HSI asset forfeiture.

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HSI Asset Forfeiture

At San Diego Defenders—Forfeiture Law Firm, we specialize in HSI asset forfeiture cases and are dedicated to helping clients recover their seized property as quickly and inexpensively as possible.

In the 2022 Fiscal Year alone, HSI “set a record for seized currency and assets of more than $5 billion,” a $4 billion increase from the previous fiscal year attributed mainly to a significant increase in cryptocurrency seizures.

If Homeland Security Investigations (HSI) has seized your cash, cryptocurrency, car, truck, or other personal property, here are some frequently asked questions you may have about HSI asset forfeiture:

What is HSI?

Homeland Security Investigations (HSI) is a federal law enforcement agency within the Department of Homeland Security (DHS).

It is the investigative section of U.S. Immigration and Customs Enforcement (ICE).

HSI “conducts federal criminal investigations into the illegal movement of people, goods, money, contraband, weapons, and sensitive technology into, out of, and through the United States.”

What Assets Can HSI Seize and When?

Under federal law, HSI has the authority to seize:

  • Cash and monetary instruments, including cryptocurrency
  • Vehicles, including cars, trucks, boats, and aircraft
  • Electronics and digital devices
  • Real estate and other valuable property

HSI typically seizes property if it is suspected of being involved in criminal activity, such as money laundering, drug trafficking, or fraud. These seizures are often carried out during investigations at border crossings, airports, and other locations linked to transnational crime.

Why Can HSI Seize Property, and Why Do They Do So?

19 CFR § 162.21(a) grants Customs officers the authority to seize property by stating: “Property may be seized, if available, by any Customs officer who has reasonable cause to believe that any law or regulation enforced by Customs and Border Protection or Immigration and Customs Enforcement has been violated.”

While HSI is not part of U.S. Customs and Border Protection, they work in tandem underneath the Department of Homeland Security (DHS).

Since both agencies are under DHS, the case will be handled by the appropriate U.S. Customs and Border Protection Fines, Penalties, and Forfeiture Office.

After HSI seizes your property, you will receive a Notice of Seizure and Information to Claimants CAFRA letter by certified mail in typically 3-4 weeks from a CBP FPF office. CBP has 30-60 days to send this letter.

To initiate a seizure, Customs must have probable cause to believe that a customs law or other law enforced by Customs was violated with respect to specific property (e.g., undeclared or smuggled property; counterfeit trademark goods).

What is the History of HSI Asset Forfeiture?

Per the U.S. Treasury, the Treasury Executive Office for Asset Forfeiture (TEOAF) was established in 1992 as a tactical strategy to disrupt and dismantle criminal enterprises through asset forfeiture.

TEOAF handles the Treasury Forfeiture Fund (TFF), which is the receipt account for non-tax forfeitures made under laws enforced by Treasury and Department of Homeland Security (DHS) agencies, including:

Per the HSI Asset Forfeiture Handbook, assets seized for forfeiture by HSI Special Agents may be deposited into the TFF and are available for official use through TEOAF.

HSI receives tens of millions of dollars annually from the TFF, which funds:

  • Asset sharing initiatives
  • Training programs
  • State and local police overtime
  • Major case initiatives
  • Equipment upgrades
  • Other case-specific costs that might otherwise be unfunded

In addition to administering the TFF, TEOAF is responsible for developing policies concerning asset seizure and forfeiture.

TEOAF also collaborates with the Department of Justice Forfeiture Fund on legislative, policy, and procedural forfeiture matters.

What is an Example of a Case Result for HSI Asset Forfeiture?

Our previous client, a traveler carrying $19,935 in cash at Dallas-Fort Worth (DFW) Airport, Texas, had their funds seized by HSI.

It is not illegal to travel with cash, and the traveler intended to buy a vehicle, like many others who have had their currency or other monetary instruments seized by other federal agencies (CBP, DEA, USPIS, FBI, etc.).

However, an airport drug-sniffing dog alerted to the cash.

Such alerts are common since virtually all U.S. currency in circulation contains drug residue.

HSI alleged that the money was connected to human trafficking and drug activity, leading to forfeiture proceedings under 18 USC 981(a)(1)(A), 18 USC 1956(c)(7)(A), 18 USC 1961(1)(D), and 21 USC 846 (Conspiracy to Commit Violation).

Attorney Dan Smith filed a claim under option #4 (Court Action) outlined in the Election of Proceedings within the 35-day submission deadline and successfully secured the return of our client’s cash.

Experienced forfeiture attorneys help navigate this process and litigate attorney to attorney with AUSAs on your behalf.

What are the Federal Forfeiture Statutes for HSI Asset Forfeiture?

The HSI Asset Forfeiture handbook outlines the Federal Forfeiture Statutes that grant the authority and justifications for HSI asset seizure:

Title 18, Chapter 46 – General Forfeiture Provisions

  1. 18 U.S.C. § 981 – Civil forfeiture, and 18 U.S.C. § 982 – Criminal forfeiture, provide the legal basis for forfeiture related to money laundering and other crimes.
  2. 18 U.S.C. § 983 – Establishes procedures for civil forfeiture proceedings, including CAFRA protections.
  3. 18 U.S.C. § 984 – Allows forfeiture of fungible property (e.g., cash, bank funds) without direct tracing.
  4. 18 U.S.C. § 985 – Requires judicial forfeiture for real property and outlines legal procedures.
  5. 18 U.S.C. § 986 – Authorizes subpoenas for bank records in forfeiture cases.
  6. 18 U.S.C. § 1963 – Provides for the forfeiture of proceeds and property linked to RICO violations.

Additional Forfeiture Provisions

  1. 8 U.S.C. § 1324 – Forfeiture of proceeds and conveyances related to alien smuggling.
  2. 18 U.S.C. § 545 – Forfeiture of merchandise smuggled into the U.S.
  3. 19 U.S.C. § 1595a – Forfeiture of illegally imported/exported merchandise and conveyances.
  4. 21 U.S.C. § 853 & § 881 – Criminal and civil forfeiture provisions for drug-related crimes.
  5. 31 U.S.C. § 5317 – Forfeiture related to monetary instrument reporting violations.
  6. 31 U.S.C. § 5332 – Forfeiture related to bulk cash smuggling.

How Can an Attorney Help Get Property Back from HSI?

After CBP seizes your car, cash, or other property, you will receive a Notice of Seizure letter through certified mail as required by 18 USC § 983.

This includes four options for you to proceed with:

  1. File a petition for relief. This comes with a waiver of immediate institution of forfeiture proceedings.
    1. We recommend against filing a petition on your own.
      1. When you file a petition, there is no limit to how long CBP will respond to you. It is indefinite. Your petition can sit on a CBP officer’s desk for months without a response.
      2. People also tend to include incriminating information under penalty of perjury in their petitions that jeopardize their ability to regain their property.
  2. You can choose to abandon your property and request that Customs begin forfeiture proceedings sooner than the date specified in the notice;
  3. Make an offer in compromise, under 19 USC § 1617, to settle the case;
  4. Or file a claim and cost bond to initiate immediate referral to the U.S. Attorney for the institution of judicial forfeiture.

Here at San Diego Defenders – Forfeiture Law Firm, asset forfeiture attorney Daniel Smith can represent you and file a claim on your behalf to directly negotiate with the U.S. Attorney’s office.

It sounds frightening, but it puts a time limit on CBP to respond, while petitions and offers in compromise have no time limit to respond.

The claim must be filed within 35 days with U.S. Customs and Border Protection’s Fines, Penalties, and Forfeitures office.

It is essential not to wait until the last minute to file a claim.

The claim must be on the agency office’s desk ON the 35-day mark.

We cannot prepare and mail the claim on the 35th day, as it will not arrive on time. This will cause your vehicle or currency to be forfeited and lost to the federal government.

If you choose to do nothing, the government will then begin forfeiture proceedings by publishing a notice in a newspaper on the date specified in the notice.

Contact San Diego Defenders – Forfeiture Law Firm Today!

If HSI has seized your property, don’t wait.

We offer free, confidential consultations to discuss your case.

📞 Call us at (619) 258-8888. Se habla Español.

You can also fill out our free consultation intake form.

Although we are based in Chula Vista, California, we assist clients nationwide in Florida, Vermont, Washington, Texas, Arizona, Michigan, and the other 50 states!

Attorney Dan Smith has 35 years of experience in federal defense and extensive experience in asset forfeiture cases. Check out our recent results here!