United States v. Catarino Murillo

This appeal is one of three spawned by the heroin distribution prosecution of Ca-tarino Murillo. In an unpublished memorandum, Nos. 81-1727 and 82-5304, we affirmed Murillo’s conviction and the district court’s denial of a motion to intervene filed on behalf of Murillo’s minor children. In this appeal the government challenges the district court’s order exempting certain property from the jury’s special forfeiture verdict under 21 U.S.C. § 848 . We reverse.

Prior to 1976, Murillo was a spray painter earning approximately $4.50 per hour. He lived in lower middle income housing and experienced financial difficulties. In 1976, he borrowed money from his relatives and bought the Los Arcos bar for approximately $6,000. Although Murillo’s tax returns indicated that the bar was not profitable, (in 1979, he reported a net loss of $27.49) and that his taxable income was declining, his lifestyle improved drastically. By 1979, Murillo had approximately $1,200,000 in Mexican bank accounts and owned several valuable pieces of property in Southern California. He also owned several vehicles and various other luxury goods. Most of these items were purchased with cash. Murillo’s total cash…