Honeycutt v. United States
137 S. Ct. 1626
| SCOTUS | 2017Background
- Terry Honeycutt was a salaried manager at his brother Tony’s hardware store; the store sold large quantities of an iodine product used to make methamphetamine.
- DEA and other authorities investigated; the brothers were indicted for drug-related offenses and the Government sought forfeiture of the store’s profits under 21 U.S.C. §853(a)(1).
- Tony pleaded guilty and forfeited $200,000; Terry was convicted at trial of several offenses including conspiracy and sentenced to prison.
- The Government sought a money judgment against Terry for the remaining conspiracy profits ($69,751.98), arguing co-conspirators are jointly and severally liable for conspiracy proceeds.
- The district court refused to order forfeiture against Terry because he had no ownership interest and received no profits; the Sixth Circuit reversed, applying joint-and-several liability.
- The Supreme Court granted certiorari to decide whether §853 permits forfeiture from a defendant for proceeds that he did not personally obtain.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether §853(a)(1) permits joint-and-several forfeiture of conspiracy proceeds that a defendant did not personally obtain | §853 should be read against the background of conspiracy law (Pinkerton), making conspirators liable for proceeds foreseeably obtained by the conspiracy | §853 forfeiture is limited to property the defendant himself obtained or used; joint-and-several liability would reach untainted property | No—§853(a)(1) reaches only property the defendant personally obtained (directly or indirectly) as a result of the offense; it does not authorize joint-and-several forfeiture |
Key Cases Cited
- Pinkerton v. United States, 328 U.S. 640 (establishes conspirator liability for foreseeable acts in furtherance of a conspiracy)
- McDermott, Inc. v. AmClyde, 511 U.S. 202 (explains joint-and-several liability as a tort-law concept)
- Caplin & Drysdale, Chartered v. United States, 491 U.S. 617 (describes governmental interests served by criminal forfeiture)
- The Palmyra, 12 Wheat. 1 (discusses traditional in rem nature of forfeiture)
