USA v. $14,132.00 United States Currency

Filing 19

ORDER ON MOTION TO STRIKE CLAIM. The 18 Motion to Strike Claim is granted. By Judge Walker D. Miller on 7/28/11.(mnf, )

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLORADO
Senior Judge Walker D. Miller
Civil Action No. 11-cv-00210-WDM-MJW
UNITED STATES OF AMERICA,
Plaintiff,
v.
$14,132.00 UNITED STATES CURRENCY,
Defendant.

ORDER ON MOTION TO STRIKE CLAIM
Miller, J.
This case is before me on Plaintiff’s Motion to Strike Claim, filed May 23, 2011 (ECF
No. 18). No response has been filed by any person. After review of the motion and the
record in this case, I conclude the motion should be granted.
BACKGROUND
The government filed its verified complaint for forfeiture on January 27, 2011 (ECF
No. 1). A warrant for arrest of the property issued on February 9, 2011 (ECF No. 5).
Notice of the arrest was served on four persons, including Terri Campbell, on February 23,
2011. (ECF No. 9). On March 8, Ms. Campbell filed a claim with the court, but she did not
file an answer as required by the Supplemental Rules for Admiralty or Maritime Claims and
Asset Forfeiture Actions (Supplemental Rules) and as directed in the Notice served on her.
The motion to strike indicates that an attorney for the government contacted Ms.
Campbell via telephone on April 22, 2011. The government also sent her additional
information as to how to file her answer and agreed not to object to the late filing of an

answer; the government instructed Ms. Campbell to file her answer by May 20, 2011. On
May 19, 2011, Ms. Campbell contacted the government to indicate she no longer wanted
to pursue her claim in this action.
To date, Ms. Campbell has not filed an answer and has not responded to the motion
to strike her claim.
DISCUSSION
Supplemental Rule G(5) directs that a person wishing to contest a forfeiture must
file a claim within 35 days after notice of the action is sent and must file an answer within
21 days after filing a claim. Supplemental Rule G(4)(b)(ii)(B); Supplemental Rule G(5)(b).
The government may file a motion to strike any claim that fails to comply with Rule G(5).
Supplemental Rule G(8)(c)(i)(A).
In its motion to strike, the government asserts that Ms. Campbell lacks standing in
this case on two grounds: (1) she failed to comply with the pleading requirements of Rule
G, and (2) she is an unsecured creditor, and not claiming an ownership interest, with regard
to the defendant currency. I agree with both assertions.
“To establish statutory standing in a forfeiture case, the claimant must comply with
the procedural requirements set forth “ in the Supplemental Rules. United States v.
$487,825.00 in U.S. Currency, 484 F.3d 662, 664 (3rd Cir. 2007) (citing former Rule C).
The docket sheet in this case reflects that Ms. Campbell failed to file a timely answer to
support her claim, as required by Rule G(5). Accordingly, she has not met the standing
requirements to proceed.
With regard to Ms. Campbell’s interest in the defendant currency, the motion to
strike reflects that Ms. Campbell asserts an interest based on a debt owed to her (or based
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on funds stole from her) by her grandson, Cole Campbell. Ms. Campbell did not report any
theft from her until the day after the defendant currency was seized from her grandson, and
she has stated to the government that Cole Campbell owes her money.
“[T]he federal courts have consistently held that unsecured creditors do not have
standing to challenge the civil forfeiture of their debtors’ property.” United States v. OneSixth Share of James J. Bulger in all Present and Future Proceeds of Mass Millions Lottery
Ticket No. M246233, 326 F.3d 36, 44 (1st Cir. 2003) (quotation omitted). Ms. Campbell has
not tendered any evidence of a secured interest in any debt owed her with respect to the
defendant currency. As a result, she lacks standing to challenge the forfeiture.
I conclude that Ms. Campbell’s claim, filed March 8, 2011 (ECF No. 10), should be
stricken for failure to file an answer in compliance with Supplemental Rule G(5)(b) and for
failure to establish standing.
Accordingly, it is ORDERED:
The motion to strike claim, filed May 23, 2011 (ECF No. 18), is granted.
DATED at Denver, Colorado, on July 28, 2011.
BY THE COURT:

s/ Walker D. Miller
United States District Judge

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