2016 North Dakota Century Code Title 32 Judicial Remedies Chapter 32-07.1 Crime Profits Recovery
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CHAPTER 32-07.1
CRIME PROFITS RECOVERY
32-07.1-01. Profits from the crime of a felon - Definitions - Action to recover profits
from the crime - Violations - Remedies cumulative - Limitations of actions.
1. As used in this section:
a. "Beneficiary" means:
(1) A person who, under applicable law, other than the provisions of this
section, has or had a right to recover damages from the convicted felon for
physical, mental, or emotional injury, or pecuniary loss proximately caused
by the convicted felon as a result of the crime for which the felon was
convicted.
(2) If a beneficiary has died, a person or estate that is entitled to recover
damages.
(3) If a person has died and the death was proximately caused by the convicted
felon as a result of the crime for which the felon was convicted, a person
described in chapter 32-21 or any beneficiary of a will of the decedent who
had a right under that will to receive more than twenty-five percent of the
value of the estate of the decedent.
b. "Beneficiary's interest in the profits from the crime" means that portion of the
profits from the crime necessary to pay the following:
(1) In the case of a beneficiary described in paragraph 1 or 2 of subdivision a,
those damages which, under applicable law, other than the provisions of this
section, the beneficiary has a right to recover from the convicted felon for
injuries proximately caused by the convicted felon as a result of the crime
for which the felon was convicted.
(2) In the case of the beneficiary described in paragraph 3 of subdivision a,
those damages which under all the circumstances of the case may be just.
c. "Convicted felon" means any person convicted of a felony, or found not guilty by
reason of insanity of a felony committed in this state, either by a court or jury trial
or by entry of a plea in court.
d. "Felony" means a felony defined by any North Dakota or federal statute.
e. "Profits from the crime" means:
(1) Any property obtained through or income substantially related to the
commission of a crime of which the defendant was convicted;
(2) Any property obtained by or income substantially related to the sale,
conversion, or exchange of proceeds of a crime, including any gain realized
by the sale, conversion, or exchange; and
(3) Any property that the convicted felon obtained or income substantially
related to the commission of the crime, including any assets obtained
through the use of unique knowledge obtained during the commission of, or
in preparation for the commission of, the crime, as well as any property
obtained by or income substantially related to the sale, conversion, or
exchange of such property and any gain realized by such sale, conversion,
or exchange.
f. "Representative of the felon" means any person or entity receiving profits from
the crime by designation of the felon, or on behalf of the felon or in the stead of
the felon, whether by the felon's designation or by operation of law.
2. All profits from the crime belonging to the convicted felon are subject to a constructive
trust for the benefit of the beneficiaries set forth in this section. The trust continues until
six years after the date of conviction. If an action is filed by a beneficiary to recover the
beneficiary's interest in a trust within that time limitation, the trust character of the
property continues until the conclusion of the action.
3. a. Any beneficiary may bring an action against a convicted felon or representative of
the felon to recover the beneficiary's interest in the trust established by this
section.
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The action may be brought in the district court where the beneficiary resides,
where the convicted felon resides, or where the proceeds are located.
c. If the court determines that a beneficiary is entitled to profits from the crime
pursuant to this section, the court shall order the payment from profits from the
crime that have been received, and if that is insufficient, from profits from the
crime that may be received in the future.
d. A beneficiary's interest in the profits from the crime must be reduced by the
following amount:
(1) Money paid to the beneficiary as crime victims reparations under chapter
54-23.4 because of the crime for which the felon was convicted.
(2) Money paid to the beneficiary by the convicted felon because of a
requirement of restitution imposed by a court in connection with the crime
for which the felon was convicted.
(3) Money paid to the beneficiary because of a judgment against the convicted
felon based upon the crime for which the felon was convicted.
e. In the case of an unsatisfied existing judgment or order of restitution against the
convicted felon and in favor of a beneficiary, any money paid to the beneficiary
pursuant to this section must be applied to reduce the amount of the unsatisfied
judgment or order.
If there are two or more beneficiaries and the available profits from the crime are
insufficient to pay all beneficiaries, the profits from the crime may be equitably
apportioned among the beneficiaries taking into account the impact of the crime upon
them. Twenty-five percent of the profits from the crime must be reserved for payment
to the beneficiaries.
a. The attorney general shall bring an action to require profits from the crime
received by a convicted felon to be held in an express trust in a bank authorized
to act as a trustee.
b. An action may be brought under this subdivision within six months after the
receipt of profits from the crime by a convicted felon or six months after the date
of conviction, whichever is later. The action must be brought in the district court
for Burleigh County.
c. If the attorney general proves that the profits from the crime are subject to a
constructive trust pursuant to this section and that it is more probable than not
that there are beneficiaries within the meaning of this section, the court shall
order all proceeds deposited in a bank and held by the bank as trustee of the
trust until an order of disposition is made by a court pursuant to subsection 4, or
until the expiration of the period specified in subsection 2.
d. In any action brought pursuant to subsection 4 or 5, upon motion of a party the
court shall grant a preliminary injunction to prevent any waste of the profits from
the crime, if it appears that the profits from the crime are subject to the provisions
of this section and that they may be subject to waste.
The remedies provided by this section are in addition to other remedies provided by
law. No period of limitations, except those provided by this section, limits the right of
recovery under this section.
The offender or any person contracting with an offender shall notify the attorney
general at least thirty days before the transfer of any profits from a crime. A person
who willfully violates this subsection is guilty of a class A misdemeanor.
Any contract between a convicted felon or representative of the felon and another
person which provides for the payment of profits from a crime other than as provided
by this section is void.
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