Second Circuit Picks Sides On Criminal Forfeiture Circuit Split

In an opinion published on October 8, 2025, the Second Circuit vacated an order of forfeiture, holding that defendant Matt Elias could not be ordered to forfeit property that he never actually acquired. Through this ruling, the Second Circuit joins the majority side of a developing circuit split. Although Elias was convicted of Hobbs Act robbery, one could foresee the Court's holding applying in a variety of scenarios that frequently occur in white-collar cases, including when co-defendants in a fraud or money laundering scheme do not receive or only receive a portion of the proceeds.

Elias was the getaway driver for the robbery of a house in New York City. When convicted, he was ordered to forfeit $10,000, which was a pro rata share of what the co-defendants took during the robbery. But Elias was arrested on the night of the robbery and never received a share of the stolen property.