California's Asset Forfeiture Laws
The term "asset forfeiture" refers to the government taking someone's property because it is believed to have been obtained through criminal activity or used in a crime.
In California, asset forfeiture laws are frequently used by law enforcement to seize a wide range of property and money.
You might have heard of cases where government agents seize assets from innocent owners in connection with a family member's drug-related or other criminal activities.
However, forfeiture can occur only if the government files a lawsuit against the property it seeks to seize. To claim the property, they must demonstrate that it was directly linked to criminal activity by a preponderance of the evidence.
What Types of Property Are Subjected to Forfeiture?
Government agents possess extensive authority to seize not only bank and brokerage accounts but also other assets.
- Homes,
- Vehicles,
- Boats,
- Computer equipment,
- Weapons,
- Illegal drugs,
- Money,
- Other real property obtained through a pattern of criminal activity.
The federal government confiscates about half a billion dollars annually from drug-related assets, and California receives roughly one hundred million dollars in forfeiture distributions each year.
Unfortunately, these powers are sometimes used unjustly. Overreach by forfeiture agents is a persistent and significant issue.
While the government might seem to have broad authority to seize and confiscate assets, individuals affected by asset forfeiture retain their rights. Don't yield to government intimidation and misuse.
Complex Asset Forfeiture Laws
You don't have to be a drug dealer or other criminal to lose assets to forfeiture. Federal and state laws, as well as local policies on seizure, differ.
But depending on the specific law, government agents may be able to seize and transfer to government ownership any property tied to the crime, not just property that the criminal owns.
Complex forfeiture laws vary by crime type, property, and jurisdiction—federal, state, or local. Typically, forfeiture theories include:
- Contraband such as illegal drugs, guns, or illegal imports, where the forbidden nature or origin of the property is central to the crime;
- Exchanges where the government seizes and the owner forfeits cash or other items exchanged or intended for exchange for contraband.
- Proceeds, including cash gained from illegal drug sales or other contraband, as well as other valuable items bought with such cash; and
- Facilitation occurred when the forfeited item, often a vehicle, contributed to committing the crime.
According to these theories, agents might try to seize a family or business vehicle secretly used for drug distribution.
They may also attempt to take a home or commercial property used unlawfully for drug manufacturing, even if the owner is unaware of the crime.
Since both federal and state laws permit forfeiture, agencies often work together in seizures and share the proceeds. Remember, forfeiture isn't limited to drug crimes but extends to other illegal activities as well.
Understanding the Asset Forfeiture Process
In California, asset forfeiture generally consists of three key steps. The first step involves agents taking control of the property, which may include:
- Notifying banks or brokers to freeze accounts,
- Taking physical possession of personal property, such as vehicles, or
- Registering forfeiture notices against real estate to block its mortgage or transfer.
Once government agents take control, the owner is no longer permitted to sell, use, or benefit from the property. Here is an overview of how the process unfolds:
- Forfeiture court hearing: Under the seizure and disposition rules in California Health and Safety Code 11469 HS, the government must prove its right to forfeiture at a court hearing.
- Seizure of illegal drugs: According to California Health and Safety Code 11475, some forfeitures—such as those involving certain illegal drugs—allow the government to act quickly without a hearing. Other types of forfeitures require only administrative notice and give the owner the right to request a hearing, in accordance with California Health & Safety Code 11488.5(a)(1).
In the final step, the government allocates the assets in accordance with the procedures or court orders.
Restrictions on Forfeiture
In response to widespread overzealous forfeiture practices, California's legislature recently heightened the requirements for government agents to perform lawful asset forfeiture through Senate Bill 443.
The updated rules now specify that agents can seize assets only in state forfeiture cases after a criminal conviction, rather than solely on probable cause.
Although federal law still permits seizure based on probable cause without requiring a conviction, California's new rules also restrict state agents from transferring forfeited property to federal authorities.
Additionally, these restrictions raise the evidentiary standard for some seizures, requiring the government to provide stronger proof at the forfeiture hearing to establish the lawfulness of the forfeiture.
How Can You Challenge Asset Forfeiture?
Our experienced California criminal defense lawyers can effectively challenge and prevent seizures for clients.
We ensure that agents seize only property they have lawful cause to take, avoiding misidentification or seizure of nearby items. Additionally, we may succeed in winning forfeiture hearings outright.
We also work to ensure the government distributes property in accordance with court orders, including the prompt return and the clearing of legal titles for illegally seized items.
California's forfeiture laws and procedures are intricate. The government often acts as an intimidating adversary, and agents might not always follow these new restrictions.
We can protect your assets and reputation from aggressive government actions. Cron, Israels & Stark serve clients across Southern California, including LA County, Orange, Ventura, Riverside, and San Bernardino Counties.