US v. $36,125.00 IN US CURRENCY, Civ. A. No. 79-1783.
Decision Date | 01 April 1980 |
Docket Number | Civ. A. No. 79-1783. |
Citation | 510 F. Supp. 303 |
Parties | UNITED STATES of America v. THIRTY-SIX THOUSAND, ONE HUNDRED AND TWENTY-FIVE DOLLARS ($36,125.00) IN U. S. CURRENCY, Thirty-Five Dollars ($35.00) In Colombian Currency, and Thirty-Three Dollars ($33.00) In Belize Currency. |
Court | U.S. District Court — Eastern District of Louisiana |
Douglas M. Browning, Asst. Regional Counsel, U. S. Customs Service, New Orleans, La., for plaintiff.
John A. Stassi, II, Stassi & Rausch, New Orleans, La., for claimants/defendants.
REASONS FOR JUDGMENT
On October 27, 1977, David L. Albrecht arrived at New Orleans International Airport from Honduras, Central America. In response to the question: "Are you carrying over $5000.00 in coin, currency, or monetary instruments?" on the Customs Declaration form signed by him, Albrecht answered "No". He was arrested by U. S. Customs Agents after the discovery by them in his luggage and on his person of over $36,000.00 in U. S. Currency and about $70.00 of Colombian and Belize currency.
The money was seized by the United States and is the subject of this forfeiture proceeding. The case was tried to the court on stipulated facts. Claimants do not contest the validity of the arrest or the seizure. Their sole contention is that by reason of the delay involved, the government's right of forfeiture has been lost. The government's position is that the proceedings were filed promptly and that any delay was justified by the pendency of further criminal investigations concerning Albrecht. Alternatively, the government contends that Albrecht in any event cannot urge the delay as a defense to the forfeiture.
The court orders the forfeiture for the following reasons.
Albrecht was arrested for violation of 31 U.S.C. § 1101(a)(1)(B) and § 1058.1 The currency was seized pursuant to 31 U.S.C. § 1102.2 On December 15, 1977, Albrecht was indicted by the grand jury for violation of 18 U.S.C. § 1001.3 On March 3, 1978, Albrecht entered a plea of guilty to a superseding bill of information charging him with violation of 31 U.S.C. § 1101(a)(1)(B) and § 1058. The imposition of sentence was suspended and Albrecht was placed on supervised probation for a period of three years and fined $1,000.00.4 The original indictment was dismissed.
This suit was filed on May 17, 1979, approximately eighteen months after the seizure of the money and fourteen months after the entry of Albrecht's guilty plea. Claimants5 contend that the delay in the institution of these proceedings violated the duty imposed upon the government by 19 U.S.C. §§ 1602-1604 to institute forfeiture proceedings promptly and constituted a taking of property without due process of law.
The first issue presented is whether 19 U.S.C. §§ 1602-16046 are applicable to seizures under 31 U.S.C. § 1102. In Ivers v. United States, 581 F.2d 1362 (9th Cir. 1978) the Ninth Circuit was presented with the same question in a factual context similar to the present case. However, the court in Ivers never decided whether those sections were applicable to seizures under 31 U.S.C. § 1102 due to the fact that the only delay of any significance occurred during that stage of the proceedings covered by § 1603 which until its recent amendment imposed no obligation of promptness. We agree with the Ivers court's conclusion that the duty of customs authorities to act expeditiously in post-seizure forfeiture proceedings is an obligation imposed independently by the Constitution and that therefore it is unnecessary to decide the applicability vel non of 19 U.S.C. §§ 1602-1604.
We also adopt the following from the Ivers opinion at pp. 1367-68.
The time which elapsed between seizure and filing of suit in the instant case is about the same as that involved in Ivers, approximately eighteen months. In Ivers, the court found that the delay did not violate the due process rights of the claimant because the claimant's own conduct was such as to excuse and justify the government's delay.
We conclude that the delay here was justified by other reasons (a continuing investigation of claimant and others for other possible offenses), and as an alternative basis for our judgment we hold that his plea of guilty to a crime encompassing all of the facts which justify the forfeiture bars claimant from raising the due process issue.
After he was taken into custody, the Customs Service initiated an investigation of Albrecht in order to obtain evidence for use in the prosecution of the violations for which he was arrested as well as possible further charges, including violation of 31 U.S.C. 1059(1).
After his guilty plea, the investigation of Albrecht continued. In December of 1979, witnesses appeared before a Grand Jury; the parties stipulated that the investigation is still ongoing. However, the claimants deny that the continuation of an investigation as to other possible violations has any relevancy to these proceedings. We disagree.
During the entire period from the date Albrecht pleaded guilty to the date the forfeiture proceeding was filed, serious investigation of possible further criminal activity by him and others was being conducted by the government. The filing of civil forfeiture proceedings during that period could have jeopardized other prosecutions against Albrecht and could have adversely affected the investigation. That such a good faith investigation was pending must be considered as a factor in the delay in instituting this forfeiture proceeding.
Finally, we hold that when a claimant to property seized without a hearing is prosecuted promptly and pleads guilty to committing every act which the government would have to prove in a civil forfeiture proceeding, he is barred from claiming the seized property, where the sole basis...
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