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Forfeiture of Proceeds of Specified Unlawful Activity

Section 981(a)(1)(C) provides for the forfeiture of “[a]ny property, real or personal, which constitutes or is derived from proceeds traceable to a violation of [ ] any offense constituting ‘specified unlawful activity’ (as defined in section 1956(c)(7) of this title), or a conspiracy to commit such offense.”

Within the meaning of section 1956(c)(7), the term “specified unlawful activity” includes:

  • wire fraud under 18 U.S.C. § 1343. See id. §§ 1956(c)(7)(A), 1961(1); see also United States v. Approximately Five Hundred Forty-One Thousand Nine Hundred Fifty-Three Dollars & Zero Cents ($541,953.00), No. 23-cv-9585, 2025 U.S. Dist. LEXIS 57796, 2025 WL 923412, at *4, at *11 (E.D.N.Y. Mar. 27, 2025) (noting that “enumerated violations [within the meaning of section 981(a)(1)(C)] include wire fraud under 18 U.S.C. § 1343”).

Forfeiture of the Proceeds of Wire Fraud

The essential elements of wire fraud are:

  1. a scheme to defraud;
  2. money or property as the object of the scheme; and
  3. use of wires to further the scheme.

United States v. Calderon, 944 F.3d 72, 85 (2d Cir. 2019) (quoting Fountain v. United States, 357 F.3d 250, 255 (2d Cir. 2004).

“The mail and wire fraud statutes prohibit the use of both means of transmission in furtherance of ‘any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises.'” Fountain, 357 F.3d at 255.

In a civil asset forfeiture case, the verified complaint might describe a wire fraud scheme involving defrauding the victims of their money, cryptocurrency, or other valuable property.

The verified complaint must alleged that the seized property “constitutes or is derived from proceeds traceable to” the alleged wire fraud within the meaning of section 981(a)(1)(C). The complaint must explain how the amount seized “constitutes or is derived from proceeds traceable to” the wire fraud perpetrated upon the victim under 18 U.S.C. § 981(a)(1)(C).

In other words, the complaint must show, by a preponderance of the evidence, that Defendant Property “constitutes or is derived from proceeds traceable to a violation” of the wire fraud statute. See 18 U.S.C. § 983(c)(1); see also Supp. R. G(2)(f); 18 U.S.C. § 981(a)(1)(C).