Government Power to Seize Assets -- Forfeiture

Asset Forfeiture is the term that is used to describe how the government can deprive people of their property without giving the property owner full due process protection as is required by the US Constitution. This is done by attacking the nature of the property, not the property owner. If a piece of property is associated with some criminal activity (or more likely is SUSPECTED of being connected with a criminal activity) the piece of property can be seized by the government, and if the property owner does not prove bona fides of ownership, it is forfeited to the government. Please note that the property owner does not need to be charged with a criminal offense. The property itself does not even need to be linked to criminal activity by a preponderance of the evidence, let alone beyond a reasonable doubt. There needs only be a suspicion which then allows the government entity to seize the property. It is then the obligation of the property owner to prove a negative: that the property is not associated with any illegal activity. Not an easy job.

Sometimes these forfeitures have to do with cash and cars. But they can also involve more valuable properties like buildings. Several years ago a Federal Prosecutor in Houston, Texas, seized an entire hotel from the lawful owners because the hotel was being used by drug dealers and other "evil doers" to carry on their criminal activity. What did the hotel owners do (or fail to do)? They failed to raise prices to the point that the hotel would no longer be competitive. The Prosecutor stated, "We're not accusing them of participating in the illegal activity, we're accusing them of facilitating it by not taking steps to prevent it." Just think if you owned an apartment complex, and you suspected tenants of criminal activity? What are you supposed to do? You can't kick the tenants out for being "funny looking" or based on some other discriminatory practice. No no no! You'll be sued for that; maybe by the same Federal Prosecutor for violating someone's civil rights!

The problem I see with most of the recent changes in the laws (even those before 9/11) have to do with vagueness and breadth. When laws become so vague that it is difficult to define them, or when they cover such a broad range of activity as to include virtually everyone, you make everyone vulnerable to being defined as a criminal. When the law makes everyone and everything into criminals, the only real issue is DISCRETION IN PROSECUTION. That means the government can go after just about anyone and everyone if they really want to, so the only real issue is who the government wants to go after. As long as you are a good boy and girl, and follow the party line, you have nothing to fear. Just do what you're told, and you'll get to keep what you have... MAYBE.

Very frightening stuff.

But there are solutions that involve being pro-active. I like to compare the government to a bully. When a big bully is out to beat you up, there may be no one solution that will save you, but sitting quietly and waiting for the bully to come and beat you up never works. Running away is good, if you make sure you always have someplace to run. Defending and protecting yourself might work too if you are able to stand up for yourself, as long as you obey the law regarding weapons, etc, and don't get yourself beaten up even worse if you cannot effectively stand up to the bully. Getting others to stand by you side usually helps too; bullies hate crowds and attention. Maybe you need to think about being a little sneaky -- the bully can't beat up that which he never sees and cannot find. All these strategies can be translated into everyday life and business solutions.

Personally, I suggest being a little sneaky. If the bully cannot find your lunch money, he may lose interest in beating you up every day. I know that is the case with most plaintiff's lawyers, and the government attorneys are essentially the same; they are looking for a quick easy score. Bullies are notoriously lazy. They generally focus on the low hanging ripe fruit. Making yourself a little less obvious a target is an ideal way of avoiding the bullies. See The Personal Preservation Package for a simple way to provide yourself with asset protection and privacy.

I hear a lot people who are so sheepish that they think that even taking legal steps to protect themselves and their property, to obtaining some modest level of privacy, and to making it more difficult for the bullies of this world to find you is somehow "illegal" or even worse "unethical". I really just don't know what to say to such people. How can it be wrong to thoroughly and carefully follow the rules set out for everyone, and as a result play the game a little better???? Isn't that just the losers and bullies of this world complaining about how the winners keep on winning???

Best of luck, and keep on fighting the good fight. Just remember that there are ways out of almost every problem if you are diligent and careful.