People v. Green
California Court of Appeal
22 Cal. Rptr. 3d 736 (2004)
After sheriffs seized vehicles, office equipment, and cash from Douglas Green (defendant) pursuant to a search warrant, Green granted his attorney Lawrence Buckley an $80,000 secured promissory note against the seized property and its proceeds in exchange for legal services, and Buckley filed a Notice of Lien and financing statement, though he could not fully perfect his interest in the cash and vehicles since the sheriff retained physical possession of the money and title documents. Green was convicted of grand theft, burglary, and forgery and ordered to pay $95,661.41 in restitution to three victims; the seized property was later sold at auction for $33,426.95, and the trial court, uncertain whether the property had actually been purchased with stolen funds, found Buckley's security interest unperfected and ruled against him in the resulting distribution dispute, prompting Buckley's appeal.
Whether a secured creditor's unperfected security interest in a criminal defendant's seized property takes priority over crime victims' restitution claims when the victims never levied on the property or filed a notice of lien.