Asset Forfeiture

What is asset forfeiture?

Asset forfeiture is the seizure and permanent taking of assets believed to be the proceeds of, or were used to facilitate, federal crimes. The United States Government seizes and forfeits assets in an effort to punish and deter criminals and to recover assets that may be used to compensate victims of crimes.

WARNING!
If you have received a Notice of Seizure of Personal Property or Right to Adversarial Preliminary Hearing, you must respond quickly.
You must file a request for an adverse preliminary hearing within fifteen (15) days or a verified claim within 30 days to preserve your rights.

What is an asset?

A seized asset or property can be money, real estate (houses, ranches, and commercial properties), cars, bank accounts, firearms, livestock, jewelry, watches, airplanes, etc. 

When does a seizure occur?

Seizures can occur during an arrest, pursuant to a search warrant, pursuant to a civil or criminal warrant for specific items, and/or pursuant to a judicial order of forfeiture.

When does forfeiture occur?

Forfeiture is the legal process by which an asset is taken, and its title (ownership) is transferred to the government.

The United States government does not have an automatic right to seize your private property. They must prove what was seized was used or going to be used to commit a crime or the property was used with funds from criminal activity. 

 

Types of Asset Forfeiture

Customs and Airport Seizures

Money seized by U.S. Customs at the airport is usually due to a person failing to disclose that they have more than $10,000.00 in cash. This often happens even when a person is not using the money to commit a crime or the money does not come from the proceeds of a crime.

Money seized by other federal agencies at the airport, such as DEA or TSA, can occur during a luggage search or due to your travel history in and out of certain countries. 

Administrative Forfeiture (typically seizures under $500,000.00)

IN ORDER TO KEEP THE SEIZED FUNDS IN THESE TYPES OF CASES,
THE UNITED STATES GOVERNMENT MUST COMPLY
WITH STRICT TIME LIMITS AND NOTICE REQUIREMENTS 

Generally, these cases involve property subject to forfeiture. This includes:

  • Monetary instruments, such as coins and currency, travelers’ checks, checks, money orders, etc, in any amount;

  • Cryptocurrency valued at $500,000.00 or less; the value of cryptocurrency is determined at/by the date of seizure;

  • Personal property, including but not limited to vehicles, airplanes, merchandise, baggage, jewelry, art, furniture, and antiques valued at less than or equal to $500,000.00 USD;

  • A vehicle, vessel, or aircraft used to import, export, transport or store any controlled substance or listed chemical (such as cocaine); and

  • Prohibited merchandise (as defined by federal statute).

Administrative forfeiture is not authorized for real property; personal property valued at more than $500,000.00; funds seized from a bank account in an amount of more than $500,000.00; or property subject to forfeiture pursuant to a statute that does not incorporate the customs laws. 

Civil Judicial Forfeiture

These court proceedings are brought against property that the United States government alleges is from or used to commit a crime, rather than against the person who committed the offense. A criminal conviction is not required to seize and forfeit property under this procedure BUT the government is still required to prove in court that the property was linked to criminal activity. 

The United States can seize assets for which they have a civil seizure warrant, a warrant of arrest pursuant to Rule G(3)(b)(ii) Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions after a civil forfeiture action has been filed, and a warrantless seizure for forfeiture purposes. 

This process is used to seize and forfeit assets when:

  • two or more items of personal property have a value of $500,000 or more, a common owner, are subject to civil forfeiture with the same set of facts and same statutory authority;

  • the items subject to forfeiture administratively and judicially, and can be included in a single judicial action;

  • pursuing administrative forfeiture may create the appearance that the government is circumventing required time limits;

  • the federal prosecutor and seizing agency agree that is should proceed judicially;

  • the federal prosecutor requests that the seizing agency suspend the administrative forfeiture in favor of a criminal judicial forfeiture and the seizing agency agrees, and the seizure will be pursued exclusively as part of a criminal case;

  • it is the property of people located outside the United States, including terrorists and fugitives; 

  • the seized assets are held by someone who has died or where no defendant can be identified. 

Criminal Forfeiture

These court proceedings are against a person. The United States government will seize the assets of a person they believe are related to a criminal investigation or pending prosecution. 

Criminal forfeiture requires a criminal conviction and forfeiture is part of the defendant’s sentencing. 

The Castaneda Law Firm represents clients in asset seizure and forfeiture defense proceedings including the following:

  • Rule 41 Motions for the return of funds;

  • Supplemental Rule G proceedings;

  • Administrative forfeiture;

  • Judicial forfeiture;

  • Customs and Airport seizures;

  • Civil and criminal seizure warrants;

  • Cryptocurrency recovery;

  • Criminal proceedings involving the forfeiture of assets alleged to be connected to, or facilitating, criminal activity.