-Caveat Lector-   <A HREF="http://www.ctrl.org/">
</A> -Cui Bono?-

Some Islamic countries impose Draconian penalties on men who
approach and talk to women in public. In Washington, D.C.,
Portland, Oregon, and Hartford, Connecticut, police confiscate
the cars of men who drive up and suggest a "capitalist act
between consenting adults" to streetwalkers. Customs Service
officials in Texas seized a $138,000 Lear jet after discovering
that the owner had made a typographical error on paperwork he
submitted to the Federal Aviation Administration.[35] (The FAA's
usual response to such a mistake is to require the owner to
correct the form.)

The Immigration and Naturalization Service has seized over 30,000
cars and trucks since 1990 from either people helping illegal
immigrants enter the United States or construction companies
transporting illegal immigrants to job sites .[36] Customs agents
confiscated the $113,000 that a Vietnamese mother had collected
from 20 families in the Seattle area to take back to Vietnam for
humanitarian relief for their relatives.[37] (Customs officials
pronounced the woman guilty of violating the Trading with the
Enemy Act.)

A New Jersey mother's Oldsmobile was confiscated by police after
they alleged that her son had used it to drive to a store where
he shoplifted a pair of pants.[38] One New York businessman was
forced to forfeit all of his gas stations because of a failure to
pay New York sales tax.[39] A New Jersey construction company had
all its equipment seized after state officials decided that the
company was technically ineligible to bid on three municipal
projects that it had already completed.[40] Suffolk County, New
York, legislators considered a law in 1993 to allow local
officials to confiscate the "cars, boats and planes used in
connection with any misdemeanor."[41]

Asset confiscation programs are creating thousands of new police
informants. The Justice Department routinely gives monetary
rewards to individuals who report information or make accusations
that lead to a seizure. The forfeiture program thus turns many
airline ticket agents into conspirators with the government,
since anyone who pays cash for an airline ticket stands a chance
of being reported as a suspected drug dealer or an accomplice to
drug dealing.

Perverse Incentives

Forfeiture is the biggest growth area in law enforcement partly
because federal and local police agencies usually keep a large
amount of the booty they seize. Federal Judge Richard Arnold
noted in 1992 that some observers were questioning "whether we
are seeing fair and effective law enforcement or an insatiable
appetite for a source for increased agency revenue."[42] In
Nueces County, Texas, Sheriff James Hickey used assets from a
federal drug forfeiture fund to grant himself a retroactive
$48,000 salary increase just before retirement ($400 a month for
the previous ten years). The sheriff was indicted for
embezzlement by a federal grand jury in August 1993.[43] Even
internal government documents concede that federal agents have
gone overboard: a September 1992 Justice Department news letter
noted, "Like children in a candy shop, the law enforcement
community chose all manner and method of seizing and forfeiting
property, gorging ourselves in an effort which soon came to
resemble one designed to raise revenues."[44]

Prosecutors and legislators stack the deck against property
rights. A 1990 Justice Department directive declared, "It is the
Department's position that no advance notice or opportunity for
an adversary hearing is statutorily or constitutionally required
prior to the seizure of property, including real property."[45]

Professor Claudio Riedi noted in 1992 in the University of Miami
Law Review, "Frequently, the government can meet its burden of
proof by simply qualifying one of its detectives as an expert,
who then testifies that a particular way of bundling money is
typical for drug dealers. Standing alone, such testimony may be
enough for a showing of probable cause, and may therefore entitle
the government to forfeiture. In contrast, an innocent owner must
adduce massive evidence to prove her case."[46]

The Orlando Sentinel noted, "Deputies routinely said bills in
denominations of $1, $5, $10, $20, $50, and $100 were suspicious
because they are typical of what dealers carry. But that leaves
few alternatives for others."[47]

In most forfeiture court proceedings, it is up to the owner to
prove that his house, his car, or the cash in his wallet was
legally obtained--the government has no obligation to prove that
the property is guilty. The fact that a government official makes
an unsubstantiated assertion that a piece of property was somehow
involved in illicit activity effectively transfers the ownership
of that property to the government.

Asset forfeiture is proliferating in part because of a
technicality in the law that allows the government to claim that
it is suing only the item of property, not the property's owner.
This is why forfeiture cases often have peculiar titles such as
"U.S. v. 1960 bags of coffee," "U.S. vs. 9.6 acres of land and
lake," or "U.S. vs. 667 bottles of wine." And since the Bill of
Rights recognizes the rights only of citizens and state
governments, not the rights of chunks of land or bottles of wine,
there are almost no due process restrictions on government's
attacks on property. A federal appeals court recognized this when
it announced in August 1992: "We continue to be enormously
troubled by the government's increasing and virtually unchecked
use of the civil forfeiture statutes and the disregard for due
process that is buried in those statutes."[48] The citizen must
show vastly more evidence to reclaim his property than the
government did to seize it in the first place.

Government officials routinely refuse to return seized property
even after an accused person has been tried and found innocent.
The costs of suing the government to recover property are
extremely high, routinely exceeding $10,000, and citizens must
post a bond of up to $5,000 before filing suit. (The bond is
required to cover the government's legal costs in having to
defend against a property owner's efforts to reclaim his
property.) The legal battles required to recover wrongfully
seized property often take two, three, or more years. If the
property seized is only worth a few hundred dollars, the person
cannot possibly break even by suing the government. Most
forfeiture statutes deny a private citizen any compensation for
his attorney's fees when he successfully reclaims forfeited
property.

No End in Sight

Although the number of asset forfeiture actions has skyrocketed
in recent years, Justice Department officials apparently believe
that the seizure bull market has only just begun. Cary H.
Copeland, director of the Department of Justice's Executive
Office for Asset Forfeiture, declared at a June 1993
congressional hearing: "Asset forfeiture is still in its relative
infancy as a law enforcement program."[49] The Federal Bureau of
Investigation announced in 1992 that it anticipated that its
total seizures of private property would increase 25 percent each
year for the following three years.[50] The Supreme Court
marginally limited government forfeiture powers in several 1993
decisions, but Justice Department spokesman Mark Sakaley
indicated that the decisions were not expected to have a major
impact on forfeiture programs.

Mr. Copeland declared that asset forfeiture "is to the drug war
what smart bombs and air power are to modern warfare.''[51] Asset
forfeiture basically allows government agencies to carpet bomb
the rights of the American people. The Federal Eighth Circuit
Court of Appeals complained in 1992 that it was "troubled by the
government's view that any property, whether it be a hobo's hovel
or the Empire State Building, can be seized by the government
because the owner, regardless of his or her past criminal record,
engages in a single drug transaction."[52]

Conclusions and Implications

Law enforcement in the United States is reverting back toward
conditions existing in England before the Magna Carta, when
rulers almost automatically seized all the property of any person
convicted of a felony. Such seizures spurred English barons to
force King John to limit his powers in 1215.[53] Unfortunately,
some federal officials appear to cherish a pre-thirteenth century
philosophy of government power. (A 1992 U.S. Solicitor General's
brief quoted the Old Testament and praised forfeiture as an
"ancient punishment.")[54] Asset forfeiture provisions presume
that government officials should have the power to inflict
economic capital punishment on private citizens for the breaking
of scores of laws.

Many civil libertarians believed that the liberal Clinton
administration and Attorney General Janet Reno would correct some
of the most overt abuses in the forfeiture program. However, Reno
has continually postponed substantive reform and even derailed a
bipartisan liberal-conservative congressional effort to reform
the forfeiture law. Instead, Reno's Justice Department has put
forward its own "reform" proposal that has been derided as a
"prosecutor's wish list" by forfeiture expert David Smith.

The asset seizure controversy redefines the relation between the
State and the citizen: what pretext does the State need to claim
that a citizen's property actually belongs to the State? Do
people have a right to their property only until some "secret
informant" tells police something bad about the citizen's use of
his property? If Congress proposed to forcibly alter all private
deeds and titles in the United States by adding a clause stating
that the government acquires automatic ownership rights if any
law enforcement official hears a rumor about a property's
possible illicit use, the public backlash would raze Capitol
Hill. But, increasingly, that is the law of the land.

End Notes



1. The federal government had possessed limited seizure powers
since 1789, but these were limited to areas such as smuggling and
customs evasion. Return

2. Cary Copeland, "Civil Forfeiture for the Non-Lawyer," U.S.
Department

of Justice. Bureau of Justice Assistance Forfeiture Project,
Spring 1992. Return

3. Brief of the Institute for Justice in the case of U.S. vs.
"James Daniel Good Real Property, et al.," No. 92-1180. Return

4. In California alone, more than $180 million worth of property
has been forfeited since 1989 under a state forfeiture law. Gary
Webb, "Police lobbying to save state asset forfeiture law," San
Jose Mercury News, September 7, 1993. Return

5. Interview with Steven Kessler, September 21, 1993. Kessler's
study on

forfeiture is titled "Civil and Criminal Forfeiture: Federal and
State Practice" (New York: Clark, Boardman and Callaghan, 1993).
Return

6. Lynne Marek, "Hyde Seeks to Curb Property Seizures by U.S.,"
Chicago Tribune, June 16, 1993. Return 7. Paul Kirby, "S.C.
Woman: Criminal Asset Forfeiture Program Needs Reforms," States
News Service, June 22, 1993. Return

8. Paul Finkelman, "The Latest Front in the War on Drugs: The
First Amendment," Drug Law Report, March-April 1991. Return

9. "Willie Jones v. U.S. Drug Enforcement Administration," 1993
U.S. Dist. LEXIS 5409 (April 23, 1993). Return

10. Andrew Schneider and Mary Pat Flaherty, "Police Profit by
Seizing Homes of Innocent," Pittsburgh Press, August 12, 1991.
Return

11. Christopher Elser, "Two Admit Growing in Marijuana at Home,"
Allentown (Pa.) Morning Call, March 16, 1995. Return

12. Gary Fields, "'Robbery with a Badge' in the Nation's
Capital," USA Today, May 18, 1992. Return

13. Ibid. Return

14. Jeff Brazil and Steve Berry, "Tainted cash or easy money?"
Orlando Sentinel, various dates, 1992. The series of articles won
the 1993 Pulitzer Prize. Return

15. "Weeks After Seizing Pickups, Feds Still Mum About Charges,"
Livestock Weekly, May 21, 1992. Return

16. Interview with Anthony Nicholas, counsel for the Smiths, July
31, 1993. Return

17. Written statement of W. B. Smith, December 1992. Return

18. U.S. Congress, House Government Operations Com- mittee,
"Asset Forfeiture," June 22, 1993. Written statement submitted by
Nancy Hollander, p. 9. Return

19. Andrew Schneider and Mary Pat Flaherty, "Government Seizures
Victimize Innocent." Pittsburgh Press, August ll, 1991. Return

20. Phil Reeves, "Gun Law Claims a Rich Recluse," The
Independent, October 18, 1992. Return

21. Editorial, ''Thieves with Badges," Sacramento Bee, April 2,
1993. Return

22. Carol Bidwell, "Motives for Raid Questioned," Houston
Chronicle, April 4, 1993. Return

23. Michael Fessier, "Trial's End," Los Angeles Times Magazine,
August 1, 1993. Return

24. Daryl Kelley, "Block Challenges Critical Report on Malibu
Ranch Raid," Los Angeles Times, April 9, 1993. Return

25. Editorial, "Thieves with Badges." Return

26. Dennis O'Brien, "Prosecutors Want Veto of Forfeiture Bill,"
Baltimore Sun, April 18, 1994. Return

27. Ibid. Return

28. U.S. Department of Justice, Annual Report of the Department
of Justice Asset Forfeiture Program 1991 (Washington: Government
Printing Office, 1992), p. 7. Return

29. As lawyer Terrance G. Reed noted, "This probable cause
standard for seizure allows the government to dispossess property
owners based only upon hearsay or innuendo - 'evidence' of
insufficient reliability to be admissible in a court of law."
Terrance G. Reed, "American Forfeiture Law: Property Owners Meet
the Prosecutors," Cato Institute Policy Analysis No. 179.
September 29, 1992. Return

30. Andrew Schneider and Mary Pat Flaherty, "With Sketchy Data,
Government Seizes House From Man's Heirs," Pittsburgh Press,
August 14, 1991. Return

31. Mary Pemberton, "Baltimore Public-Housing Tenants Begin a
Rent Strike," Associated Press, February 24, 1993. Return

32. "In War on Narcotics, Tough New Statutes Target Owners of
Drug-Ridden Properties," Wall Street Journal, March 29, 1989.
Return

33. Andrew Schneider and Mary Pat Flaherty, "Police Profit by
Seizing Homes of Innocent." Return

34. "Landlords Upset with Board-ups," United Press International,
July 29, 1992. Return

35. Written statement of Forfeiture Endangers American Rights,
Franklin, New Jersey. September 30, 1992. Return

36. U.S. Department of Justice, Annual Report (1991), p. 29.
Return

37. Brazil and Berry. Return

38. David Kaplan, Bob Cohn, and Karen Springen, "Where the
Innocent Lose." Newsweek, January 4. 1993, p. 42 Return

39. Reed, op. cit., p. 12. Return

40. Ibid., p. 1. Return

41. Rick Brand and Katti Gray, "DWI? They Might Take Your Car,"
Newsday, May 12, 1993. Return

42. U.S. v. Twelve Thousand, Three Hundred Ninety Dollars, 956 F.
2d 801, 808 (1992). Return

43. "Sheriffs Own Pay Raise Leads to Indictment," Associated
Press, August 19, 1993. Return

44. U.S. Department of Justice, "Message from the Director: 'Do
the Right Thing,' " Asset Forfeiture News, September-October
1992, p. 2. Return

45. U.S. Department of Justice, Executive Office for Asset
Forfeiture, "Departmental Policy Regarding Seizure of Occupied
Real Property," Directive No. 9s10, October 9, 1990.

46. Claudio Riedi, "To Shift or to Shaft: Attorney Fees for
Prevailing Claimants in Civil Forfeiture Suits," University of
Miami Law Review, Vol. 47, September 1992, pp. 147. Return

47. Brazil and Berry. Return

48. U.S. v. All Assets of Statewide Auto Parts, Inc., 971 F. 2d
905 (1992). Return

49. Statement of Cary H. Copeland before the Subcommittee on
Legislation and National Security, Government Operations
Committee, U.S. House of Representatives, June 22, 1993, p.4.
Return

50. U.S. Department of Justice, Annual Report of the Department
of Justice Asset Forfeiture Program 1991 (Washington: Government
Printing Office, 1992), p. 27. Return

51. Dennis Cauchon, "Government Doesn't Have to Prove Guilt," USA
TODAY, May 18, 1992. Return


52. United States v. One Parcel of Property Located at 508 Depot
Street, Docket No. 91-2382SD, May 20, 1992. Return

53. Brief of American Library Assoc. et al., in Ferris Alexander
v. U.S.. U.S. Supreme Court, No. 91-l526, September 2, 1992, p.
6. "Criminal forfeiture in personam arose in medieval England,
where, following a felony conviction, the entire estate of the
felon was confiscated and any inheritance from the felon was
prohibited. In the Magna Carta, forfeiture on the ground of
commission of a felony was sharply curtailed, but survived to an
extent in the English common law." Return

54. Brief for the United States, Ferris J. Alexander v. U.S., No.
91-1526, October 29, 1992, p. 43 Return

===========================================

About the Author

Mr. Bovard is the author of Shakedown, (Viking, 1995) and Lost
Rights: The Destruction of American Liberty, (St. Martins, 1994).

Reprinted with the permission of The Foundation for Economic
Education (FEE).


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