Hyde

ORDER GRANTING MOTION BY THIRD PARTY CLAIMANT FOR INTERLOCUTORY SALE AND SUBSTITUTION OF NEW RES AS SUBSTITUTE PROPERTY AND GRANTING MOTION BY DEFENDANT TO SUBSTITUTE SECURITY FOR RELEASE BOND

Defendant John Hyde is charged with mail fraud, health care fraud and money laundering. The indictment seeks forfeiture under 18 U.S.C. Section 982 (2)(1) of over $1 million representing proceeds of Hyde’s alleged money laundering offenses. The indictment further specifies that in the event Hyde has transferred, commingled or placed that property beyond the jurisdiction of the Court, the Government will seek forfeiture of “any and all interest defendant has in any other property (not to exceed the value of the above forfeitable property),” including but not limited to his interest in residential property in Stinson Beach, California. The Stinson Beach property, listed as substitute property not forfeiture property, is nominally owned by HyKing of which Hyde’s daughter owns 49%, his daughter-in-law 49%, his wife 1% and himself 1%. The Government contends it will seek to pierce the corporate veil and demonstrate that Hyde in fact owns a much larger share of HyKing and thus the Stinson Beach…