United States of America v. $5,500.00 in U.S. Currency

Filing 16

FINDINGS OF FACT, CONCLUSIONS OF LAW, DEFAULT JUDGMENT, AND ORDER OF FORFEITURE. Granting 15 Motion for Default Judgment Signed by Judge Susan P. Watters on 9/1/2017. (AMC)

FILED
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MONTANA
BILLINGS DIVISION

UNITED STATES OF AMERICA,

SEP 0 1 2017
Clef!<, U.S. Di .
District Of tttrict Court
Bi//ingsontana

CV 16-170-BLG-SPW-TJC
FINDINGS OF FACT,
CONCLUSIONS OF LAW,
DEFAULT JUDGMENT, AND
ORDER OF FORFEITURE

Plaintiff,
vs.
$5,500.00 in U.S. Currency,
Defendant.

This matter is brought before this Court by Plaintiff, United States, by and
through its attorney, Victoria L. Francis, Assistant U.S. Attorney for the District of
Montana.

The United States has filed a Motion for Entry of Default Judgment

and Order of Forfeiture pursuant to Fed. R. Civ. P. 55(b)(2).

Upon considering

the pleadings filed herein, the Court makes the following Findings of Fact and
Conclusions of Law.
FINDINGS OF FACT
1. On December 7, 2016, the United States instituted a judicial forfeiture
action by filing in this cause a Verified Complaint in Rem against the defendant
funds in the amount of $5,500.00, to forfeit property under 21 U.S.C. §§ 841 and

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881 (a)( 6) asserting the defendant currency was furnished or intended to be furnished
in exchange for a controlled substance, and/or was used or intended to be used to
facilitate one or more violations of21 U.S.C. § 841, et seq. (Doc. 1, para. 15 and
16)
2. On January 10, 2017, the United States Marshal Service executed the
Warrant of Arrest in Rem that was issued by this Court on December 27, 2016, and
arrested the defendant funds. (Doc. 5).
3. On December 9, 2016, the United States provided "actual notice" of this
forfeiture action by personally serving of a copy of the Notice of Complaint for
Forfeiture and Verified Complaint in Rem on Jesse James Meyers at the
Yellowstone County Detention Facility, 3165 King Ave. E., Billings, Montana, as
authorized by the Supplemental Rules for Admiralty or Maritime Claims and Asset
Forfeiture Actions, Rule G(4)(b)(v). (Doc. 3).
4. Notice of this forfeiture action was also provided to known and unknown
potential claimants by publishing on the government's asset forfeiture website the
Notice of Forfeiture Action for 30 consecutive days, beginning on December 14,
2016, and ending on January 12, 2017. The "Notice of Forfeiture Action" provides
in pertinent part as follows:
Any person claiming a legal interest in the Defendant
Property must file a verified Claim with the court within 60 days
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from the first day of publication (December 14, 2016) of this
Notice on this official government internet web site and an Answer
to the complaint or motion under Rule 12 of the Federal Rules of
Civil Procedure within 21 days thereafter ....
(Dec. of Publication, Doc. 7, Att. 1).
5.

Upon considering the United States' Motion for Entry of Default of

Known Potential Claimant (Doc. 8), the Clerk of District Court entered the default
of Jesse James Meyers, on January 25, 2017, for failure to timely file a verified
claim and/or to answer or otherwise defend as required by the Supplemental Rules.
(Doc. 11).
6.

Upon considering the United States' Motion for Entry of Default of

Unknown Claimants (Doc. 12), the Clerk of District Court entered the default of
any unknown potential claimants on April 12, 2017, for failure to timely file a
verified claim and/or to answer or otherwise defend as required by the
Supplemental Rules.
7.

(Doc. 14).

The factual allegations set forth in paragraphs 4 through 13, Doc. 1 are

verified by Michael T. Zidack, Special Agent for the U.S. Drug Enforcement
Administration. (Doc. 1, pp. 2-6)
Based upon the foregoing findings of fact, the Court makes the following
conclusions of law.

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CONCLUSIONS OF LAW
8.

The Court has jurisdiction pursuant to 28 U.S.C. §§ 1345 and 1355.

The United States has filed a Verified Complaint for Forfeiture in Rem to forfeit
the defendant property under 21 U.S.C. §§ 841and881(a)(6), as funds constituting
monies or other things of value furnished or intended to be furnished in exchange
for a controlled substance, and/or were used or intended to be used to facilitate one
or more violations of 21 U.S.C. § 841, et seq.
9.

Pursuant to 28 U.S.C. §§ 1355(b)(l)(A) and 1395(b) or (c), venue is

proper in this district because this is a civil proceeding to forfeit United States
Currency found in this district, and the acts or omissions complained of occurred in
this district.
10.

Civil forfeitures are governed by the Supplemental Rules for Certain

Admiralty or Maritime Claims and Asset Forfeiture Actions of the Federal Rules
of Civil Procedure.

United States v. 2659 Roundhill Drive, 283 F .3d 1146, 1149

n.2 (9th Cir. 2002).
11.

The Verified Complaint for Forfeiture in Rem sets forth detailed facts

to support a reasonable belief that the United States will be able to meet its burden
of proof at trial as required by Supplemental Rule G(2)(f), to support probable
cause, and to provide proof by a preponderance of the evidence to seize and arrest

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the defendant currency described in the verified complaint.

The facts contained

in the verified complaint support the institution of these forfeiture proceedings for
a knowing and willful violation of21 U.S.C. § 841, a specified unlawful activity
and a violation of 18 U.S.C. § 1956(a)(l)(B)(i).
12.

The totality of circumstances as set forth the Verified Complaint in

Rem, and summarized in paragraph 13 of the complaint, demonstrates that there is

a substantial connection that the defendant currency was furnished or intended to
be furnished in exchange for a controlled substance, and/or was used or intended to
be used to facilitate one or more violations of 21 U.S.C. § 841, et seq.
13.

Notice of this action was properly provided to known potential

claimant, Jesse James Meyers, by providing "actual notice" to him. The United
States personally served Meyers on December 9, 2016, at the Yellowstone County
Detention Facility, 3165 King Ave. E., Billings, Montana, in accordance with
Supplemental Rule G(4)(b)(v).
14.

Notice by publication was also provided to known and unknown

potential claimants in accordance with Supplemental Rule (G)(4)(a)(iv)(C).
15.

In accordance with Fed. R. Civ. P. 55(a) and Supplemental Rules A(2)

and G(5), the Clerk of District Court properly entered the default of Jesse James
Meyers.

(Doc. 11 ).

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16.

In accordance with Fed. R. Civ. P. 55(a) and Supplemental Rules A(2)

and G(5), the Clerk of District Court properly entered the default of unknown
potential claimants.
17.

(Doc. 14).

Pursuant to Fed. R. Civ. P. 55(b)(2), the United States is entitled to a

judgment of default against the defendant currency in the amount of $5,500.00, and
any claims to the defendant currency.
18.

The United States is further entitled to an order of forfeiture of the

defendant currency in the amount of $5,500.00.
IT IS HEREBY ORDERED, ADJUDGED AND DECREED as follows:

1.

The United States is granted a default judgment against the defendant

currency in the amount of $5,500.00 and against any person asserting a claim to, or
interest in, the defendant currency.
2.

The defendant currency consisting of $5,500.00 is hereby forfeited to

the United States and shall be disposed of in accordance with the law.
DATED this £day of September, 2017.

~~u)~

ifuSANP:WATTERS
United States District Judge

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