US v. ONE 1982 PORSCHE 928
| Decision Date | 15 March 1990 |
| Docket Number | No. 87 Civ. 4671 (WCC).,87 Civ. 4671 (WCC). |
| Citation | 732 F. Supp. 447 |
| Parties | UNITED STATES of America, Plaintiff, v. ONE 1982 PORSCHE 928, THREE-DOOR, LICENSE PLATE 1986/NJ TEMP./534807 (AUTOMOBILE), Defendant-in-rem. |
| Court | U.S. District Court — Southern District of New York |
Otto G. Obermaier, U.S. Atty., S.D.N.Y., New York City, for plaintiff; Nancy G. Milburn, Asst. U.S. Atty., of counsel.
Jorge Guttlein, Aranda & Guttlein, New York City, for defendant-in-rem; Mitchell Stein, of counsel.
This in rem civil action, tried without a jury on March 8, 1990, concerns forfeiture of a 1982 Porsche 928, Three Door, License Plate 1986/NJ Temp/534807 (the "Porsche") pursuant to 21 U.S.C. Section 881 (1988). Federal jurisdiction is predicated upon 28 U.S.C. §§ 1345 and 1355.
After hearing the government's case in chief, the Court orally ruled that, as a matter of law, the government had established a prima facie case of probable cause. After hearing claimants' testimony and the government's rebuttal witness, this Court concludes that claimants lack standing to contest the forfeiture. This opinion incorporates the Court's findings of fact and conclusions of law pursuant to Rule 52(a), Fed.R.Civ.P.
This civil forfeiture action arises out of an investigation of the narcotics trafficking operation of Domingo Taveras, Jr. ("Domingo Jr.") and Luis and Ramon Gomez (the "Gomez brothers"). The government's affirmative case was offered through Drug Enforcement Administration ("DEA") Special Agent James Hunt who testified in substance as follows:
On September 2, 1986, DEA special agents lawfully arrested Domingo Jr. and Ramon Gomez as they were leaving an apartment building at 302 West 76th Street, New York City. Domingo Jr. was charged with two counts of criminal possession of cocaine in the first degree. It is not disputed that there was probable cause for the arrest.
At the time of his arrest, Domingo Jr. had in his possession keys to apartment 5B at 302 West 76th Street, which was leased in his name, and keys to safes located within the apartment. Immediately subsequent to the arrest, DEA special agents lawfully searched apartment 5B pursuant to a special narcotics search warrant and, inter alia, lawfully seized from the apartment safes $5,550 in U.S. currency and approximately five pounds of cocaine. Also seized from the apartment were firearms, loaded magazines, and equipment for processing cocaine.
Prior to the seizure, the DEA special agents had learned from a confidential informant that Domingo Jr. owned and drove a blue Porsche. Following Domingo Jr.'s arrest and the reading of his rights, Special Agent Hunt asked Domingo Jr. the location of this car and those the Gomez brothers had been seen driving. Domingo Jr. told Special Agent Hunt that the cars were at E & B Operating, Inc., a parking garage located at 137-43 West 108th Street, New York City.
Domingo Jr. also told Special Agent Hunt that the Porsche was his and that he had purchased it from M & P Foreign Cars in Lodi, New Jersey for approximately $20,000 cash with money he made through the narcotics trafficking operation that he and the Gomez brothers ran. Domingo Jr. then offered to cooperate with the DEA special agents in developing cases against other drug dealers, but his assistance was refused.
That same day, DEA special agents seized the Porsche from the garage. In addition to the Porsche, DEA special agents also seized from the garage a 1983 white Porsche, a 1981 Mercedes-Benz, and a 1982 Toyota Celica, all registered to Marino Gomez, the Gomez brothers' father.
Following his arrest, Domingo Jr. pled guilty in New York State Criminal Court to a charge of possessing cocaine with intent to sell, a Class B felony. Special Agent Hunt stated that Domingo Jr. telephoned him many months later to repeat his offer of assistance and to request the return of his car to avoid suspicion and preserve his image as a drug dealer. The special agent later discovered that Domingo Jr. was calling from prison.
Special Agent Hunt testified that in his experience with the DEA, he has seized approximately one hundred cars. He testified that registering cars in the name of another person is a common tactic used by drug traffickers to mask their actual ownership and avoid forfeiture in the event of an arrest.
The claimants in this case, Flora ("Flora") and Domingo Taveras, Sr. ("Domingo Sr."), the parents of Domingo Jr., testified through an interpreter that they were the owners of the Porsche, which they purchased for export to and resale in the Dominican Republic upon Domingo Sr.'s impending retirement. Domingo Sr. further testified that he purchased the Porsche in August 1986 from M & P Foreign Cars in Lodi, New Jersey for an amount in excess of $20,000 cash. Domingo Jr., who is fluent in English, negotiated the purchase and arranged for the issuance of a temporary registration. Domingo Jr. drove the vehicle from the car dealer to the E & B Operating, Inc. garage in Manhattan.
The certificate of title for the Porsche was issued in claimants' names. Neither Flora nor Domingo Sr. has ever had a driver's license or owned an automobile, other than the instant Porsche. Neither Flora nor Domingo Sr. ever drove the Porsche. Domingo Jr. was the only family member who ever drove the vehicle. Domingo Jr. paid for repainting the vehicle, although Domingo Sr. claimed to have contributed part of the money, the amount of which he could not recall. Neither Flora nor Domingo Sr. presented at trial any of the receipts, bills of sale, registration forms or insurance papers relating to the vehicle. Flora never rode in the Porsche, was not present at its purchase, did not know where it was kept or whether it was insured, and only saw it once when Domingo Jr. had parked it outside her apartment window. Domingo Sr. had been a passenger in the vehicle only on the trip back from the car dealer.
Claimants' joint income tax returns from 1982 to 1986 reveal that claimants could not have afforded to purchase the vehicle from earnings. The $20,000 plus purchase price of the 1982 Porsche exceeds the total combined annual income of Flora and Domingo Sr. for each of the four years preceding their alleged purchase of the vehicle. Since 1982, Domingo Sr. has had an active savings account at the American Savings Bank with a January 1986 balance of $4,896.55. Between January and September 1986, he made fourteen deposits totalling $6,376.44 and three withdrawals, totalling $4,500.00. As of 1983, Domingo Sr. also had bank accounts at the American Savings Bank and the Manufacturer's Hanover Trust Company. As of 1986, Flora had savings accounts at Citibank and at the American Savings Bank.
Claimants contend that the approximately $20,000 purchase price for the Porsche was comprised of 1) approximately $9,000 derived from the sale of property in the Dominican Republic which Flora inherited from her father; 2) approximately $8,000 borrowed from Carlos Medina, claimants' nephew; and 3) approximately $5,000 borrowed from or given by Domingo Jr. None of these funds apparently passed through any of claimants' bank accounts. The circumstances of these transactions, as related by claimants and by Domingo Jr., who was called as the government's rebuttal witness, are as follows:
The Inheritance
Flora sold the inherited real property in the Dominican Republic to Diomedes Medina, her nephew and Carlos' brother, for 18,000 Dominican pesos. Flora offered no documentation of the transaction or the inheritance. The currency was converted in the Dominican Republic to U.S. dollars equalling approximately $9,000 which was brought in cash to the United States. Flora offered no evidence of the currency conversion. Flora hid the cash in her sewing box at home rather than placing the funds in her existing bank accounts, for ready access upon her husband's retirement. Domingo Sr. did not know where the money was kept.
Carlos Medina, claimants' nephew, loaned claimants $8,000 in gratitude for claimants' allowing him to reside in their home while he attended college prior to 1984. Claimants offered no documentation of the loan or evidence concerning repayment, interest rates or maturity dates. Medina did not testify at trial, nor did counsel offer his deposition testimony, although his deposition had been taken in this action.
Domingo Jr. gave $5,000 to his parents for the purchase and resale of the Porsche. The evidence did not make clear whether the transfer was a gift or a loan but the funds were not reported on claimants' income tax return, no documentation was offered, and there was no testimony respecting the terms of repayment. Domingo Jr. testified that the money constituted insurance proceeds and savings. In 1983 and 1984 he worked seasonally as a lifeguard. According to his tax returns, he earned gross income of $4,714.70 in 1983 and $3,714.12 in 1984. In 1985, Domingo Jr. attended the Police Academy, reporting a total income of $17,789 on his federal income tax return, consisting of $14,810 in wages, $459 in interest and pension payments and $2,520 in unemployment compensation.
In February 1985, Domingo Jr. purchased a 1984 Dodge Conquest for which he made a substantial down payment, the amount of which he does not recall, and monthly payments of around $200 until July 1985 when the car was stolen. He then received from an unnamed insurance company approximately $5,000 or $6,000, for which he offered no documentation. On August 9, 1985, Domingo Jr. obtained a $5,000 loan from the American Savings Bank. Domingo Jr. thereafter purchased a Mercedes-Benz 190 E from Coach Auto Leasing, again making a substantial down payment. When the Mercedes was stolen in November 1985, he again received insurance proceeds of $5,498.75 which he deposited in his account at Citibank. Bank statements presented by the...
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