It started with an anonymous email sent directly to Jeff Bezos.
In December 2019, someone hit "send" on a message that accused Carl Nelson, a real estate executive at Amazon Web Services (AWS), of running a massive kickback scheme. Within months, the lives of Carl and his wife, Amy Nelson, were turned upside down.
If you’ve spent any time on TikTok or Instagram lately, you’ve likely seen Amy Nelson. She’s the founder of The Riveter, a high-profile co-working space for women, but these days her content isn't about office floor plans or venture capital. It’s about a multi-year legal war against one of the most powerful corporations on the planet.
Basically, the Nelsons claim that Amazon used its massive influence to weaponize the federal government against them. Honestly, the details are pretty terrifying for anyone who has ever signed an employment contract.
The Morning the FBI Showed Up
April 2, 2020. While most of the world was figuring out how to Zoom during the early pandemic lockdowns, the FBI was at the Nelsons' front door in Seattle.
They weren't just there to chat. They were there to seize everything.
Under a legal mechanism called civil asset forfeiture, the government took nearly $900,000 from the family. This included Amy’s personal earnings and savings from her time as a corporate attorney and the CEO of her own company. The wildest part? She wasn't even the one being accused of a crime.
The government "arrested" their money without actually charging Carl with a crime at the time. You read that right. In the U.S. legal system, the government can seize your assets if they suspect they are tied to a crime, even if they haven't proven anything in court yet.
Why Amazon Went After Carl Nelson
The core of the dispute centers on Northern Virginia real estate. Between 2012 and 2019, Carl Nelson worked on the team scouting land for AWS data centers. Amazon alleged that Carl, along with his colleague Casey Kirschner and a developer named Brian Watson, rigged the system.
The company claimed they:
- Inflated prices on land deals.
- Received millions in illegal kickbacks through shell companies.
- Violated the RICO Act (the same law used to take down the Mafia).
Carl’s defense was simple: "I didn't do it." He argued that his 2012 employment contract explicitly allowed for outside business activities. He claimed the deals were vetted and that Amazon actually saved money on the transactions.
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The Turning Point: 2023 to 2026
For years, the Nelsons lived in a state of "legal hell." They sold their home in Seattle. They sold their car. They moved to Ohio to be near family because they were essentially broke, their funds tied up by the Department of Justice (DOJ).
Then, things started to shift.
In April 2023, U.S. District Judge Rossie Alston Jr. dealt a massive blow to Amazon’s civil case. He dismissed seven of the eight claims Amazon brought against Carl Nelson. The judge pointed out that Amazon failed to prove it actually suffered any financial damage. In fact, the judge noted that the very activities Amazon was complaining about seemed to be authorized by Carl’s own contract.
The DOJ Drops the Case
By early 2025, the criminal side of the story took an even stranger turn. The DOJ had previously secured guilty pleas from two other individuals involved in the real estate deals, Christian Kirschner and Kyle Ramstetter.
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In a move that almost never happens, federal prosecutors asked to vacate those guilty pleas.
U.S. Attorney Jessica Aber stated that continuing the prosecution was "not in the best interests of justice." Just like that, the criminal investigation into Carl Nelson was effectively dead. The government returned most of the seized money—though the Nelsons had to agree to settle for 85% and promise not to sue the government to get it back.
Is the Fight Between Amy Nelson and Jeff Bezos Over?
Not quite.
Even though the "RICO" headlines and the threat of prison time have mostly faded, Amazon hasn't fully let go. The company has continued to pursue civil litigation, appearing determined to prove that a breach of contract occurred, even if it wasn't a federal crime.
For Amy Nelson, the mission has evolved. She’s no longer just a wife defending her husband; she’s become a vocal advocate for civil asset forfeiture reform. She’s used her platform to highlight how easily a large corporation can collaborate with federal authorities to crush an individual’s financial ability to defend themselves.
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"What Jeff Bezos has done to my family should be on the front page of every newspaper," she told reporters in 2024. She often points to the "cozy" relationship between Amazon’s legal team—many of whom are former DOJ employees—and the offices they used to work for.
What You Can Learn from the Nelson Case
This isn't just a story about billionaires and data centers. It’s a cautionary tale about the fine print in your employment agreement.
- Review Your Conflict of Interest Clauses: Carl Nelson believed he was acting within his contract. Amazon disagreed. If you have side projects, get a written sign-off from your employer.
- Understand Civil Forfeiture: Most people think the government needs a conviction to take your bank account. The Nelson case proves that isn't true.
- The Power of Public Narrative: Amy Nelson’s decision to go public on TikTok and Instagram arguably changed the trajectory of the case. By bringing eyes to the situation, she made it much harder for the "United States of Amazon" to operate in the shadows.
The Nelsons are now rebuilding in Columbus, Ohio. Amy has launched a new venture called Cotton Candy and Dreams, focusing on family experiences. It’s a far cry from the high-stakes world of Seattle tech, but after four years of fighting the world's richest man, "quiet" is probably exactly what they need.
Next Steps for Protecting Yourself:
- Audit Your Employment Contract: Check for "Non-Compete" and "Outside Interest" clauses. In many states, like Washington and California, these laws have changed significantly in the last few years.
- Keep Personal and Business Funds Separate: The government was able to seize Amy's money because it was "commingled" in joint accounts with Carl. If you are an entrepreneur, keep your business accounts entirely distinct from your spouse's employment-related income.
- Follow Forfeiture Reform: Organizations like the Institute for Justice are actively working to change the laws that allowed the Nelsons' money to be seized without a charge. Supporting these legislative changes is the only way to ensure this doesn't happen to the next family.