Federal asset forfeiture laws allow authorities to seize property they believe is connected to crimes such as money laundering, drug trafficking, fraud and other financial offenses.
This can include cash, bank accounts, vehicles, real estate and even personal items such as jewelry or electronics.
Although asset forfeiture is intended to disrupt criminal operations and recover illegal proceeds, it can also affect individuals who have not been convicted — or even charged — with a crime.
Knowing how the process works, the steps involved, and the potential defenses is crucial if you find yourself facing a seizure of assets.
Types of federal forfeiture
Criminal forfeiture
Criminal forfeiture occurs only after a criminal conviction. The prosecution must prove beyond a reasonable doubt that the property in question is linked to the specific crime for which the defendant has been found guilty.
Once a defendant is convicted, the court can include forfeiture as part of the sentence.
Examples: Money tied to drug trafficking, vehicles used to transport illegal substances or bank accounts funded by fraudulent activities.
Civil forfeiture
Civil forfeiture does not require a criminal conviction, and this lower threshold makes it more controversial.
In these cases, the government files a lawsuit directly against the property itself, alleging that it is tied to criminal activity. The standard of proof is typically a preponderance of the evidence rather than beyond a reasonable doubt.
This means that the government only needs to show that it is more likely than not that the property is connected to a crime. Individuals can lose their assets even if they are never charged with wrongdoing.
Examples: Cash seized from a vehicle during a routine traffic stop if law enforcement believes it is connected to narcotics distribution, even if the owner is not charged with a crime.
Administrative forfeiture
Administrative forfeiture allows certain federal agencies, such as the DEA or Customs and Border Protection, to seize property without going through the court system if the value is below a specific threshold or if it is deemed contraband.
A person who wants to challenge an administrative forfeiture can force the government to move the case into federal court by requesting judicial review.
How federal authorities seize property
Seizures usually begin with an investigation carried out by federal agencies like the FBI, DEA, or IRS.
Agents gather evidence through various means, such as financial audits, undercover operations or tips from informants. Typically, a judge must next issue a warrant based on probable cause for the actual seizure. However, there are exceptions in situations where the property is in plain view during a lawful search or is discovered in the course of an arrest.
Once the warrant is executed, agents may freeze bank accounts or physically remove items like vehicles or valuables.
Federal law requires authorities to notify individuals or entities with a known interest in the property. This notice outlines how to contest the seizure.
If no response is filed in time, the government may automatically claim ownership.
The asset forfeiture process
After property is seized, the government typically initiates either civil or criminal forfeiture proceedings.
In civil forfeiture, the government files a complaint in federal court accusing the property of being tied to a crime. Interested parties must then file a claim and an answer to contest the allegations.
If they do not act within strict deadlines, they risk losing by default. Both sides can engage in discovery, gathering evidence to support their claims. The government’s burden is to prove that the property is connected to illegal activity.
Criminal forfeiture is handled differently because it is attached to an existing criminal case. Allegations are included in the indictment, and if the defendant is convicted, the court may order forfeiture as part of the sentence.
Many forfeiture matters end in settlement, with the property owner agreeing to forfeit some portion of the assets. If a settlement cannot be reached, the case proceeds to trial or a hearing, after which the court issues a final decision. Appeals follow standard federal appellate procedures.
Grounds for forfeiture
Property can be seized if authorities believe it represents the proceeds of a crime, such as profits from fraud or drug trafficking. It can also be seized if used to facilitate criminal activity, for instance, a car used to transport illegal substances.
Another ground involves assets alleged to be part of a larger money laundering scheme. The specific basis for forfeiture will depend on the allegations in each case and the evidence authorities present in court.
Defenses to asset forfeiture
One defense is that the owner is innocent and had no knowledge of any illegal use of the property. If the owner can show that they took steps to prevent unlawful activity, the government’s claim may fail.
Another common defense is establishing that the funds or assets came from a legitimate source. Owners can present documentation such as pay stubs, bank statements, or tax returns to show a lawful origin.
A proportionality argument may also be raised under the Eighth Amendment if forfeiture is seen as an excessive fine relative to the offense.
Owners can challenge procedural shortcomings by showing that the government failed to meet deadlines or follow proper notice requirements.
Finally, the government must prove its case. If it cannot meet its burden of proof in either a criminal or civil context, the assets should be returned.
How to challenge a forfeiture
Challenging a forfeiture typically involves filing a claim in the proper timeframe and then defending against the government’s allegations. It is essential to respond promptly to any notice of seizure or forfeiture complaint, as missing a deadline often results in default.
Working with a qualified attorney is critical because forfeiture law is complex, and presenting a solid defense often requires financial documentation, witness testimony and a deep understanding of both procedural rules and case law.
In some cases, property owners can also petition for remission or mitigation with the relevant agency, requesting that seized property be returned or penalties be reduced without a full court battle.
Real-world implications
An asset forfeiture can have immediate and devastating financial consequences. When bank accounts are frozen and personal property is taken, it can disrupt someone’s livelihood, ability to pay bills or continue operating a business.
Moreover, the burden of legal fees and the time needed to fight the case can place enormous stress on individuals or families. Even if a person is never convicted, the process of reclaiming seized assets can be lengthy, underscoring the importance of quick action and effective legal assistance.
Call Helfend Law Group for help
If you are facing asset forfeiture or suspect the government is about to seize your property, reach out for legal guidance right away.
Robert M. Helfend has decades of experience defending clients in federal courts and can help you navigate the forfeiture process, challenge the government’s evidence, and fight to recover your property. Call 800-834-6434 to schedule a consultation and protect your rights.
Published February 25, 2025.