Asset Forfeiture

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At first glance, there was nothing unusual about the lawsuit filed in New Jersey involving Former Premier Michael Misick of the Turks and Caicos Islands. The complaint in the lawsuit executed by the Former Premier, claimed that Hip Hop Weekly Magazine founders David Mays and Raymond Scott had misappropriated the magazine’s cash.

Mr. Mays and Mr. Scott separately alleged in their answer, counterclaim and third-party complaint, that the Former Premier had been an investor in the magazine and was basically one of its owners. On March 23, 2010, there was a status and settlement conference scheduled in the lawsuit, as mentioned by the Court’s docket entry:

(Click On The Above Image To View The Docket Report)

“Target Of Corruption Probe Sues Hip-Hoppers For Supposed Fraud” meanwhile, explained that the Former Premier had been the subject of a public corruption probe by the Turks and Caicos Islands Commission of Inquiry. The Inquiry issued its Redacted Final Report, which had once been available here. This Final Report asserted that the Former Premier was known to have enjoyed a “Hollywood lifestyle” beyond his salary and allowances as a politician. It also raised the critical questions: Had the Former Premier been a party to public corruption and could he have taken illicit monies?Continue Reading Could Former Premier Misick Face U.S. Forced Collection Proceedings?

By claiming that proceeds of a judicial bribery scheme had been laundered from Italy into nineteen U.S. bank accounts, prosecutors sought asset forfeiture as described at "Using Multiple Jurisdictions To Launder Money".  That forfeiture case was mostly based on U.S. anti-money laundering laws which included 18 U.S.C. §1956 (Money Laundering) and 18 U.S.C. §1957 (Money Laundering of property from specified unlawful activity).

In two of the cases mentioned at "Following The Money Trail From Poland To Delaware", prosecutors from Warsaw and Koszalin had asserted that they too suspected money laundering.  In those cases the prosecutors sought the issuance of letters rogatory in Delaware by claiming that laundering could have occurred in violation off Article 299 of Poland’s penal law.

Like the foregoing prosecutors, litigants in the private sector may also allege that an adversary has fraudulently concealed assets in violation of U.S. and / or foreign money laundering laws.  To cite just one example, the RICO plaintiff more fully described at "Divorce, RICO & An Asset Search", claimed that her ex-husband had laundered money in violation of 18 U.S.C. §1956.Continue Reading Alleging Money Laundering In Private Sector Lawsuits

Holocaust-era assets and Mutual Legal Assistance Treaties are the subjects of this “Asset Search News Roundup”:

    1. My article “During A War Everybody Loots A Little Bit“, discusses Nazi-looted art.  A December 1, 2009, press release also raises this issue.  The December press release explains that U.S. authorities recently recovered a painting in a

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In "Forfeiture & The DEA’s Asset Search" Donnie the former DEA Special Agent spoke about the effectiveness of asset forfeiture.  In that article, Donnie said: ‘asset forfeiture… can stop those who supply pseudophedrine to the meth super labs and Mexican cartels‘.  "A Strategy Of Seizing Sinaloa Drug Cartel Assets" also recently explained that asset forfeiture was a vital tool in the fight against the Mexican drug cartels.

Notwithstanding the benefits of an ethical asset forfeiture program, there can be occasional abuses.  Eight plaintiffs raise the issue of supposed improper seizure or asset forfeiture in James Morrow et. al. v. City of Tenaha Deputy City Marshal Barry Washington et. al., U.S. District Court for the Eastern District of Texas, Index No. 2:08-CV-288.  These plaintiffs claim in their civil rights lawsuit pursuant to 42 U.S.C §1983, that some law enforcement officers in or near Tenaha Texas, had essentially seized assets in a racial profiling scheme. 

Furthermore, an August 20, 2009 Memorandum Decision & Order reveals that the presiding judge intends to certify the plaintiffs’ case as a class action lawsuit under Fed. R. Civ. P. 23(b)(2).  The plaintiffs who are African-Americans, assert they were driving in Tenaha Texas or on nearby state Highway 59.  They allege they were subjected to unconstitutional traffic stops and cash seizures based on their race or ethnicity. Continue Reading Seizing Assets In A Suspected Racial Profiling Scheme?

The U.S. Department of Justice believes that seizing assets from Mexican drug cartels can generally help combat cross-border murder, kidnapping, robbery, etc.  Through the person of the Criminal Division’s Assistant Attorney General Lanny A. Breuer, the Department of Justice reiterated its desire to seize the illicit assets of illegal narco-traffickers.

Assistant Attorney General Breuer stated at a July 22, 2009 conference, that U.S. asset forfeiture and money laundering laws gave authorities the necessary tools to trace and then seize illicit drug-related assets.  He stressed the importance of disrupting the finances of narco-traffickers because their existence was fueled by large sums of cash.  The Assistant Attorney General also said that prosecutors should conduct financial investigations and add asset forfeiture claims to indictments in their criminal cases.

He additionally stated in a July 9, 2009 hearing before a committee of the U.S.House of Representatives, that: “… seizing the financial infrastructure of the cartels undermines their very existence“.  During the Assistant Attorney General’s July 9 and July 22 statements, he specifically mentioned Operation Xcellerator, which had targeted the Sinaloa drug cartel.  A May 17, 2007 news release also discussed Sinaloa narco-trafficking.  It.claimed that Ismael Zambada Garcia, (as a supposed Sinaloa trafficker), had laundered drug monies via the following financial network:

 (To Fully View This Image, Click On It)

Continue Reading A Strategy Of Seizing Sinaloa Drug Cartel Assets

Some post-judgment creditors, divorcing spouses and other private litigants use a domestic summons / subpoena to elicit an adversary’s bank customer information from a foreign bank witness.  Under limited circumstances, these private litigants might serve a domestic summons / subpoena, as set forth by the Court in First American Corp. v. Price Waterhouse, 154…