Tag: structuring

US CBP Seizes $10.6M Cash in Caribbean in FY 2014

Posted by Jason P. Wapiennik on March 24, 2015

Last year, U.S. Customs & Border Protection — CBP — in Puerto Rico and the U.S. Virgin Islands seized $10.6 million dollars in unreported currency, smuggled bulk cash, or unlawful currency structuring violations. Last year I called that an overwhelming amount of seized currency.

Most of these customs currency seizures occur at airports, ferry crossings, etc. CBP for Puerto Rico and the U.S. Virgin Islands reported their annual fiscal year statistics for 2014 and this currency seizure number has more than doubled. That is more than overwhelming, it is tremendous… the story also compares currency seizures with those in California, Texas, New Mexico, and Arizona. All areas in which drug smuggling is pervasive.

In Puerto Rico and the U.S. Virgin Islands, CBP officers and agents seized over 51,043 pounds of narcotics with an estimated street value of approximately 650 million and seized approximately $10.6 million in unreported currency in FY 2014, which runs from October 1, 2013 to September 30, 2014.

But later the story says:

Furthermore, $8.4 million of currency interdictions were reported and over 80 firearms were seized.

$8.4M or $10.6M? Who’s counting over there?! And this is the same government that seizes currency for any mis-report who can’t get their facts straight for their news releases.

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:

Filing a Petition for Seized Currency (with Sample and Tips) with CBP

Posted by Jason P. Wapiennik on February 19, 2015

If you are attempting to get your seized currency back from Customs by filing a petition for remission there are several legal requirements written into the Customs laws and regulations. Some do-it-yourselfers come to our customs law firm’s website looking for a sample currency seizure petition they can use to submit to Customs. Customs publishes its own set of forms for use in a wide variety of different customs enforcement/forfeiture contexts; for petitions there is a form called Petition for Remission or Mitigation of Forfeitures and Penalties Incurred (Customs Form 4609 (click to access)). The form is extremely basic and we do not recommended it for use in the context of a customs money seizure. It can be used as a starting point, though, because any petition must have at least the information from that form.

But any good petition for seized currency should have a lot more information to be effective. When we file a petition on behalf of our currency seizure clients they are at least 10 pages long because petitioning for the return of seized currency is a serious legal issue (read more about it here). Many people think it’s easy and sometimes Customs will lead you to believe it is. But why would you believe the people who just took your money? Here’s some of the questions that you should ask yourself before doing it yourself. Any lawyer you hire to help get your seized currency back should be able to answer these questions.

15 Questions to Ask Before Filing a Petition for Remission of Seized Currency with U.S. Customs:

Was the search of your baggage or person constitutional?
Was the currency seizure constitutional?
Who has the burden of proof?
What is the standard of proof that must be met by the party with the burden of proof?
Does the currency seizure constitute an excessive fine in violation of the constitution?
How do the federal courts in your state/circuit interpret the currency reporting requirement?
Did you violate the currency reporting requirement?
Are you admitting you violated the law? Are you saying too much? Are you not saying enough?
Are you admitting other violations of laws you are unaware of? (unlawful currency structuring, bulk cash smuggling, conspiracy, FCPA violations (bribes), or false statement to law enforcement, among others)
Did you bring the money from a country under economic sanctions, like Iran? If so, did you violate those sanctions or are you unintentionally admitting you violated those sanctions?
Were there any recognized mitigating factors or aggravating factors?
Are there mitigating factors that Customs has authority to recognize even though not in a written policy?
Did you make an oral amendment of your declaration the Customs did not honor?
Are documents properly notarized?
Are documents properly translated?

If your money was seized by 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). Our customs law firm handles currency/money seizures made by customs in Detroit and around the country. We are able to assist with cash seized by customs nationwide, including Detroit, Chicago, Atlanta, New York, Los Angeles, San Francisco, and Orlando.

Please read these other articles about money seizures by customs:

Statute of Limitations for Currency Reporting Violations

Posted by Jason P. Wapiennik on December 31, 2014

This is an article about the statute of limitations for currency reporting violations (failure to report monetary instruments over $10,000, bulk cash smuggling, and structuring); in other words, how soon after an offense is committed (or when the currency is seized) that the government must bring criminal charges against you before they are prevented by the statute of limitations. If you want to skip to that part and don’t want to learn some fascinating facts about the most intact T-Rex skeleton ever found, and how one of its discoverers was pursued by the government for allegedly failing to report a currency and monetary instruments over $10,000, scroll down to the next heading.

Currency Reporting Violations and Sue the Dinosaur

Like a lot of grown men, I was fascinated with dinosaurs as a kid. So those kind of headlines still catch my eye. The other day I came across this CNN story — a saga really — about the discovery of the “most intact T-rex skeleton ever found” back in 1990 (“Sue“). To sum things up, shortly after the fossil was discovered FBI agents, accompanied by the national guard, seized the fossil because it was, they alleged, on Indian Trust land (read: under Federal government jurisdiction). The

ownership of the dinosaur, and allegations that the people involved with the discovery had stolen and sold dinosaur fossils found on public land, were in the courts for years.

But as I read the story, I was intrigued to read that one of the people responsible for the discovery of the dinosaur “served 18 months in federal prison for customs violations” unrelated to the dinosaur discovery. I thought it must have had something to do with the importation of dinosaur fossils like happened in Detroit a few years ago, which I blogged about. But not so. Looking into the matter further, I discovered this 1996 article from the New York Times that explains the customs violations were for failing to report the transport of more than $10,000 into or out of the United States:

…Mr. Larsen was convicted of two felonies — failure to report to American customs officials $31,700 in travelers checks he had brought from Japan, and failure to report $15,000 in cash he took to Peru.

Oops! The story basically says that, of 153 charges in a 39 count indictment brought against him by the Federal government, these currency reporting violations and some misdemeanors related to the sale of fossils valued at less than $100 is what stuck. In the context of the fiasco about the dinsoaur bones, winding up getting criminally charged with failure to report currency being transported in excess of $10,000 seems kind of ridiculous, doesn’t it?

What’s the statute of limitations of currency reporting violations?

This story was just the occasion for me write about the statute of limitations for currency reporting violations (failure to report, bulk cash smuggling, and unlawful structuring that often result in currency seizures). The statute of limitations for currency reporting violations under 31 USC §§ 5316, 5324 and 5332 is found in 18 USC § 3282(a), which states:

Except as otherwise expressly provided by law, no person shall be prosecuted, tried, or punished for any offense, not capital, unless the indictment is found or the information is instituted within five years next after such offense shall have been committed.

That means once the event giving rise to the violation has occurred, the government has 5 years from that date to bring criminal charges against you.

My customs currency seizure clients often want to know: is failing to report currency a crime? Yes, it is, and it is punishable by a fine of $250,000 to $500,000 and 5 to 10 years in jail. But I also tell them that if they were not arrested at the time the currency was seized, and the U.S. Attorney was notified and declined to prosecute you, they probably will not face criminal charges.

But just because you weren’t arrested and charged immediately still means it could happen up to 5 years later.

Keep Calm and Declare Monetary Instruments Exceeding $10,000 USD

CBP Seized an Average of $650k from Travelers Each Day in 2014

Posted by Jason P. Wapiennik on December 26, 2014

U.S. Customs & Border Protection released its annual Border Security Report which you can read in full HERE (pdf). With respect to customs money seizures for failure to report amounts over $10,000 (or, bulk cash smuggling, or structuring), the numbers are staggering. The report states that “the agency seized more than $237 million in unreported currency through targeted enforcement operations.” That’s an average of almost $650,000 per day. It breaks down the number for four southwest states:

Arizona = $3,475,523
Texas = $7,732,830
New Mexico = $969,830
California = $12,908,976

Detroit and other Midwestern ports should be publishing their numbers soon. If you have had money seized by customs call our office at (734) 855-4999 or CONTACT US BY CLICKING HERE to speak to a customs lawyer. We are able to assist with cash seized by customs nationwide, including Detroit, Chicago, Atlanta, New York, Los Angeles, and Philadelphia.

Having an attorney is especially important if more than one person was travelling and the seizure was of cash, there are allegations of smuggling, or structuring, or if you experienced a lengthy detention or questioning at the time of seizure. We handle this and many other types of cases, which we publish the results of here. Read our popular article on responding to a currency seizure by clicking HERE.

Please read these other articles about money seizures by customs:

CBP Reminds Public About Currency Reporting Requirement

Posted by Jason P. Wapiennik on December 23, 2014

In the past month we have reported on two violations of the currency reporting requirements that resulted in seizure of money by U.S. Customs & Border Protection at the CBP pre-clearance station in Nassau, Bahamas. Those stories are HERE and HERE. Now we have a “reminder” about the “Currency Reporting Requirement” from that same pre-clearance station, which is excerpted below.

If you have had money seized by customs call our office at (734) 855-4999 or CONTACT US BY CLICKING HERE to speak to a customs lawyer. We are able to assist with cash seized by customs nationwide, including Detroit, Chicago, Atlanta, New York, Los Angeles, and Philadelphia. cbp money seizure

NASSAU, Bahamas—U.S. Customs and Border Protection reminds travelers of the requirement to report currency amounts of $10,000 or more to CBP when traveling to or from the United States.

Individuals are permitted to carry any amount of currency or monetary instruments into or out of the United States; however, if the quantity is $10,000 or higher, they must formally report the currency to CBP (note: like the money seizure story HERE). If travelers have someone else carry the currency or monetary instrument for them, they must file a currency report for the entire amount with (note: like the structuring story HERE). Failure to report may result in seizure of the currency and/or arrest.

“The easiest way for travelers to hold on to their currency is to truthfully report it all to a CBP officer,” said Robert Allen Smith, area port director for Nassau Preclearance.

There’s a lot of great reasons why you should hire our firm, but one of them is that we know the law: you may not know the law, and oftentimes, as this article shows, customs does not know the law. Annoyingly, this CBP news release, like many, gets the law wrong. 31 USC 5316(a)(1), the law that gives CBP the authority to seize money and monetary instruments which are not reported, clearly says that a report is required if only if “more than $10,000” is transported, not $10,000 “or more”.

Having an attorney is especially important if more than one person was travelling and the seizure was of cash, there are allegations of smuggling, or structuring, or if you experienced a lengthy dentetion or questioning at the time of seizure. We handle this and many other types of cases, which we publish the results of here. Read our popular article on responding to a currency seizure by clicking HERE.

Please read these other articles about money seizures by customs:

CBP Seizes Currency after Admission of Structuring Violations

Posted by Jason P. Wapiennik on December 16, 2014

Lady luck, like fortune, is fickle. This man’s luck — and his casino winnings — disappeared at the border when he encountered Customs, who confiscated his winnings.

The guy had some cash from casino winnings confiscated by Customs while gambling in the Bahamas. He was en route to the United States, when he decided to break the law. Apparently fearing the unknown, he decided to divide the money up among 5 people so he would not have to file a currency report.That’s illegal structuring.

When Customs asked him why he divided up the money, he said it was so he did not have to file a currency report (FinCen 105). That’s an admission of illegal structuring. Law enforcement didn’t have to do any other work to confiscate casino winnings or hard earned money if you admit you violated the law.

Here are the details of the case of the “casino winnings” confiscated by Customs:

Nassau, BAHAMAS –U.S. Customs and Border Protection officers at the Nassau CBP Preclearance facility seized $63,851 in unreported currency from a U.S. citizen who was subsequently arrested by the Royal Bahamas Police Force, Dec. 8.

CBP officers at the Nassau Preclearance facility referred five male U.S. citizens for a secondary inspection after they each declared to be in possession of $9,000 U.S. dollars. Three men were en route to JFK and two men were en route to Newark.

Upon further questioning, one of the passengers admitted that he divided about $52,000 among his co-travelers in an attempt to circumvent currency reporting requirements. CBP officers were informed that the passengers’ currency was the result of legal casino winnings in the Bahamas. During the secondary inspection, CBP officers determined that the passenger who won the money in the casino also failed to declare the purchase of an $8,000 watch for which duty was assessed and collected.CBP officers seized a total of $63,851 in unreported currency.

“U.S. Customs and Border Protection officers provided this traveler multiple opportunities to accurately report all of his currency,” said Area Port Director for Nassau Preclearance Robert Allen Smith. “He ultimately admitted that he had divided his currency among his friends in an attempt to circumvent the law, and all of his currency was seized. The easiest way for travelers to hold on to their currency is to truthfully report it all to a CBP officer.”

The RBPF was notified of the false declaration and responded with interest to prosecute. The circumventing passenger was arrested by RBPF upon the conclusion of CBP seizure processing. RBPF took custody of the passenger and the evidence. The remaining four individuals were released without further incident.

So that it is, Customs confiscated the cash and then turned him over to the Royal Bahamas’ Police Force for prosecution. This is all the more of a sad story because there is nothing illegal about winning some money while gambling, and nothing illegal about bringing it into the United States. It’s very likely that this man could get the money out of Customs custody, but of course, he’ll still have to deal with the criminal charges from the RBPF.

Have you had casino winnings confiscated by Customs?

If you’ve had casino winnings confiscated by Customs you can learn more about the process from our trusted customs money seizure legal guide and can contact us for a free currency seizure consultation by clicking the contact buttons on this page.

U.S. Customs Currency Seizures for Thanksgiving Travelers

Posted by Jason P. Wapiennik on November 25, 2014

Thanksgiving is apparently not the busiest travel day of the year, but it’s definitely one of the busiest. This year, with significant storm systems promising to delay flights at airports, Customs officers in the United States are going to have customs money seizure some extra time on their hands detect which travelers are transporting more than $10,000 in money and not filing the required reports. We have written about some criteria Customs officers can use to target certain people for violating the currency reporting requirements in an article which you can READ BY CLICKING HERE.

You should protect yourself from seizure and ensure that you comply with all the laws related to entering or leaving the United States, but most especially for readers of this customs law blog, the currency reporting requirements for the United States. Increased travel for the holidays means increased opportunities for customs to seize your money for failing to report the transport of more than $10,000 into or out of the United States.

If it’s too late for you and you’ve had your money seized by Customs for failure to file a currency report, bulk cash smuggling, or a structuring violation, do not lose hope. It is possible for you to get your money back. You can find out more about how to get back seized currency by reading our article RESPONDING TO A 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, Philadelphia, Atlanta, New York, Los Angeles, Miami, and many other places, and not just locally in Detroit.

Please read these other articles:

Customs Currency Seizure; Criminal Charges for Bulk Cash Smugglers

Posted by Jason P. Wapiennik on June 4, 2014

U.S. customs effected a currency seizure of unreported currency under the bulk cash smuggling laws from citizens of the Dominican Republic and United States, who are all related and travelling together. Some interesting things to note about this story is that although the money seems to be from a legitimate source because the story says it was from a business, criminal charges were nevertheless brought against all individuals involved in the bulk cash smuggling. Bulk cash smuggling is illegal, no matter the source. We have written articles about bulk cash smuggling before HERE.

SAN JUAN, Puerto Rico — U.S. Customs and Border Protection (CBP) officers seized $53,000 in unreported currency Friday, transported by three passengers boarding the M/V Caribbean Fantasy ferry departing to Santo Domingo, Dominican Republic.

CBP Officers selected Dominican Republic citizen Mr. Felipe Alvarez, 69, for examination and explained to him the currency reporting requirements. During the interview, Mr. Alvarez declared to be traveling alone and transporting less than $10,000. Intensive examination revealed that he was traveling with two other passengers, US citizen Manuel De La Rosa, 47, and Dominican Republic citizen Cristian De La Rosa, 35, both nephews of Mr. Alvarez.

Subsequent interview and exam of the three passengers revealed non reported currency within their clothing and in their carry-on items totaling $53,726.00. Mr. Alvarez later admitted that the money transported by him and his nephews were proceeds of his business in the Dominican Republic.

The currency was seized under bulk cash smuggling laws and Assistant AUSA Olga Castellón approved criminal prosecution for the three individuals.

Those arrested were remanded to the custody of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) for processing and further investigation.

“The unreported cash that we seize has an impact on criminal organizations by making it more difficult for them to further their illicit activities,” said Juan Hurtado, San Juan area port director. “CBP officers remain vigilant generating important enforcement activity regularly.”

Individuals are permitted to carry any amount of currency or monetary instruments into or out of the United States. However, if the quantity is $10,000 or higher, they must formally report the currency to CBP. Failure to report may result in seizure of the currency and/or arrest.

Source: http://www.dominicantoday.com/dr/local/2013/1/28/46527/US-agents-seize-US53000-from-local-man-at-San-Juan-Seaport

If you have had money seized by customs 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 nationwide, including Detroit, Chicago, Atlanta, New York, Los Angeles, Las Vegas, and Orlando.

Please read these other articles from our customs law blog:

Customs Money Seizure; $150K Seized at Border Crossing

Posted by Jason P. Wapiennik on May 9, 2014

What follows is an account of a currency seizure recently released by U.S. Customs & Border Protection where the traveler had almost $150,000 seized because he failed to report the currency. Anyone who transports more than $10,000 into or outside of the United States must file a report with customs, prior to or at the time of crossing. When customs seizes your currency after arriving at an airport or border crossing you should keep calm and contact us. Even though it seems like the end of the world, there are legal steps that can be taken to get your money back through forfeiture remission proceedings. On to the story (ORIGINAL HERE):

Officers with U.S. Customs and Border Protection, Office of Field Operations at the Hidalgo International Bridge seized $143,932 in unreported U.S. currency from a McAllen, Texas man as he attempted to enter into Mexico.

“This seizure of unreported U.S. currency was accomplished due to our officers’ outstanding attention to detail and excellent observational skills,” said Efrain Solis Jr., Port Director, Hidalgo/Pharr/Anzalduas. “Although transporting currency either way across the border is not illegal, as long as it is declared to CBP, most seizures of currency involve money having been obtained from illicit activities.”

CBP officers working at the Hidalgo-Reynosa Bridge outbound lanes on May 6 encountered a U.S. based taxicab as it attempted to exit into Mexico. The driver and lone occupant, a 40-year-old male U.S. citizen were asked to declare what they were transporting into Mexico, to include currency in excess of $10,000. After further interaction with the passenger, the taxicab was referred to secondary for further examination. During the process of the secondary inspection, CBP officers discovered bundles of U.S. currency concealed within the traveler’s personal belongings. CBP-OFO removed and seized several stacks of unreported U.S. currency, which totaled $143,932.

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

When crossing the border with cash or monetary instruments, remember to stay calm and report anything in excess of $10,000 USD.

The reason your currency was seized by customs may be different. The vast majority of my client’s have had their money taken by customs at the airport or at the land borders because of miscommunication, ignorance of the reporting requirement, confusion, fatigue from travel, and other times because of unfair, if not necessarily illegal, enforcement tactics used by customs. If you have had money seized by customs, keep calm 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 nationwide, including Detroit, Chicago, Atlanta, New York, Los Angeles, Las Vegas, and Orlando.

Please read these other articles from our customs law blog:

CBP at JFK Seizes $150,000 in Counterfeit Currency

Posted by Jason P. Wapiennik on March 25, 2014

Any customs lawyer will tell you that it’s better to get caught failing to report real currency than to get caught importing in counterfeit money. You will note that this (counterfeit) cash seizure occurred as a result of the currency reporting requirement. The purpose of the currency reporting requirement is to do exactly this — catch people who are bringing in illegal (in this case counterfeit) money into the United States. In this case, the law has served its intended purpose, as the following news release clearly demonstrates

Jamaica, N.Y. — U.S. Customs and Border Protection (CBP) officers at John F. Kennedy International Airport seized 1500 counterfeit $100 Federal Reserve Notes (bills) last month.

On December 14, CBP officers selected Ciara Ryan for a random baggage examination. Ryan, 38 was returning from Colombia and had two bags in her possession. The first bag was examined by officers and was found to have a strong odor of glue coming from it. Upon further inspection, CBP found alterations to its bottom; within the alterations were several suspected counterfeit U.S. $100 bills.
A black leather satchel also in her possession was examined and found to contain more suspected counterfeit bills concealed within its lining. Ms. Ryan was placed under arrest and a total of 1,500 counterfeit $100 bills ($150,000) were seized. She will be prosecuted by the U.S. Attorney’s Office in the U.S. Eastern District Court of New York.

Based on these facts, it seems fairly clear that the person transporting the counterfeit currency knew it was counterfeit; I say that because of the concealment of the counterfeit currency in a false compartment in the bag and in the lining. 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 Detroit, Chicago, Cleveland, New York, and many other places, and not just locally.