Courts look behind formal legal title to determine if a record owner is a strawman concealing the financial affairs of a drug trafficker.
A corporation holding legal title to real property purchased with cash by a convicted drug trafficker claims innocent ownership to defeat federal forfeiture. The court must determine whether the government established probable cause that the property constitutes proceeds traceable to illegal drug exchanges and whether the claimant proved the affirmative defense of innocent ownership. The court applies the rule that probable cause is judged with a common sense view to the realities of normal life, recognizing that illegal actors often disguise property interests by placing title in others' names. Because the evidence showed the corporation was a strawman for the trafficker and the claimant presented no evidence to rebut the government's showing, the court affirms the forfeiture judgment and imposes sanctions for the frivolous appeal.
At page 630 Establishing standing in forfeiture cases through dominion and control57 citing casesemphasizing dominion and control in determining standing in a forfeiture case
- United States v. Calh Holding Corp., No. 21-13593 (11th Cir. May 5, 2026).unpublished Indeed, we’ve explained that “possession of bare legal title by one who does not exercise dominion and control over the property is insufficient . . . to establish standing to challenge a forfeiture.” United States v. 900 Rio Vista Blvd.,…
- Pariseau v. Built USA, LLC, 619 F. Supp. 3d 1203 (M.D. Fla. 2022).publishedTo survive a vagueness challenge under United States v. Single Family Residence & Real Property, 803 F.2d 625, 630 (11th Cir. 1986), a statute must “‘give the person of ordinary intelligence a reasonable opportunity to know what is prohibi…
- United States v. Sum of $70,990,605, 234 F. Supp. 3d 212 (D.D.C. 2017).publishedCourts have recognized that “[possession of mere legal title,” without more, “by one who does not exercise dominion and control over the property is insufficient even to establish standing to challenge a forfeiture.” United States v. One P…
- United States v. Real Prop., 118 F. Supp. 3d 1310 (M.D. Fla. 2015).publishedLocated at 900 Rio Vista Blvd., Fort Lauderdale, 803 F.2d 625, 630 (11th Cir.1986) (citation omitted).
- United States v. Any & All Funds on Deposit in Account No. Xxxx1518 at HSBC Bank PLC. 55 Corp. Street, Coventry, United Kingdom, Held in the Name of Jittisopa Siriwan, & Any Prop. Traceable Thereto, No. 2013-0195 (D.D.C. Apr. 6, 2015).publishedBut “‘[p]ossession of mere legal title by one who does not exercise dominion and control over the property is insufficient even to establish standing to challenge a forfeiture.’” United States v. One Parcel of Land, Known as Lot 111-B, Tax…
- United States v. Any & all Funds on Deposit in Account No. XXXXX-XXXXXXXX at HSBC Bank PLC, 87 F. Supp. 3d 163 (D.D.C. 2015).publishedBut “ ‘[possession of mere legal title by one who does not exercise dominion and control over the property is insufficient even to establish standing to challenge a forfeiture.’ ” United States v. One Parcel of Land, Known as Lot 111-B, Ta…
- United States v. Bushay, 34 F. Supp. 3d 1260 (N.D. Ga. 2014).publishedIn short, courts look behind the formal title to determine whether the record title owner is a 'strawman' set up to conceal the financial affairs or illegal dealings of someone else.” United States v. Carrell, 252 F.3d 1193, 1204 (11th Cir…
- United States v. One 2005 Dodge Magnum, 845 F. Supp. 2d 1361 (N.D. Ga. 2012).publishedThis critical analysis is necessary when determining standing because “people engaged in illegal activities often attempt to disguise their interests in property by placing title in someone else’s name.” U.S. v. 900 Rio Vista Blvd., 803 F.…
- United States v. Weiss, 791 F. Supp. 2d 1183 (M.D. Fla. 2011).published Lauderdale, 803 F.2d 625, 630 (11th Cir.1986); United States v. McCorkle, 143 F.Supp.2d 1311, 1321 (M.D.Fla.2001).
- United States v. $688,670.42 Seized From Regions Bank Acct. Xxxxxx5028, 759 F. Supp. 2d 1341 (N.D. Ga. 2010).publishedLocated at 900 Rio Vista Blvd., 803 F.2d 625, 630 (11th Cir.1986).
Show 39 more citing cases
- United States v. One 1990 Beechcraft, 619 F.3d 1275 (11th Cir. 2010).published Although this identity requirement may seem obvious, it is of particular importance to forfeiture because “things are often not what they appear to be, especially in the world of drug trafficking .... ” United States v. A Single Family Res…
- Minor I Doe v. Sch. Bd. for Santa Rosa Cnty., 264 F.R.D. 670 (N.D. Fla. 2010).publishedUnited States v. A Single Family Residence and Real Property, 803 F.2d 625, 630 (11th Cir.1986) (quoting Hoffman Estates v. Flipside, Hoffman Estates, 455 U.S. 489 , 494 n. 5, 102 S.Ct. 1186 , 71 L.Ed.2d 362 (1982)).
- United States v. One 1990 Beechcraft 1900 C Twin Engine Turbo-Prop Aircraft, 659 F. Supp. 2d 1260 (S.D. Fla. 2009).published United States v. A Single Family Residence and Real Property Located at 900 Rio Vista Blvd., Fort Lauderdale, 803 F.2d 625, 629 (11th Cir. *1267 1986).
- United States v. Victor Robert Nava, Sr., 404 F.3d 1119 (9th Cir. 2005).published Montana courts have recognized that “domin- ion and control” is the essence of ownership and not “bare legal title.” Safeco Ins. v. Lapp, 695 P.2d 1310, 1312 (Mont. 1985) (citing National Farmers Union Property & Cas. v. Colbrese, 368 F.2d…
- United States v. 630 Ardmore Dr., 178 F. Supp. 2d 572 (M.D.N.C. 2001).publishedIn civil forfeiture proceedings, “legal title to property in an entity other than the drug trafficker does not of itself insulate that property.” United States v. A Single Family Residence and Real Property Located at 900 Rio Vista Blvd.,…
- United States v. 5 S 351 Tuthill Road, Naperville, 233 F.3d 1017 (7th Cir. 2000).published See, e.g., United States v. 526 Liscum Dr., 866 F.2d 213 , 217 (6th Cir.1989); United States v. 900 Rio Vista Blvd., 803 F.2d 625, 630 (11th Cir.1986); United States v. One 194.5 Douglas C-54 (DC-4) Aircraft, 604 F.2d 27 (8th Cir.1979).
- United States of Am., (95-6579 97-5016) v. $515,060.42 in United States Currency, Ralph E. White E.M. Jellinek Ctr., Inc., Claimants-Appellees. United States of Am., Plaintiff-Appellee/cross-Appellant (96-6175) v. $515,060.42 in United States Currency Virginia Hurst, Ralph E. White E.M. Jellinek Ctr., Inc., Claimants-Appellants (96-6057)/cross-Appellees, 152 F.3d 491 (6th Cir. 1998).publishedSee 526 Liscum Dr., 866 F.2d at 216; United States v. 900 Rio Vista Blvd., 803 F.2d 625, 630 (11th Cir.1986); United States v. 2511 E.
- United States v. Ida, 14 F. Supp. 2d 454 (S.D.N.Y. 1998).publishedAs the statute does not define the language referring to interests in property, the extent of the claimant’s interest depends upon state law. 10 .See, e.g., United States v. Vacant Land Located at 10th St. and Challenger Way, 15 F.3d 128,…
- United States v. $515,060.42 in United States Currency, 152 F.3d 491 (6th Cir. 1998).publishedSee 526 Liscum Dr., 866 F.2d at 216; United States v. 900 Rio Vista Blvd., 803 F.2d 625, 630 (11th Cir.1986); United States v. 2511 E.
- One Ford Mustang Convertible Bearing Vin 1FACP45EXLF192944 v. State ex rel. Clay Cnty. Sheriff's Dep't, 676 So. 2d 905 (Miss. 1996).publishedLauderdale, 803 F.2d 625, 630 (11th Cir.1986); United States v. Vacant Land Located at 10th Street and Challenger Way in Palmdale, Ca., 15 F.3d 128, 130 (9th Cir.1993).
- Nos. 94-1285, 94-1290, 75 F.3d 1470 (10th Cir. 1996).publishedHer theory is that if a drug felon's dominion and control over another's property may be used to support its forfeiture, see, e.g., United States v. 900 Rio Vista Blvd., 803 F.2d 625, 630 (11th Cir.1986), her dominion and control over the…
- United States v. Bouler, 927 F. Supp. 911 (W.D.N.C. 1996).publishedU.S. v. Single Family Residence, 803 F.2d at 630 (citations omitted).
- United States v. 9844 South Titan Court, Unit 9, 75 F.3d 1470 (10th Cir. 1996).publishedHer theory is that if a drug felon’s dominion and control over another’s property may be used to support its forfeiture, see, e.g., United States v. 900 Rio Vista Blvd., 803 F.2d 625, 630 (11th Cir.1986), her dominion and control over the…
- In re One Residence Located at 4030 W. Avocado, Cortaro Ridge, Lot 32, 908 P.2d 33 (Ariz. Ct. App. 1995).publishedLauderdale, 803 F.2d 625, 630 (11th Cir.1986), quoting United States v. One 1977 36 foot Cigarette Ocean Racer, 624 F.Supp. 290, 294 (S.D.Fla.1985).
- United States v. Real Prop. & Residence at 31 N.W. 136th Court, 711 F. Supp. 1079 (S.D. Fla. 1989).published
- United States v. One Parcel of Real Est. at 298 N.W. 45th Street, 804 F. Supp. 319 (S.D. Fla. 1992).published
- United States v. Snodgrass, 23 F.3d 395 (1st Cir. 1994).unpublished
- United States v. U.S. Currency, 189 F.3d 28 (1st Cir. 1999).published
- United States v. Twenty (20) Cashier's Checks, 897 F.2d 1567 (11th Cir. 1990).published
- United States v. Lot 111-B, 902 F.2d 1443 (9th Cir. 1990).published
- United States v. Real Prop. & Improvements, 928 F.2d 373 (11th Cir. 1991).published
- Nos. 91-5470, 91-5768, 971 F.2d 974 (3d Cir. 1992).published
- United States v. Vacant Land Located at 10th St. & Challenger Way in Palmdale, Ca, Peter J. Baxter & Frank Edward Gegax, 6 F.3d 662 (9th Cir. 1993).published
- United States v. Vacant Land Located at 10th St. & Challenger Way in Palmdale, Ca., Peter J. Baxter & Frank Edward Gegax, 15 F.3d 128 (9th Cir. 1994).published
- Bob Olsen v. United States, 46 F.3d 1143 (9th Cir. 1995).unpublished
- Ford Mustang Convertible v. State of MS, No. 93-CA-00302-SCT (Miss. Jan. 22, 1993).published
- Smith v. Avino, 866 F. Supp. 1399 (S.D. Fla. 1994).published
- United States v. One Parcel of Real Est. Commonly Known as 2030 East Monroe Street, 884 F. Supp. 1218 (C.D. Ill. 1995).published
- United States v. Certain Real Prop. Located at River Road, 839 F. Supp. 1 (D. Me. 1993).published
- United States v. One 1986 Chevrolet Monte Carlo, 817 F. Supp. 729 (N.D. Ill. 1993).published
- United States v. New Silver Palace Restaurant, Inc., 810 F. Supp. 440 (E.D.N.Y. 1992).published
- United States v. Premises Known as 717 South Woodard Street, 804 F. Supp. 716 (E.D. Pa. 1992).published
- United States v. Premises & Real Prop. With Bldgs., 868 F. Supp. 513 (W.D.N.Y. 1994).published
- United States v. 1419 Mount Alto Road, Rome, Floyd Cnty., 830 F. Supp. 1476 (N.D. Ga. 1993).published
- United States v. Bulger, No. 98-1839 (1st Cir. Aug. 19, 1999).published
- United States v. One Parcel of Real Prop., 821 F. Supp. 666 (S.D. Fla. 1993).published
- United States v. Contents of Accounts Nos. 3034504504 & 144-07143 at Merrill, Lynch, Pierce, Fenner & Smith, Inc., 971 F.2d 974 (3d Cir. 1992).published
- United States v. One Parcel of Real Est. at 5860 North Bay Road, 121 F.R.D. 439 (S.D. Fla. 1988).published
- United States v. Four Parcels of Real Prop. in Greene & Tuscaloosa Counties, 941 F.2d 1428 (11th Cir. 1991).published
At page 628 Defining probable cause for civil forfeiture proceedings49 citing cases“the existence of probable cause is judged 'not with clinical detachment, but with a common sense view to the realities of normal life.”
- United States v. $242,484.00, 318 F.3d 1240 (11th Cir. 2003).publishedLauderdale, 803 F.2d 625, 628 (11th Cir.1986). .
- United States v. Jackson Cnty., AL, 252 F.3d 1193 (11th Cir. 2001).published United States v. 900 Rio Vista Blvd., Fort Lauderdale, 803 F.2d 625, 629 (11th Cir.1986).
- United States v. Carrell, 252 F.3d 1193 (11th Cir. 2001).published United States v. 900 Rio Vista Blvd., 803 F.2d 625, 629 (11th Cir.1986).
- United States v. One Parcel Prop. Located at 7079 Chilton Cnty. Road 37, 123 F. Supp. 2d 602 (M.D. Ala. 2000).publishedSee United States v. Four Million, Two Hundred Fifty-Five Thousand, 762 F.2d 895, 903 n. 17 (11th Cir.1985); United States v. $361.960 in U.S. Currency, 661 F.2d 319 , 323 & n. 12 (5th Cir.1981). 3 The *606 Eleventh Circuit has interpreted…
- United States v. Two Parcels of Real Prop. Located at 101 North Liberty Street & 105 Liberty Street in Clanton, 80 F. Supp. 2d 1298 (M.D. Ala. 2000).published“The existence of probable cause is judged ‘not with clinical detachment, but with a common sense view to the realities of normal life.’ ” United States v. A Single Family Residence, 803 F.2d 625, 628 (11th Cir.1986) (quoting *1307 United…
- United States v. Fifty Seven Thousand, 42 F. Supp. 2d 1293 (S.D. Fla. 1999).publishedThe Eleventh Circuit has defined probable cause in forfeiture cases as “a reasonable ground for a belief of guilt supported by less than prima facie proof but more than mere suspicion.” United States v. A Single Family Residence, 803 F.2d…
- United States v. One (1) 1980 Cessna 441 Conquest II Aircraft, 989 F. Supp. 1465 (S.D. Fla. 1997).publishedThe Government establishes probable cause by showing a “reasonable ground for belief of guilt, supported by less than prima facie proof, but more than reasonable suspicion.” United States v. One Parcel of Real Estate, 963 F.2d 1496, 1501 (…
- United States v. One Hundred Thirty Thousand Fifty-Two Dollars ($130,052.00) in United States Currency, 909 F. Supp. 1506 (M.D. Ala. 1995).published United States v. Four Million, Two Hundred Fifty-Five Thousand, 762 F.2d 895 , 903 n. 17 (11th Cir.1985), cert. denied, 474 U.S. 1056 , 106 S.Ct. 795 , 88 L.Ed.2d 772 (1986); United States v. $364,960 in U.S. Currency, 661 F.2d 319 , 323 &…
- United States v. Route 2, Box 472, 136 Acres More or Less, 60 F.3d 1523 (11th Cir. 1995).published
- United States v. 526 Liscum Drive, 866 F.2d 213 (6th Cir. 1989).published
Show 31 more citing cases
- No. 87-5738, 876 F.2d 884 (11th Cir. 1989).published
- United States v. Four Parcels of Real Prop., 893 F.2d 1245 (11th Cir. 1990).published
- United States v. 42450 High. 441 North Fort Drum, 920 F.2d 900 (11th Cir. 1991).published
- United States v. One Single Fam. Residence Located at 15603 85th Avenue North, 933 F.2d 976 (11th Cir. 1991).published
- United States v. 1012 Germantown Road, 963 F.2d 1496 (11th Cir. 1992).published
- United States Court of Appeals, Second Circuit, 971 F.2d 896 (2d Cir. 1992).unpublished
- United States v. $121,100.00 in United States Currency, 999 F.2d 1503 (11th Cir. 1993).published
- No. 94-8158, 60 F.3d 1523 (11th Cir. 1995).published
- United States v. Real Prop. & Res. at 3097 Sw 111th Ave., 699 F. Supp. 287 (S.D. Fla. 1988).published
- United States v. One Single Fam. Residence, 699 F. Supp. 1531 (S.D. Fla. 1988).published
- United States v. Lot 9, Block 1, Vill. East Unit 4, 704 F. Supp. 1025 (D. Colo. 1989).published
- United States v. One Parcel of Real Prop., 780 F. Supp. 715 (D. Or. 1991).published
- United States v. Certain Real Prop., 724 F. Supp. 908 (S.D. Fla. 1989).published
- United States v. One Parcel of Real Est., 789 F. Supp. 387 (S.D. Fla. 1992).published
- United States v. $144,600.00, United States Currency, 757 F. Supp. 1342 (M.D. Fla. 1991).published
- United States v. Real Prop. & Residence at 31 N.W. 136th Court, 711 F. Supp. 1079 (S.D. Fla. 1989).published
- United States v. One Parcel of Real Est. at 11885 S.W. 46 Street, 715 F. Supp. 355 (S.D. Fla. 1989).published
- United States v. One Parcel of Real Est., 831 F. Supp. 1578 (S.D. Fla. 1993).published
- United States v. One Parcel of Prop. Known as 4.14 Acres in the 19th G.M. Dist. of Bryan Cnty., 801 F. Supp. 737 (S.D. Ga. 1992).published
- United States v. Miscellaneous Jewelry, 667 F. Supp. 232 (D. Md. 1987).published
- United States v. One Hundred Three Thousand Twenty Five Dollars ($103,025.00) in United States Currency, 741 F. Supp. 903 (M.D. Ga. 1990).published
- United States v. Thirteen Thousand Dollars ($13,000.00) in U.S. Currency, 747 F. Supp. 430 (S.D. Ohio 1990).published
- United States v. $14,500.00 in United States Currency, 767 F. Supp. 1123 (M.D. Fla. 1991).published
- United States v. One Parcel of Real Est. Located at 9818 S.W. 94 Terrace, 788 F. Supp. 561 (S.D. Fla. 1992).published
- United States v. Proceeds from the Sale of Approximately 15,538 Panulirus Argus Lobster Tails, 834 F. Supp. 385 (S.D. Fla. 1993).published
- United States v. One 1980 Bertram 58' Motor Yacht, 876 F.2d 884 (11th Cir. 1989).published
- United States v. All Assets of Statewide Auto Parts, Inc., 971 F.2d 896 (2d Cir. 1992).published
- United States v. Four Parcels of Real Prop. in Greene & Tuscaloosa Counties, 941 F.2d 1428 (11th Cir. 1991).published
- United States v. Two Parcels of Real Prop. Located in Russell Cnty., 868 F. Supp. 306 (M.D. Ala. 1994).published
- United States v. Thirty-three Thousand Eight Hundred Thirty-six Dollars in United States Currency, 899 F. Supp. 574 (M.D. Ala. 1995).published
- United States v. 2730 High. 31, 909 F. Supp. 1450 (M.D. Ala. 1995).published
At page 629 Determining probable cause from trial testimony30 citing cases“under section 881(a)(6), the government is not required to show that property is owned by a drug trafficker, but rather that it has a substantial connection to a drug transaction,”
- United States v. One 1990 Beechcraft 1900 C Twin Engine Turbo-Prop Aircraft, 659 F. Supp. 2d 1260 (S.D. Fla. 2009).published United States v. A Single Family Residence and Real Property Located at 900 Rio Vista Blvd., Fort Lauderdale, 803 F.2d 625, 629 (11th Cir. *1267 1986).
- United States v. $242,484.00, 389 F.3d 1149 (11th Cir. 2003).published"When a claimant presents no evidence to contradict the government's evidence of probable cause, the scope of review on appeal is whether the government's evidence established probable cause." United States v. 900 Rio Vista Blvd., 803 F.2d…
- United States v. $242,484.00, 351 F.3d 499 (11th Cir. 2003).published"When a claimant presents no evidence to contradict the government's evidence of probable cause, the scope of review on appeal is whether the government’s evidence established probable cause.” United States v. 900 Rio Vista Blvd., 803 F.2d…
- United States v. $242,484.00, No. 01-16485 (11th Cir. June 30, 2003).publishedLauderdale, 803 F.2d 625, 629-630 (11th Cir. 1986)(emphasis added).
- United States v. One Lucite Ball Containing Lunar Material, 252 F. Supp. 2d 1367 (S.D. Fla. 2003).published See Nnadi, 976 F.2d at 686 ; United States v. A Single Family Residence and Real Property, 803 F.2d 625, 629 (11th Cir.1986); United States v. One 1975 Ford F100 Pick-up Truck, 558 F.2d 755, 756 (5th Cir.1977); United States v. One Defende…
- United States v. Jackson Cnty., AL, 252 F.3d 1193 (11th Cir. 2001).published United States v. 900 Rio Vista Blvd., Fort Lauderdale, 803 F.2d 625, 629 (11th Cir.1986).
- United States v. Carrell, 252 F.3d 1193 (11th Cir. 2001).published United States v. 900 Rio Vista Blvd., 803 F.2d 625, 629 (11th Cir.1986).
- No. 95-6267, 92 F.3d 1123 (11th Cir. 1996).publishedU.S. v. A Single Family Residence, 803 F.2d 625, 629 (11th Cir.1986); United States v. $4,255,000 in United States Currency, 762 F.2d 895, 906 (11th Cir.1985), cert. denied, 474 U.S. 1056 , 106 S.Ct. 795 , 88 L.Ed.2d 772 (1986). 24 As evid…
- United States v. Two Parcels of Real Prop. Located in Russell Cnty., 92 F.3d 1123 (11th Cir. 1996).publishedU.S. v. A Single Family Residence, 803 F.2d 625, 629 (11th Cir.1986); United States v. $4,255,000 in United States Currency, 762 F.2d 895, 906 (11th Cir.1985), cert. denied, 474 U.S. 1056 , 106 S.Ct. 795 , 88 L.Ed.2d 772 (1986).
- United States v. Four Parcels of Real Prop., 893 F.2d 1245 (11th Cir. 1990).published
Show 16 more citing cases
- United States v. 1012 Germantown Road, 963 F.2d 1496 (11th Cir. 1992).published
- United States v. Real Prop. & Res. at 3097 Sw 111th Ave., 699 F. Supp. 287 (S.D. Fla. 1988).published
- United States v. Certain Real & Pers. Prop. Belonging to Ronald Jerome Hayes, 943 F.2d 1292 (3d Cir. 1991).published
- No. 91-1617, 965 F.2d 311 (7th Cir. 1992).published
- United States v. One Parcel Prop., 797 F. Supp. 933 (M.D. Ala. 1992).published
- United States v. One Parcel Prop. at 427 & 429 Hall St., 842 F. Supp. 1421 (M.D. Ala. 1994).published
- United States v. 5.935 Acres of Land, 752 F. Supp. 359 (D. Haw. 1990).published
- United States v. One Parcel of Real Est. at 298 N.W. 45th Street, 804 F. Supp. 319 (S.D. Fla. 1992).published
- United States v. One Parcel of Real Est., 852 F. Supp. 1013 (S.D. Fla. 1994).published
- United States v. All Tract 686.64 Acres of Prop., 820 F. Supp. 1433 (M.D. Ga. 1993).published
- United States v. Eighty-Eight (88) Designated Accounts Containing Monies Traceable to Exchanges for Controlled Substances, 740 F. Supp. 842 (S.D. Fla. 1990).published
- United States v. All Right, 730 F. Supp. 1265 (S.D.N.Y. 1990).published
- United States v. One (1) Parcel of Land in the Name of Mikell, 814 F. Supp. 531 (S.D. Miss. 1993).published
- United States v. One Parcel of Land Located at 7326 High. 45 North, 965 F.2d 311 (7th Cir. 1992).published
- United States v. Four Parcels of Real Prop. in Greene & Tuscaloosa Counties, 941 F.2d 1428 (11th Cir. 1991).published
- United States v. 2730 High. 31, 909 F. Supp. 1450 (M.D. Ala. 1995).published
At page 632 Determining scope of forfeiture provisions in property law22 citing cases“the fifth amendment does not forbid adverse inferences against parties to civil actions when they refuse to testify in response to probative evidence offered against them.”
- United States v. 4492 South Livonia Road, 889 F.2d 1258 (2d Cir. 1989).published But see United States v. A Single Family Residence, 803 F.2d 625, 632 (11th Cir.1986).
- United States Court of Appeals, Second Circuit, 889 F.2d 1258 (2d Cir. 1989).unpublished But see United States v. A Single Family Residence, 803 F.2d 625, 632 (11th Cir.1986).
- United States v. Premises & Real Prop. at 4492 South Livonia Road, 667 F. Supp. 79 (W.D.N.Y. 1987).published Dixie Highway, 612 F.Supp. 1492, 1497 (S.D.Fla.1985); see also, United States v. Life Insurance Co. of Virginia Single Premium Whole Life Policy, 647 F.Supp. 732, 741 (W.D.N.C.1986) (the warrants clause of the Fourth Amendment requires jud…
- State Farm Mut. Auto. Ins. Co. v. Filenger, 362 F. Supp. 3d 1246 (S.D. Fla. 2018).published“the fifth amendment does not forbid adverse inferences against parties to civil actions when they refuse to testify in response to probative evidence offered against them.”
- Dees v. New Rez LLC, No. 1:21-cv-03475, 2022 WL 3030548 (N.D. Ga. July 29, 2022).Residence & Real Prop., 803 F.2d 625, 632 (11th Cir. 1986)).
- Richard Merritt v. Lake Jovita Homeowner's Assn., 358 F. App'x 47 (11th Cir. 2009).unpublishedUnited States v. Single Family Residence & Real Property, 803 F.2d 625, 632 (11th Cir.1986).
- United States v. Ramiro Adames, 56 F.3d 737 (7th Cir. 1996).publishedUnited States v. A Single Family Residence and Real Property, 803 F.2d 625, 632 (11th Cir.1986).
- Misabec Mercantile, Inc. v. Donaldson, Lufkin & Jenrette ACLI Futures, Inc., 853 F.2d 834 (11th Cir. 1988).published
- No. 88-2212, 876 F.2d 1362 (8th Cir. 1989).published
- Mike Ousley Prods., Inc. v. WJBF-TV, 952 F.2d 380 (11th Cir. 1992).published
Show 10 more citing cases
- United States v. James Daniel Good Prop. Titled in the Name of James Daniel Good, 971 F.2d 1376 (9th Cir. 1992).published
- United States v. That Certain Real Prop., 798 F. Supp. 1540 (N.D. Ala. 1992).published
- Dep't of Law Enf. v. Real Prop., 588 So. 2d 957 (Fla. 1991).published
- United States v. One Parcel of Real Est. Located at 12525 Palm Road, 731 F. Supp. 1057 (S.D. Fla. 1990).published
- United States v. 92 Buena Vista Ave., Rumson, Nj, 738 F. Supp. 854 (D.N.J. 1990).published
- United States v. 1.678 Acres of Land, 671 F. Supp. 413 (W.D.N.C. 1987).published
- Tellevik v. Real Prop. Known as 31641, 838 P.2d 111 (Wash. 1992).published
- United States v. A Parcel of Land, 742 F. Supp. 189 (D.N.J. 1990).published
- United States v. South Half of Lot 7 & Lot 8, 876 F.2d 1362 (8th Cir. 1989).published
- United States v. Four Parcels of Real Prop. in Greene & Tuscaloosa Counties, 941 F.2d 1428 (11th Cir. 1991).published
At page 631 Interpreting statutory forfeiture provisions and innocent owner defense3 citing casestion is whether a person of ordinary intelligence in Heidi’s position would have been unfairly surprised by application of Section 881 to him and whether…
- Richmond Tenants Org., Inc. v. Kemp, 956 F.2d 1300 (4th Cir. 1992).published
- United States v. One Parcel of Prop. Located at 5854/56 Terry, 809 F. Supp. 735 (E.D. Mo. 1993).published
v.
A SINGLE FAMILY RESIDENCE AND REAL PROPERTY LOCATED AT 900 RIO VISTA BLVD., FT. LAUDERDALE, Heidi of South Florida, Inc., Claimant-Appellant, Broward County, Intervenor
Appellant, Heidi of South Florida, Inc. (“Heidi”), appeals the denial of its claim to a certain residence and real property located at 900 Rio Vista Blvd., Ft. Lauderdale, Florida (“Property”), and the district court’s judgment finding that the Property was forfeited pursuant to 21 U.S.C.A. § 881(a) (1981). We affirm. Because we find this appeal patently frivolous, we also impose sanctions against Heidi in the amount of double costs and reasonable attorney’s fees incurred by appellee in connection with this appeal, and remand for a determination of whether sanctions should be imposed against Heidi’s counsel as well.
I. BACKGROUND
Heidi was organized under the laws of Florida on August 27, 1979, with Heidi Hartline listed of record as president, director and sole subscriber for shares. Hartline at that time was the girlfriend of suspected drug trafficker Jonathan Scot Baldwin. The day after its incorporation,[*628] Heidi purchased the Property. Hartline signed the closing documents on behalf of Heidi. Participation in this closing apparently is the only act Hartline ever performed on behalf of Heidi.
On November 29, 1982, Baldwin was arrested for drug trafficking. He subsequently pleaded guilty to the conspiracy count of the indictment against him. One of the overt acts listed in that count was the delivery of $75,000.00 to Southport Realty Inc. for the purchase of the Property. Baldwin’s conviction was affirmed by this Court on appeal. United States v. Stitzer, 785 F.2d 1506 (11th Cir.1986).
On September 18, 1984, a warrant for seizure of the Property was issued pursuant to 21 U.S.C.A. § 881(a)(6) and (b), which provides for seizure and forfeiture of property that constitutes “proceeds traceable to” an illegal drug exchange upon process issued in accordance with the Supplemental Rules for Certain Admiralty and Maritime Claims. The Government filed its forfeiture complaint October 10, 1984, and Heidi filed a verified claim and motion for return of the Property on October 18, 1984. The claim was signed by Baldwin as agent for Heidi.
On May 16,1985, the district court held a probable cause hearing at which it found that the Government had established probable cause to believe that the Property was proceeds traceable to Baldwin’s drug sales. Based on this holding, the district court denied Heidi’s motion for return of the Property. On September 23, 1985, the district court held a further hearing at which Heidi was given the opportunity to establish the affirmative defense of innocent ownership. See id. § 881(a)(6). On September 30, 1985, the district court entered final judgment for the United States, finding that Heidi had failed to establish the defense of innocent ownership and ordering that the Property be sold. Heidi’s motion for a new trial was denied and this appeal followed.
II. DISCUSSION
Heidi challenges both the district court’s finding of probable cause for issuance of the warrant and its finding that Heidi failed to establish the affirmative defense of innocent ownership. It also challenges the constitutionality of 21 U.S.C.A. § 881(a)(6) on vagueness and procedural due process grounds. All of these arguments are patently without merit.
A. Probable Cause
Under Section 881(a)(6), the United States must establish probable cause to believe that a substantial connection exists between the property to be forfeited and an illegal exchange of a controlled substance. United States v. $4,255,625.39, 762 F.2d 895, 903 (11th Cir.1985), cert. denied, --- U.S. ---, 106 S.Ct. 795, 88 L.Ed.2d 772 (1986).[1] “Probable cause” is defined as “reasonable ground for belief of guilt, supported by less than prima facie proof, but more than mere suspicion.” United States v. $364,960.00, 661 F.2d 319, 323 (5th Cir. Unit B 1981) (quoting United States v. One 1978 Chevrolet Impala, 614 F.2d 983, 984 (5th Cir.1980)). The existence of probable cause is judged “not with clinical detachment, but with a common sense view to the realities of normal life.” $4,255,625.39, 762 F.2d at 904, (quoting Wilson v. Attaway, 757 F.2d 1227, reh’g denied, 764 F.2d 1411 (11th Cir.1985)).
Heidi’s main argument in support of its contention that the United States failed to establish probable cause for seizure of the Property is the fact Heidi holds legal title to the Property while the only[*629] evidence of drug trafficking in the record deals with Baldwin’s illegal activities. This argument is totally without merit. Under Section 881(a)(6), the government is not required to show that property is owned by a drug trafficker, but rather that it has a substantial connection to a drug transaction. See $4,255,625.39, 762 F.2d at 905 (Section 881 reaches property in hands of third parties). The record in this case clearly establishes probable cause to believe that the Property was traceable to Baldwin’s drug proceeds. Agent Georges, the Drug Enforcement Agency officer in charge of the Baldwin investigation, testified that Baldwin’s co-conspirators stated Baldwin told them he purchased the Property with proceeds of his drug sales, and one of them, Jack Moncrief, stated that Baldwin told him he had formed fictitious corporations to hide his assets. Georges also testified that a salesman at Southport Realty told him Baldwin was the one who discussed purchase of the Property with her, indicating that title would be placed in Heidi’s name, and that $75,000.00 in cash had been tendered for the Property. Finally, Georges testified that Hartline admitted Baldwin established Heidi, using Hartline as a figurehead, that the corporate kit for Heidi was found on Baldwin’s bedside table during a search of the Property, and that Baldwin attempted to have Hartline sign over her interest in Heidi to him, but the documents were intercepted by the DEA.[2]
Clearly, the common sense view of Georges’ testimony and the other evidence in the record, including Baldwin’s admission that he delivered $75,000.00 for purchase of the Property, leads inevitably to the conclusion reached by the district court: that reasonable grounds existed to believe the Property was purchased with profits from Baldwin’s illegal drug sales and that, in fact, Baldwin was the beneficial owner of the Property.[3]
B. Failure to Establish Innocent Ownership
Once the government demonstrates that probable cause exists, the burden of proof in a civil forfeiture proceeding shifts to the claimant to establish by a preponderance of the evidence that the property is not subject to forfeiture. $4,255,625.39, 762 F.2d at 904. Heidi could meet this burden either by rebutting the Government’s evidence that the Property was proceeds of illegal drug activities or by showing that it was an innocent owner who did not know of the Property’s connection with drug sales. See id. at 904, 906. Heidi clearly did neither. In fact, although Heidi bore the burden of proof at the hearing, it did not call any witnesses, contenting itself instead with cross-examination of the rebuttal witnesses presented by the Government.[4] When a claimant presents no evi[*630]dence to contradict the government’s evidence of probable cause, the scope of review on appeal is whether the government’s evidence established probable cause. United States v. One 1978 Chevrolet Impala, 614 F.2d 983, 984 (5th Cir.1980). As discussed above, probable cause was established by overwhelming evidence in this case.
Further, even if Heidi’s argument were properly before us, it is totally lacking in merit. Once again Heidi relies on its legal title to the Property and the lack of evidence that Heidi, as a separate entity, was involved in drug trafficking. As discussed above, legal title to property in an entity other than the drug trafficker does not of itself insulate that property from the reach of Section 881(a)(6). $4,255,625.39, 762 F.2d at 905. In fact, possession of bare legal title by one who does not exercise dominion and control over the property is insufficient even to establish standing to challenge a forfeiture. United States v. One 1945 Douglas C-54 (DC-4) Aircraft, 604 F.2d 27, 28 (8th Cir. 1979), cert. denied sub nom. Stumpff v. United States, 454 U.S. 1143, 102 S.Ct. 1002, 71 L.Ed.2d 294 (1982); accord, United States v. One 1977 36 Foot Cigarette Ocean Racer, 624 F.Supp. 290, 294 (S.D. Fla.1985). As the court explained in One Racer:
The rationale for the rule that bare legal title may be insufficient [for standing] is based on a candid determination that things are often not what they appear to be, especially in the world of drug trafficking____ In brief, people engaged in illegal activities often attempt to disguise their interests in property by placing title in someone else’s name.
In short, courts look behind the formal title to determine whether the record title owner is a “strawman” set up to conceal the financial affairs or illegal dealings of someone else.
624 F.Supp. at 294-95. The record clearly supports the district court’s determination that Heidi was such a “strawman” in this case.
C. Constitutional Challenges
1. Vagueness Challenge
Heidi asserts that the phrase “all proceeds traceable to” as used in Section 881(a)(6) makes that Section so vague that it is void, both as applied to Heidi and on its face. We find that Section 881(a)(6) clearly was not vague as applied to Heidi and that Heidi has no standing to make a facial challenge to that Section.
A law is impermissibly vague if it does not “give the person of ordinary intelligence a reasonable opportunity to know what is prohibited so that he may act accordingly” or does not provide sufficiently explicit standards for those who will apply it, thereby encouraging “arbitrary and discriminatory enforcement.” Grayned v. City of Rockford, 408 U.S. 104, 108, 92 S.Ct. 2294, 2299, 33 L.Ed.2d 222 (1972). A facial challenge to a law is a claim that the law is “invalid in toto —and therefore incapable of any valid application.” Hoffman Estates v. Flipside, Hoffman Estates, 455 U.S. 489, 494 n. 5, 102 S.Ct. 1186, 1191 n. 5, 71 L.Ed.2d 362, reh’g denied, 456 U.S. 950, 102 S.Ct. 2023, 72 L.Ed.2d 476 (1982) (quoting Steffel v. Thompson, 415 U.S. 452, 474, 94 S.Ct. 1209, 1223, 39 L.Ed.2d 505 (1974)). If the enactment does not implicate constitutionally-protected conduct, then a facial challenge may be upheld only if the statute is impermissibly vague in all its applications, including its application to the plaintiff. Id. at 495, 102 S.Ct. at 1191 (one whose conduct clearly is covered by a statute cannot complain of vagueness in the law as applied to others); accord, United States v. Mazurie, 419 U.S. 544, 550, 95 S.Ct. 710, 714, 42 L.Ed.2d 706 (1975) (when First Amendment freedoms are not implicated, challenge must be examined in light of facts of case at hand).
Heidi, therefore, must establish that Section 881(a)(6) was vague as applied to it in order to have standing to make a facial challenge to the statute. The ques[*631]tion is whether a person of ordinary intelligence in Heidi’s position would have been unfairly surprised by application of Section 881 to him and whether application of that Section to Heidi was an instance of arbitrary and discriminatory enforcement.
Section 881(a)(6) provides that:
(а) The following shall be subject to forfeiture to the United States and no property right shall exist in them:
(б) All moneys, negotiable instruments, securities, or other things of value furnished or intended to be furnished by any person in exchange for a controlled substance in violation of this subchapter, all proceeds traceable to such an exchange, and all moneys, negotiable instruments, and securities used or intended to be used to facilitate any violation of this subchapter, except that no property shall be forfeited under this paragraph, to the extent of the interest of an owner, by reason of any act or omission established by that owner to have been committed or omitted without the knowledge or consent of that owner.
21 U.S.C.A. § 881(a)(6) (1981) (emphasis added).
Looking at this language, would a person of ordinary intelligence be surprised to find that property to which it held legal title could be subject to forfeiture under this statute even though that person did not engage in drug trafficking? Clearly not. By its own terms, the statute indicates that the only time property traceable to drug proceeds is not subject to forfeiture is when the owner of the property establishes that the act connecting the property with a drug transaction was done without the owner’s knowledge or consent. Cf $4,255,-625.39, 762 F.2d at 905 (inclusion of innocent owner defense in statute indicates that it is not limited to property in hands of drug traffickers). Further, would that person think that when the property was paid for by a drug trafficker it would not constitute proceeds traceable to a drug transaction? Again, the answer is clear. When the punishment imposed by a statute is for “an act knowingly done with the purpose of doing that which the statute prohibits, the accused cannot be said to suffer from lack of warning or knowledge that the act which he does is a violation of law.” Screws v. United States, 325 U.S. 91, 102, 65 S.Ct. 1031, 1036, 89 L.Ed. 1495 (1945).
Finally, did a lack of sufficiently explicit standards render application of this statute to Heidi an instance of arbitrary and discriminatory enforcement? The only possible answer on the facts of this case is “no.” The purpose of Section 881(a)(6) is to deter drug smuggling by depriving drug traffickers of the fruits of their labors— money and property acquired with drug proceeds. United States v. Certain Real Estate Property Located at 4880 S.E. Dixie Highway, 612 F.Supp. 1492, 1496 (S.D. Fla.1985). As discussed above, the language “all proceeds traceable to” has been interpreted to include a requirement that the property have a substantial connection to illegal drug trafficking. $4,255,625.39, 762 F.2d at 903. This limiting construction by the courts must be considered in deciding whether the statutory language is impermissibly vague. Hoffman Estates, 455 U.S. at 494 n. 5, 102 S.Ct. at 1191 n. 5.
Review of the record shows that this case falls squarely within both the purpose and the requirements of Section 881(a)(6). The Property was proceeds of Baldwin’s illegal drug sales. Therefore, forfeiture of the Property was not an instance of arbitrary or discriminatory enforcement of Section 881. Because Section 881(a)(6) was not impermissibly vague in its application to Heidi, Heidi has no standing to bring a facial challenge to that statute.
2. Procedural Due Process Challenge
Finally, Heidi argues that Section 881(a)(6) does not meet the requirement of Fuentes v. Shevin that seizure of property without a prior hearing be made only when “the person initiating the seizure [is] a government official responsible for determining, under the standards of a narrowly drawn statute, that it was necessary and[*632] justified in the particular instance.” 407 U.S. 67, 91, 92 S.Ct. 1983, 2000, 32 L.Ed.2d 556, reh’g denied, 409 U.S. 902, 93 S.Ct. 177, 34 L.Ed.2d 165 (1972). Under Section 881, a seizure is initiated by the filing of a verified complaint alleging probable cause to believe that the property is subject to seizure. 21 U.S.C.A. § 881(b) & Supp.Rule C(2), Fed.R.Civ.P. Upon filing this complaint, the clerk of court issues a warrant for arrest of the property. Supp.Rule C(3). There is no requirement of detailed allegations and there is no provision for judicial review before the warrant is issued. It is beyond dispute, however, that due process is satisfied by this procedure. The United States Supreme Court has held that seizure for purposes of forfeiture presents an extraordinary situation justifying postponement of notice and hearing. Calero-Toledo v. Pearson Yacht Leasing Co., 416 U.S. 663, 679-80, 94 S.Ct. 2080, 2089-91, 40 L.Ed.2d 452, reh’g denied, 417 U.S. 977, 94 S.Ct. 3187, 41 L.Ed.2d 1148 (1974). Under Calero-Toledo, it is well settled that no prior judicial determination that seizure is justified is required when the government seizes items subject to forfeiture. United States v. $8,850.00 in United States Currency, 461 U.S. 555, 562 n. 12, 103 S.Ct. 2005, 2011 n. 12, 76 L.Ed.2d 143 (1983). Therefore, Heidi’s argument that Section 881 denies procedural due process because it allows a government agent to make the initial determination to seize property is without merit.[5]
III. CONCLUSION
This appeal is patently frivolous. Heidi has relied on an argument to recover the Property that is insufficient even to give it standing to challenge the forfeiture, challenged as vague a statute that clearly covers its situation and argued that it was denied due process in the face of decisive Supreme Court authority to the contrary. The applicable law and the facts are clear. Although we normally are reluctant to impose sanctions, clearly frivolous claims such as those raised in this appeal waste judicial resources as well as those of the appellee. Therefore, pursuant to Fed.R. App.P. 38, we award to appellee double costs and reasonable attorney’s fees incurred by reason of this appeal to be paid by appellant Heidi. Further, if it is determined upon remand of this case that Heidi’s attorneys are culpable under 28 U.S.C.A. § 1927 for having unreasonably and vexatiously multiplied the proceedings in this case, then they should be held personally liable for the above costs and fees as well, to the extent allowed by law.
AFFIRMED and SANCTIONS IMPOSED. This case is REMANDED for the district court to assess the amount of appellee’s reasonable attorney’s fees in connection with this appeal and for a determination of whether, and to what extent, Heidi’s attorneys should be held personally liable for reasonable attorney’s fees and costs.
The "substantial connection” requirement is not found in the statute, but rather in its legislative history, which indicates that, because of the penal nature of forfeiture statutes, "it is the intent of these provisions that property would be forfeited only if there is a substantial connection between the property and the underlying criminal activity which the statute seeks to prevent.” $4,225,-625.39, 762 F.2d at 902 n. 14 (quoting Joint Explanatory Statement of Titles II and III of the Psychotropic Substances Act of 1978, Pub.L. No. 95-633, 92 Stat. 3768 (codified in scattered Sections of 18 and 21 U.S. C.), reprinted in 1978 U.S.Code Cong. & Ad. News 9496, 9518,F 9522).
Although most of Georges’ testimony was hearsay, hearsay testimony may be used to establish probable cause. Bush v. United States, 389 F.2d 485, 489 (5th Cir.1968).
During oral argument, Heidi’s counsel also argued that the Government failed to establish probable cause because "most” of Baldwin’s drug transactions occurred after the Property was purchased. Section 881(a)(6) only requires that the government show probable cause that there is a substantial connection between the property and illegal drug transactions; it does not require a showing of a relationship between the property and a particular drug transaction. $4,255,625.39, 762 F.2d at 904. As discussed above, there was ample evidence of a substantial connection in this case.
One of the Government’s witnesses was Georges, who read Baldwin’s deposition into the record. In that deposition, for which Baldwin appeared individually and as the designated corporate representative for Heidi pursuant to Fed.R.Civ.P. 30(b)(6), Baldwin claimed the Fifth Amendment privilege both individually and (improperly) on behalf of Heidi with regard to all questions asked. See California Bankers Ass’n v. Shultz, 416 U.S. 21, 55, 94 S.Ct. 1494, 1514, 39 L.Ed.2d (1974) (organizations have no privilege against self-incrimination). The district court drew a permissible inference from this failure to testify that Baldwin’s testimony would not have been favorable to the claim. See Baxter v. Palmigiano, 425 U.S. 308, 318, 96 S.Ct. 1551, 1557, 47 L.Ed.2d 810 (1976) (prevailing rule is that Fifth Amendment does not forbid adverse inferences against parties to civil actions when they refuse to testify in response to probative evidence offered against them).
In fact, it appears that a magistrate did make a probable cause determination on the basis of an affidavit by Georges before the warrant was issued in this case. Therefore, Heidi actually received more procedural safeguard of its rights than was constitutionally required.