Tag: money

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

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

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

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 pageRead 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

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.

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.

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.

 

$61k CBP Currency Seizure at Washington Dulles

Recently, at Washington’s Dulles Airport, CBP seized over $60,000 that was mis-reported to Customs by a Gambian national and concealed in his baggage:

On Saturday, CBP officers and Homeland Security Investigations (HSI) agents from Immigration and Customs Enforcement (ICE) discovered $64,770 in U.S. dollars that the Gambian man had concealed throughout his possessions. The man initially reported to two CBP officers separately that he did not possess more than $10,000 in U.S. dollars or equivalent foreign currency. After CBP explained the currency reporting requirements, the man then reported that he possessed no more than $14,000. After an initial baggage examination revealed $44,750, the man completed a U.S. Treasury currency reporting form reporting $44,750. A subsequent examination of a carry case revealed an additional $20,000. CBP seized $61,770, released $3,000 to the man for humanitarian purposes, and then released him.

So, our Gambian friend in this story has made several mistakes. First, he no doubt put on his traveler’s declaration form that he was not in possession of more than $10,000. Second, when orally asked by CBP to confirm or deny that fact, he denied it, which was apparently false. Third, when he finally decided to declare possession of more than $10,000, he only declared $14,000, despite having an additional $50,000 with him. Fourth, CBP could probably charge him for bulk cash smuggling because the money was apparently concealed from the view of CBP within his baggage.

Basically, any one of these constitutes a failure to report; however, in my experience (despite some occasional abuses) Customs does give traveler’s an opportunity to amend their currency report and properly declare their money. The law is clear, though, all of the currency or monetary instruments is subject to seizure, even the amount that was reported. So in this case, even though $14,000 was eventually reported, the entirety of the money gets seized — not just the amount over and above the $14,000. This mistaken belief sometimes gets people into trouble.

If you have had currency seized and are wondering how to proceed, please make use of the other information we make available on this website or call our 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 smuggler tries laundering money

Pardon the clever title, but a news release from U.S. Customs & Border Protection tells the tale of a man who tried to smuggle more than $50,000 in a laundry detergent box out of the United States:

CBP officers and Border Patrol agents were conducting a southbound inspection operation at the 


PresidioCurrency Smuggler Laundering Box crossing when [ . . . ] a 2011 GMC Sierra pick-up driven by a male U.S. citizen approached the checkpoint. The driver and vehicle were selected for an intensive exam. During inspection of the vehicle and baggage the officers noticed tampering on an unopened box of detergent. Further inspection of the box revealed currency bundles wrapped in plastic bags hidden within the soap. CBP officers seized the money and vehicle. No arrests were made and the investigation continues.

“CBP officers are working hard to stop the illegal movement of guns, ammunition and unreported currency,” said David Lambrix, U.S. Customs and Border Protection Presidio port director “Travelers who do not follow federal currency reporting requirements run the risk of losing their currency and may potentially face criminal charges.”

As you can see from the last paragraph, it is stories like these that really give Customs a chance to get on their soap box about their mission, money laundering, and the currency reporting requirements.

If you have had your money seized by Customs, please contact our office today and speak to an attorney experienced in customs law and currency seizures by calling (734) 855-4999, or e-mail us through our contact page.

 

Baltimore Customs Seizes $16,000 in Unreported Money

Another currency seizure news release from Boston, which is reported here. As can be seen by the facts, the reason for the violation here was a misreport of the amount of currency being transported, which always includes all currency, whether U.S. or foreign, and also a concealment (i.e., smuggling) of another $6,200 wrapped in personal items.

Even though the couple was forthright in declaring $10,000 of their currency, all of the currency included the $10,000 was seized. This case is useful in presenting common issues concerning currency seizures, such as:

We have a lot more information on currency seizures that we make available on our Currency Seizure page and on this blog. Here are the facts in this case, as realted by CBP:

Baltimore — U.S. Customs and Border Protection (CBP) at Baltimore Washington International Thurgood Marshall Airport (BWI) seized $16,000 yesterday from a Nigerian couple for violating federal currency reporting regulations.

The passengers, who arrived to BWI from London and were destined for Essex, Md., repeatedly declared possessing only $10,000 and presented two envelopes to CBP officers containing the equivalent of $10,345 in U.S. and foreign currency. CBP officers explained the currency reporting requirements and again asked the couple if they were carrying any more currency or monetary instruments to which the passengers stated they were not. While examining the passenger’s luggage, CBP officers discovered another envelope wrapped in clothing that contained $6,200 bringing the total to $16,545.

If you have had your money seized by Customs, please contact our office today and speak to an attorney experienced in customs law and currency seizures by calling (734) 855-4999, or e-mail us through our contact page.

 

Baltimore CBP Seizes Over $11K in Unreported Money/Currency

A May15th news release from Customs & Border Protection details a recent money seizure in Baltimore. The release says that Customs officer’s seized $11,400 in unreported currency from a Ghanian man for failure to file a currency report. I will quote this one in full, and and providing my own commentary interspersed in bold below:

 

Baltimore – U.S. Customs and Border Protection (CBP) officers at Baltimore Washington International Thurgood Marshall Airport (BWI) seized $11,400 Tuesday from a Ghanaian man for violating federal currency reporting regulations.

The passenger, who arrived to BWI from London and was destined for Greenbelt, Md., repeatedly declared possessing only $9,500. While examining the passenger’s luggage, CBP officers discovered $11,661 in U.S. currency, and foreign currency with a domestic value of $768.

Three things here: First, Customs policy is to return foreign currency at the time of seizure.

Second, people do not realize that because of the way the laws are written, transporting less than $10,000, if done intentionally to evade the reporting requirement, can be a structuring violation and subject your money to seizure and you to criminal charges. 

Third, if you are bringing in more than $10,000, you can still get your money seized if you file a report and are unable to demonstrate legitimate source and legitimate intended use. Bank statements, tax returns, and travel plans are some thing that can be used to avoid seizure. For example, someone who’s taking $460,000 out of the country that is drug proceeds is not going to be able to keep the money just because he or she filed a report that they were transporting more than $10,000. That is why they try to smuggle the money in and out.

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

And as you can see, if Customs thinks that you are carrying more than you are telling them they can search you to find out.

CBP officers seized $11,400 and returned $261 in U.S. currency and all of the foreign currency to the passenger for humanitarian relief. CBP officers also advised the traveler how to petition for the return of his seized currency.

This is the petition process, discussed in our article on responding to a customs currency seizure. This is a petition that must be filed with Fines, Penalties and Forfeitures at the port once you have received a notice of seizure. Our office can prepare and file this document for you.

“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 Ricardo Scheller, CBP port director for the Port of Baltimore. “The traveler was given multiple opportunities to truthfully declare his currency. The easiest way to hold on to your money is to report it.”

As we previously discussed in a commentary, refusing to comply with the reporting requirement is not the only way to get your currency seized. But it certainly is one way.

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.

A chart showing what happens after money and property are seized by Customs

What happens to money and property seized by Customs?

Once U.S. Customs and Border Protection seizes your money or property it can eventually be forfeited (lost forever to the government); it doesn’t matter if it’s merchandise or cash/currency transported without being reported, structured, or smuggled. Before the property is forfeited the owner can try to get it back (remitted).

But once property is forfeited, it forever becomes property of the United States Government. As a government attorney once told me, it goes to that big government warehouse at the end of Raiders of the Lost Ark. I don’t think he was joking.

What happens after property is seized by Customs?

First, appraisement: CBP must give anything seized a “domestic value.” This is usually measured by

A chart showing what happens after money and property are seized by Customs
A chart showing what happens after money and property are seized by Customs (click to elarge)

“price at which such or similar property is freely offered for sale at the time and place of appraisement, in the same quantity or quantities as seized, and in the ordinary course of trade.” Although an oversimplification, this is basically the fair-market value of the seized property at the time and place of seizure.

Customs conducts an inspection of the goods to determine if they are admissible (i.e., whether they can be allowed entry into the U.S.). Certain things, like narcotics, unsafe electrical components, or lead-tainted children’s toys are inadmissable.

What happens after property is forfeited by Customs?

If the goods are admissible, but the importer could not get the property back at the agency or through federal district court, then Customs can:

  1. Destroy it. If Customs determines it violates copyright laws, has no commercial value, or is a safety risk or violates U.S. law, the port director is authorized destroy the forfeited merchandise. If this doesn’t apply, it can be disposed elsewhere.
  2. Sell it. If the merchandise is sold, Customs will notify the importer, the consignee, the shipper, and the warehouse transferee of the sale no less than 30 days beforehand and then hold a public auction, sometimes online, overseen by the port director. This includes perishables, agricultural products, alcoholic beverages, and vehicles. Counterfeit goods may be sold with the permission of the U.S. trademark holder once the counterfeit mark has been obliterated and at least 90 days after forfeiture, provided that no government agency or charitable institution has a need for them. For example, customs has donated seized fossils to the University of Michigan in the past.
  3. Use it. Last, the government can use it. The products must be unclaimed or abandoned, which means nonpayment of duties and 6 months in Customs custody. The port director must give a 30 day notice, as above. Afterward, the items belong to Customs and they can decide to to use it or distribute it to another government agency.

Item 3 is true for seized money/currency. At the completion of all procedures, seized and forfeited money transfers to the U.S. government. If your money was seized by Customs, read our Customs Money Seizure Legal Guide.

 

 

Customs seizes $360,000 in Unreported Money

A May 3rd news release from Customs & Border Protection details a recent money seizure in Texas. The release says that Customs officer’s seized $360,025 in unreported currency from a male Mexican national when attempting to exit the U.S. and enter Mexico.

What is interesting about this story is there is what is not said, because these news releases usually give some indication that they suspect there was some connection with illegal drug activity. This, however, only says what I have written about many times; that a failure to report currency over $10,000 (failure to report), or concealing more than $10,000 with an intent to evade the reporting requirement (bulk cash smuggling) is illegal.

Another curious aspect is that the $360,000 was concealed in 36 separate packages, which means that each package had about $10,000 in it. I don’t know if that’s just a convenient amount to put in a package, or if there were supposed to be 36 different transactions taking the money across the border by different people or at different times.  That would be a structuring violation, anyway.

Here is the full story:

The vehicle, driven by a 23-year-old male Mexican citizen from San Luis Potosi, Mexico, was selected for further inspection and was referred to secondary. During the process of the secondary inspection, officers noted irregularities within the vehicle and further inspection revealed multiple hidden packages of unreported U.S. currency. Officer discovered and seized a total of 36 packages, which totaled $360,025 in unreported U.S. currency and also seized the vehicle.

CBP-OFO arrested the male traveler and subsequently released him to the custody of Homeland Security Investigations (HSI) agents for further investigation.

“This outstanding seizure of unreported currency was accomplished due to excellent teamwork from our CBP-OFO officers,” said Efrain Solis Jr., port director, Hidalgo/Pharr/Anzalduas. “People who fail to declare currency in excess of $10,000 entering or leaving the country will face penalties or be subject to having CBP seize all of the unreported currency.”

It is not a crime to carry more than $10,000, but it is a federal offense not to declare currency or monetary instruments totaling $10,000 or more 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. 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.

And I always recommend that anyone whose currency has been seized should contact a lawyer to draft a petition for return of the currency. So 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.