Wilson

Petitioner-Appellants Richard A. Gray, Jr., Gray Investment Partners, and Cumberland Hill Capital Fund, L.P., (collectively “Gray”) appeal the district court’s order dismissing their third-party petition to adjudicate property interests in forfeited property. We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we reverse and remand.

I.

A.

Stefan Wilson operated a fraudulent investment fund. His Ponzi scheme took almost $13 million from over 50 investors. Gray was among the investors.

By January 2008, the Government had been investigating Wilson for some time. Unaware of the investigation, Gray executed a standard subscription agreement in Wilson’s fund on January 28, 2008. Gray wired a total of $2.3 million to Wilson’s account at Washington Mutual Bank on February 2, 2008.

On February 2 and February 5, 2008, Wilson transferred the entirety of Gray’s funds to an Ameritrade brokerage account, which Wilson had been using to carry out his fraud. Prior to the transfer of Gray’s funds, the account balance was allegedly $324.43.

On February 12, 2008, an FBI agent met with Nell Johnson, another victim of the Ponzi scheme. Following the interview, Johnson demanded that…