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Kimmel forfeiture amount still undecided
18-Dec-08 – Nearly a month after his sentencing, there is still no decision on how much money, if any, Gary Kimmel will have to forfeit as part of his conviction for money laundering. The Marina City resident was sentenced on November 20 to 37 months in prison for money laundering in connection with a nationwide prostitution ring. His attorney, Joseph Lopez, believes Kimmel will be eligible for work release after serving 25 months. Originally, Kimmel was to pay the government $405,000 as part of a plea agreement filed on May 29. Then it was decided the amount was not calculated properly and lowered to $342,000. The defense claims Kimmel has voluntarily sold all but one of his condominium units at Marina City, and paid more than the required amount of restitution. But a decision in a Supreme Court case, United States v. Santos, on June 2 – four days after Kimmel’s plea agreement – requires restitution in cases of money laundering be determined based on profits, not just gross receipts. If that’s the case, it could mean that Kimmel owes the government nothing. Attorney Paul Zido said Kimmel not only did not profit, but actually lost $300,000 – and now owes various creditors $97,231.30. At sentencing, Zido told the judge, “This ‘expert’ money launderer here lost $100,000. This man was street-dumb.” According to a motion Zido filed on December 16, all of the money Kimmel took in from the prostitution business went to repay automobile loans, buy insurance for the vehicles, cover rent on condo units used by the prostitutes, dental work performed by Kimmel, and other expenses such as airline tickets, bail, and advertising. Although the judge in the case, Honorable Blanche M. Manning, appeared to agree at sentencing that the Supreme Court ruling was applicable, her enthusiasm has clearly waned in recent weeks, At a status hearing Thursday morning, Zido struggled to convince her of the ruling’s relevance now. “I find the argument uncomfortable,” said Assistant U.S. Attorney Julie Ruder. She maintains $342,000 was the net proceeds and should be forfeited. Ruder argued that “profit” should have a broader definition and mean profits of the prostitution ring paid to Kimmel. “The plea agreement speaks for itself. Santos did not change the facts of this case.”
“Santos is applicable,” Zido told Judge Manning. “It is the current law, not the law when the plea agreement was made.” Manning was not impressed. “I don't see that under Santos but I’ll take it under advisement.” Kimmel could get more time before starting prison At sentencing, Kimmel was told he must report to prison on January 16. Saying his client needs more time to get his affairs in order, Lopez says he will file a motion to get the reporting date pushed back. He tried to get an immediate decision from Manning on Thursday but she declined, saying it would be discussed at the next status hearing on January 13. Meanwhile, the list price for the last of Kimmel’s condominium units at Marina City has fluctuated. On Thursday, the asking price for the three connected units on the 56th floor of the east residential tower was $869,500. On Friday, it was up to $871,500. “REDUCED 123K!!,” screams the MLS listing. The units were not subject to a forfeiture order filed in U.S. District Court on September 3, as long as Kimmel paid restitution. Related stories: |
