Background

• Davis pled guilty to one count of conspiracy to commit money laundering and thirty counts of money laundering under 18 U.S.C. § 1956(h) and aiding and abetting under 18 U.S.C. § 1956(a)(3)(A).
• He was ordered to forfeit $1.29 million and pay about $95,000 in restitution to the FBI for funds expended in the operation leading to his arrest.
• Undercover FBI agents represented the stolen Wachovia Bank funds and Davis assisted in laundering them, taking a commission from the proceeds.
• Davis and co-defendant Rice received roughly $1,293,782 from the operation; Davis kept $73,782 and transferred $1,198,000 back to the agents.
• The district court initially denied the in persona forfeiture but ordered forfeiture of $2,597.50 seized from Davis’s bank accounts and restitution of $95,782 to the FBI; later, after Newman, the district court amended the forfeiture judgment to include the in persona amount.
• Davis challenged the forfeiture/restitution structure on appeal, arguing an offset would prevent impermissible double recovery.

Issues

Key Cases Cited

• United States v. Newman, 659 F.3d 1235 (9th Cir. 2011) (forfeiture and restitution serve different purposes; mandatory forfeiture; offset not automatic)
• United States v. Upshaw, 226 F.3d 1101 (9th Cir. 2000) (standard of review can be treated flexibly; affirmation under either standard)