§ 1963. — Criminal penalties.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 18USC1963]
TITLE 18--CRIMES AND CRIMINAL PROCEDURE
PART I--CRIMES
CHAPTER 96--RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS
Sec. 1963. Criminal penalties
(a) Whoever violates any provision of section 1962 of this chapter
shall be fined under this title or imprisoned not more than 20 years (or
for life if the violation is based on a racketeering activity for which
the maximum penalty includes life imprisonment), or both, and shall
forfeit to the United States, irrespective of any provision of State
law--
(1) any interest the person has acquired or maintained in
violation of section 1962;
(2) any--
(A) interest in;
(B) security of;
(C) claim against; or
(D) property or contractual right of any kind affording a
source of influence over;
any enterprise which the person has established, operated,
controlled, conducted, or participated in the conduct of, in
violation of section 1962; and
(3) any property constituting, or derived from, any proceeds
which the person obtained, directly or indirectly, from racketeering
activity or unlawful debt collection in violation of section 1962.
The court, in imposing sentence on such person shall order, in addition
to any other sentence imposed pursuant to this section, that the person
forfeit to the United States all property described in this subsection.
In lieu of a fine otherwise authorized by this section, a defendant who
derives profits or other proceeds from an offense may be fined not more
than twice the gross profits or other proceeds.
(b) Property subject to criminal forfeiture under this section
includes--
(1) real property, including things growing on, affixed to, and
found in land; and
(2) tangible and intangible personal property, including rights,
privileges, interests, claims, and securities.
(c) All right, title, and interest in property described in
subsection (a) vests in the United States upon the commission of the act
giving rise to forfeiture under this section. Any such property that is
subsequently transferred to a person other than the defendant may be the
subject of a special verdict of forfeiture and thereafter shall be
ordered forfeited to the United States, unless the transferee
establishes in a hearing pursuant to subsection (l) that he is a bona
fide purchaser for value of such property who at the time of purchase
was reasonably without cause to believe that the property was subject to
forfeiture under this section.
(d)(1) Upon application of the United States, the court may enter a
restraining order or injunction, require the execution of a satisfactory
performance bond, or take any other action to preserve the availability
of property described in subsection (a) for forfeiture under this
section--
(A) upon the filing of an indictment or information charging a
violation of section 1962 of this chapter and alleging that the
property with respect to which the order is sought would, in the
event of conviction, be subject to forfeiture under this section; or
(B) prior to the filing of such an indictment or information,
if, after notice to persons appearing to have an interest in the
property and opportunity for a hearing, the court determines that--
(i) there is a substantial probability that the United
States will prevail on the issue of forfeiture and that failure
to enter the order will result in the property being destroyed,
removed from the jurisdiction of the court, or otherwise made
unavailable for forfeiture; and
(ii) the need to preserve the availability of the property
through the entry of the requested order outweighs the hardship
on any party against whom the order is to be entered:
Provided, however, That an order entered pursuant to subparagraph (B)
shall be effective for not more than ninety days, unless extended by the
court for good cause shown or unless an indictment or information
described in subparagraph (A) has been filed.
(2) A temporary restraining order under this subsection may be
entered upon application of the United States without notice or
opportunity for a hearing when an information or indictment has not yet
been filed with respect to the property, if the United States
demonstrates that there is probable cause to believe that the property
with respect to which the order is sought would, in the event of
conviction, be subject to forfeiture under this section and that
provision of notice will jeopardize the availability of the property for
forfeiture. Such a temporary order shall expire not more than ten days
after the date on which it is entered, unless extended for good cause
shown or unless the party against whom it is entered consents to an
extension for a longer period. A hearing requested concerning an order
entered under this paragraph shall be held at the earliest possible
time, and prior to the expiration of the temporary order.
(3) The court may receive and consider, at a hearing held pursuant
to this subsection, evidence and information that would be inadmissible
under the Federal Rules of Evidence.
(e) Upon conviction of a person under this section, the court shall
enter a judgment of forfeiture of the property to the United States and
shall also authorize the Attorney General to seize all property ordered
forfeited upon such terms and conditions as the court shall deem proper.
Following the entry of an order declaring the property forfeited, the
court may, upon application of the United States, enter such appropriate
restraining orders or injunctions, require the execution of satisfactory
performance bonds, appoint receivers, conservators, appraisers,
accountants, or trustees, or take any other action to protect the
interest of the United States in the property ordered forfeited. Any
income accruing to, or derived from, an enterprise or an interest in an
enterprise which has been ordered forfeited under this section may be
used to offset ordinary and necessary expenses to the enterprise which
are required by law, or which are necessary to protect the interests of
the United States or third parties.
(f) Following the seizure of property ordered forfeited under this
section, the Attorney General shall direct the disposition of the
property by sale or any other commercially feasible means, making due
provision for the rights of any innocent persons. Any property right or
interest not exercisable by, or transferable for value to, the United
States shall expire and shall not revert to the defendant, nor shall the
defendant or any person acting in concert with or on behalf of the
defendant be eligible to purchase forfeited property at any sale held by
the United States. Upon application of a person, other than the
defendant or a person acting in concert with or on behalf of the
defendant, the court may restrain or stay the sale or disposition of the
property pending the conclusion of any appeal of the criminal case
giving rise to the forfeiture, if the applicant demonstrates that
proceeding with the sale or disposition of the property will result in
irreparable injury, harm or loss to him. Notwithstanding 31 U.S.C.
3302(b), the proceeds of any sale or other disposition of property
forfeited under this section and any moneys forfeited shall be used to
pay all proper expenses for the forfeiture and the sale, including
expenses of seizure, maintenance and custody of the property pending its
disposition, advertising and court costs. The Attorney General shall
deposit in the Treasury any amounts of such proceeds or moneys remaining
after the payment of such expenses.
(g) With respect to property ordered forfeited under this section,
the Attorney General is authorized to--
(1) grant petitions for mitigation or remission of forfeiture,
restore forfeited property to victims of a violation of this
chapter, or take any other action to protect the rights of innocent
persons which is in the interest of justice and which is not
inconsistent with the provisions of this chapter;
(2) compromise claims arising under this section;
(3) award compensation to persons providing information
resulting in a forfeiture under this section;
(4) direct the disposition by the United States of all property
ordered forfeited under this section by public sale or any other
commercially feasible means, making due provision for the rights of
innocent persons; and
(5) take appropriate measures necessary to safeguard and
maintain property ordered forfeited under this section pending its
disposition.
(h) The Attorney General may promulgate regulations with respect
to--
(1) making reasonable efforts to provide notice to persons who
may have an interest in property ordered forfeited under this
section;
(2) granting petitions for remission or mitigation of
forfeiture;
(3) the restitution of property to victims of an offense
petitioning for remission or mitigation of forfeiture under this
chapter;
(4) the disposition by the United States of forfeited property
by public sale or other commercially feasible means;
(5) the maintenance and safekeeping of any property forfeited
under this section pending its disposition; and
(6) the compromise of claims arising under this chapter.
Pending the promulgation of such regulations, all provisions of law
relating to the disposition of property, or the proceeds from the sale
thereof, or the remission or mitigation of forfeitures for violation of
the customs laws, and the compromise of claims and the award of
compensation to informers in respect of such forfeitures shall apply to
forfeitures incurred, or alleged to have been incurred, under the
provisions of this section, insofar as applicable and not inconsistent
with the provisions hereof. Such duties as are imposed upon the Customs
Service or any person with respect to the disposition of property under
the customs law shall be performed under this chapter by the Attorney
General.
(i) Except as provided in subsection (l), no party claiming an
interest in property subject to forfeiture under this section may--
(1) intervene in a trial or appeal of a criminal case involving
the forfeiture of such property under this section; or
(2) commence an action at law or equity against the United
States concerning the validity of his alleged interest in the
property subsequent to the filing of an indictment or information
alleging that the property is subject to forfeiture under this
section.
(j) The district courts of the United States shall have jurisdiction
to enter orders as provided in this section without regard to the
location of any property which may be subject to forfeiture under this
section or which has been ordered forfeited under this section.
(k) In order to facilitate the identification or location of
property declared forfeited and to facilitate the disposition of
petitions for remission or mitigation of forfeiture, after the entry of
an order declaring property forfeited to the United States the court
may, upon application of the United States, order that the testimony of
any witness relating to the property forfeited be taken by deposition
and that any designated book, paper, document, record, recording, or
other material not privileged be produced at the same time and place, in
the same manner as provided for the taking of depositions under Rule 15
of the Federal Rules of Criminal Procedure.
(l)(1) Following the entry of an order of forfeiture under this
section, the United States shall publish notice of the order and of its
intent to dispose of the property in such manner as the Attorney General
may direct. The Government may also, to the extent practicable, provide
direct written notice to any person known to have alleged an interest in
the property that is the subject of the order of forfeiture as a
substitute for published notice as to those persons so notified.
(2) Any person, other than the defendant, asserting a legal interest
in property which has been ordered forfeited to the United States
pursuant to this section may, within thirty days of the final
publication of notice or his receipt of notice under paragraph (1),
whichever is earlier, petition the court for a hearing to adjudicate the
validity of his alleged interest in the property. The hearing shall be
held before the court alone, without a jury.
(3) The petition shall be signed by the petitioner under penalty of
perjury and shall set forth the nature and extent of the petitioner's
right, title, or interest in the property, the time and circumstances of
the petitioner's acquisition of the right, title, or interest in the
property, any additional facts supporting the petitioner's claim, and
the relief sought.
(4) The hearing on the petition shall, to the extent practicable and
consistent with the interests of justice, be held within thirty days of
the filing of the petition. The court may consolidate the hearing on the
petition with a hearing on any other petition filed by a person other
than the defendant under this subsection.
(5) At the hearing, the petitioner may testify and present evidence
and witnesses on his own behalf, and cross-examine witnesses who appear
at the hearing. The United States may present evidence and witnesses in
rebuttal and in defense of its claim to the property and cross-examine
witnesses who appear at the hearing. In addition to testimony and
evidence presented at the hearing, the court shall consider the relevant
portions of the record of the criminal case which resulted in the order
of forfeiture.
(6) If, after the hearing, the court determines that the petitioner
has established by a preponderance of the evidence that--
(A) the petitioner has a legal right, title, or interest in the
property, and such right, title, or interest renders the order of
forfeiture invalid in whole or in part because the right, title, or
interest was vested in the petitioner rather than the defendant or
was superior to any right, title, or interest of the defendant at
the time of the commission of the acts which gave rise to the
forfeiture of the property under this section; or
(B) the petitioner is a bona fide purchaser for value of the
right, title, or interest in the property and was at the time of
purchase reasonably without cause to believe that the property was
subject to forfeiture under this section;
the court shall amend the order of forfeiture in accordance with its
determination.
(7) Following the court's disposition of all petitions filed under
this subsection, or if no such petitions are filed following the
expiration of the period provided in paragraph (2) for the filing of
such petitions, the United States shall have clear title to property
that is the subject of the order of forfeiture and may warrant good
title to any subsequent purchaser or transferee.
(m) If any of the property described in subsection (a), as a result
of any act or omission of the defendant--
(1) cannot be located upon the exercise of due diligence;
(2) has been transferred or sold to, or deposited with, a third
party;
(3) has been placed beyond the jurisdiction of the court;
(4) has been substantially diminished in value; or
(5) has been commingled with other property which cannot be
divided without difficulty;
the court shall order the forfeiture of any other property of the
defendant up to the value of any property described in paragraphs (1)
through (5).
(Added Pub. L. 91-452, title IX, Sec. 901(a), Oct. 15, 1970, 84 Stat.
943; amended Pub. L. 98-473, title II, Secs. 302, 2301(a)-(c), Oct. 12,
1984, 98 Stat. 2040, 2192; Pub. L. 99-570, title I, Sec. 1153(a), Oct.
27, 1986, 100 Stat. 3207-13; Pub. L. 99-646, Sec. 23, Nov. 10, 1986, 100
Stat. 3597; Pub. L. 100-690, title VII, Secs. 7034, 7058(d), Nov. 18,
1988, 102 Stat. 4398, 4403; Pub. L. 101-647, title XXXV, Sec. 3561, Nov.
29, 1990, 104 Stat. 4927.)
References in Text
The Federal Rules of Evidence, referred to in subsec. (d)(3), are
set out in the Appendix to Title 28, Judiciary and Judicial Procedure.
Amendments
1990--Subsec. (a). Pub. L. 101-647 substituted ``or both'' for ``or
both.'' in introductory provisions.
1988--Subsec. (a). Pub. L. 100-690, Sec. 7058(d), substituted
``shall be fined under this title or imprisoned not more than 20 years
(or for life if the violation is based on a racketeering activity for
which the maximum penalty includes life imprisonment), or both.'' for
``shall be fined not more than $25,000 or imprisoned not more than
twenty years, or both''.
Subsecs. (m), (n). Pub. L. 100-690, Sec. 7034, redesignated former
subsec. (n) as (m) and substituted ``act or omission'' for ``act of
omission''.
1986--Subsecs. (c) to (m). Pub. L. 99-646 substituted ``(l)'' for
``(m)'' in subsec. (c), redesignated subsecs. (e) to (m) as (d) to (l),
respectively, and substituted ``(l)'' for ``(m)'' in subsec. (i) as
redesignated.
Subsec. (n). Pub. L. 99-570 added subsec. (n).
1984--Subsec. (a). Pub. L. 98-473, Sec. 2301(a), inserted ``In lieu
of a fine otherwise authorized by this section, a defendant who derives
profits or other proceeds from an offense may be fined not more than
twice the gross profits or other proceeds.'' following par. (3).
Pub. L. 98-473, Sec. 302, amended subsec. (a) generally, designating
existing provisions as pars. (1) and (2), inserting par. (3), and
provisions following par. (3) relating to power of the court to order
forfeiture to the United States.
Subsec. (b). Pub. L. 98-473, Sec. 302, amended subsec. (b)
generally, substituting provisions relating to property subject to
forfeiture, for provisions relating to jurisdiction of the district
courts of the United States.
Subsec. (c). Pub. L. 98-473, Sec. 302, amended subsec. (c)
generally, substituting provisions relating to transfer of rights, etc.,
in property to the United States, or to other transferees, for
provisions relating to seizure and transfer of property to the United
States and procedures related thereto.
Subsec. (d). Pub. L. 98-473, Sec. 2301(b), struck out subsec. (d)
which provided: ``If any of the property described in subsection (a):
(1) cannot be located; (2) has been transferred to, sold to, or
deposited with, a third party; (3) has been placed beyond the
jurisdiction of the court; (4) has been substantially diminished in
value by any act or omission of the defendant; or (5) has been
commingled with other property which cannot be divided without
difficulty; the court shall order the forfeiture of any other property
of the defendant up to the value of any property described in paragraphs
(1) through (5).''
Pub. L. 98-473, Sec. 302, added subsec. (d).
Subsecs. (e) to (m). Pub. L. 98-473, Sec. 302, added subsecs. (d) to
(m).
Subsec. (m)(1). Pub. L. 98-473, Sec. 2301(c), struck out ``for at
least seven successive court days'' after ``dispose of the property''.
Transfer of Functions
For transfer of functions, personnel, assets, and liabilities of the
United States Customs Service of the Department of the Treasury,
including functions of the Secretary of the Treasury relating thereto,
to the Secretary of Homeland Security, and for treatment of related
references, see sections 203(1), 551(d), 552(d), and 557 of Title 6,
Domestic Security, and the Department of Homeland Security
Reorganization Plan of November 25, 2002, as modified, set out as a note
under section 542 of Title 6.
Section Referred to in Other Sections
This section is referred to in sections 2516, 3293, 3554 of this
title; title 7 section 12a; title 50 App. section 2410.
