Received a Federal Notice of Seizure or Administrative Forfeiture Notice in South Carolina?
If you received a Notice of Seizure and Intent to Forfeit from the DEA, FBI, ATF, Homeland Security, IRS, Customs and Border Protection, or another federal agency, the government may be attempting to permanently forfeit your property through an administrative forfeiture proceeding.
Administrative forfeiture is different from a federal civil forfeiture lawsuit. At this stage, the government generally has not filed a civil forfeiture complaint in federal court. Instead, the federal agency that seized the property has provided notice that it intends to forfeit the property administratively unless someone properly contests the forfeiture.
The notice should identify the property, explain how to assert an interest in it, and provide a deadline for filing a claim.
If you want to contest the forfeiture, the deadline and the choice between filing a claim and filing a petition for remission or mitigation are important.
How Can I Tell Whether I Have an Administrative Forfeiture Notice or Notice of a Civil Forfeiture Complaint?
It is important to be clear what type of forfeiture notice you are dealing with. Several forfeiture-related documents include the word or concept of “notice,” and each has different rules and timelines associated with it.
The easiest place to start is with the documents you received. If you received a Notice of Seizure and Intent to Forfeit directly from the DEA, FBI, ATF, Homeland Security, Customs and Border Protection, IRS, or another federal agency, and the documents do not identify a federal court case, you are likely dealing with an administrative forfeiture proceeding. The notice will typically identify the seized property, the federal agency handling the forfeiture, an asset or seizure number, and a deadline for filing a claim or petition.
By contrast, if the United States has already filed a civil forfeiture complaint, your documents should identify a United States District Court, a federal court case number, and a lawsuit against the property itself. You may receive a Notice of Judicial Forfeiture Action together with a copy of the government’s complaint. A case may be captioned, for example, United States of America v. $125,000 in United States Currency. That means the matter has moved into—or was initiated as—a judicial civil forfeiture proceeding, and different procedures apply.
A simple way to think about the distinction is: an administrative forfeiture notice tells you that a federal agency is attempting to forfeit property without a court case; notice of a civil forfeiture complaint tells you that the United States has already filed a forfeiture lawsuit in federal court. If you are unsure which type of proceeding you received, the notice, complaint, and federal court docket should be reviewed before deciding how to respond.
What Is a Federal Administrative Forfeiture Notice?
Federal agencies can use administrative procedures to forfeit certain types of seized property without first filing a lawsuit in federal court.
After property is seized, the agency may send interested parties a Notice of Seizure and Intent to Forfeit or a similarly titled notice.
The notice generally identifies:
The federal agency that seized the property;
The property that was seized;
The legal basis asserted for forfeiture;
The deadline for filing a claim; and
Instructions for submitting a claim or petition.
The notice does not necessarily mean the property has already been permanently forfeited.
Instead, it generally means the agency has begun an administrative process that can result in forfeiture if no one properly contests it.
Administrative forfeiture can apply to property such as cash, bank account balances, vehicles, cryptocurrency, jewelry, and other personal property.
Real property generally cannot be forfeited through the administrative forfeiture process.
For many people, this process is surprising. A federal agency can seize property and begin a forfeiture proceeding that is not yet connected to any court case. If the forfeiture is not properly contested, the administrative process can result in the government permanently forfeiting the property without first filing a civil forfeiture lawsuit. The absence of a court case therefore does not mean that the notice can safely be ignored.
What Is the Deadline to Respond to a Federal Administrative Forfeiture Notice?
Start with the deadline printed on the notice.
Under federal law, a person claiming property seized in a nonjudicial civil forfeiture proceeding may file a claim by the deadline stated in the personal notice. That deadline generally cannot be earlier than 35 days after the notice is mailed.
Different rules apply when personal notice was not received, and notice was instead provided by publication.
Do not assume you have 35 days from the date you opened the letter, learned about the notice, or contacted an attorney.
The actual deadline stated in the notice should be identified promptly.
If no proper claim is filed by the applicable deadline, the agency may proceed to administratively forfeit the property without first filing a civil forfeiture lawsuit.
What Is the Difference Between a Claim and a Petition for Remission or Mitigation?
A claim and a petition for remission or mitigation are different responses to an administrative forfeiture notice.
Understanding that distinction can be critical.
Filing a Claim
A claim asserts an interest in the seized property and formally contests the administrative forfeiture. Filing a timely claim is generally the mechanism for requiring the government to move beyond an uncontested administrative forfeiture if it intends to continue pursuing the property.
A timely claim generally stops the administrative forfeiture proceeding. If the government wants to continue pursuing forfeiture, it must take further action authorized by federal law rather than simply completing the uncontested administrative forfeiture.
A claim generally must:
Identify the specific property being claimed;
State the claimant’s interest in the property; and
Be made under oath, subject to the penalty of perjury.
No cost bond is generally required to file a claim under CAFRA.
Filing a claim does not automatically result in the return of the property. It changes the process the government must follow if it intends to continue seeking forfeiture. However, not filing a claim will generally result in the property being administratively forfeited, or taken permanently.
Filing a Petition for Remission or Mitigation
A petition is different.
A petition asks the federal agency to exercise its discretion to return some or all of the property or otherwise reduce the forfeiture.
A petition does not serve the same function as a claim.
If a person files only a petition and no claim, the forfeiture generally remains within the administrative process, and the agency decides whether to grant remission or mitigation.
In some circumstances, a person may file both a claim and a petition. But because they accomplish different things, the appropriate response depends on the circumstances of the particular seizure.
What Happens After I File an Administrative Forfeiture Claim?
A timely claim generally stops the agency from completing the administrative forfeiture.
Under CAFRA, the government generally has 90 days after the claim is filed to take the next required action under federal law.
Depending on the circumstances, the government may:
File a civil forfeiture complaint in federal district court;
Return the property pending further proceedings; or
Pursue another legally authorized forfeiture procedure, including criminal forfeiture in appropriate circumstances.
The 90 days can also be affected by statutory exceptions or extensions.
If the United States files a civil forfeiture complaint, the matter moves into federal court and a different set of procedures applies. The claimant may then need to comply with Supplemental Rule G and respond to the judicial forfeiture action.
What Happens If I Do Nothing?
If no one files a proper claim by the applicable deadline, the agency may proceed with administrative forfeiture.
That can result in the government obtaining ownership of the property without first filing a civil forfeiture lawsuit and litigating the forfeiture before a federal judge. That result is surprising to many property owners because no judge has first determined that the government is entitled to the property. Nevertheless, that is precisely what can happen when an administrative forfeiture is not properly contested.
An administrative forfeiture notice therefore should not be ignored simply because:
You have not been arrested;
You have not been indicted;
No criminal case appears on a federal court docket;
You believe an investigation has ended; or
You believe you can prove that the property came from a legitimate source.
The forfeiture proceeding has its own procedures and deadlines.
Does Filing a Claim Get My Property Back?
No.
Filing a claim does not automatically establish that the seizure was improper, nor does it necessarily require the government to return the property immediately.
Instead, a timely claim generally prevents the agency from completing the forfeiture through the uncontested administrative process.
If the government continues to pursue civil forfeiture, the dispute may move into federal court, where the government’s basis for forfeiture can be challenged.
For a broader discussion of the government’s burden, defenses to forfeiture, and innocent-owner claims, see our Federal Asset Forfeiture Defense in South Carolina page.
What If the Government Seized Cash?
Cash seizures are a common source of federal administrative forfeiture proceedings.
Federal agents may seize currency during a search, a traffic stop, a drug investigation, the execution of a search warrant, or another federal investigation.
A person receiving an administrative forfeiture notice involving cash should consider the claim deadline, the government’s asserted basis for seizure, the source of the funds, and whether explaining the source of the money could affect a related criminal investigation.
For more information about cash seized in a DEA investigation, see our DEA Cash Seizure page.
What If the Government Seized or Froze Money in a Bank Account?
Federal administrative forfeiture can also involve the seizure of funds from a personal or business bank account.
Bank account seizures may arise from allegations of fraud, money laundering, structuring, drug trafficking, or other federal offenses.
These cases can create immediate practical problems when the seized funds are needed for payroll, business operations, real-estate transactions, or ordinary living expenses.
For more information, see our Frozen or Seized Bank Accounts page.
What If the Seizure Is Connected to a Federal Criminal Investigation?
A federal Notice of Seizure may be about more than the property.
Federal agents frequently seize property during investigations involving alleged drug trafficking, fraud, money laundering, structuring, and other federal crimes.
The owner may not know whether they are considered a witness, subject, or target of the underlying investigation.
That creates an important strategic issue.
A claimant may have documents or information establishing a legitimate source for the seized property. But providing explanations, records, or statements to the government may also have implications for an ongoing criminal investigation.
The strategy for contesting the forfeiture should therefore account for potential criminal exposure when the seizure is part of a broader federal investigation.
In practical terms, an administrative forfeiture notice may be an early step in a criminal investigation. It can therefore provide an individual or business with an early opportunity to develop a strategy that addresses not only the seized property but also potential criminal exposure.
What Should I Do After Receiving a Federal Notice of Seizure?
If you received an administrative forfeiture notice, four things are particularly important:
Identify the claim deadline stated in the notice.
Preserve the notice and all documents relating to the seizure.
Determine your interest in the seized property and gather records supporting that interest.
Consider whether the seizure may be connected to an ongoing federal criminal investigation before making substantive statements to the government.
If you intend to challenge the forfeiture, it is important to understand the difference between filing a claim and requesting remission or mitigation before the applicable deadline expires.
Frequently Asked Questions About Federal Administrative Forfeiture
Is a Notice of Seizure the same as a federal civil forfeiture complaint?
No. An administrative Notice of Seizure generally means a federal agency has begun a nonjudicial forfeiture process. A federal civil forfeiture complaint means the United States has already filed a judicial forfeiture lawsuit in federal district court.
How long do I have to respond to a federal Notice of Seizure?
Look at the deadline stated in your notice. Under CAFRA, the deadline in a personal notice for filing a claim generally cannot be earlier than 35 days after the notice is mailed.
What happens if I file a claim?
A timely claim generally stops the administrative forfeiture proceeding. If the government wants to continue pursuing forfeiture, it must take further action authorized by federal law.
What happens after I file a claim?
Under CAFRA, the government generally has 90 days after a claim is filed to file a civil forfeiture complaint or return the property pending further proceedings, subject to statutory exceptions, extensions, and criminal-forfeiture alternatives.
Is a petition for remission or mitigation the same as a claim?
No. A claim contests the forfeiture. A petition asks the agency to exercise its discretion to grant remission or mitigation. Filing only a petition generally leaves the matter within the administrative forfeiture process if no claim is filed.
Can I file both a claim and a petition?
Potentially. They serve different purposes, and the appropriate strategy depends on the circumstances of the particular seizure.
Do I have to post a bond to file an administrative forfeiture claim?
Generally, no. CAFRA permits a person to file a claim under its administrative-forfeiture provisions without posting a cost bond.
Can the government forfeit my property if I have not been charged with a crime?
Yes. Administrative civil forfeiture can proceed without a criminal charge or conviction against the property owner. This seems strange to most people, and for good reason. However, the government can permanently take property without a court hearing through the administrative forfeiture process.
What if the forfeiture is connected to a criminal investigation?
That should be considered carefully. Information or documents provided in connection with the forfeiture may have implications for a related federal investigation.
What if the government files a civil forfeiture lawsuit after I submit my claim?
Different procedures then apply. A claimant will generally need to comply with Supplemental Rule G and respond to the federal court action.