Judge Harold Baer
While executing search warrants in March and July 2011, and in May 2012, law enforcement found evidence of a large scale gambling operation at Won & Har Corp.'s Manhattan building—which is subject to civil forfeiture. In addition to video surveillance showing much of the gambling openly conducted, by March 29, 2012, a large sign stating "LUCKY U 777" with dollar signs scattered across the sign had been erected. Gao is a shareholder of TYT East Corp., the tenant in possession during the relevant time. Won & Har won a Feb. 14, 2013, eviction warrant against TYT, which vacated the premises. The court dismissed TYT's and Gao's claims to the property after concluding that they lacked Article III standing. After further concluding that there was probable cause to seize the property the court rejected Hon & War's innocent owner defense. It found Hon & War willfully blind to ongoing gambling at the building. In addition to not inspecting TYT's surrendered leasehold, Hon & War took no independent action to confirm that gambling had ceased. Further Hon & War disregarded its duty to comply with an injunction—as part of its settlement of an Oct. 4, 2011, public nuisance suit—barring it from permitting the property's use for gambling.
