6860755757 the name of RRA Sports and Entertainment LLC, which, on or about November 11, 2009, contained the approximate amount of $10,490.10;

(BA14)Toronto Dominion Bank, N.A. account 6860755781 in the name of RRA Goal Line Management, LLC, which, on or about November 11, 2009, contained the approximate amount of $25,216.27;

(BA15)Toronto Dominion Bank, N.A. account 6861077714 in the name of Rothstein Rosenfeldt Adler, P.A., which, on or about November 11, 2009, contained the approximate amount of $20,080.00;

(BA16)Toronto Dominion Bank, N.A. account 6861076906 in the name of Rothstein Rosenfeldt Adler PA, Attorney Trust Account, which, on or about November 13, 2009, contained the approximate amount of $23,406.16;

(BA17)Toronto Dominion Bank, N.A. account 6861011614 in the name of Rothstein Rosenfeldt Adler PA, which, on or about November 13, 2009, contained the approximate amount of $14,657.80;

(BA 18)Toronto Dominion Bank, N.A. account 6860291274 in the name of Rothstein Rosenfeldt Adler PA, Operating Account, which, on or about November 13, 2009, contained the approximate amount of $28,743.43;

(BA19)Toronto Dominion Bank, N.A. account 6861076922 in the name of Rothstein Rosenfeldt Adler PA, BIF Account, which, on or about November 13, 2009, contained the approximate amount of $52,749.68;

(BA20)Schwyzer Kantonalbank, account # CH75 0077700530742040 in the name of Jewel Cruises Holding AG, Wollerau, Switzerland;

E. Business Interests (BI)

(BI1) Stock certificates, if issued, or the beneficial interest in such shares, of 50,000 shares of capital stock, in Gibraltar Private Bank & Trust, a federally chartered stock savings association, purchased in or about September 2009 by GBPT, LLC, a Delaware Limited Liability Company, by its manager, Bahia Property Management, LLC, a Delaware Limited Liability Company, by its co-manager, Scott W. Rothstein;

(BI2) Scott W. Rothstein's equity interest in QTask;

(BI3) Scott W. Rothstein's equity interest in Broward Bank of Commerce;

(BI4) Scott W. Rothstein's equity interest in Bova Ristorante;

(BI5) Scott W. Rothstein's equity interest in Bova Cucina;

(BI6) Scott W. Rothstein's equity interest in Bova Prime;

(BI7) Scott W. Rothstein's equity interest in Café Iguana, Pembroke Pines, Florida;

(BJ8) Scott W. Rothstein's equity interest in Cart Shield USA, LLC;

(BI9) Scott W. Rothstein's equity interest in Renato Watches;

(BI10) Scott W. Rothstein's equity interest in Edify LLC;

(BI11) Scott W. Rothstein's equity interest in V Georgio Vodka;

(BI12) Scott W. Rothstein's equity interest in Sea Club Ocean Resort Hotel, LLC;

(BI13) Scott W. Rothstein's equity interest in North Star Mortgage;

(BI14) Scott W. Rothstein's equity interest in Kip Hunter Marketing;

(BI15) Scott W. Rothstein's equity interest in RRA Sports and Entertainment, LLC;

(BI16) Scott W. Rothstein's equity interest in Versace Mansion/Casa Casuarina, including 10 year Operating Agreement with 2 ten year options;

(BI17) Scott W. Rothstein's equity interest, and licensing rights, in Alternative Biofuel Technologies, Inc.;

(BI18) Scott W. Rothstein's equity interest in RRA Goal Line Management;

(BI19) Scott W. Rothstein's equity interest in Iron Street Management, LLC;

(BI20) Scott W. Rothstein's equity interest in, and loan to, Africat Equity IG Decide;

(BI21) Scott W. Rothstein's equity interest in, and rents derived from 1198 Dixie LLC;

(BI22) Scott W. Rothstein's equity interest in, and rents derived from 1299 Federal LLC;

(BI23) Promissory Note by Uniglobe in favor of Scott W. Rothstein; and

(BI24) All equity interest held by or on behalf of Scott W. Rothstein, in the following corporations and entities:

a. 29 Bahia LLC;

b. 235 GC LLC;

c. 350 LOP# 2840 LLC;

d. 353 BR LLC;

e. 10630 # 110 LLC;

f. 708 Spangler LLC;

g. 1012 Broward LLC;

h. 1198 Dixie LLC;

i. 1299 Federal LLC;

j. 2133 IP LLC;

k. 15158 LLC;

1. AANG LLC;

m. AAMG1 LLC;

n. AAMM Holdings;

o. ABT Investments LLC;

p. Advanced Solutions;

q. Bahia Property Management LLC;

r. Boat Management LLC;

s. BOSM Holdings LLC;

t. BOVA Prime LLC;

u. BOVA Restaurant Group LLC;

v. The BOVA Group LLC;

w. BOVA Smoke LLC;

x. BOVCU LLC;

y. BOVRI LLC;

z. Broward Financial Holdings, Inc.;

aa. CI07 LLC;

ab. CI08 LLC;

ac. CI16 LLC;

ad. CI27 LLC;

ae. CSU LLC;

af. D & D Management & Investment LLC;

a g. D & S Management and Investment LLC;

ah. DJB Financial Holdings LLC;

ai. DYMMU LLC;

aj. Full Circle Fort Lauderdale LLC;

ak. Full Circle Trademark Holdings LLC;

al. GHW1 LLC;

am. IDNL GEAH LLC;

an. ILK3 LLC;

ao. IS Management LLC;

ap. JRCL LLC;

aq. Judah LLC;

ar. Kendall Sports Bar;

as. Kip Hunter Marketing LLC;

at. NF Servicing LLC;

au. NRI 11 LLC;

av. NRI 15 LLC;

aw. NS Holdings LLC;

ax. PRCH LLC;

ay. PK Adventures LLC;

az. PK's Wild Ride Ltd;

ba. Rothstein Family Foundation;

bb. RRA Consulting Inc.;

be. RRA Goal Line Management LLC;

bd. RRA Sports and Entertainment LLC;

be. RSA 11 th Street LLC;

bf. RW Collections LLC;

bg. S & KEA LLC;

bh. Scorh LLC;

bi. Tipp LLC;

bj. VGS LLC;

bk. The Walter Family LLC;

bl. Walter Industries LLC;

bm. WPBRS LLC;

bn. WAWW;

bo. WAWW 2 LLC;

bp. WAWW 3 LLC;

bq. WAWW 4 LLC;

br. WAWW 5 LLC;

bs. WAWW 6 LLC;

bt. WAWW 7 LLC;

bu. WAWW 8 LLC;

bv. WAWW 9 LLC;

bw. WAWW 10 LLC;

bx. WAWW 11 LLC;

by. WAWW 12 LLC;

bz. WAWW 14 LLC;

ca. WAWW 15 LLC;

cb. WAWW 16 LLC;

cc. WAWW 17 LLC;

cd. WAWW 18 LLC;

ce. WAWW 19 LLC;

cf. WAWW 20 LLC;

cg. WAWW 21 LLC;

ch. WAWW 22 LLC;

ci. JB Boca M Holdings LLC;

(BI25) All interest held by or on behalf of Scott W. Rothstein, in the following corporations and entities, and assets held by or owed, e.g., rents, to same:

(a) The 2009 Scott W. Rothstein Revocable Trust;

(b) REC Group, LLC;

(c) REN Group, LLC;

(d) REP Group, LLC;

(e) RES Group, LLC;

(f) RET Group, LLC;

(g) REV Group, LLC;

(h) AAMG, LLC;

(i) BFHI, LLC;

U) BFH1, LLC;

(k) Cartshield USA, LLC;

(l) CCCN, LLC;

(m) CCM, LLC;

(n) Cha Cha Cha, Inc.;

(o) Fifth Court Financial, LLC;

§ p) GBPT, LLC;

(q) Iron Street Management, LLC

(r) JB Boca Holdings, LLC;

(s) JJ Finance Holdings, LLC;

(t) JWG Holdings, LLC;

(u) Luxury Resorts, LLC;

(v) MLC 350, LLC;

(w) MRISC, LLC;

(x) MRI Scan Center, Inc.;

(y) QT, LLC

(z) QTask

(aa) Renato Watches, Inc.

(ab) Rothstein Family, Ltd.;

(ac) Sea Club Ocean Resort Hotel, Inc.;

(ad) SPAC Investments, LLC;

(ae) TB22 Mario's, Inc.;

(at) TB22N, LLC;

(ag) TLBN, LLC;

(ah) UG, LLC;

(ai) Uniglobe Environmental Solutions, Inc.;

(aj) VGS1, LLC;

(ak) V Georgio Spirits, LLC;

(al) WAWW 13, LLC;

(am) Rothstein Rosenfeldt Adler, P.A., located in Florida; and

(an) Rothstein Rosenfeldt Adler, located in Venezuela;

F. Contributions (C)

(C1) $6,000 in campaign contributions made to Alex Sink and voluntarily offered, and turned over, to the United States on behalf of Alex Sink;

(C2) $40,000 in campaign contributions to Republican Party of Florida, Florida account and voluntarily offered, and turned over, to the United States by the Republican Party of Florida;

(C3) $10,000 in campaign contributions to Republican Party of Florida, Federal account and voluntarily offered, and turned over, to the United States by the Republican Party of Florida;

(C4) $90,000 in campaign contributions to Republican Party of Florida and voluntarily offered, and turned over, to the United States by the Republican Party of Florida;

(C5) $5,000 in campaign contributions to Republican Party of Florida by Rothstein business entity known as WAWW and voluntarily offered, and turned over, to the United States by the Republican Party of Florida;

(C6) $800,000 Charitable Donation to Joe DiMaggio Children's Hospital, which hospital advised the United States of the donation from the Rothstein Family Foundation for the purpose of facilitating forfeiture;

(C7) $1,000,000 Charitable Donation to Holy Cross Hospital, which hospital advised the United States of the donation from the Rothstein Family Foundation for the purpose of facilitating forfeiture;

(C8) $9,600 in campaign contributions to Governor Charlie Crist, voluntarily offered, and turned over, to the United States by the office of Charlie Crist; and

(C9) All funds voluntarily turned over to the United States (IRS/FBI), since in or about October 28, 2009, in response to publicity regarding Scott W. Rothstein, including $5,000 from CAKK.

G. Miscellaneous (M):

(M1) All premiums paid by or on behalf of Scott W. Rothstein, to Massachusetts Mutual Life Insurance Company, as set forth in 09–61915–CIV–JORDAN (SDFL);

(M2) American Express rewards points totaling 20,920,701 as of 10/31/09 for account # 1MXXXX4822; and

(M3) All property, other than funds, including watches and cars, voluntarily turned over to the United States (IRS/FBI) since in or about October 28, 2009 in response to publicity regarding Scott W. Rothstein, including watches turned over by JH and MBF.

TJOFLAT, Circuit Judge:

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