United States of America v. $1,317,828.00 In United States Currency, No. 2:2022cv00098 - Document 23 (D. Nev. 2023)
Court Description: ORDER Granting 21 Stipulation or Entry of Judgment of Forfeiture as to Kwanfei Chau and Order. Signed by Judge Andrew P. Gordon on 6/12/2023. (Copies have been distributed pursuant to the NEF - JQC)
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United States of America v. &#036;1,317,828.00 In United States Currency Doc. 23 Case 2:22-cv-00098-APG-EJY Document 23 Filed 06/12/23 Page 1 of 9 1 2 3 4 5 6 JASON M. FRIERSON United States Attorney Nevada Bar No. 7709 DANIEL D. HOLLINGSWORTH Assistant United States Attorney Nevada Bar No. 1925 501 Las Vegas Boulevard South, Suite 1100 Las Vegas, Nevada 89101 (702) 388-6336 Daniel.Hollingsworth@usdoj.gov Attorneys for the United States 7 8 9 UNITED STATES DISTRICT COURT DISTRICT OF NEVADA 10 11 UNITED STATES OF AMERICA, 12 Plaintiff, 13 v. 14 US $1,317,828, 15 16 Defendant. ) ) ) ) ) ) ) ) ) 2:22-CV-098-APG-EJY Stipulation for Entry of Judgment of Forfeiture as to Kwanfei Chau, Chung Lung Cheng’s wife, and Order The United States of America and Kwanfei Chau (Chau), Chung Lung Cheng’s 17 wife, through her counsel, David Chesnoff and Richard Schonfeld, agree to settle this case 18 as follows: 19 1. This civil forfeiture in rem action seeks to forfeit United States currency for 20 violations of 31 U.S.C. §§ 5316(a)(1)(B) and 5324(c) under 31 U.S.C. § 5317(c)(2). 21 2. If this case were not settled the United States would seek to prove the US 22 $1,317,828 was proceeds not declared in violation of 31 U.S.C. §§ 5316(a)(1)(B) and 23 5324(c) and are forfeitable under 31 U.S.C. § 5317(c)(2). The United States would seek to 24 prove by a preponderance of the evidence the following. 25 3. From on or about May 11, 1996, through on or about September 26, 2021, Cheng 26 flew into or out of multiple United States airports. CBP signage and public announcements 27 regarding the transportation of currency and smuggling existed in the international airports 28 where Cheng travelled. 1 Dockets.Justia.com Case 2:22-cv-00098-APG-EJY Document 23 Filed 06/12/23 Page 2 of 9 1 4. On September 26, 2021, at approximately 9:24 am, Cheng, Passport KJ0715039, 2 applied for admission at the Harry Reid International Airport, Las Vegas, Nevada, United 3 States, private terminal via private flight tail number N318LS from Hong Kong, China. 5. A Customs and Border Protection Officer (CBPO) and a CBP Agriculture 4 5 Specialist (CBPAS) met Cheng inside his plane. 6. Lee, Sheung Ying, Passport KJ0464519, offered to translate, and the CBPO made 6 7 sure both Cheng and Lee were comfortable with translating before proceeding with any 8 questions. The CBPO wanted to ensure Cheng understood what was being asked. Both Lee 9 and Cheng agreed Lee would translate English to Chinese and from Chinese to English. Lee 10 translated without hesitation or delay. Cheng acknowledged he understood what was being 11 translated by his staff member Lee. 7. The CBPO asked Cheng if he had over US $10,000. Cheng declared he did not 12 13 have any currency and any form of monetary instruments over US $10,000. Cheng’s crew 14 staff member Lee, who was in the main cabin of the aircraft with Cheng, translated the 15 information. 8. The CBPO asked a second time if Cheng was bringing anything into the United 16 17 States to include currency or any form of monetary instruments over US $10,000 that he 18 would like to declare because undeclared items and currency can be seized in accordance 19 with CBP laws and regulations. 9. Cheng stalled and again stated he did not bringing more than US $10,000 into the 20 21 United States. Cheng declared he brought US $7,000. Cheng pulled the currency from his 22 black handbag he was personally carrying and showed currency for the CBPO and the 23 CBPAS to see. The CBPO and the CBPAS continued to inspect the rest of the aircraft and 24 asked one of the pilots to stay behind while the aircraft inspection was completed. 10. During the aircraft inspection, the CBPO moved the black carry-on bag that was 25 26 in the back of the plane to the aisle area so it could be more visible. The CBPO noticed the 27 black carry-on bag was heavier than normal for this size luggage. 28 /// 2 Case 2:22-cv-00098-APG-EJY Document 23 Filed 06/12/23 Page 3 of 9 11. The CBPO proceeded to the CBP facility to conduct a secondary inspection. 1 2 Cheng properly filled out a CBP Customs Declaration form 6059B. Question 13 on the form 3 asks Cheng to declare currency or monetary instruments over the amount of US $10,000 or 4 foreign equivalent and informs the traveler that there is further guidance and explanation as 5 to the definition of monetary instruments on the back of the form. 12. Cheng reviewed the back of form 6059B, filled it out, signed it, and submitted it 6 7 to CBPO Raymond Rodriguez. 13. The CBPO gave Cheng a CBP form 0503 (the currency reporting advisement in 8 9 English). Lee also translated and explained form 0503 to ensure Cheng fully understood 10 what Cheng would acknowledge and sign. Cheng signed the CBP form 0503, declaring he 11 only brought US $7,000 into the United States. 12 14. The CBPO searched for, and found, a CBP form 0503 in Cheng’s Chinese 13 language to ensure further understanding. The CBPO provided the CBP form 0503 in 14 simple Chinese to Cheng. Cheng again stated he was only bringing US $7,000 U.S. 15 Currency and signed CBP form 0503 in Chinese. The CBPO advised Cheng that the CBPO 16 would verify his currency and inspect the luggage located inside the aircraft. 15. In Cheng’s black carry-on bag that was left on the aircraft between the bed and 17 18 wall that separates the restroom, a white Dior box contained US $260,000. 16. The CBPO asked Cheng if he knew undeclared currency was in the black carry- 19 20 on bag. Cheng admitted he owned the US $260,000 and knew the currency was in the black 21 carry-on bag. 17. The CBPO requested the rest of the bags located in the cargo hold of the aircraft. 22 23 A Dolce & Gabbana box was found inside a red suitcase containing US $1,000,000. An 24 extra US $50,000 was loose inside the same box. Cheng admitted he withdrew the currency 25 in small increments US $50,000 to US $100,000 from a bank over time and withdrew US 26 $1,000,000 at one time in September 2021. Cheng stated the withdrawals were from the 27 Bank of Communications in Hong Kong. He packed the currency in the boxes himself. 28 /// 3 Case 2:22-cv-00098-APG-EJY Document 23 Filed 06/12/23 Page 4 of 9 18. The CBPO seized the US $1,317,828 for alleged bulk cash smuggling and failure 1 2 to report the currency. The denominations were as follows: 13,176 of US $100 bills, 8 US 3 $20 bills, 4 US $10 bills, 3 US $5 bills, and 13 US $1 bills. 4 19. This Stipulation for Entry of Judgment of Forfeiture as to Kwanfei Chau 5 (Stipulation) shall not constitute an admission of liability, wrongdoing, or fault on the part 6 of Chau. She entered into this Stipulation to avoid costs, expenses, uncertainty, delay, and 7 inconvenience of protracted litigation. The United States and Chau reach a full and final 8 settlement in this Stipulation. Chau knowingly and voluntarily agrees to forfeit US $370,500 9 of US $1,317,828 to the United States in this civil judicial forfeiture. 20. Chau knowingly and voluntarily agrees to forfeit all possessory rights, ownership 10 11 rights, and all rights, titles, and interests in the US $370,500 of the US $1,317,828. 21. Chau knowingly and voluntarily agrees this Court will impose the forfeiture of 12 13 the US $370,500 of the US $1,317,828 in this civil forfeiture case. 22. Chau knowingly and voluntarily agrees to waive her right to any civil judicial 14 15 forfeiture proceedings (proceedings) concerning the US $1,317,828. 16 23. Chau knowingly and voluntarily agrees to waive service of process of all 17 documents filed in this action and any proceedings concerning the US $1,317,828 arising 18 from the facts and circumstances of this case. 19 24. Chau knowingly and voluntarily agrees to waive any further notice to her, her 20 agents, or her attorneys regarding the forfeiture and disposition of the US $370,500 of the 21 US $1,317,828. 25. Chau knowingly and voluntarily agrees not to file any claim, answer, petition, 22 23 and other documents in any proceedings concerning the US $370,500 of the US $1,317,828, 24 agrees not to contest, and agrees not to assist any other person and entity to contest, the 25 forfeiture of the US $370,500 of the US $1,317,828. Chau knowingly and voluntarily agrees 26 to withdraw immediately any claims, answers, counterclaims, petitions, and other 27 documents she filed in any proceeding concerning the US $370,500 of the US $1,317,828. 28 /// 4 Case 2:22-cv-00098-APG-EJY Document 23 Filed 06/12/23 Page 5 of 9 26. Chau knowingly and voluntarily agrees to waive laches, the statute of limitations, 1 2 the CAFRA requirements, Supplemental Rules for Admiralty or Maritime Claims and 3 Asset Forfeiture Actions A, C, E, and G, 18 U.S.C. § 983, and all constitutional, statutory, 4 legal equitable rights, defenses, and claims regarding the US $1,317,828, in any proceedings, 5 including, but not limited to, double jeopardy and due process under the Fifth Amendment 6 to the United States Constitution. 27. Chau knowingly and voluntarily agrees to waive all constitutional, statutory, 7 8 legal, equitable rights, defenses, and claims regarding the US $1,317,828, in any 9 proceedings, including, but not limited to, a jury trial under the Sixth Amendment to the 10 United States Constitution. 28. Chau knowingly and voluntarily agrees to waive all constitutional, statutory, 11 12 legal, equitable rights, defenses, and claims regarding the US $1,317,828, including, but not 13 limited to, the excessive fines clause and the cruel and unusual punishments clause under 14 the Eighth Amendment to the United States Constitution. 29. Chau knowingly and voluntarily agrees the forfeiture of the US $370,500 of the 15 16 US $1,317,828 complies with Honeycutt v. United States, 581 U.S. 443 (2017); United States v. 17 Thompson, 990 F.3d 680 (9th Cir. 2021); and United States v. Prasad, 18 F.4th 313, 315, 319 18 (9th Cir. 2021); and knowingly and voluntarily agrees to waive all constitutional, statutory, 19 legal, equitable rights, defenses, and claims regarding the US $370,500 of the US $1,317,828 20 in any proceedings under Honeycutt, Thompson, and Prasad. 30. Chau knowingly and voluntarily agrees to the entry of a Judgment of Forfeiture 21 22 of US $370,500 of the US $1,317,828 to the United States. 31. Chau knowingly and voluntarily agrees to waive her right to appeal the forfeiture 23 24 of the US $370,500 of the US $1,317,828. 25 32. Chau understands the forfeiture of the US $370,500 of the US $1,317,828 shall 26 not be treated as satisfaction of any assessment, restitution, fine, cost of imprisonment, or 27 any other penalty that may be imposed. 28 /// 5 Case 2:22-cv-00098-APG-EJY Document 23 Filed 06/12/23 Page 6 of 9 1 2 3 33. Chau knowingly and voluntarily agrees to the conditions set forth in this Stipulation. 34. Chau knowingly and voluntarily agrees to hold harmless the United States, the 4 United States Department of Justice; the United States Attorney’s Office for the District of 5 Nevada; the United States Department of the Homeland Security; the Customs and Border 6 Protection; the Homeland Security Investigations, Las Vegas BEST-Airport Group; the 7 Department of United States Treasury; their agencies; their agents; and their employees 8 from any claim made by Chau or any third party arising out of the seizure of the US 9 $1,317,828 and the forfeitures of the of the US $370,500. 10 35. Chau knowingly and voluntarily releases and forever discharges the United 11 States, the United States Department of Justice; the United States Attorney’s Office for the 12 District of Nevada; the United States Department of the Homeland Security; the Customs 13 and Border Protection; the Homeland Security Investigations, Las Vegas BEST-Airport 14 Group; the Department of United States Treasury; their agencies; their agents, their officers, 15 and their employees from any and all claims, rights, or causes of action of any kind that 16 Cheng now has or may hereafter have on account of, or in any way growing out of, the 17 seizure of the US $1,317,828 and the forfeitures of the of the US $370,500 in the civil 18 judicial forfeiture. 19 36. Chau knowingly and voluntarily acknowledges, understands, and agrees that (a) 20 federal law requires the Department of the United States Treasury and other disbursing 21 officials to offset federal payments to collect delinquent tax and non-tax debts owed to the 22 United States and to individual states (including past-due child support); (b) if an offset 23 occurs to the payment to be made under this Stipulation, they will receive a notification 24 from the Department of the United States Treasury at the last address provided by them to 25 the governmental agency or entity to whom the offset payment is made; (c) if they believe 26 the payment may be subject to an offset, they may contact the Treasury Department at 1- 27 800-304-3107; (d) the terms of this Stipulation do not affect the tax obligations fines, 28 penalties, or any other monetary obligations owed to the United States or an individual 6 Case 2:22-cv-00098-APG-EJY Document 23 Filed 06/12/23 Page 7 of 9 1 state; and (e) the exact sum delivered to David Chesnoff and Richard Schonfeld, on behalf 2 of her may well be a lesser sum, if the Treasury Offset Program reduces the amount in 3 satisfaction of a debt obligation. 4 37. After the US $370,500 of the US $1,317,828 is forfeited in the civil case and the 5 United States District Court has signed the Stipulation concerning the property, within a 6 practicable time thereafter for the United States, the United States agrees to release to Chau 7 and Cheng one payment of US $947,328 less any debt owed to the United States, any 8 agency of the United States, or any debt in which the United States is authorized to collect, 9 through David Chesnoff and Richard Schonfeld. Chau knowingly and voluntarily agrees to 10 fill out the Department of the United States Treasury Automated Clearing House (ACH) 11 form accurately and correctly and submit it to the United States Attorney’s Office so the 12 payment of the money can be disbursed by electronic fund transfer. Chau knowingly and 13 voluntarily agrees the US $947,328 may be offset by any debt owed to the United States, 14 any agency of the United States, or any debt in which the United States is authorized to 15 collect. 16 17 38. Each party acknowledges and warrants that its execution of the Stipulation is free and is voluntary. 18 39. The Stipulation contains the entire agreement between the parties. 19 40. Except as expressly stated in the Stipulation, no party, officer, agent, employee, 20 representative, or attorney has made any statement or representation to any other party, 21 person, or entity regarding any fact relied upon in entering into the Stipulation, and no 22 party, officer, agent, employee, representative, or attorney relies on such statement or 23 representation in executing the Stipulation. 24 41. The persons signing the Stipulation warrant and represent that they have full 25 authority to execute the Stipulation and to bind the persons and/or entities, on whose 26 behalf they are signing, to the terms of the Stipulation. 27 42. This Stipulation shall be construed and interpreted according to federal forfeiture 28 law and federal common law. The jurisdiction and the venue for any dispute related to, and 7 Case 2:22-cv-00098-APG-EJY Document 23 Filed 06/12/23 Page 8 of 9 Case 2:22-cv-00098-APG-EJY Document 23 Filed 06/12/23 Page 9 of 9 1 or arising from, this Stipulation is the unofficial Southern Division of the United States 2 District Court for the District of Nevada, located in Las Vegas, Nevada. 3 43. Each party shall bear her or its own attorneys’ fees, expenses, costs, and interest. 4 44. This Stipulation shall not be construed more strictly against one party than 5 against the other merely by virtue of the fact that it may have been prepared primarily by 6 counsel for one of the parties; it being recognized that both parties have contributed 7 substantially and materially to the preparation of this Stipulation. 8 IT IS HEREBY CERTIFIED, pursuant to 28 U.S.C. § 2465(a)(2), that there was 9 reasonable cause for the seizure of the US $1,317,828 and the forfeiture of US $370,500. 10 CHESNOFF & SCHONFELD JASON M. FRIERSON United States Attorney 11 12 DANIEL HOLLINGSWORTH Digitally signed by DANIEL HOLLINGSWORTH Date: 2023.05.22 17:47:26 -07'00' 13 DAVID CHESNOFF Counsel for Kwanfei Chau DANIEL D. HOLLINGSWORTH Assistant United States Attorney 14 DATED: DATED: 15 CHESNOFF & SCHONFELD 16 17 18 19 20 21 RICHARD SCHONFELD Counsel for Kwanfei Chau DATED: KWANFEI CHAU 22 IT IS SO ORDERED: 23 24 25 26 ANDREW P. GORDON UNITED STATES DISTRICT JUDGE 2:22-cv-00098-APG-EJY 27 DATED: June 12, 2023 28 8
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