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26 Nov 23

Managing Asset Forfeiture in Federal Cases

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Last Updated on: 5th December 2023, 02:11 pm

 

Managing Asset Forfeiture in Federal Cases: What You Need to Know

Asset forfeiture — the legal taking of property by the government connected to a crime — can be a complex and stressful process to navigate. As a property owner facing federal civil forfeiture, having an experienced attorney on your side is critical. This article breaks down key considerations in federal asset forfeiture cases so you know what to expect.

What is Asset Forfeiture?

In basic terms, asset forfeiture is when the U.S. government takes your property because they believe it was used to commit a federal crime or obtained through illegal proceeds. There are two main types:

  • Criminal forfeiture – Happens after a conviction, as part of someone’s sentence.
  • Civil forfeiture – The property itself is considered guilty. No criminal conviction required. Much more common.

The DOJ runs the federal asset forfeiture program to supposedly disrupt criminal activity. But nowadays forfeiture is used more broadly in financial fraud and white collar cases too.

Since it’s civil law, the government only needs to show there’s a preponderance of evidence — more likely than not — that your assets came from something illegal. Much lower bar than proving guilt “beyond reasonable doubt.”

Crazy right? Your property can basically be guilty until proven innocent. That’s why having a good lawyer is so important.

Key Steps in Federal Civil Forfeiture Cases

Here’s the usual process for federal civil asset forfeiture:

  1. Investigation – Gov’t looks into potential illegal activity connected to your assets
  2. Seizure – Feds take your property without even charging you with a crime
  3. Notice – You receive a vague letter saying your assets were seized
  4. Challenge – Only way to contest is filing a judicial claim within 30 days (!)
  5. Discovery – You try to find out why they took your stuff
  6. Settlement – Most cases end with some sort of settlement agreement
  7. Trial – If no settlement, there’s a bench trial in civil court

Some major problems here: The extremely short window to challenge the seizure, the expensive legal costs, the difficulty getting proper discovery, and the low evidence bar. More on how to deal with these issues below.

Key Legal Considerations

  • Burden of Proof: Remember, this is civil law so the burden is only preponderance of the evidence. Much easier for the feds.
  • Innocent Owner Defense: As the name suggests, you argue you did nothing wrong and had no idea your property was connected to any crime. Tough to prove unfortunately.
  • Excessive Fines: You can claim the forfeiture violates Constitutional protections against excessive government fines. Depend on value seized and conduct alleged.
  • Hardship Release: If the seizure causes significant hardship, you can petition to get all or some assets released. But again, tough to get approved.
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As you can see, the deck is often stacked against property owners in fed civil forfeiture cases. Having a seasoned lawyer fighting for you is essential.

Common Defenses and Strategies

Here are some of the most effective legal defenses and strategies in federal asset forfeiture cases:

  • File a Claim Immediately: Don’t let the short 30-day deadline slip by. Contest the seizure ASAP.
  • Attack the Evidence: Look for holes in their reasoning, challenge witness credibility, put govt to their burden of proof.
  • Mitigate Harm: File for hardship release, or negotiate a settlement allowing you to keep portion of assets.
  • Innocent Owner: Convince judge you didn’t know of any illegal activity, had no reasonable cause for suspicion.
  • Disproportionality: Seizure needs to be proportional to allegations. Argue excessive fines if seizure too extreme.
  • Public Policy: Stress public policy against depriving property without clear proof of criminal wrongdoing.

The key is casting doubt on the government’s basis for seizing your property in the first place. An experienced asset forfeiture attorney knows how to build the strongest case possible under the circumstances.

Takeaways for Property Owners

Dealing with federal civil asset forfeiture can be downright scary. But going in with the right legal advice can make a huge difference. Here are the big takeaways:

  • Act immediately once assets are seized – deadlines come quick
  • Emphasize the weakness of allegations – make them prove it
  • Consider settlement to recover some assets – something better than nothing
  • Argue excessive fines if seizure seems extreme – Constitutional issues
  • Prepare solid innocent owner defense – prove clean hands

Stay calm and know it’s an uphill battle, but there are ways to fight back. With a smart lawyer guiding you each step, the feds can be forced to return seized property. It won’t be easy, but winning these cases is possible. Don’t lose hope!

I hope this overview gives you a good sense of what to expect with federal civil asset forfeiture. It’s an intimidating process, but knowledge is power. Understanding the typical roadmap, key laws, and strongest defenses will help you tackle forfeiture cases as effectively as possible. Let me know if any other questions come up!