Tag: crimes

CBP in Southern Arizona Seizes $100K In Cash

Posted by Jason P. Wapiennik on August 20, 2013

The currency reporting requirements were designed, in part, to give the government additional abilities to catch people involved in money laundering. Wikipedia, in its article on money laundering, explains that:

Money laundering is the process of concealing the source of large amounts of money that have been gained through illegitimate means. Money evidently gained through crime is “dirty” money, and money that has been “laundered” to appear as if it came from a legitimate source is “clean” money. Money can be laundered by many methods, which vary in complexity and sophistication.

Therefore, it is with great irony that I share with you the following news release from Customs involving a currency seizure resulting from an effort to smuggle money out of the United States and into Mexico by concealing it in a box of laundry detergent.

Nogales, Ariz. —A southern California woman was arrested Saturday for attempting to smuggle $100,000 in unreported U.S. currency into Mexico through the Dennis DeConcini Port.

Customs and Border Protection officers conducting outbound inspections selected a Honda sedan, driven by Blanca Gabriela Medina, 29, of El Monte, Calif., for further inspection. When officers searched the vehicle, they located 10 packages of U.S. currency hidden in a box of laundry detergent. The vehicle and cash were processed for seizure. Medina was turned over to U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

And the best part of all, the picture:

If you have money seized and receive a notice of seizure, do not decide how to respond to a CAFRA Notice without first consulting an attorney. Any mistake or error in judgment you make can cost you dearly.The Petition process is a legal process. The petition itself is and should always be a legal document, no different than in any other legal proceeding, that contains detailed factual narrative, what led to the seizure, a review of the relevant law, regulations and Custom’s own guidelines concerning the criteria for remission. When the facts allow for it, our 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.

If you have had currency seized and are contemplating what to do next, please make use of the other information I make available on this website or call my office at (734) 855-4999 or e-mail us through our contact page. We are able to assist with currency seizures around the country, including Philadelphia, Chicago, Atlanta, New York, Los Angeles, Orlando and many other places, and not just locally in Detroit.

CBP Currency Seizures in Philadelphia for Violations of the Currency Reporting Regulations

Posted by Jason P. Wapiennik on August 15, 2013

CBP in Philadelphia has really stepped up their news releases concerning currency seizures. Recently, there is a new release which I quote in part below. The Port in Philadelphia always gives us the most detail in the currency seizures, making it ripe for my commentary. Thus, I have put my own emphasis in bold lettering and my comments in [brackets].

A U.S. woman learned a very difficult lesson Sunday at Philadelphia International Airport after U.S. Customs and Border Protection (CBP) officers seized $39,570 that she failed to truthfully report to officers.

The woman, who was not criminally charged [though she could have been, as I write about here], arrived from Portugal with a Portuguese friend. Both women were referred to a secondary examination after both reported possessing more than $10,000 in currency [note that though both reported over $10,000, the report still must be accurate] – the U.S. woman claimed $30,620; the Portuguese woman $20,700. During the secondary examination, CBP officers learned that $40,570 of the combined $51,320 belonged to the U.S. woman [which is a structuring violation if the money was given to her travelling companion to avoid the reporting requirement]. CBP released $1,000 to the U.S. woman for humanitarian purposes and seized the remaining $39,570. Officers advised her how to petition for the seized currency. [And she no doubt is waiting for notice of seizure and election of proceedings form. Read about how to respond to a currency seizure here.]

CBP officers also assessed a $500 mitigated currency reporting penalty to the Portuguese woman. It was one of six currency reporting penalties for a combined $3,500 in penalties that CBP officers assessed to travelers in the two-week period from July 21 to August 4.

There is no limit to how much currency that travelers can bring into, or take out of the United States. Travelers are required to formally report amounts of $10,000 or more in U.S. dollars, equivalent foreign currency, or other monetary instruments.

“CBP derives no great pleasure from seizing travelers’ currency. [Institutionally, perhaps, but the occasional seizing agent no doubt takes some pride in their accomplishments.] However, there are consequences for failing to comply with U.S. laws,” said Allan Martocci, CBP port director for the Area Port of Philadelphia. “We hope that word of these penalties will compel these and other travelers to be honest with us and to truthfully declare what they are bringing to the U.S.”

The remaining five currency reporting penalties included:

July 29, CBP officers assessed a $500 penalty to a 37-year-old Nigerian man who reported $8,500, but officers discovered that he possessed $11,400.
July 27, CBP officers assessed a $500 penalty to a 76-year-old Nigerian man who reported $5,000, but officers discovered that he possessed $11,622.
July 26, CBP officers assessed a $500 penalty to a 53-year-old Italian man who reported $7,000 in U.S. dollars, 250 Euros and 500 British pounds. Officers discovered that the man possessed $10,071 in U.S. dollars, 1,150 Euros and 1,500 British pounds, equivalent to $13,213 in U.S. dollars.
July 23, CBP officers assessed a $1,000 penalty to a 68-year-old Italian man who officers found to have structured $24,644 between himself, his brother and his girlfriend to evade reporting requirements for possessing more than $10,000.
July 21, CBP officers assessed a $500 penalty to a 38-year-old Ghanaian woman who reported $9,000, but officers discovered that she possessed $11,870.
Privacy laws prohibit CBP from releasing their names as no subjects were criminally charged.

CBP routinely conducts inspection operations on arriving and departing international passengers and cargo, and searches for terrorist weapons, illicit narcotics, unreported currency, counterfeit merchandise, and prohibited agriculture and other products.

If you have considered your options and decide in you want to hire an lawyer, or have other questions, please contact us by calling (734) 855-4999 or by clicking here – it’s almost never too late to get a lawyer involved. We will be happy to answer any questions you have and explain the process to you.

If you have other questions about currency seizures by U.S. Customs and Border Protection, please read these other articles:

$50,000 Currency Seizure at Brownsville Port

Posted by Jason P. Wapiennik on August 13, 2013

We republish below a recent money seizure by U.S. Customs and Border Protection (CBP) which was effected in Brownsville, as follows:

On June 13, 2013, CBP officers working outbound enforcement operations at the Brownsville and Matamoros International Bridge came in contact with a 1996 Ford Crown Victoria as it attempted to exit the United States and enter Mexico. The driver, a 24 year-old United States citizen from Brownsville, Texas was referred to secondary for further inspection. In secondary, a search of the Crown Victoria resulted in the discovery of six packages of bulk U.S. currency [$50,000] hidden within the vehicle.

CBP officers seized the currency; the driver has been transferred into the custody of U.S. Homeland Security Investigations (HSI) special agents for further investigation.

“Persistence and dedication in outbound enforcement inspections are critical to our efforts of keeping undeclared currency form being exported without meeting proper reporting requirements. I commend our CBP officers for an outstanding seizure and arrest in this alleged bulk currency smuggling case,” said Michael Freeman, CBP Port Director, Brownsville.

Little detail is given, but as with 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 in the American ex-pat community of Merida. That’s just my guess, and yes, I have handled stranger cases. Maye he was just hiding the money (also called smuggling) to protect it from imagined theieves as he crosses the border into Mexico.

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.

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.

If you have other questions about currency seizures by U.S. Customs and Border Protection, please read these other articles:

If you have considered your options and decide in you want to hire an lawyer, or have other questions, please contact us by clicking here – it’s almost never too late to get a lawyer involved. We will be happy to answer any questions you have and explain the process to you.

Philly CBP Provides On-Site Mitigatation for Reporting Violation after Currency Seizure

Posted by Jason P. Wapiennik on July 30, 2013

Coming out of the Philadelphia airport, CBP has another news release dealing this time with a currency seizure based on a structuring violation and failure to report by U.S. Customs and Border Protection :

U.S. Customs and Border Protection (CBP) at Philadelphia International Airport assessed a $1,000 penalty to an Italian citizen Tuesday for violating federal currency reporting requirements. During a secondary inspection, the man, who arrived from Italy, reported possessing $11,700. It was later discovered that the man had given money to two co-travelers in order to evade currency reporting requirements, an illegal practice known as currency structuring. In total the cash added up to $24,644. CBP officers seized the money, issued the man a $1,000 penalty, and then returned the remaining cash back to the man.

[ . . . ]

“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, such as hefty penalties, having their currency seized, or potential criminal charges,” said Allan Martocci, port director for the Area Port of Philadelphia. “The easiest way to keep your currency is to truthfully report it.”

International travelers who arrive or depart the United States in possession of more than $10,000 or equivalent foreign currency are required to report all currency to CBP officers and complete a Treasury Department Financial Crimes Enforcement Network (FinCEN) form.

So Customs’ determined that man was in transporting $24,644, but he had given $12,944 to two people with whom he was traveling. As explained in the article linked above, it is illegal to structuring a transaction to avoid filing the currency reporting requirement. From the facts as narrated, it almost looks as though the man did voluntarily report traveling with more than $10,000 ($11,700), but mis-reported the amount by failing to disclose the remaining $12,994 that his “co-travelers” were carrying. I think that the argument could be made that there was no structuring violation if he did file the report; just a violation to accurately report the amount of money that was being transported. That’s a tricky, technical argument to make, though. Never put yourself in that situation.

On the bright side for this individual, he was able to get his money back on the scene – he did not have to go through the petition process, and its inherent delays, to get the seized money back. As far as I am aware, on-scene 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.

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.

Customs Seizes Money Smuggled in Gas Tank

Posted by Jason P. Wapiennik on July 26, 2013

Although this case is definitely outside the realm of your average failure to report currency in excess of $10,000, I always find these types of smuggling cases interesting because they show the great lengths and cleverness that people will go when smuggling. It also shows that great talent of the men and women (and their trained dogs) of U.S. Customs & Border Protection in detecting smugglers and smuggled property.

U.S. Customs & Border Protection (“CBP”) reports another currency seizure at the U.S.-Mexico border, as follows:

Calexico, Calif. — U.S. law enforcement officials in Calexico, Calif. found more than $750,000 cash hidden in a gas tank Monday, in a vehicle headed into Mexico.

At about 10 a.m., U.S. Customs and Border Protection officers, together with members of the Imperial Valley Border Enforcement Security Task Force, were conducting inspections of vehicles in the U.S. headed south into Mexico at the downtown Calexico port of entry.

Officers targeted a silver 2005 Honda Accord, driven by a 24-year-old female U.S. citizen, for inspection.

A CBP officer with a currency/firearms detector dog screened the vehicle, and the canine alerted to the gas tank area.

Officials found 42 packages of unreported U.S. currency, vacuum sealed in clear plastic bags, floating within the gas tank. The currency totaled $762,930. Officials also found another $221 in U.S. currency on the driver.

CBP officers seized the currency and the vehicle, and turned the driver over to U.S. Immigration and Customs Enforcement agents with the Imperial Valley Border Enforcement Security Task Force. The San Diego U.S. Attorney’s Office will prosecute the driver.

Yes, that’s right, over three-quarters of a million dollars floating in bags in an automobile’s gas tank. And the dog still smelled it.

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

Currency Seizures by U.S. Customs Increase on the Holidays

Posted by Jason P. Wapiennik on July 4, 2013

The holidays always seem to be ripe for currency seizures by U.S. Customs & Border Protection because of the increased amount of travel that invariably happens during the holidays. And when I say holidays, I do not mean those national and international holidays, too.

Whether you’re crossing the U.S.-Canadian border to participate in the the holiday festivities with your family, or you’re a Chinese national returning from China with a bagful of red envelopes (hongbao) from surprisingly generous relatives, or simply trying to get some money back to your family in Syria or Egypt who face a grave humanitarian crisis, we can help you get your seized money returned to you. If you have had currency seized and are contemplating what to do next, please make use of the other information I make available on this website or call my office at (734) 855-4999 or e-mail us through our contact page. Read about responding to a customs currency seizure.

So, it is no surprise that there will be an up-tick in currency seizures during this Fourth of July weekend. This news story was released yesterday and occurred on June 30, where CBP Officers Seizure $39,000 in Unreported Funds. It will probably be just the first in a string of currency seizures in the news.

Phoenix, Ariz. — A local man attempted to smuggle $39,100 in unreported U.S. currency into the United States from Angola.

On Sunday afternoon, U.S. Customs and Border Protection officers assigned to Phoenix Sky Harbor International Airport were conducting inspections of arriving passengers on a British Airways flight referred a 67-year-old man for further inspection. During the search of the man’s luggage, officers found envelopes containing the large volume of unreported currency. The cash was processed for seizure.

The man was turned over to U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

Individuals arrested may be charged by complaint, the method by which a person is charged with criminal activity, which raises no inference of guilt. An individual is presumed innocent unless and until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

CBP’s Office of Field Operations is the primary organization within Homeland Security tasked with an anti-terrorism mission at our nation’s ports. CBP officers screen all people, vehicles and goods entering the United States while facilitating the flow of legitimate trade and travel. Their mission also includes carrying out border-related duties, including narcotics interdiction, enforcing immigration and trade laws, and protecting the nation’s food supply and agriculture industry from pests and diseases.

We are able to assist with currency seizures around the country, including Chicago, Atlanta, New York, Los Angeles, Orlando and many other places, and not just locally in Detroit. Call (734) 855-4999 today.

CBP Seizes $205,500 in Unreported Money

Posted by Jason P. Wapiennik on July 2, 2013

As reported by CBP in a recent news release:

Lukeville, Ariz. – Two Mexican nationals were arrested Monday for attempting to smuggle $205,500 of unreported U.S. currency into Mexico through the port of Lukeville.

Customs and Border Protection officers conducting outbound inspections selected a 2000 Toyota sedan for a secondary inspection. The vehicle’s occupants [ . . . ] told officers they had nothing to declare. During the inspection, however, officers found 22 bundles of U.S. currency in the vehicle’s panels.

Both individuals were referred to U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The cash and vehicle were seized.

Individuals arrested may be charged by complaint, the method by which a person is charged with criminal activity, which raises no inference of guilt. An individual is presumed innocent unless and until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

Live and learn, and quit smuggling. The vehicle was probably seized under authority of 19 USC 1595a, which allows Customs to seize any conveyance which has been outfitted for the purposes of smuggling (e.g., vehicles with secret compartments, boats with false floors, secret hull compartments, etc.). The money was probably, at least until criminal charges are made, seized for a simple bulk cash smuggling and/or failure to report the transportation of more than $10,000 out of the United States.

And while we are on the topic, isn’t this fact pattern a much more obvious case of bulk cash smuggling? The money was concealed in the vehicle’s panels, and there is likely no logical reason why it should be stored there; but, this qualifies for concealment and, as the bulk cash smuggling law is written, so does simply having it stored in your luggage, as explained in previous articles.

We are able to assist with currency seizures around the country, including Chicago, Atlanta, New York, Los Angeles, Orlando and many other places, and not just locally in Detroit.

CBP-Detroit Currency Seizures Exceed $5 million for 2013

Posted by Jason P. Wapiennik on June 20, 2013 with 1 Comment

Customs in Detroit, my “home” port, reports that enforcement of currency reporting violations are up 24% in terms of value of currency seized over last year.

During the first three quarters of fiscal year 2013, which began Oct. 1, 2012, more than $5,199,000 in currency has been seized at ports of entry within the Detroit Field Office. This represents an increase of 24% compared to this time last fiscal year. Recent cases, such as the $73,000 seized from a pair of Canadian women that was hidden in their under garments, with one of the women being arrested for bulk cash smuggling, highlight the need to inform the public so that they can avoid having their currency seized.

Great Lakes Customs Law is involved in 17 of those cases, involving around $250,393 total seized currency since October 1, 2012. This figures accounts for roughly 5% of the value of all the cases of currency seizures in the port of Detroit so far for fiscal year 2013.

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

Customs seizure of smuggled money in Arizona

Posted by Jason P. Wapiennik on May 30, 2013

A news release from Customs & Border Protection goes into some detail on a recent money seizure in Arizona. The release says that Customs officer’s seized $10,744 in unreported money/currency from a 22-year old guy with a valuable pair of shoes (see below. sometimes I just like re-posting these new releases for the pictures they provide of smuggling attempts).

U.S. Customs and Border Protection officers and Border Patrol agents conducting outbound inspections referred a 22-year-old man for further inspection. During a search of the man, officers found $10,744 in U.S. currency concealed in his shoes. The currency was seized and the man was arrested and referred to U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

Individuals arrested may be charged by complaint, the method by which a person is charged with criminal activity, which raises no inference of guilt. An individual is presumed innocent unless and until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

Unlike the usual cases I handled where the unreported seized money is part of a civil seizure, this apparently was a criminal seizure. While any violation can give rise to criminal penalties, usually if there is no suspicion of criminal activity the assistant U.S. attorney will not press charges.

In fact, before sometimes before a person is a released after being detained for bulk cash smuggling, a failure to report currency over $10,000, or a structuring violation the seizing officer will call and explain the circumstances to the assistant U.S. attorney, who may either accept, defer, decline prosecution. Of course, if prosecution is initially declined, it would not prevent the government from changing their mind and pursuing criminal charges should they find new evidence in the future.

The risk of criminal prosecution, and the complicated process of actually getting your money through the petition process, is a good reason to give our office a call at (734) 855-4999, or e-mail us if you have had your money seized by Customs, even if you feel it was innocently done. We provide more reasons for hiring an attorney in our tutorial on the currency seizure process.

Regulated Wood Packaging Material Customs Violations

Posted by Jason P. Wapiennik on May 28, 2013

In 2007, Customs & Border Protection began enforcing requirements that regulated wood packaging material imported into the United States mandating that it meet certain requirements. Although an “old” issue, importers still run afoul of these requirements and get themselves into trouble. These requirements have the effect of limiting the risk that wood packaging material imported into the United States will introduce foreign insects into the U.S. ecosystem that could be harmful to the environment and U.S. industries, particularly the lumber industry and native tree populations in our forests.

What is wood packaging material, and what is regulated?

First, it should be noted that there is a distinction between wood packaging material and regulated wood packaging material. Wood packaging material is just wood or wood products, excluding paper products, used in support, protecting, or carrying a commodity, including dunnage. 7 CFR 314.40-1.

Regulated wood packaging material is defined as:

Wood packaging material other than manufactured wood materials, loose wood packaging materials, and wood pieces less than 6 mm thick in any dimension, that are used or for use with cargo to prevent damage, including, but not limited to, dunnage, crating, pallets, packing blocks, drums, cases, and skids.

7 CFR 314.40-1.

Although not really made clear in the regulations, for purposes of enforcement Customs probably considers manufactured wood materials to woods like plywood, fiber board, whiskey barrels, wine barrels, and veneer. Regulated wood packaging materials include materials like dunnage, crating, pallets, packing blocks, cases, skids, and other wood that is dry and loose (as in the case of sawdust or wood shavings) and is not less than 6mm thick (as in the case of certain shims).

What must be done to wood packaging material so that it is compliant?

The requirements can be complicated in certain situations, and there are a limited number of exemptions, especially for trade with Canada and Mexico. But generally speaking, the wood must be treated and marked. 7 CFR 319.40-3. The wood must be marked in a “in a visible location on each article, preferably on at least two opposite sides of the article, with a legible and permanent mark that indicates that the article meets” the requirements of the law. The mark looks something like shown below, but the letters and numbers will vary depending on the circumstances (i.e., origin and type of treatment).

The means of treatment is set out in 7 CFR 305, and consists of heat treatment or a type of fumigation through chemical treatment with methyl bromide.

What if regulated wood packaging material is untreated or unmarked?

If your wood packaging material is regulated wood packaging material, meaning that there is no exception to the treatment and marking requirements, then it is violative wood packaging materials if it is not both marked and treated. A violation can either be because the treatment was not done, because the mark is not present, or because the mark is illegible. Even if the wood is actually treated but is not stamped, it is still violative. Even if you somehow know for a fact that the wood is not infested, it is still violative.

As such, it is most likely that you will be required to immediately re-export the wood packaging material out of the country. This will be done through the issuance of an Emergency Action Notification that gives you a certain period of time to re-export your entire shipment.

After receiving a notice of the presence of a violative wood packaging material, whether verbally or through an Emergency Action Notification, it is important to move very quickly. Failure to be obey the deadline given in the Emergency Action Notification can result in additional penalties.

Is there an alternative to re-exporting my merchandise?

It is possible to get permission from the Port Director to separate the violative wood packaging material from the commodity (e.g., separate the merchandise from its pallets), and re-export only the violative wood packaging material and enter the commodity. However, that is a complicated process with its own legal procedures, involving meeting certain requirements, demonstrating certain safeguards, paying certain costs, and filing an Application to Separate Violative Wood Packaging Material directly with the port director.

Obviously, this Application to Separate can be granted or denied. Filing of the application does not suspend the time period in which you must comply with the Emergency Action Notification to re-export. And if denied, you will still need to re-export. So, application to separate should prepared and filed as soon as possible. If the application is not successful, you will be re-exporting your commodities.

What are the ramifications of importing, or attempting to import, violative wood packaging materials?

Apart from the requirement to re-export the materials and your merchandise, and the costs associated with that come from your supply chain and your inventory problem, there are penalties that can be imposed by Customs for this type of violation.

Customs will usually send a Notice of Penalty or Liquidated Damages to the importer involved with the wood packaging material violation for violations of 7 CFR 319.40 as being an importation, or attempted importation, contrary to law under 19 USC 1595a, or as commercial fraud or negligence under 19 USC 1592. As in the case with all customs penalties, there are guidelines for reducing the amount of money customs seeks in penalty. This can only be done by filing a petition for mitigation.

What do I do next?

If you have been informed that you wood packaging material is in violation of the law and needs to be re-exported, immediately call or e-mail office at (734) 855-4999 and we can prepare an application to separate violative wood packaging material so that, if it is granted, you do not have to undergo the time and expense of re-exporting the merchandise you are trying to import.

If you have received a notice of penalty or liquidated damages and are being told you must as a result of the violation, immediately call or e-mail our office at (734) 855-4999 and we can prepare a petition for mitigation of the penalty amount.