ASSET FORFEITURE AND RESTITUTION

At Levitt & Kaizer, we’ve spent decades representing clients subject to forfeiture and/or restitution orders. Federal and state prosecutors have made asset forfeiture and restitution a big part of their arsenal, in part because asset forfeitures fund law enforcement and additional prosecutions, and restitution is paid directly to victims. Because forfeiture and restitution orders can financially cripple clients we understand the critical importance of avoiding or, at least, minimizing them to the extent possible.

ASSET FORFEITURE

Asset forfeiture is a legal process that allows law enforcement agencies to seize and confiscate property they claim is connected to criminal activity. While intended to dismantle criminal enterprises and deny wrongdoers the fruit of their crimes, these laws often lead to the wrongful seizure and forfeiture of assets from people who are never charged with a crime, or otherwise shown to be liable.

If your property has been seized by the government, you have rights — and you need to act quickly to protect them.

What are the Types of Asset Forfeiture?

Asset forfeiture can occur in two main forms:

Criminal Forfeiture: Forfeiture that follows a criminal conviction, typically as part of the sentencing process.
Civil or Administrative Forfeiture: Forfeiture without a criminal conviction. The case is brought against the property itself, and the owner must fight to get it back.

The government can seize a wide range of property even before a conviction or civil finding of liability, in anticipation of future forfeiture, including cash, vehicles, homes, real estate, and bank accounts, and obtaining competent counsel at the inception of an investigation is therefore critical to assure your rights are protected.

Federal Asset Forfeiture Law

Federal asset forfeiture is governed primarily by 18 U.S.C. §§ 981 and 983 (civil forfeiture) and 18 U.S.C. § 982 and 21 U.S.C. § 853 (criminal forfeiture), augmented by other statutes.

In civil forfeiture, the government must prove by a preponderance of the evidence that the property is linked to criminal activity.
In criminal forfeiture, property can be seized and forfeited after a conviction, in an amount equal to the court’s approximation of the defendant’s wrongfully acquired money or property. Where a criminal forfeiture order is entered the government is required to first forfeit property – including cash – that is the “direct proceeds” of the illegal conduct, but if it cannot find sufficient “direct proceeds” to satisfy the forfeiture judgment it may seize and forfeit “substituted assets” to satisfy the balance of its judgment.

Importantly, third parties have the right to challenge forfeiture if they have a legal interest in the property. Under Federal Rule of Criminal Procedure 32.2(e), innocent spouses, business partners, lienholders, or other third parties can file ancillary petitions to reclaim property wrongfully forfeited.

New York State Asset Forfeiture Law

Under Article 13-A of the New York Civil Practice Law and Rules (CPLR), the government may pursue forfeiture of assets it alleges are proceeds of or instrumentalities used in certain felonies.

The state must show a connection between the property and the alleged crime.
Assets can be frozen or seized before any conviction.
Innocent owners (e.g., spouses or family members) may raise defenses to reclaim their property.

These proceedings often move quickly, and owners must file timely claims to challenge the seizure. New York forfeiture actions can involve complex procedural steps, making experienced legal representation critical.

Defending Against Forfeiture

Challenging forfeiture requires speed, strategy, and experience. Common defenses include:

Challenging probable cause: arguing the seizure was not legally justified.
Disputing the nexus: demonstrating the property is not sufficiently connected to the alleged offense.
Innocent owner or innocent spouse defense: showing the property was not bought with criminal proceeds or the claimant had no knowledge of illegal activity.

Strict adherence to deadlines for filing notices of claim and petitions is required to preserve rights. The government often counts on individuals not knowing the procedural rules. Experienced forfeiture attorneys at Levitt & Kaizer level the playing field and obtain results.

Levitt & Kaizer: Decades of Asset Forfeiture Defense Experience

Levitt & Kaizer has successfully represented enumerable clients by raising innocent spouse and innocent owner defenses, and by showing that assets were not derived from criminal activity. We have filed numerous ancillary petitions under Federal Rule of Criminal Procedure 32.2(e) on behalf of third party innocent owners to protect their property rights.

We handle every stage of the process:

Fighting seizures during the administrative stage.
Filing timely verified notice of claims and petitions.
Negotiating aggressively with prosecutors and federal agencies.
Marshalling factual and legal arguments to minimize pre- and post-adjudication seizures and forfeitures.
Litigating in court to recover wrongfully seized assets.

Recently, we represented a foreign-based airline where the government sought to forfeit all funds in its United States bank accounts. We successfully obtained the return of nearly all the seized funds. Other times, we’ve obtained a satisfaction of lien on a home owned by an innocent spouse and the removal of liens on retirement accounts, which are typically not exempt from forfeiture under federal law.

We understand how devastating asset seizures can be for individuals, families, and businesses. We will fight to protect what’s yours and hold the government to its burden. Contact Levitt & Kaizer today to discuss how we can help you fight back and reclaim what is rightfully yours.

📞 Call Levitt & Kaizer: office (212) 480-4000 cell (917) 324-4000

📍 Office: 40 Fulton Street, Suite 1702

New York, NY 10038-1850

🖥️ Website: www.levittandkaizer.com

RESTITUTION

Federal Restitution Defense Under the MVRA

Federal restitution can have life-long financial consequences for defendants and their families. At Levitt & Kaizer, we have decades of experience representing individuals in federal restitution matters — from pre-plea negotiations to post-judgment enforcement by the government’s Financial Litigation Unit (FLU). We understand the power of restitution orders under federal law and how to strategically protect your financial future.

Federal Restitution (MVRA)

Under the Mandatory Victims Restitution Act (MVRA), 18 U.S.C. §§ 3663A and 3664, federal courts must order restitution to victims of certain offenses, typically in the full amount of the loss. It is important to not accept uncritically the government’s claimed loss amount. The victims entitled to restitution must be identified and the amount they are due must be calculated with reasonable certainty. Additionally, restitution orders must be offset by funds or assets previously recovered. But unlike fines, the total restitution to be imposed generally cannot be reduced based on a defendant’s ability to pay. At the same time restitution is likely to be imposed joint-and-severally with anyone else convicted of the same offense conduct.

However — and this is critical — the payment terms are flexible. Judges have discretion to structure payment schedules based on the defendant’s financial circumstances, income, and obligations. Restitution judgments are enforceable for 20 years after release from custody or entry of judgment, whichever is last, and are treated as a “super lien,” similar to an IRS tax lien.

The Financial Litigation Unit (FLU) of the U.S. Attorney’s Office is responsible for enforcing restitution orders — and they often do so aggressively.

Pre-Plea Strategy: Negotiating the Lowest Restitution Number Possible

We negotiate restitution pre-plea to minimize restitution exposure. Restitution amounts are often driven by the government’s loss calculations, which can be overstated or include losses not legally attributable to the defendant, or losses already recouped from other resources or not related to the offense conduct. We scrutinize the evidence to challenge inflated figures and negotiate the lowest restitution award supported by the facts. This is one of the most effective ways to protect a client financially before a plea is entered.

Sentencing Advocacy: Securing Manageable Payment Terms

Even when restitution is unavoidable, the payment schedule matters. Judges have discretion to set reasonable, realistic payment schedules. We present financial evidence during plea negotiations and/or at sentencing to show the client’s ability to pay, ensuring that the payment schedule is fair and sustainable, not punitive. A carefully crafted payment plan can keep the government from interfering with a client’s daily life while satisfying court-ordered obligations. We can also employ strategies to safeguard important assets, such as a client’s home,

Post-Judgment Representation: Fighting Back Against FLU

Our work does not end at sentencing. Many clients continue to retain us after sentencing because the Financial Litigation Unit of the Office of the United States Attorney aggressively pursues collections, demanding endless financial disclosures, placing liens on property, or seeking to garnish wages, bank accounts, and even retirement accounts.

We understand FLU’s tactics and know how to push back when called for. While the total restitution number is fixed, the amount and timing of payments can be negotiated. Often, the most strategic solution is to negotiate a monthly payment that is manageable, and then limit the government’s intrusion into our clients’ personal finances.

We have successfully:

Negotiated long-term payment plans to keep FLU at bay.
Challenged overbroad information requests and reduced reporting burdens.
Obtained the release of liens and restraints on homes, investment accounts, retirement funds, and other property.
Demonstrated that funds were either equitably owned by another or needed for the client’s and family’s support and maintenance.

WHY EXPERIENCE MATTERS

Federal restitution is a long, complicated game. Restitution judgments can last decades, and a strong, smart legal strategy can make the difference between financial survival and financial ruin. We have litigated and negotiated with U.S. Attorney’s Offices across the country, protecting clients from overreach while ensuring compliance with the law. At Levitt & Kaizer, we:

Represent clients before, during, and after sentencing.
Negotiate restitution amounts and terms with prosecutors and the court.
Defend against aggressive post-judgment enforcement.
Protect family assets and financial stability.

A TYPICAL “THANK YOU”

We receive numerous “thank yous” from grateful clients, many of which can be found here and here. Here’s one:

Dedicated and Experienced!

Nicholas Kaizer is a rare breed of attorney that commands respect not just from his peers, but from members of the entire legal community. Unlike the other attorneys my mother and I had met with, his primary focus was to help us heal and move on. From the start he took immediate control of the case and was always knowledgeable and fully prepared. He was never too busy to answer any of our questions or explain what was happening. He really stood up for us and made us feel like our lives truly mattered at a time when we had just lost all hope. Me and my mother truly owe him a large debt of gratitude for all he has done for us. Mr. Kaizer is honestly the only attorney I would recommend without any reservations. He is capable and compassionate and would do his best not just to win your case but to help restore your life.

CONTACT US

📞 Call Levitt & Kaizer: office (212) 480-4000 cell (917) 324-4000

📍 Office: 40 Fulton Street, Suite 1702, New York, NY 10038-1850

🖥️ Website: www.levittandkaizer.com