Trafficker requests return of $300,000

Ten years ago, convicted drug-trafficker Steven Kadonsky testified that a parcel of Park City land was purchased entirely with proceeds from illegal marijuana sales.

Based on his representations, and because a person is not entitled to profit from money gained through illegal means, federal agents seized Kadonsky's share of the $395,000 selling price of the property.

Now, however, Kadonsky claims his earlier testimony was in error and is asking a Utah federal judge to return to him the $300,000 seized in June 1994.

Acting as his own attorney, Kadonsky told U.S. District Judge Bruce Jenkins Thursday that he once believed the $220,000 his partner supplied to purchase the property came from drug sales. He now knows, he said, that the money was instead payment for legitimate services he provided his partner.

"So I was wrong in my grand jury testimony," said Kadonsky, a New Jersey inmate who is being housed at the Davis County Jail during the two-day bench trial.

An accountant by trade, Kadonsky testified Thursday that he prepared income tax returns and financial statements for his business partner, and provided financial advice.

Federal prosecutors dispute any money that came from Kadonsky or his partner in the early 1990s was earned through legitimate means. Even sales of an apparently legal product — a chemical that masked odors — was sold specifically to clients to mask marijuana smells, Assistant U.S. Attorney Carlie Christensen said Thursday.

"We believe the evidence will show that Mr. Kadonsky is not entitled to the proceeds," Christensen said.

Kadonsky first sued the United States in December 1998, seeking the return of the forfeited money. He claimed federal agents violated his due-process right to challenge the forfeiture action because they failed to notify him of the impeding seizure.

Jenkins granted summary judgment in favor of the government and dismissed the case in January 2000. Kadonsky appealed to the 10th U.S. Circuit Court of Appeals, which overturned Jenkins' decision in March 2001.

Kadonsky, 49, is serving a 25-to-life prison sentence for drug trafficking in Somerset County, N.J. He has additional convictions for conspiracy and drug possession and distribution.

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E-mail: awelling@desnews.com