United States v. ONE 1969 CHRYSLER NEWPORT 2-DOOR, C-84-S-71.
| Decision Date | 10 June 1971 |
| Docket Number | No. C-84-S-71.,C-84-S-71. |
| Citation | 327 F. Supp. 1074 |
| Parties | UNITED STATES of America v. ONE 1969 CHRYSLER NEWPORT 2-DOOR, IDENTIFICATION NO. CE23G9F161767, and Atlantic Acceptance Corporation, Intervening Claimant. |
| Court | U.S. District Court — Middle District of North Carolina |
William L. Osteen, U. S. Atty., for the Government.
This is a libel for forfeiture of an automobile by reason of an alleged violation of the Internal Revenue laws of the United States relating to distilled spirits. Atlantic Acceptance Corporation has intervened, claiming an interest in the automobile by virtue of a lien thereon. The registered owner of the automobile, William F. Heitman, has not answered.
The matter came on for trial before the Court without a jury. The parties stipulated most of the material facts, except the reputation of Heitman, the registered owner, for dealing in nontaxpaid distilled spirits at the time the claimant acquired its lien. After considering the pleadings, stipulations filed, oral testimony, and briefs and arguments of counsel, the following facts are found:
1. On February 15, 1971, William F. Heitman was a citizen and resident of Davidson County, North Carolina, and continued to reside there until after March 5, 1971.
2. On February 15, 1971, Heitman purchased a 1969 Chrysler Newport, 2-Door, Identification No. CE23G9F161767. On the same date, Heitman financed $2,112.00 of the purchase price with the claimant, Atlantic Acceptance Corporation, and a promissory note and lien was executed and delivered by Heitman to the Atlantic Acceptance Corporation to secure said indebtedness. The Atlantic Acceptance Corporation operates its business in Rowan County, North Carolina, and the financing transaction took place in that County.
3. The financing agreement and lien was properly executed, and there is presently an outstanding balance of $1,543.24 due and payable thereunder. Claimant acquired its lien in good faith, and without knowledge of Heitman's record or reputation with respect to nontaxpaid distilled spirits.
4. At the time the financing agreement was executed, the claimant made no inquiry with any law enforcement agency in either Rowan or Davidson County, North Carolina, or elsewhere, concerning the reputation or record of Heitman with respect to his engaging in illicit liquor activities.
5. On March 5, 1971, Heitman was apprehended while removing, concealing, possessing and transporting 12 gallons of nontaxpaid distilled spirits in said Chrysler automobile, in violation of 26 U.S.C. §§ 5601(a) (1) (12) and 5205(a) (2), and said Chrysler automobile was seized at that time by the agents of the Internal Revenue Service.
6. The fair market value of said Chrysler automobile on the date of its seizure was $2,450.00.
7. As a result of his arrest on March 5, 1971, and his subsequent indictment, Heitman entered a plea of guilty to the charges in the United States District Court for the Middle District of North Carolina, Salisbury Division, on May 20, 1971.
8. This forfeiture proceeding was commenced on April 11, 1971, and Heitman was duly served by certified mail on that date. The time for answer has long expired, and the lien of the claimant is the only claim that has been filed in this proceeding.
9. Beginning in July of 1970, and continuing through and including February 15, 1971, Heitman...
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