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Civil Asset Forfeiture and Cash Seizures from Shipping Facilities

Civil asset forfeiture is a legal practice that allows law enforcement agencies to seize property suspected of being connected to criminal activity, even if the owner is not charged with a crime. While intended as a tool to combat crime, particularly drug trafficking and money laundering, civil forfeiture has been widely criticized for potential abuses and lack of due process. One area of growing concern is the seizure of cash from shipping facilities like FedEx and UPS. This article analyzes the use of civil forfeiture across the United States, focusing specifically on cases involving cash seized from these shipping companies.

Understanding Civil Asset Forfeiture

Civil asset forfeiture laws enable law enforcement to seize property—such as cash, vehicles, or real estate—that they suspect is connected to criminal activity. Unlike criminal forfeiture, which requires a conviction, civil forfeiture cases are brought against the property itself, not the owner. This means that property can be seized based on probable cause without the owner being charged with a crime.

Proponents argue that civil forfeiture is essential for disrupting criminal organizations by depriving them of resources. Critics, however, point out that the practice can lead to abuses, with innocent individuals losing property without adequate legal recourse. The lack of a requirement for a criminal conviction and the financial incentives for law enforcement agencies—since they often retain a significant portion of the proceeds—are central to these concerns.

Cash Seizures from Shipping Facilities

In recent years, there has been an increase in cases where law enforcement agencies seize cash from packages shipped via carriers like FedEx and UPS. These seizures typically occur when shipping companies flag packages they suspect contain illegal substances or large amounts of cash, which they then report to law enforcement. Under civil forfeiture laws, authorities can then seize the cash, alleging it is connected to criminal activity, most commonly drug trafficking or money laundering.

How Seizures Occur

Shipping companies have policies and security measures in place to detect illegal shipments. They may use x-ray machines, canine units, and employee observations to identify suspicious packages. Indicators can include:

  • Large amounts of cash: Packages containing significant sums of money.
  • Unusual packaging: Excessive use of tape, poor labeling, or concealment methods.
  • Anonymity: No return address or false sender/recipient information.
  • Shipping patterns: Frequent shipments to or from certain areas known for drug activity.

When a suspicious package is identified, the shipping company may contact law enforcement. Agencies like the Drug Enforcement Administration (DEA) or local police departments can then seize the package and its contents under civil forfeiture laws.

Legal Challenges and Notable Cases

Several high-profile cases have highlighted the contentious nature of cash seizures from shipping facilities:

  • United States v. Approximately $31,000 in U.S. Currency (2014): A man shipping cash to family members had his money seized by law enforcement after FedEx reported the package. The government alleged the cash was connected to drug activity, but no charges were filed against the owner. After legal battles, the owner eventually recovered his money.
  • The case of Rhonda Cox (2015): Cox shipped auto parts through UPS, which were seized under suspicion of being stolen. Despite no charges being filed, recovering her property proved difficult due to the complexities of civil forfeiture laws.
  • FedEx Corporation v. United States (2014): FedEx was indicted for allegedly shipping prescription drugs from illegal online pharmacies. The company denied wrongdoing, arguing it was not responsible for policing the contents of packages. The case raised questions about the responsibilities of shipping companies and the potential for overreach by law enforcement.

These cases illustrate the challenges individuals face when their property is seized without criminal charges. The burden often falls on the owners to prove the legality of their property, reversing the presumption of innocence.

Criticisms and Concerns

Several issues arise from the practice of seizing cash from shipping facilities:

  • Due Process Violations: Owners may not receive timely notice of seizures or adequate opportunities to contest them in court.
  • Burden of Proof: The property owner must often prove the innocence of the property, rather than the government proving its guilt.
  • Financial Incentives: Law enforcement agencies may be motivated by the prospect of retaining seized funds, leading to potential conflicts of interest.
  • Impact on Innocent Individuals: Legitimate businesses and individuals conducting lawful transactions can be caught up in seizures, facing financial hardship and legal expenses to recover their property.

Legal Protections and Reforms

In response to criticisms, some states have enacted reforms to protect property owners:

  • Increased Burden of Proof: States like California and New Mexico now require a higher standard of evidence or a criminal conviction before property can be forfeited.
  • Transparency and Reporting: Enhanced reporting requirements aim to increase oversight of forfeiture activities.
  • Restricting Use of Proceeds: Some jurisdictions direct forfeiture proceeds to general funds or community programs rather than law enforcement budgets to reduce profit motives.

At the federal level, the Department of Justice issued guidelines in 2015 limiting the use of civil forfeiture in certain contexts, but critics argue that more comprehensive reforms are needed.

The Role of Shipping Companies

Shipping companies like FedEx and UPS are in a challenging position. They are required to comply with laws and regulations, including reporting suspicious activities. However, they also face potential liability for privacy violations or wrongful seizures.

Some companies have policies to protect customer privacy while also cooperating with law enforcement when legally required. The balance between these obligations is delicate, and companies must navigate complex legal and ethical considerations.

Recommendations for Individuals and Businesses

To mitigate the risk of cash seizures when shipping through carriers:

  • Avoid Shipping Cash: Whenever possible, use secure electronic methods for transferring funds.
  • Proper Documentation: Include clear, accurate labeling and documentation of the package’s contents and purpose.
  • Legal Counsel: If shipping valuable items or cash is necessary, consult with legal professionals to understand risks and protections.
  • Awareness of Rights: Understand your legal rights in the event of a seizure and the steps required to contest it.

Conclusion

Civil asset forfeiture remains a contentious practice, particularly when it involves cash seizures from shipping facilities like FedEx and UPS. While intended to combat criminal activities, the current application can infringe upon the rights of innocent individuals and businesses. Legal challenges and reforms highlight the need for a balanced approach that upholds due process and property rights while enabling law enforcement to address genuine criminal threats.

Ongoing dialogue among lawmakers, law enforcement, legal experts, and the public is essential to refine civil forfeiture laws. Ensuring transparency, accountability, and fairness in these practices will help protect individuals’ rights and maintain trust in the justice system.

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