Federal Civil Asset Forfeiture

Federal civil asset forfeiture allows the government to seize property it believes is connected to criminal activity—even if the owner is never charged with a crime. These cases are in rem proceedings, meaning the lawsuit is filed against the property itself, not the person.

Under federal law, agencies like the DEA, FBI, IRS, CBP, and ATF can seize assets they claim were involved in drug trafficking, money laundering, fraud, or customs violations. The United States Attorney’s Office then files a forfeiture complaint naming the seized property as the defendant.

The Assistant United States Attorney often relies on the following statutes and provisions in federal civil asset forfeiture proceedings:

• 21 U.S.C. § 881(a)(6): Property traceable to drug trafficking;
• 18 U.S.C. § 981: Property connected to money laundering and fraud; and
• 19 U.S.C. §§ 1602–1619: Customs-related forfeitures.
• 28 C.F.R. Parts 8 & 9: DOJ forfeiture regulations

In civil asset forfeiture cases filed under federal law, the government only needs to prove its case by a preponderance of the evidence—a lower standard than “beyond a reasonable doubt.”

Attorneys for Federal Asset Forfeiture Procedings

At Sammis Law Firm in Tampa, our attorneys represent clients across Florida and partner with law firms nationwide to challenge federal forfeitures. We focus on both federal and state forfeiture cases. We help clients get back valuable property including:

• Cash and U.S. Currency
• Cryptocurrency (Bitcoin, Ethereum, Tether, etc.)
• Vehicles, vessels, and aircraft
• Real estate and financial accounts

If federal agents seized your property, do not rely on administrative petitions before speaking with a lawyer. In most cases, your best option is to demand court review immediately.

Call 813-250-0500 to schedule a consultation.

Who Can File a Claim to Get the Seized Property Back?

Anyone with a legitimate interest in the property may file a claim, including:

• Owners of the seized property
• Innocent owners who purchased it for value
• Lawful possessors (e.g., a courier entrusted with funds)
• Lienholders or those with a valid security interest

At the pleading stage, you must file a verified claim under penalty of perjury. Missing deadlines or filing incorrectly can cause your claim to be stricken.

How to Contest a Federal Forfeiture

Once a forfeiture complaint is filed, a claimant can:

• File a motion to dismiss if the AUSA missed a CAFRA deadline.
• File a verified judicial claim and answer to the forfeiture complaint;
• Raise affirmative defenses such as innocent ownership or lack of probable cause.
• Challenge the forfeiture under the Excessive Fines Clause of the Eighth Amendment.

Because these cases move quickly, you should consult with an attorney as soon as possible to preserve your rights.

Agencies That Handle Federal Seizures

Several federal agencies have the authority to seize assets, including the following:

• DEA – Drug Enforcement Administration
• FBI – Federal Bureau of Investigation
• IRS – Internal Revenue Service
• CBP – Customs and Border Protection
• ATF – Bureau of Alcohol, Tobacco, Firearms & Explosives
• USPIS – U.S. Postal Inspection Service
• USSS – U.S. Secret Service
• USAO – United States Attorney’s Office

Administrative vs. Judicial Forfeiture

Administrative forfeiture occurs when the seizing agency (DEA, FBI, CBP, etc.) keeps the property without filing a court case. It applies mostly to currency, cars, and personal property. Under 18 U.S.C. § 983, once administrative proceedings begin, the owner can stop the process by filing a claim. This forces the government to take the case to federal court.

If a claim is filed, the U.S. Attorney’s Office must:

• File a civil complaint for forfeiture within 90 days; or
• Require the agency to return the property to the claimant.

Failure to meet CAFRA deadlines may allow a claimant to file a motion to dismiss.

Agencies often encourage owners to file petitions for “remission” or “mitigation.” These requests rarely succeed and usually waive your right to court review. In most cases, the best option is to demand early judicial intervention by filing a verified claim.

Notice Requirements in Federal Asset Forfeiture Proceedings

Under Supplemental Rule G, the government must:

• Publish notice of the forfeiture action
• Send a direct personal notice to any known potential claimant
• Identify deadlines for filing a verified claim and answer

If notice is not given correctly, an owner might move to set aside the forfeiture under 18 U.S.C. § 983(e).

To file a verified claim, the Claimant must:

• Identify the property
• Identify the claimant and their interest
• Be signed under penalty of perjury
• Be filed within the strict deadlines (typically 30–60 days).

Violations Triggering Federal Asset Forfeiture

In financial crime investigations, including those conducted by federal agencies, the property might be seized for one of the following violations:

• 18 U.S.C. § 1343 (Wire Fraud):
  • This statute makes it a federal crime to use “wire, radio, or television communication in interstate or foreign commerce” as part of a scheme to defraud.
  • This is a very broad law and is a common charge in cases involving online scams, telemarketing fraud, and other financial schemes that use electronic communication.
  • A person can be charged with wire fraud for transmitting a fraudulent email, making a deceptive phone call, or using an online platform to carry out a scheme.
  • Any assets obtained through this fraudulent activity, as well as property used to facilitate it (e.g., computers, bank accounts), are subject to forfeiture.
• 18 U.S.C. § 1349 (Attempt and Conspiracy):
  • This is not a standalone crime but an inchoate offense that relates to the other statutes in Chapter 63 of Title 18, which includes mail fraud and wire fraud.
  • This statute allows prosecutors to charge and penalize an individual for attempting or conspiring to commit an offense under that chapter.
  • The penalties for attempt or conspiracy are the same as the penalties for the underlying offense.
  • This is a crucial tool for law enforcement because it allows them to charge individuals who planned a crime, even if it was never successfully completed.
• 18 U.S.C. § 1956 (Money Laundering):
  • This is one of the primary federal money laundering statutes.
  • It criminalizes engaging in financial transactions with the proceeds of “specified unlawful activities” (which include many federal crimes, such as wire fraud).
  • The government must prove that the defendant conducted the transaction with a specific intent, such as:
    • To promote the continuation of the specified unlawful activity.
    • To conceal or disguise the nature, location, source, ownership, or control of the proceeds.
    • To avoid a state or federal transaction reporting requirement.
  • Forfeiture under this statute is extensive, as it can target the criminally derived proceeds, as well as any property “involved” in the money laundering transaction.
• 18 U.S.C. § 1957 (Monetary Transactions in Criminally Derived Property):
  • This statute is a companion to Section 1956 and is often referred to as “simple money laundering.”
  • It makes it a crime to knowingly engage in a monetary transaction of more than $10,000 using property derived from “specified unlawful activity.”
  • Unlike Section 1956, the government does not need to prove that the defendant intended to conceal the money or promote the crime.
  • The act of engaging in the transaction with the knowledge that the funds are criminally derived is sufficient.
  • This statute is frequently used in cases where prosecutors can prove the defendant’s knowledge of the illegal source of the funds but cannot prove the intent to conceal or promote.
  • Assets involved in a violation of this statute are also subject to forfeiture.

Federal Forfeiture Actions for Money Laundering

Any property, real or personal, which was involved in a transaction in violation of 18 U.S.C. §§ 1956 or 1957 or any property traceable to such property is subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(A).

18 U.S.C. § 1956(a)(1) makes it a crime to knowingly conduct or attempt to conduct a “financial transaction” with proceeds from “specified unlawful activity” (SUA) with specific intent to: promote the SUA, conceal or disguise the source, origin, nature, ownership, or control of the proceeds; or evade reporting requirements.

The purpose of “money laundering” as defined by 18 U.S.C. § 1956 is to disguise illicit nature of funds by introducing it into legitimate commerce and finance thereby making them “clean.” This financial process is most commonly conducted using three steps referred to as “placement,” “layering,” and “integration.”

Typically, the “placement” phase of this financial process takes place when proceeds from illicit sources are placed in a financial institution or business entity. “Layering” takes place when these funds are then used in seemingly legitimate commerce transactions which makes the tracing of these monies more difficult and removed from the criminal activity from which they are a source. Finally, the “integration” phase is when these funds are then used to promote the unlawful activity or for the personal benefit of the money launderers and others.

An Assistant United States Attorney will file a civil asset forfeiture case when they have probable cause to believe valuable property is subject to forfeiture to the United States pursuant to 18 U.S.C. § 981(a)(1)(C) because the property constitutes or is derived from proceeds traceable to violations of 18 U.S.C. § 1343 or a conspiracy to commit such offense (18 U.S.C. § 1349). Wire fraud, for example, is an SUA.

Any property, real or personal, which constitutes proceeds or is derived from proceeds traceable to a violation of 18 U.S.C. § 1343 or 1349 is subject to forfeiture pursuant to 18 U.S.C. § 981(a)(1)(C).

Under 18 U.S.C. § 984, for any forfeiture action in rem in which the subject property consists of cash, monetary instruments in bearer form, or funds deposited in an account in a financial institution:

• The government need not identify the specific funds involved in the offense that serves as the basis for the forfeiture;
• It is not a defense that those funds have been removed and replaced by other funds; and
• Identical funds found in the same account as those involved in the offense serving as the basis for the forfeiture are subject to forfeiture.

In essence, 18 U.S.C. § 984 allows the government to seize for forfeiture identical property found in the same place where the “guilty” property had been kept.

This article was last updated on Friday, August 22, 2025.