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The FBI wants to keep $86 million in cash and millions more in jewelry and other valuables seized in a raid on a Beverly Hills, California, safe deposit box business, even though a judge specifically said the contents of the boxes weren’t up for grabs.
Prosecutors claim it’s fair to make the renters of the 369 safe deposit boxes forfeit their valuables, because they were engaged in criminal activity, the Los Angeles Times reported. But there’s no evidence to support the allegation.
The box holders and their lawyers say the FBI is trampling on the rights of people who were unaware the business, U.S. Private Vaults, was charged in a sealed indictment with conspiring to sell drugs and launder money.
The warrant that US Magistrate Steve Kim signed on March 17 giving permission for the FBI to raid the business even said, “This warrant does not authorize a criminal search or seizure of the contents of the safety deposit boxes.”
If the FBI wanted to search the boxes, it needed to meet the standard for a warrant of probable cause that evidence of a crime would be found. But agents rifled through about 800 boxes anyway, filming their searches and bagging the property as evidence even when the holders were unknown and not suspected of crimes.
Now, the government is trying to keep the cash, gold and silver bars, pricey watches and even $1.3 million in poker chips from a Las Vegas casino.
The government “can’t take stuff without evidence in the hopes that you’re going to get it later,” Benjamin Gluck, an attorney who represents box holders suing the government to retrieve their property, told the Times. “The Fourth Amendment and the forfeiture laws require the opposite — that you have the evidence first, and then you can take property.”
“We have some basis to believe that the items are related to criminal activity,” Thom Mrozek, a spokesman for the FBI’s LA office, told the Times.
The contents of about 75 of the 800 boxes initially seized have already been returned, and at least 175 more will be given back, Mrozek said. The feds haven’t figured out who owns what was stored in many of the others.
The indictment says U.S. Private Vaults marketed itself to attract criminals who wanted to store valuables anonymously and hide from tax authorities. One of the company’s owners and a manager were involved in selling drugs and co-conspirators helped customers convert cash into gold to evade government suspicion, the Times reported.
But box owners like Joseph Ruiz, who kept $57,000 in cash from two legal settlements there because he doesn’t trust banks, say the government is stealing their money.
“I’m made out to be a criminal, and I didn’t do anything,” said Ruiz, the son of a retired Los Angeles police officer, told the paper. “I’m a law-abiding citizen.”
Ruiz has joined one of 11 lawsuits filed by box owners seeking the return of their property.
https://nypost.com/2021/06/12/fbi-aims-to-keep-valuables-86m-cash-found-in-safe-deposit-store-raid/
Prosecutors claim it’s fair to make the renters of the 369 safe deposit boxes forfeit their valuables, because they were engaged in criminal activity, the Los Angeles Times reported. But there’s no evidence to support the allegation.
The box holders and their lawyers say the FBI is trampling on the rights of people who were unaware the business, U.S. Private Vaults, was charged in a sealed indictment with conspiring to sell drugs and launder money.
The warrant that US Magistrate Steve Kim signed on March 17 giving permission for the FBI to raid the business even said, “This warrant does not authorize a criminal search or seizure of the contents of the safety deposit boxes.”
If the FBI wanted to search the boxes, it needed to meet the standard for a warrant of probable cause that evidence of a crime would be found. But agents rifled through about 800 boxes anyway, filming their searches and bagging the property as evidence even when the holders were unknown and not suspected of crimes.
Now, the government is trying to keep the cash, gold and silver bars, pricey watches and even $1.3 million in poker chips from a Las Vegas casino.
The government “can’t take stuff without evidence in the hopes that you’re going to get it later,” Benjamin Gluck, an attorney who represents box holders suing the government to retrieve their property, told the Times. “The Fourth Amendment and the forfeiture laws require the opposite — that you have the evidence first, and then you can take property.”
“We have some basis to believe that the items are related to criminal activity,” Thom Mrozek, a spokesman for the FBI’s LA office, told the Times.
The contents of about 75 of the 800 boxes initially seized have already been returned, and at least 175 more will be given back, Mrozek said. The feds haven’t figured out who owns what was stored in many of the others.
The indictment says U.S. Private Vaults marketed itself to attract criminals who wanted to store valuables anonymously and hide from tax authorities. One of the company’s owners and a manager were involved in selling drugs and co-conspirators helped customers convert cash into gold to evade government suspicion, the Times reported.
But box owners like Joseph Ruiz, who kept $57,000 in cash from two legal settlements there because he doesn’t trust banks, say the government is stealing their money.
“I’m made out to be a criminal, and I didn’t do anything,” said Ruiz, the son of a retired Los Angeles police officer, told the paper. “I’m a law-abiding citizen.”
Ruiz has joined one of 11 lawsuits filed by box owners seeking the return of their property.
https://nypost.com/2021/06/12/fbi-aims-to-keep-valuables-86m-cash-found-in-safe-deposit-store-raid/
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Interesting story here.
The FBI confiscated more than $86 million dollars worth of money, valuables, jewelry and items stashed in safety deposit boxes, in a raid. Despite a search warrant which expressly forbid them from confiscating anything contained in the boxes.
This happened in los angeles. Of course, this being america there were lawsuits filed. But it seems the FBI and the state have no intent to return much of the stolen items. Despite them not having filed lawsuits against the holders of the property or providing evidence suggesting any of the assets were involved with illegal activity.
There have been claims of the DEA (drug enforcement agency) confiscating $100,000 from the safe of legal medical marijuana retailers. Without the lost funds being returned. But this is on an entirely different level with more than $86 million confiscated. Not from fringe operations like legalized weed. But from middle class or wealthy americans, who don't seem to have been involved with anything illegal or sketchy.
This is the most open and shut case I've ever seen on the 4th amendment. The government has no evidence any of the property seized is related to criminal activity. They also violated a court order in seizing the contents of the boxes. On a related note, Congress needs to outlaw civil asset forfeiture on a national level, local police departments abuse the system far too much to be trusted even with stricter oversight. The only remedy is eliminating the program.
If you're offering a service to criminals to store their money, you shouldn't be involved in anything else that makes you a suspect.
