UNITED STATES OF AMERICA v.
WILLIAM TODD CHAMBERLAIN
US Court of Appeals for the Fourth Circuit, Wynn, August 18, 2017,
Federal forfeiture law no longer authorizes the pretrial restraint of substitute assets under 21 USC 853

Fourth Circuit switches sides and goes with what all the other circuits do

Facts From the Case
From 2009-2010, Chamberlain was the senior NCO in a US Army deployment to Afghanistan. His team had access to federal funds and, while overseas, Chamberlain and other team members conspired to steal approximately $200,000 of those funds.
Chamberlain was subsequently charged and the government sought a restraining order to prevent the sale of a piece of real-estate owned by Chamberlain valued at $200,000.
Chamberlain challenged the seizure, but the trial judge allowed it.
Chamberlain then appealed, arguing that a recent Supreme Court decision required that the property could not be seized.
Law from the Case
Held: While the Supreme Court decision did not require the Fourth Circuit to change its precedent, the Court took this opportunity nevertheless to do so. The Circuit held that pre-trial seizure of substitute assets are no longer allowed under 21 USC 853.
Forfeiture- Substitute Assets- A court may order property forfeit as “substitute” property if, as a result of any act/omission of the defendant, property eligible to be seized:
(A) cannot be located upon the exercise of due diligence;
(B) has been transferred or sold to, or deposited with, a third party;
(C) has been placed beyond the jurisdiction of the court;
(D) has been substantially diminished in value; or
(E) has been commingled with other property which cannot be divided without difficulty