SACK
Peters appealed conviction of various counts related to a scheme to defraud Chase Manhattan Bank, from a district court judgment ordering forfeiture of $23,154,259 under 18 USC §982(a)(2). Peters, who was charged with overvaluing assets used to secure and maintain a revolving line of credit, contended that §982 requires him to forfeit only the “profits” of the fraudulent scheme, not all payments that his companies received under the Chase loan. He also contended that district court erroneously “pierced the corporate veil” to find he personally “obtained” loan proceeds paid to his companies. Second Circuit affirmed the forfeiture award, concluding that §982 requires forfeiture of the gross receipts of the criminal violation, not only the profits. The circuit also held that, given his almost total control over the companies involved in the violation and their assets, Peters “indirectly” obtained the proceeds of the fraud through the companies and can be held accountable for their criminal forfeiture under §982. The court noted that Peters effectively owned 99 percent of the companies and exercised almost total control over their management and finances, adding that he also had complete access to and control over the assets.
