Category: Currency Seizure

CBP seizes $460,060 in unreported currency

Posted by Jason P. Wapiennik on February 6, 2013 with 1 Comment

The Laredo Sun reports on a recent currency seizure by U.S. Customs and Border Protection in Laredo, Texas, from a 31 year U.S. citizen from Chicago who was transporting $460,060 as he attempted to drive across the border to Mexico. Something tipped the officers off as he left the U.S., and they pulled him and his vehicle aside for a secondary inspection to verify the amount of money being transported.

The money was apparently concealed in various parts of his vehicle. I can only imagine how long it took them to count it all out and the condition of the truck. If this individual is not prosecuted by the government for criminal violations, he faces the potentially difficult task of proving a legitimate source and legitimate intended use of the money (not to mention fitting all the plastic interior trim pieces back like new).

In this case, we could give the man the benefit of the doubt and presume the legitimate source is the proceeds of a life insurance policy of a beloved family member; and the intended use, perhaps he was paying cash for a nice place on the Riveria Maya. That’s just my guess, and yes, I have handled stranger cases.

If we assume he proves these two things, then this situation is regrettable for him and completely avoidable. But now, even if criminal charges are ultimately not filed or if he is ultimately found not guilty of a crime, he will still face civil forfeiture of the money and, if he wants it back, will have to fight for its return administratively, or in the courts.

This news story gets a lot of things right about the currency seizure process because they note you can petition for the return of the currency and that the person transporting the unreported currency is subject to arrest for criminal violations.

That brings me to the next point:

If you have had currency seized from Customs, do not go it alone. Get the advice of an attorney who knows what he is doing. If you do not, you might only make the situation worse by handling it on your own or hiring a lawyer who doesn’t regularly handle these cases.

Our customs law firm handles currency/money seizures made by customs in Detroit and around the country; call (734) 855-4999 to consult with a customs lawyer today (you can read our popular page on Responding to a Customs Money Seizure HERE).If you have had money seized by Detroit CBP/customs call our office at (734) 855-4999 to speak to a lawyer, or e-mail us through our contact page (see our case results here). We are able to assist with cash seized by customs nationwide, including Detroit, Chicago, Atlanta, New York, Los Angeles, Las Vegas, and Orlando.

Please read these other articles customs currency seizures:

Customs seizes $25,000 currency in El Paso, Texas

Posted by Jason P. Wapiennik on January 11, 2013

The El Paso Times reports on a recent currency seizure by U.S. Customs and Border Protection in El Paso, Texas, from a woman who was carrying $25,000 as she attempted to walk into Mexico. They found three bundles of currency in her purse, all unreported.

This article gives me the opportunity to provide some additional insight for my readers: every time currency is seized Customs asks the district attorney’s office if they want to prosecute. I do not have access to the actual numbers, but from my experience in the vast majority of currency seizures there is no criminal prosecution. But as this article shows, that is not always the case.

In this instance, the district attorney decided to prosecute and the woman is being held without bond and facing criminal charges. If it
turns out the money was from legitimate source and she had a legitimate intended use, this situation was completely avoidable. But now, even if criminal charges are ultimately not filed or if she is ultimately found not guilty of a crime, she will still face civil forfeiture of the money and, if she wants it back, will have to fight for its return administratively, or in the courts.

If you have had currency seized from Customs you should seek the advice of an attorney. If you do not do so, you might only make the situation worse by trying to handle it on your own. Please make use of the various articles I have made available to the public to help better understand your situation and the procedures involved, but do not let them replace the advice of attorney who is familiar with the law and your particular circumstances.

Responding to a Customs currency seizure

Posted by Jason P. Wapiennik on December 26, 2012

If you have had cash seized by customs and are contemplating what to do next, please inform yourself on the process by reading this article and then contact 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.

What documents should I have gotten and what will I get?

At the time of a currency seizure, Customs probably gave you a “Custody Receipt for Seized Property and Evidence” form (6051S), which will have some different numbers at the top, including an FPF No. so that your case can be tracked at Fines, Penalties and Forfeitures office (“FP&F”) of Customs. This form should show what exactly was seized, the name of the seizing officer, and Customs’ contact information — usually for the local FP&F branch of Customs. FP&F should then send by certified mail a formal written notice of seizure (“CAFRA Seizure Notice” or “CAFRA Notice”). You should get it within a few days as long as Customs has your correct address, which they may have asked for during your initial detention at the border or port. You will have 30 days from the date on the letter (not the date the letter is received) to respond.
We do not recommend contacting Customs by yourself until you have at least spoken to an attorney. Any statements you make to Customs, whether while you are being detained or by telephone, can be used against you. You may be panicked and say something that is misinterpreted by Customs as an admission of wrongdoing, or might make them suspect you are involved in something illegal. That will make it harder to get your money back. Therefore, we recommend contacting an attorney with experience in customs seizures immediately after receiving the CAFRA Notice. In any event, if you have not received this notice within 7 days of the seizure you should contact an attorney so they can request a copy of the notice of seizure for you, make sure that a timely response is made, or an extension of time to respond is requested and granted. This will help you make sure you preserve all your rights and options and improves your chances of successfully getting all or most of your money back.

CAFRA Notice of Seizure & Election of Proceedings

CAFRA stands for “Civil Asset Forfeiture Reform Act” and is, in our practice, the law that most of my client’s currency seizures fall under. After you’ve been detained and released, the CAFRA Notice you receive will have a basic explanation of the facts surrounding the seizure, including: the date and place of seizure, surrounding circumstances, and the facts Customs’ alleges are the basis for the seizure. The CAFRA Notice is a formal document, and should be treated and responded to as such. How and when you respond to the CAFRA Seizure Notice will determine the outcome of your currency seizure case!

What are my options for getting my seized currency back from customs?

The CAFRA Notice will also cite the applicable laws, including failure to report, bulk cash smuggling, or a currency structuring violation to evade the reporting requirement, among others. It will also list your options to respond to the CAFRA Notice, which include:

Filing a Petition for Remission or Mitigation (including the right to file a Supplemental Petition after decision on the first Petition)
Pay the Full, Appraised Domestic Value of Seized Property
File an Offer in Compromise
Abandon the Property
Institute Judicial Proceedings
Do Nothing

The details of these options are explained in the CAFRA Notice, and Customs will include and ask you to complete and return what is called an “Election of Proceedings” form. This form will require you to select one of the above options. The advice we give to our currency seizure clients varies with the circumstances of each seizure case. Do not decide how to respond to a CAFRA Notice without first consulting an attorney. There may be times when a Judicial Proceedings make more sense than filing a Petition, and a qualified attorney can help you weigh those options and make that decision. Any mistake or error in judgment you make can cost you dearly. The majority of the time, however, I do recommend my client’s to file a Petition for Remission or Mitigation as the best option. The Petition, when filed by our office, is a legal memorandum that contains detailed factual narrative with our client’s side of the story, what led to the seizure, a review of the relevant law, regulations and Custom’s own guidelines concerning the seizure. When the facts allow for it, my Petition will always include a strong argument for return of the money in full, or even when there is a valid basis for the currency seizure, a strong argument for the money to be returned upon payment of a fine in the smallest amount of money possible, rather than forfeiture of all your money.

How can I find out more or hire a law firm to help with my customs currency seizure?

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:

Seizure for bulk cash smuggling into or out of the U.S.

Posted by Jason P. Wapiennik on October 22, 2012

Many posts in this series have dealt with how and why Customs will seize currency and monetary instruments crossing the border for a violation of 31 USC 5316, which is a failure to report. Customs is also empowered to seize cash or its equivalent smuggled into or out of the United States under 31 USC 5332(c) in addition to seizure for failure to file a report.

At its core, the law against bulk cash smuggling prohibits (1) the concealment of currency or monetary instruments, with (2) an intention to evade the reporting requirement, during the (3) knowing transport, transfer, or attempted transport or transfer, of the currency or monetary instruments out of or into the U.S. 31 USC 5332(a)(1).

Concealment can be done on your person, including in clothing, a conveyance (e.g., a vehicle), in luggage, in a backpack, with or in merchandise, or any other container, whether it is worn or carried by the person transporting, transferring, or attempting to transport or transfer the currency or monetary instruments. 31 USC 5332(a)(2).

This law allows Customs to seize and forfeit through a civil proceeding “[a]ny property” including the container, conveyance, luggage or clothing, “involved in a violation . . . or a conspiracy to commit such violation, and any property traceable to such violation or conspiracy[.]” 31 USC 5332(c). This means that not only will Customs seizue the currency or monetary instruments, but in some cases also the luggage, backpack, merchandise, or conveyance in which it was concealed. The law also provides for penalties for a criminal conviction of not more than 5 years, among other sanctions. 31 USC 5332(b).

Each of the 3 elements above have a legal definition too detailed for an article this short, but suffice it to say that the terms “knowing” and “intentional” do not have the common, everyday definitions you might expect. If you are not a lawyer or don’t mind losing more than $10,000 do not try to be clever and figure it out.

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:

Is only cash currency subject to seizure by Customs?

Posted by Jason P. Wapiennik on August 27, 2012

Sometimes the failure to file the required report with Customs leading to a currency seizure arises because there is a mistaken assumption that only currency, or only U.S. currency, needs to be reported. This is wrong.

The reporting requirement applies to all monetary instruments. This is a legal term, defined in at least two places. First, 31 USC 5312 defines them, in relevant part, as:

(A) United States coins and currency;

(B) [ . . .] coins and currency of a foreign country, travelers’ checks, bearer negotiable instruments, bearer investment securities, bearer securities, stock on which title is passed on delivery, and similar material; and

The Federal Regulations, namely 31 CFR 1010.100(dd), provides a more detailed definition
as to what is included in the definition of monetary instrument, including:

(i) Currency;

(ii) Traveler’s checks in any form;

(iii) All negotiable instruments (including personal checks, business checks, official bank checks, cashier’s checks, third-party checks, promissory notes (as that term is defined in the Uniform Commercial Code), and money orders) that are either in bearer form, endorsed without restriction, made out to a fictitious payee (for the purposes of §1010.340), or otherwise in such form that title thereto passes upon delivery;

(iv) Incomplete instruments (including personal checks, business checks, official bank checks, cashier’s checks, third-party checks, promissory notes (as that term is defined in the Uniform Commercial Code), and money orders) signed but with the payee’s name omitted; and

(v) Securities or stock in bearer form or otherwise in such form that title thereto passes upon delivery.

(2) Monetary instruments do not include warehouse receipts or bills of lading.

It is noteworthy that the statute says it includes the foregoing, with the implication that just because a type of monetary instrument is not listed will not, by necessity, mean that is excluded from the reporting requirement.

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Under what circumstances is filing a report with Customs for transporting more than $10,000 required?

Posted by Jason P. Wapiennik on August 14, 2012 with 9 Comments

Title 31 of the U.S. Code, § 5316, is the law requiring that a report be filed when leaving or departing the U.S. for a (1) knowing (2) transportation (in the past, present or future) of (3) monetary instruments (including currency, U.S. or foreign) (4) of more than $10,000 (5) at one time.

Each of the elements numbered 1 through 5 above have a legal definition too detailed for an article this short, but suffice it to say that the terms “knowing,” “monetary instruments,” and “one time” do not have the common, everyday definitions you might expect. If you are not a lawyer or don’t mind losing more than $10,000 do not try to be clever and figure it out.

When leaving or arriving to the U.S., how do I know if I need to file a report?

Some believe the $10,000 reporting requirement is per person, meaning that if there are two people then the reporting requirement is raised to $20,000, and $30,000 for three people, and so forth; or, they also think that if no single person has on them or in their luggage more than $10,000, there is no reporting requirement. This is usually not true.

Some particular examples

So to what scenarios does the reporting requirement apply? Let’s look at a few examples that assume a hypothetical husband and wife traveling together:

Husband is transporting $8,000 for himself, and $7,000 for his wife. Is there a reporting requirement? Yes, Husband needs to file a report because Husband is transporting more than $10,000 at one time.
Husband wants to transport $18,000. Trying to avoid filing a report, Husband gives $9,000 to Wife to transport and he transports $9,000. Is there a reporting requirement? Yes, Husband needs to file a report because, among other things, he is causing more than $10,000 to be transported at one time. It is also the crime of structuring.
Husband and Wife are each transporting $6,000 for their own account. Is there a reporting requirement? No, neither Husband nor Wife need to file a report because the money is for their own account (but see the “Cautionary Disclaimer” below).

Cautionary disclaimer

In the case of currency seizures, for whose account the money is and who is carrying it is often a difficult matter to prove. It really guts the distinctions in the first three scenarios, especially in #3. It is difficult, if not impossible, to sufficiently prove for whose account cash currency is being carried, especially between a husband and wife, or other family, and especially if transported in baggage. It’s a lot easier if you are carrying money orders or traveler’s checks made payable to either husband or wife. When in doubt, disclose everything and file a report.

If you do not file a report and you raise the suspicions of U.S. Customs, or you play fast and loose with the rules and you will get your currency or monetary instruments seized. 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: