United States v. Cynthia Brown
694 F. App'x 57
| 3rd Cir. | 2017Background
- Cynthia Brown was convicted for participation in a mortgage-fraud conspiracy; the District Court entered a Forfeiture Money Judgment for $7,418,303, labeling her "jointly and severally liable."
- The money judgment cited forfeiture authority under statutes including 18 U.S.C. § 982(a)(2) and 18 U.S.C. § 981(a)(1)(C).
- The Supreme Court decided Honeycutt v. United States, holding that 21 U.S.C. § 853 limits forfeiture to property personally acquired or used by the defendant and bars imposing joint-and-several forfeiture liability for co-conspirators’ proceeds the defendant did not acquire.
- The Third Circuit concluded Honeycutt’s reasoning applies equally to § 982(a)(2), because it similarly limits forfeiture to tainted property obtained by the defendant.
- The panel agreed the joint-and-several forfeiture judgment was erroneous and ordered remand to recalculate Brown’s forfeiture liability.
- The court declined Brown’s request for de novo resentencing, limiting remand to recalculation of forfeiture; the amended judgment should also deduct an earlier identified $69,776 restitution error.
Issues
| Issue | Brown's Argument | Government's Argument | Held |
|---|---|---|---|
| Whether Honeycutt’s rule applies to 18 U.S.C. § 982(a)(2) forfeiture | Honeycutt applies; Brown argued joint-and-several forfeiture exceeded statutory scope | Agreed Honeycutt applies to similar statutes but focused on forfeiture correction only | Honeycutt applies to § 982(a)(2); joint-and-several forfeiture was error because forfeiture is limited to property acquired/used by defendant |
| Scope of remand: limited forfeiture recalculation vs de novo resentencing | Brown sought discretionary de novo resentencing on all penalties | Government urged remand limited to recalculating forfeiture liability | Remand limited to resentencing solely to determine appropriate forfeiture amount; no full resentencing warranted |
| Treatment of previously identified restitution error | N/A | N/A | District Court must deduct the erroneous $69,776 restitution when entering amended judgment |
Key Cases Cited
- Honeycutt v. United States, 137 S. Ct. 1626 (2017) (forfeiture under § 853 limited to property personally acquired or used by defendant; bars joint-and-several liability reaching untainted co-conspirator proceeds)
- United States v. Brown, [citation="661 F. App'x 190"] (3d Cir. 2016) (prior appellate disposition addressing this defendant and noting restitution issue to be corrected)
