New Jersey’s Asset Forfeiture Laws: What You Need to Know

Asset forfeiture laws allow the government to seize assets that are connected to criminal activity. But what exactly does this mean for property owners in New Jersey? This article provides an overview of the key provisions in New Jersey Statute 2C:64-5 regarding seized property and the rights of owners.

What Property Can Be Seized?

Under New Jersey law, property that is deemed “prima facie contraband” can be seized by law enforcement without a court order. This includes things like illegal drugs, firearms used unlawfully, and proceeds from criminal activity over $1,000.

Property that is considered “derivative contraband” can also be seized if there is probable cause that it’s connected to a crime. This covers property used or intended to be used to facilitate illegal acts, like vehicles used to transport drugs or equipment used to manufacture counterfeit goods.

The law also allows seizure of “tainted property” – assets obtained from or used to further criminal activity. So if someone purchased a house with money earned from drug dealing, for example, the house could potentially be seized.

What Rights Do Property Owners Have?

Just because property is seized does not mean it will automatically be forfeited (permanently taken by the state). Property owners and interest holders have certain rights under 2C:64-5:

• Lessors cannot have their property forfeited if they were not involved in or aware of the criminal use of the property. So if you rent out a property that tenants use for illegal activity without your knowledge, your ownership rights are protected.
• If you lend property that is later seized, you can petition to have it returned or keep your interest in it. For example, if you finance someone’s vehicle purchase and the vehicle is later seized, you may be able to recover the amount still owed to you.
• Anyone who uses property with the owner’s consent or knowledge is considered an “agent” of the owner. So if you let someone borrow your car and they use it to transport illegal drugs, your car could potentially be seized and forfeited.

How Are Forfeiture Cases Handled?

After property is seized, the state has 90 days to file a forfeiture case against it in civil court. This starts the legal process to determine if the assets should be permanently forfeited.

Both property owners and interest holders have a right to fight the forfeiture in court. You can challenge the seizure itself and argue there was no legal basis for taking the property. Or you can admit the property is connected to criminal activity but try to defend your rights to it as an owner or interest holder.

The burden is initially on the state to show probable cause for seizure. But once that’s established, the burden shifts to the owner/interest holder to prove by a preponderance of evidence that the property should not be forfeited.

Potential Defenses And Arguments

There are various arguments owners and interest holders can make to avoid forfeiture, including:

• The property was not sufficiently connected to criminal conduct
• You did not know about or consent to the property’s illegal use
• You have an innocent owner defense (did not know about or participate in the crime)
• Forfeiture violates the 8th Amendment prohibition on excessive fines
• Mitigating circumstances like financial hardship or impact on family members

Much depends on the specific facts of each case – like the strength of evidence linking the assets to illegal acts, the owner’s level of knowledge/involvement, etc. An experienced attorney can help assess defenses and build the strongest argument to protect your rights.

What Happens to Forfeited Assets?

If assets are judicially forfeited, most are liquidated and the money goes to law enforcement agencies involved in the case. Forfeited vehicles, equipment, weapons, etc may be used directly by agencies or sold at auction.

There are some limits – New Jersey law requires forfeiture proceeds be used only for law enforcement purposes, not general revenue. And agencies must report on forfeitures to promote transparency around seizures.

But civil liberties groups have raised concerns about questionable seizures motivated more by financial gain than public safety. And the lack of criminal conviction in many cases where assets are never returned. Reforms have been proposed to strengthen due process and protect innocent owners.

Understanding Your Rights is Critical

Asset forfeiture can have devastating financial consequences for property owners. If you face seizure under New Jersey’s laws, understanding your rights under 2C:64-5 is critical. An experienced attorney can advise on the process and defenses, protect your interests, and give you the best chance of avoiding unjust forfeiture. Don’t hesitate to seek legal help right away if your property is at risk.