The Department of Justice (DOJ) has allocated over $6 billion in contracts to various private firms to oversee its asset forfeiture investigations.
This revelation has fueled discussions among conservative groups and other entities concerned about potential government overreach.
Asset forfeiture, a procedure through which the government confiscates money or property suspected of connections to illicit activities, is predominantly a civil process at the federal level.
In these cases, the government has the authority to retain the confiscated property even if the owner hasn’t been formally charged with a crime.
The DOJ’s multi-billion-dollar contracts, disclosed earlier this year, task these private enterprises with responsibilities ranging from asset identification and investigation to record maintenance and courtroom testimony, as per official DOJ documents.
Dan Alban, who leads the Institute for Justice’s National Initiative to End Forfeiture, commented, “These are six billion reasons we need civil forfeiture reform now.”
He urged Congress to implement changes to deter law enforcement agencies from exploiting citizens financially. “Congress must act to prevent law enforcement from treating ordinary Americans like ATMs,” Alban stated.
Between 2000 and 2019, asset forfeitures contributed a staggering $45.7 billion to federal revenue. A significant portion of these proceeds is shared between federal and local law enforcement departments.
Highlighting the magnitude of this practice, Alban remarked, “Federal forfeiture is a big business. And it’s a particularly big business for the law enforcement agencies that get to spend the money out of these funds.”
On the other hand, the FBI endorses asset forfeiture as an essential instrument. They believe it aids in “disrupting and dismantling criminal and terrorist organizations and punishing criminals” while also “compensating victims and protecting communities.”
They further noted in a 2017 release that “forfeiture can also serve as a deterrent to others who might be considering criminal activities.”
However, there are concerns regarding the potential misuse of the practice. The Institute for Justice asserts that innocent citizens frequently become collateral damage.
Alban pointed out that regaining confiscated property is often a challenging and costly endeavor. The onus is predominantly on the owner to prove their innocence due to the civil nature of most forfeiture cases. Additionally, because these cases are civil, defendants aren’t entitled to public defenders.
In a notable case from 2021, the FBI confiscated around $86 million in cash and valuable items such as gold, silver, and jewelry from safety deposit boxes during a raid on U.S. Private Vaults. Among those affected was 58-year-old Linda Martin.
“The FBI, they feel like they can get away with anything. I just feel like it’s unfair,” Martin shared with Fox News. Although U.S. Private Vaults later admitted to money laundering charges, neither Martin nor several other customers faced any criminal charges.
Other federal agencies, including the Drug Enforcement Administration and the Postal Inspection Service, also practice asset forfeiture. Notably, Border Patrol officials have confiscated over $41.3 million in 2023 and typically seize an average of $200,000 daily at U.S. entry points.
Alban warned, “Everyone should be concerned about this because you could be a victim.”
An earlier report by the Institute for Justice discovered that a considerable 78% of all DOJ forfeiture cases from 2000 to 2019 were administrative. These cases often involve property seizures with minimal judicial supervision.
With billions spent on this practice, Alban emphasized the possibility of anyone, including average citizens, becoming unintended targets.
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