United States of America v. $12,950.00 in U.S. Currency

Filing 15

FINDINGS OF FACT AND CONCLUSIONS OF LAW, JUDGMENT, and ORDER OF FORFEITURE in favor of United States of America against $12,950.00 in U.S. Currency. Signed by Judge Brian Morris on 4/5/2018. (ACC)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MONTANA
GREAT FALLS DIVISION
CV 17-138-GF-BMM

UNITED STATES OF AMERICA,
Plaintiff,
vs.

FINDINGS OF FACT,
CONCLUSIONS OF LAW,
JUDGMENT, AND ORDER OF
FORFEITURE

$12,950.00 in U.S. Currency,
Defendant.

Plaintiff United States of America has moved for an entry of Default
Judgment and Order of Forfeiture pursuant to Fed. R. Civ. P. 55(b)(2) and 56(a).
(Doc. 14.) The Court makes the following Findings of Fact and Conclusions of
Law.
FINDINGS OF FACT
1. On December 21, 2017, the United States instituted a judicial forfeiture
action by filing in this cause a Verified Complaint in Rem against the Defendant
currency in the amount of $12,950.00, to forfeit property under 21 U.S.C. §§ 841
and 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 of 21 U.S.C. § 841, et seq . (Doc. 1.)
2. On January 8, 2018, the Homeland Security Investigations executed the
Warrant of Arrest in Rem that was issued by this Court on January 5, 2018, and
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arrested the defendant currency. (Doc. 5.)
3. On December 28, 2017, the United States provided “direct notice” of this
civil asset forfeiture action, by mailing the Notice of Complaint for Forfeiture and
Verified Complaint In Rem (Doc. 3) to Robert David Linn, to the address of the
correctional facility where he was ordered to serve his sentence, and to Craig W.
Frazier, via first class U.S. mail and Certified mail, to the address he provided in
his administrative claim. (See Doc. 11.)
4. On January 10, 2018, Craig W. Frazier filed an answer and motion
declaring he has no interest in the $12,950 in U.S. currency and no objection to
summary judgment on behalf of the United States related to the Defendant
currency. (Doc. 6, p. 2.)
5. In United States v. Robert David Linn, CR 17-31-GF-BMM, Linn
executed a Plea Agreement, filed with the Court in CR 17-31-GF-BMM as Doc.
16, which provides on page 3 that Defendant Linn agrees to disclaim any interest
in any drug trafficking proceeds that the United States seeks to forfeit.
6. 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 January 6, 2018,
and ending on February 4, 2018. The “Notice of Forfeiture Action” provides in
pertinent part as follows:
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Any person claiming a legal interest in the Defendant Property must
file a verified Claim with the court within 60 days from the first day
of publication (January 6, 2018) 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. 8, Att. 1.)
7. Upon considering the United States’ Motion for Entry of Default of
Known Potential Claimant, Robert David Linn, and Unknown Potential Claimants
(Doc. 9) and Amended Declaration filed in support of the motion (Doc. 11), the
Clerk of District Court entered the default of Robert David Linn, and any unknown
potential claimants, on March 8, 2018, for failure to timely file a verified claim
and/or to answer or otherwise defend as required by the Supplemental Rules. (Doc.
12.)
8. The factual allegations set forth in paragraphs 4 through 37, of the
Verified Complaint for Forfeiture In Rem are verified by Tavia Hulme, Special
Agent for the Homeland Security Investigations. (Doc. 1.)

Based upon the foregoing findings of fact, the Court makes the following
conclusions of law.
CONCLUSIONS OF LAW
9. The Court has jurisdiction of this action pursuant to 28 U.S.C. §§ 1345
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and 1355. The United States has filed a Verified Complaint for Forfeiture in Rem
to forfeit the Defendant currency under 21 U.S.C. §§ 841 and 881(a)(6), as
currency 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.
10. Pursuant to 28 U.S.C. §§ 1355(b)(1)(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.
11. The Supplemental Rules for Certain Admiralty or Maritime Claims and
Asset Forfeiture Actions of the Federal Rules of Civil Procedure govern civil
forfeiture actions. United States v. 2659 Roundhill Drive, 283 F.3d 1146, 1149 n.2
(9th Cir. 2002).
12. 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 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 of 21 U.S.C. § 841, and subject to forfeiture under
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21 U.S.C. § 881(a)(6).
13. The totality of circumstances as set forth in the Verified Complaint in
Rem, 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.
14. The government properly provided notice of this action to known
potential claimants, Robert David Linn and Craig W. Frazier, by providing “direct
notice” by mailing the Verified Complaint In Rem, in accordance with
Supplemental Rule G(4)(b)(v).
15. The government further provided notice by publication to unknown
potential claimants in accordance with Supplemental Rule (G)(4)(a)(iv)(C).
16. On January 10, 2018, Craig W. Frazier filed an Answer declaring that he
had no interest in the Defendant currency and consented to summary judgment in
favor of the United States as to the Defendant currency.
17. The Clerk of District Court properly entered the default of Robert David
Linn, and any unknown claimants in accordance with Fed. R. Civ. P. 55(a) and
Supplemental Rules A(2) and G(5). (Doc. 12.)
18. The United States is entitled to a judgment of default against the
Defendant currency in the amount of $12,950.00, as to any claim by Robert David
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Linn and unknown potential claimants and judgment as to Craig Frazier based on
his consent in his answer to judgment in favor of the United States as to the
defendant currency. Fed. R. Civ. P. 55(b)(2), 56(a).
19. The United States is further entitled to an order of forfeiture of the
Defendant currency in the amount of $12,950.00.
IT IS ORDERED:
1. The United States is granted judgment against the Defendant currency in
the amount of $12,950.00, and against any person asserting a claim to, or interest
in, the Defendant currency.
2. The Defendant currency consisting of $12,950.00, is hereby forfeited to
the United States and shall be disposed of in accordance with the law.
DATED this 5th day of April, 2018.

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