U.S. v. BATATO

No. 15-1360.

833 F.3d 413 (2016)

UNITED STATES of America, Plaintiff-Appellee, v. Finn BATATO; Bram Van Der Kolk; Julius Bencko; Mathias Ortmann; Sven Echternach; Kim Dotcom; Megaupload Limited; Megapay Limited; Vestor Limited; Megamedia Limited; Megastuff Limited; Mona Dotcom, Claimants-Appellants, and All Assets Listed in Attachment A, and All Interest, Benefits, and Assets Traceable Thereto, in Rem, Defendant. Cato Institute; Institute for Justice; National Association of Criminal Defense Lawyers, Amici Supporting Appellants.

United States Court of Appeals, Fourth Circuit.

Decided: August 12, 2016.


Attorney(s) appearing for the Case

ARGUED: Michael S. Elkin , Winston & Strawn LLP, New York, New York, for Appellants. Jay V. Prabhu , Office of the United States Attorney, Alexandria, Virginia, for Appellee. ON BRIEF: Craig C. Reilly , Alexandria, Virginia, for Appellants; Robb C. Adkins , San Francisco, California, Steffen N. Johnson , Christopher E. Mills , Winston & Strawn LLP, Washington, D.C., for Appellant Megaupload Limited; David B. Smith , Smith & Zimmerman, PLLC, Alexandria, Virginia, for Appellants Julius Bencko and Sven Echternach; Ira P. Rothken , Jared R. Smith , Rothken Law Firm, Novato, California, William A. Burck , Derek L. Shaffer , Stephen M. Hauss , Quinn Emanuel Urquhart & Sullivan, Washington, D.C., for Appellants Kim Dotcom and Megaupload Limited. Dana J. Boente , United States Attorney, G. Wingate Grant , Assistant United States Attorney, Karen L. Taylor , Assistant United States Attorney, Jasmine H. Yoon , Assistant United States Attorney, Allison B. Ickovic , Special Assistant United States Attorney, Office of the United States Attorney, Alexandria, Virginia; Ryan K. Dickey , Brian L. Levine , Senior Counsel, Computer Crime & Intellectual Property Section, United States Department of Justice, Washington, D.C., for Appellee. Darpana Sheth , Institute for Justice, Arlington, Virginia, Thomas K. Maher , North Carolina Office of Indigent Defense Services, Durham, North Carolina, Ilya Shapiro , Cato Institute, Washington, D.C., for Amici Cato Institute, Institute for Justice, and National Association of Criminal Defense Lawyers.

Affirmed by published opinion. Chief Judge Gregory wrote the majority opinion, in which Judge Duncan joined. Judge Floyd wrote a dissenting opinion.


The claimants in this case appeal from the district court's entry of default judgment for the government in a civil forfeiture action against funds deposited in the claimants' names in banks in New Zealand and Hong Kong. Default judgment was entered after the government successfully moved to disentitle the claimants from defending...

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