Newsclipping summary:

FEAR-List Bulletin posted by Brenda Grantland, 10/5/95

The Pittsburgh Post-Gazette reports that "fallen financier" Michael P. Carlow has involuntarily contributed to the federal government's forfeiture machine. Boston U.S. Attorney Frederick Thieman filed four civil forfeiture lawsuits against Carlow's properties, alleging the properties "were paid for in part with more than $400,000 Carlow [allegedly] illegally took from PNC."

The federal prosecutors alleged that Carlow used an elaborate check-kiting scheme to defraud PNC bank out of $31.3 million. "Alleged" is an important word here, for not only was Carlow never convicted of the alleged crimes, but he wasn't even arrested or indicted. No one was. Under the civil forfeiture laws, the government will not have to prove Carlow was guilty of the offenses alleged - all they have to show is probable cause, the flimsy burden of proof used to get a search warrant.

Carlow's seized condominium in Boston's Heritage on the Garden complex sold for $1.4 million. "PNC Bank, his biggest creditor, will get what's left after a mortgage, closing costs and other expenses are paid" the Post-Gazette reports.

U.S. Attorney Thieman is proceeding with the three forfeiture cases - against "a Beaver Creek, Colo., condo Carlow purchased in 1992, a 1995 Mercedes Benz S600V seized at Carlow's Upper St. Clair home on July 19, and a 1993 Range Rover."

Carlow's actions after the investigation didn't help his forfeiture case. The article indicates that the Boston condo "changed hands three times following PNC's accusations, apparently an attempt to keep it out of the reach of creditors. Carlow sold it to Elizabeth Gilmore Jones, his former spokeswoman, for $1 on Feb. 14. Jones sold the condo back to Carlow for $1 on May 9, then bought it back for $1 on May 23, the court papers state."

The government also appears to have gotten some involuntary contributions to the forfeiture fund from a couple of innocent owners. Under the terms of the forfeiture settlement "Carlow's ex-wife, Marilyn D. Carlow of Lexington, Mass., and First Commerce Investment Co. agreed to relinquish their rights to proceeds from the sale."

"First Commerce is a holding company controlled by Carlow and his father, Uniontown businessman Frank V. Carlow. First Commerce had a $1.7 million second mortgage against the property."

A court-appointed trustee is liquidating Carlow's businesses, including Pittsburgh Brewing. "A federal bankruptcy judge has approved a $29.4 million bid for the brewery made by Joseph Piccirilli, a Coraopolis investor."

This just goes to show modern federal prosecuting is not only easier than proving criminal defendants guilty beyond a reasonable doubt - but far more lucrative!