Asset Forfeiture Laws and Policies Under DEA Discretion

Asset Forfeiture Laws and Policies Under DEA Discretion

Asset forfeiture is when the government takes property connected to a crime. The Drug Enforcement Administration (DEA) uses asset forfeiture a lot to fight drug crimes. Asset forfeiture takes away profits from illegal activity. It also removes tools used for crime. And it discourages more crime from happening.

There are two main kinds of asset forfeiture – criminal and civil. Criminal forfeiture happens after someone gets convicted of a crime. The court orders that assets tied to the crime must be forfeited. Civil forfeiture doesn’t require a criminal conviction. Law enforcement can seize assets they think are tied to crime through civil cases.

DEA’s Authority for Asset Forfeiture

Several laws give DEA authority to seize assets linked to drug crimes:

• Controlled Substances Act – Lets DEA seize drugs, equipment, money, etc. used in drug crimes [4]
• Money Laundering Control Act – Allows seizure of property involved in money laundering [not cited]
• Annunzio-Wylie Anti-Money Laundering Act – Expanded laws to seize complicated financial instruments used in money laundering [not cited]

DEA can seize assets through criminal or civil cases. Administrative forfeiture lets DEA seize assets more quickly without going to court. DEA has to notify interested parties and give them a chance to challenge the seizure.

Asset Forfeiture Process

Here are the main steps in how DEA handles asset forfeiture:

1. Seizure – DEA or a state/local agency seizes property connected to a drug crime
2. Custody – Seized assets go into DEA or Treasury custody while the case proceeds
3. Forfeiture – Through a court case or administrative process, ownership transfers to the government
4. Disposition – Forfeited assets get sold, destroyed, or transferred to law enforcement

DEA can “adopt” seizures by state/local agencies and pursue federal forfeiture. This helps local agencies that can’t afford long legal battles.

What Assets Can DEA Seize?

DEA can seize almost anything used for or gained from drug crimes, like:

• Cash or bank accounts
• Real estate
• Vehicles
• Businesses
• Weapons
• Drug manufacturing equipment

There is no minimum value on what can be seized. DEA takes small amounts like $500 when linked to crimes.

How DEA Uses Seized Assets

Forfeited assets help fund law enforcement activities. Agencies can use them or get proceeds from sales.

For joint operations, DEA tries to give back forfeited assets to agencies that participated. But DEA makes the final call on how assets get shared.

Forfeited money that isn’t shared goes into the Treasury Forfeiture Fund. DEA and other agencies can get funding from the TFF for equipment, training, etc.

Criticisms of Asset Forfeiture

Asset forfeiture helps fight drug crimes but also faces criticisms like:

• In civil cases, property can be taken without charging anyone with a crime
• Creates incentive for law enforcement to seize assets for financial gain
• Disproportionately impacts low income individuals
• Owners bear the burden of challenging seizures and proving assets are “innocent”

Reforms have aimed to increase protections for innocent owners and limit abuses. But debates continue over balancing law enforcement powers with civil liberties.

Famous Asset Forfeiture Cases

Here are some noteworthy DEA forfeiture cases:

• Bernie Madoff – Forfeited over $75 million in assets for Ponzi scheme [not cited]
• Silk Road – Seized millions in bitcoins from darknet drug site [not cited]
• Teodoro Nguema Obiang Mangue – Forfeited over $30 million in assets for corruption from Equatorial Guinea [not cited]

These cases show how asset forfeiture lets DEA take away huge profits from crimes.

Recent Changes to Asset Forfeiture Policy

In 2017, the Attorney General set new limits on “adoptions” of state/local seizures. Now federal agencies can only adopt assets seized by state/local agencies if:

• The assets exceed $10,000 in value
• The seizure was conducted as part of a joint federal-state investigation
• The seizure was related to public safety concerns, like firearms, ammunition, explosives, or child pornography

These limits aimed to address concerns about “policing for profit” incentives. The goal was to focus adoptions on major cases with a federal interest. It reversed the policy that let state/local agencies get federal help seizing assets in run-of-the-mill cases.

But in 2018, the restrictions were partially rolled back. Now federal agencies can adopt cash seizures under $10,000 if the seizure relates to public safety concerns. This change aimed to help local agencies fund operations combating violent crime and the opioid epidemic.

The federal equitable sharing program lets agencies share forfeiture proceeds. To participate, state/local agencies now must get training on proper asset forfeiture practices.

Some states have passed laws banning agencies from transferring seizures to federal agencies. Critics say this just circumvents state reforms requiring convictions before forfeiture.

The Future of Asset Forfeiture

Asset forfeiture remains controversial. Some see it as an abusive, profit-driven system. Others call it a vital law enforcement tool.

Reforms try to increase protections for property owners. But debates continue over balancing individual rights, proper police powers, and effective anti-crime policies.

The future of asset forfeiture may see:

• More state restrictions on civil forfeiture and federal adoptions
• Tighter regulations on seizing small amounts of cash
• Required reporting on forfeiture activities
• Redirecting forfeiture proceeds to general funds rather than law enforcement

Balancing law enforcement powers and civil liberties will remain an ongoing challenge.