Insurance Fraudster’s Company Denied Return of Seized Documents

Grist Mill Capital LLC—a Connecticut company owned by a convicted insurance fraudster—isn’t entitled to the return of property seized by law enforcement, at least not yet, the Second Circuit said.

The presumed right to the return of seized non-contraband property after the completion of a criminal proceeding is rebutted by the existence of a pending motion collaterally attacking the conviction, the court said, reversing a district court order directing the government to destroy the seized materials.

GMC’s owner, Daniel Carpenter, was found guilty in 2016 of 57 counts of conspiracy, mail and wire fraud, money laundering and illegal monetary ...