Civil Asset Forfeiture - New York Developments and Legal Options to Fight Back

The Eastern District of New York (EDNY) led all 93 U.S. Attorney’s Offices in civil asset forfeiture for FY 2024, recovering over $400 million from cases involving financial fraud, corruption, cybercrime, and sanctions violations. 

Key Takeaways on Civil Asset Forfeiture: 

• Record-Breaking Recoveries – EDNY led the nation in civil asset forfeiture, recovering hundreds of millions from financial crimes.
• No Criminal Charges Required – Civil forfeiture allows the government to seize assets without filing criminal charges against the owner.
• High-Profile Cases – Gunvor S.A. forfeited $287M for violating anti-bribery laws in Ecuador. FIFA Corruption Scandal led to the forfeiture of $100M from a Swiss bank account tied to soccer bribery. 
• Broad Government Power – The government can seize assets suspected of being connected to illegal activity, including bank accounts, real estate, cryptocurrency, and luxury goods.
• Burden of Proof on Owners – Unlike criminal forfeiture, where prosecutors must prove guilt beyond a reasonable doubt, civil forfeiture cases only require the government to show a "preponderance of the evidence." 
• Victim Compensation & Law Enforcement Use – Some forfeited funds are used to compensate victims, while others are directed toward law enforcement initiatives. 

How to Challenge a Civil Asset Forfeiture & Recover Your Property 

If your bank accounts, cash, real estate, vehicles, or other property have been seized through civil forfeiture, you have legal options to fight back. 

 Step 1: Request a Notice of Seizure You should receive a Seizure Notice or Forfeiture Complaint detailing why your assets were taken. Civil forfeiture cases are typically filed under 18 U.S.C. § 981 (proceeds of crime) or 21 U.S.C. § 881 (drug-related forfeitures). 

Step 2: File a Claim to Contest the Seizure You must submit a Claim Form to the agency that seized your assets within 35 days of receiving notice. This prevents administrative forfeiture and forces the government to prove its case in federal court. 

Step 3: Demand Judicial Review in Federal Court If your claim is accepted, the case moves to court, where the government must justify the seizure. You have the right to discovery (obtaining evidence), deposing government witnesses, and challenging weak or speculative claims. 

Step 4: Build a Legal Defense Against Forfeiture Innocent Owner Defense – Prove that you legally acquired the assets and were not involved in criminal activity. Lack of Probable Cause – Argue that the government failed to establish a direct link between your assets and illegal conduct. Procedural Violations – Challenge delays, missing notices, or lack of due process. 

Step 5: Negotiate a Settlement or Go to Trial Many forfeiture cases are resolved through negotiation, where owners recover some or all of their property. If no agreement is reached, you can take the case to trial and demand a jury decision on the forfeiture. 

Pardalis & Nohavicka has successfully helped clients fight wrongful civil forfeitures. If your money or property has been seized, act quickly—strict deadlines apply.