CBP Makes Whopping $478k Cash Seizure

Posted by Jason P. Wapiennik on August 4, 2015

In another classic “bulk cash smuggling” offense, CBP officers in at the southern border seized nearly $500,000 in secreted away in a pick-up truck driven by a U.S. citizen from Texas. The incident resulted an arrest. Although you wouldn’t know it from the news release, this is more than just a “failure to report” or “failure to declare” currency. This is bulk cash smuggling. Bulk cash smuggling makes it much more likely that you will NOT get the money back even if you can show that there was a legitimate source and intended use.

The story follows (original HERE):

“This is one of the larger seizures of undeclared currency we have seen in recent memory and is reflective of a robust enforcement posture and an effective application of the skill and training of our frontline officers,” said Port Director Joseph Misenhelter, Laredo Port of Entry.

The seizure occured on July 27 at Lincoln-Juarez Bridge when CBP officers and agents conducting outbound examinations referred a 2010 Dodge Ram pickup truck driven by a 43-year-old male U.S. citizen from Laredo, Texas for a secondary examination. During the examination, CBP officers discovered bundles containing $481,711 in undeclared currency hidden within the vehicle.

CBP officers seized the currency, arrested the driver and turned him over to Homeland Security Investigations special agents for further investigation.

Individuals are permitted to carry any amount of currency or monetary instruments into or out of the U.S. However if the quantity is $10,000 or higher they must formally report the currency to CBP. Failure to declare may result in seizure of the currency and/or arrest. An individual may petition for the return of currency seized by CBP officers, but the petitioner must prove that the source and intended use of the currency was legitimate.

If you have had cash seized by customs and are contemplating what to do next then use the information available on this website and call our office at (734) 855-4999 to speak to a customs lawyer, or e-mail us through our contact page. We are able to assist with cash seized by customs around the country, including Chicago, Atlanta, New York, Los Angeles, Orlando and many other places, and not just locally in Detroit. Please read these other articles:

CBP Seizes $50k at Dulles Airport en route to Qatar

Posted by Jason P. Wapiennik on July 30, 2015

U.S. Customs seized nearly $50,000 at Dulles airport from two travellers attempting to leave the country for a failure to report. Both seizures involve people flying to Qatar and significantly under-reporting the amount of currency they possessed. You can read the full story HERE:

The first seizure occurred on July 17, during an outbound international flight enforcement operation. A U.S. citizen boarding a flight to Qatar reported to CBP officers that he possessed $5,000 and completed a financial reporting form stating that amount however; a total of $23,141 was discovered on his person and in his luggage. CBP officers seized the $23,141, returning $541 to the traveler for humanitarian relief, and advised him how to petition for the return of the rest of the currency.

The second seizure occurred on July 19, during another outbound enforcement operation. A U.S. citizen boarding a flight to Qatar reported to CBP officers that she possessed $6,000 and completed a financial reporting form stating that amount however; numerous envelopes of U.S. and foreign currency were discovered in her carry-on luggage totaling $26,179 (U.S. equivalent). CBP officers seized the $26,179, returning $2,247 to the traveler for humanitarian relief, and advised her how to petition for the return of the rest of the currency.

“Travelers who refuse to comply with federal currency reporting requirements run the risk of having their currency seized, and may potentially face criminal charges,” said Wayne Biondi, CBP area port director for the Port of Washington Dulles. “The travelers were given the opportunity to truthfully report their currency. The easiest way to hold on to your money is to report it.”

I know it is sometimes true that truthfully reporting money is the easiest way to keep it, but I am also sure that it is not always true. I know many clients had opportunities to report transporting more than $10,000 in money but there are who are subjected to “zealous enforcement” and asked trick questions without sufficient opportunity to make, or amend, a report. Sometimes the philosophy of some Customs officers is to “seize first, ask questions later.”

My clients usually report intimidating behavior while they are being detained, like back-slapping, laughter, high-fiving among officers about their seizure prowess, and sometimes unfounded threats of criminal prosecution.

It is also true, as this news release says, that the easiest way to keep your currency is to report it; but Customs can still theoretically seize your money if you have under $10,000 and they think you are “structuring” to avoid to have to file a report, the money was concealed, or if you report over $10,000 but lack good documentation about the source and use of the funds, or if they believe it has some connection to criminal activity.

If you have had currency seized from Customs do not try to respond yourself but hire our firm, because we know what we are doing and have successfully handled many cases like yours. If you have questions, please give us a call at (734) 855-4999. We are able to assist with cash seized by customs around the country, including Chicago, Atlanta, New York, Los Angeles, Orlando and many other places, and not just locally in Detroit. Please read these other articles:

CBP Seizes $475k Outbound to Mexico

Posted by Jason P. Wapiennik on July 28, 2015

In a classic “bulk cash smuggling” offense, CBP officers at the southern border seized nearly $500,000 in currency hidden in a box of diapers, trash bags, and bucket of paint. The incident resulted in a seizure of the vehicle and the currency, but it’s unclear if the driver and passenger were arrested.

Occasionally I’m asked if Customs can still seize your currency for any reason if you report it all? The answer is sure, if they have sufficient cause to believe that you are involved in a crime because of suspicious circumstances. Here, that is clear; normally, people do not travel with half million dollars in cash in a diaper box across the Mexico border. The story, with pictures, follows (original HERE):

Officers discovered several wrapped bundles of U.S. currency concealed inside a box of diapers, a box of trash bags, and a five-gallon bucket of paint.

The incident occurred shortly before 4 p.m. on July 15, when CBP officers were conducting southbound inspections of travelers heading to Mexico through the Calexico downtown border crossing. Officers targeted a 2005 Nissan Maxima and referred the driver, her female passenger, and vehicle for a more in-depth examination.

Officers utilized the port’s imaging system and discovered anomalies within merchandise stored in the Maxima’s trunk. A CBP detector dog alerted to the trunk, and officers discovered several wrapped bundles of U.S. currency concealed inside a box of diapers, a box of trash bags, and a five-gallon bucket of paint that were loaded inside.

Officers extracted 46 packages of cash from the vehicle’s trunk, yielding a total amount of $457,373. The 45-year-old driver and 21-year-old passenger, both U.S. citizens and residents of Los Angeles, were turned over to the custody of Homeland Security Investigations agents for further processing.

CBP seized the vehicle and currency.

It is a federal offense not to declare currency or monetary instruments totaling more than $10,000 to a CBP officer upon entry or exit from the U.S. or to conceal it with intent to evade reporting requirements. Failure to declare may result in seizure of the currency and/or arrest.

If you have had cash seized by customs and are contemplating what to do next, please make use of the other information available on this website or call our office at (734) 855-4999 to speak to a customs lawyer, or e-mail us through our contact page. We are able to assist with cash seized by customs around the country, including Chicago, Atlanta, New York, Los Angeles, Orlando and many other places, and not just locally in Detroit. Please read these other articles:

CBP Seizes $51k Cash and Make Arrest

Posted by Jason P. Wapiennik on July 23, 2015

At Miami airport, a traveler from Chile had a run in with U.S. Customs & Border Protection that resulted in a seizure of $51,777. As disclosed by the story below (full version HERE), it a resulted in an arrest, presumably for a currency reporting violation — reporting $20,000 even though he was transporting more than $50,000, and/or dividing his money between he and other travelers in what is commonly called a “structuring” violation.

U.S. Customs and Border Protection (CBP) Office of Field Operations (OFO) officers at Miami International Airport (MIA) arrested a Chilean citizen Thursday for violating federal currency reporting requirements.

During a secondary inspection on July 9th, the man, who arrived from Santiago, Chile, reported possessing $20,000 USD. It was later discovered that the man had given money to three co-travelers in order to evade currency reporting requirements, an illegal practice known as currency structuring. In total, the cash added up to $51,777. CBP officers seized the money and arrested the subject. The subject and currency were turned over to Miami-Dade Police Department (MDPD).

“Customs and Border Protection officers offer travelers multiple opportunities to truthfully report their currency, but those who refuse to comply with federal currency reporting requirements face severe consequences, including potential criminal charges,” said Christopher Maston, Port Director, Miami International Airport.

The only different nuance in this story which is not altogether apparent is why the currency was turned over to the local police department. Typically, Customs seizes the currency, but apparently Customs did not want to be bothered with it in this case. My hunch would be that, in this case, there was more going on (i.e., criminally) than the failure to report and structuring, which resulted in arrest and local law enforcement getting involved in the arrest and seizure.

4 Houston CBP Airport Currency Seizures; Detroit CBP Leads

Posted by Jason P. Wapiennik on July 21, 2015

They say everything is bigger in Texas, but apparently not customs airport currency seizures effected by U.S. Customs & Border Protection. Houston CBP reports around $2.4 million seized from arriving travelers for FY 2015 thus far; an impressive sum, but not quite as impressive as Detroit’s $8 million for the same time period. It is more than CBP in Houston seized last year.

These seizures in Houston include seizures at airports in Austin, Corpus Christi, Dallas, Houston and San Antonio. The story gives the details on some recent seizures which occurred at George Bush Intercontinental Airport. Those stories are re-told below in the full story:

CBP officers effected the first of four recent seizures July 5 when a husband and wife enroute to Dubai reported carrying $10,000 as a family. After CBP officers explained the currency requirements, the couple signed the FinCen form. Final currency verification indicated the travelers were in fact carrying $15,433, which CBP officers seized.

Currency is seized for failure to properly report currency in an aggregate amount exceeding $10,000.

July 7, officers seized more than $27,000 after a U.S. couple traveling to Iran reported on FinCen Form 105 to having a combined $10,000 in their possession. After officers completed the currency verification, they seized $27,431.

The next day, CBP officers encountered a U.S. citizen and his wife who were enroute to Pakistan. The couple reported they were transporting $9,500; however more than $23,800 was seized after officers completed the currency verification.

The final seizure of the week occurred July 9 when officers seized $22,900 from a couple enroute to India. The couple reported $17,000 in the possession, however when officers completed verifying their currency, it totaled $22,900.

In all four instances, the currency was seized for failure to properly report currency in an aggregate amount exceeding $10,000.

The story also says that across the nation, on a typical day, CBP officers seized more than $650,117 from people entering and exiting the United States.

$19k Customs Currency Seizure Mitigated at Airport On-site

Posted by Jason P. Wapiennik on July 16, 2015

U.S. Customs seized $19,050 from a U.S. citizen leaving for Lebanon at Dulles Airport on Monday using a currency detection dog. The seizure of $19,050, was mitigated on-site, meaning the passenger did not have to go through the petition process — with its inherent delays — to get the seized money back.

As far as I am aware, on-site mitigation is only available to those persons who are transporting less than $25,000, and who mis-report an amount that is 5% or less in variance with the actual amount being transported. I am not sure how this case qualified for on-scene mitigation because the mis-report was greater than 5%, but this gentleman should consider himself lucky.

Here is the FULL STORY, excerpted below:

The man was boarding a flight to Lebanon via Germany when he was identified by a CBP officer, working with his currency detection canine, as carrying a significant amount of currency. The man repeatedly declared $15,000 however; a total of $19,050 was discovered on his person and in his luggage. CBP officers seized the $19,050, assessed a $1,000 penalty for failure to properly report the currency, and returned $18,050 to the traveler.

There is no limit to how much currency travelers can import or export; however federal law requires travelers to report to CBP amounts exceeding $10,000 in U.S. dollars or equivalent foreign currency.

“Travelers who refuse to comply with federal currency reporting requirements run the risk of having their currency seized, and may potentially face criminal charges,” said Wayne Biondi, CBP Area Port Director for the Port of Washington Dulles. “The traveler was given the opportunity to truthfully report his currency. The easiest way to hold on to your money is to report it.”

Detroit CBP: “Don’t Lose your Dough, Know Before You Go” – $8M and Counting

Posted by Jason P. Wapiennik on July 14, 2015

Detroit CBP seizes a lot of currency from arriving travelers for failure to report, structuring, or bulk cash smuggling offenses. How much is “a lot”? CBP in Detroit has seized nearly $8 million dollars in currency since October 1, 2014. This seems like more than previous years (reported here). While the following news release, cleverly titled “Don’t lose your dough, know before you go” only explicitly deals with failure to report customs currency seizure violations, it very likely includes structuring and bulk cash smuggling offenses as part of this grand total:

DETROIT— So far during fiscal year (FY) 2015, U.S. Customs and Border Protection (CBP), Office of Field Operations (OFO) has seized over $7,900,000 in unreported currency at ports of entry within the Detroit Field Office.

The transport of any currency and/or monetary instruments (i.e. cashier’s checks) over $10,000 must be reported to a CBP Officer upon arrival into or exiting the United States. Penalties can range from civil fines up to and including seizure of the currency and arrest.

“There is no limit as to how much currency travelers can import or export; however to avoid subjecting the money to seizure, it’s always best to report it and file the proper paperwork” said Christopher Perry, Director of Field Operations for the Detroit Field Office.

Currency and reporting laws were enacted to thwart bulk cash smuggling of drug trafficking organizations, terrorist finance networks and other criminal activities.

CBP at Dulles Airport Seizes $72K over 3 days

Posted by Jason P. Wapiennik on July 9, 2015

CBP seized over $70,000 from 3 travellers at Washington Dulles airport recently. This was reported yesterday by CBP (read it here), with some additional follow-up in an article at the Washington Post (read it here).

The Washington Post does an alright job of reporting why the currency was seized, but understandably mixes up its legal terminology; seizure is different from forfeiture. Likewise, a “simple” failure to report violation does not, in and of it self, give rise to a bulk cash smuggling violation. Failure to report is money is not reported, or is not accurately reported; bulk cash smuggling is when money is hidden on a person or in their effects with purpose and intent that, by hiding it, they will avoid the requirement, to file a currency report.

Here is the story from CBP. Notice no criminal charges were filed yet:

STERLING, Va. — U.S. Customs and Border Protection (CBP) officers seized a combined $72,095 in unreported currency from three travelers at Washington Dulles International Airport over the past three days.

There is no limit to how much currency travelers may bring to, or take from the U.S. However, federal law requires travelers to complete financial reporting forms for any amount that exceeds $10,000 in U.S. dollars or equivalent foreign currency.

The first seizure occurred Saturday when a U.S. lawful permanent resident who arrived from Iran reported verbally and in writing that she possessed $10,000. While inspecting the woman’s luggage, CBP officers discovered Euros equivalent to $27,525 in U.S. dollars and $2,135 in U.S. currency for a total of $29,660.

On Sunday, a U.S. citizen arrived from Dubai, U.A.E., and reported verbally and in writing that she possessed $10,000. While examining her luggage, CBP officers discovered a total of $20,435.

The final seizure Monday occurred during an outbound international flight enforcement operation. A man destined for Ukraine reported to CBP officers that he possessed $15,000 and completed a financial reporting form stating that amount. During a search of the man’s carry-on baggage, CBP officers discovered an additional $8,000. CBP officers seized $22,000 and released $1,000 back to the man for humanitarian purposes.

CBP officers seized all currency, a combined $72,095, and released all three travelers.

CBP officers provide travelers with multiple opportunities to truthfully report all of their currency. Travelers who refuse to comply with federal currency reporting requirements risk having their currency seized, and potentially face criminal charges.

“Seizing a traveler’s currency is not a pleasant experience, but there are severe consequences for violating U.S. laws,” said Wayne Biondi, CBP Port Director for the Port of Washington Dulles. “We hope that these seizures are a lesson for all travelers that the easiest way to hold on to their currency is to honestly report it all to a Customs and Border Protection officer.”

In addition to currency enforcement, CBP routinely conducts inspection operations on arriving and departing international flights and intercepts narcotics, weapons, prohibited agriculture products, and other illicit items.

If you have had your currency seized, please call our office at (734) 855-4999 to speak to a customs lawyer, or e-mail us through our contact page. We are able to assist with cash seized by customs around the country, including Chicago, Atlanta, New York, Los Angeles, Orlando and many other places, and not just locally in Detroit. Please read these other articles:

Events: Detroit Trade Day and Citizen Academy

Posted by Jason P. Wapiennik on July 7, 2015

There are two upcoming events for members of the general public and those in the trade community in Detroit, including a citizen academy and the fourth annual trade day.

First, the Citizen Academy (full story here):

Citizen Academy attendees will learn about each of CBP’s components: U.S. Border Patrol; Office of Field Operations; and Office of Air and Marine, and their crucial mission of securing our Nation’s borders. The academy will also cover legal and operational aspects, and will provide participants with hands-on exposure to the equipment used by CBP every day. The academy will consist of six sessions, and classes will take place at various offices of the three components over the course of the Academy.

The Citizen Academy will be open to anyone 21 years of age or older. This program is offered at no cost to participants and all class materials will be provided. Please note that a background check is required and applicants should be in good physical health. Class size is limited, and those not selected will be placed on a waiting list for future academy dates.

Applications are being accepted from those who are interested in attending the CBP Citizen Academy and are willing to commit to attending all of the sessions. Please contact Detroit Sector Headquarters at (586) 239-5059 or DTM-PIO@dhs.gov for more information.

And “Trade Day” (full story here):

U.S. Customs and Border Protection’s (CBP) Detroit Field Office will hold its 4th annual Trade Day on Wednesday, Aug. 19, from 9 a.m. to 3 pm. This event will provide the trade community with an opportunity to meet and interact with CBP personnel, trade staff, and representatives from partner government agencies.

Attendees will have the opportunity to view presentations and directly engage with government personnel who regulate and facilitate trade. Participants range from Immigration and Customs Enforcement—Homeland Security Investigations, U.S. Department of Agriculture, U.S. Fish and Wildlife Service, Consumer Product Safety Commission, Environmental Protection Agency, the U.S. Patent and Trademark Office, Food and Drug Administration, Canadian Border Services Agency, and the Canadian Food Inspection Service.

Trade Day offers a diverse group of U.S. and Canadian customhouse brokers, carriers, importers, and other trade groups the opportunity to network with commodity teams, specialists from the Centers for Excellence and Expertise, and frontline officers from CBP and other partner agencies.

In previous years, the successful event has attracted audiences representing 97 companies and the general public. “This is a great opportunity to strengthen our relationship with the trade community and showcase our dedicated team of professionals.” said Director of Field Operations Christopher Perry.

The event will be held at the U.S. Food and Drug Administration (FDA) Detroit District, located at 300 River Place Dr., Suite 5900, Detroit, MI 48207. Parking for the event is free to all who register by Aug. 12. All who plan to attend are encouraged to register online at http://detroitfotradeday2015.eventbrite.com.

Questions or additional information may be directed to Mica Brazier at 313-496-2185 or via email at Mica.L.Brazier@cbp.dhs.gov.

If you see us there, be sure to say hello.

U.S. Customs Seize $541,000 in Unsafe Consumer Products

Posted by Jason P. Wapiennik on July 2, 2015

When importing into the United States an importer must make sure to comply with the customs laws for classification, valuation, invoicing, etc. But they also must make sure that they’re products are not harmful or in violations of the myriad of other regulations enforced by CBP at the border; whether they be FDA, Department of Agriculture, or the Consumer Product Safety Commission. Recently, customs seized over half a million dollars in unsafe consumer products in a joint effort with the French government.

The story below:

U.S. Customs and Border Protection (CBP) and French Customs General Directorate announce the results of Operation Bathe and Beaute, a bilateral Intellectual Property Rights (IPR) enforcement operation targeting counterfeit personal care products and electric personal care devices. The joint operation, conducted from April 8 through May 4, resulted in the seizure of 76 shipments of more than 31,000 counterfeit items for a combined manufacturer’s suggested retail price of $541,000.

“Operation Bathe and Beaute reflects our ongoing efforts to interdict illegal trade in counterfeit merchandise, which threatens the competitiveness of legitimate businesses and can jeopardize consumer health and safety,” said Assistant Commissioner Brenda Smith of CBP’s Office of International Trade.

76 shipments of more than 31,000 counterfeit items for a combined manufacturer’s suggested retail price of $541,000.

“After the successful Core Systems operation in late 2013, this fourth joint operation between CBP and French Customs demonstrates once again how important it is to exchange information and act together to fight organized crime in a global world,” said François Richard, French Customs Attaché.

The four week operation focused on personal care products and devices that potentially introduce dangerous chemicals and bacteria to the skin and eyes or burning or electrocution due to non-standardized wiring and ineffectual family planning protection to the consumer. Products seized during this event included make-up, condoms, hair removal devices, contact lenses, hair curlers, straighteners and skin cleansing devices.

You might be facing penalties from customs for importing counterfeit merchandise. We can help. Typically, we recommended preparing and filing a petition, with the assistance of legal counsel, which argues persuasively for the substantial mitigation, or when the facts and law warrant it, cancellation of the penalty in full.

Great Lakes Customs Law has been very successful in getting these kinds of penalties reduced and, sometimes, even eliminated entirely (some history of our success is HERE).If you have had merchandise seized by customs because they allege it is counterfeit and contains trademark violations and/or have a received a notice of penalty for importing alleged counterfeits or for making an importation contrary to law, call our office at (734) 855-4999 to speak to a customs lawyer, or e-mail us through our contact page. We are able to assist petitions for customs penalties and seizures around the country, including Detroit, Chicago, Atlanta, New York, Los Angeles, Orlando and many other places. Please read these other articles: