United States of America v. Various Amounts of U.S. Currency Totaling $10,345.00

Filing 10

ORDER granting 8 Motion for Entry of Default and granting 9 Motion for Default Judgment. Signed by District Judge Terrence W. Boyle on 9/29/2015. (Romine, L.)

IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF NORTH CAROLINA
WESTERN DIVISION
NO. 5:14-CV-667-BO
UNITED STATES OF AMERICA,
Plaintiff,
v.

VARIOUS AMOUNTS OF U.S. CURRENCY
TOTALING $10,345.00 SEIZED FROM
FRIENDS MART,
Defendants.

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ORDER

This matter is before the Court on plaintiff's motion for entry of default and for default
judgment, which are ripe for adjudication. For the reasons stated herein, both motions are
granted.
BACKGROUND
The government initiated this action by filing a Complaint for Forfeiture in Rem in this
Court on October 21, 2014, alleging that the defendant, currency totaling $10,345.00 seized from
various locations within Friends Mart in Zebulon, North Carolina, constituted or was derived
from proceeds traceable to violations of 18 U.S.C. §§ 371and1955. In accordance with
Supplemental Rule G(3)(b)(i) of the Supplemental Rules for Admiralty or Maritime Claims and
Asset Forfeiture Actions (Supplemental Rules), the Clerk of Court issued a Warrant of Arrest
and Notice Jn Rem on October 23, 2015. Beginning on March 10, 2015, a Notice of Civil
Forfeiture was posted on an official government internet site, www.forfeiture.gov, for at least 30
consecutive days, and a proof of publication was filed with this Court on June 16, 2015.

On March 10, 2015, the Government completed service on the defendant while in the
custody of the United States Marshal Service. Potential claimant Obaydah Ameen was served
with the complaint and warrant for arrest in rem on March 9, 2015, via certified mail. Counsel
for potential claimant RGB, Inc., was served via certified mail on approximately April 1, 2015.
No claim or answer was filed, and plaintiff has now moved for entry of default and entry of
default judgment.
DISCUSSION
Rule 55(a) of the Federal Rules of Civil Procedure authorizes entry of default "when a
party against whom a judgment for affirmative relief is sought has failed to plead or otherwise
defend." Fed. R. Civ. P. 55(a). In civil forfeiture actions in rem, a clamant must file a claim
within 35 days after direct notice. Supplemental Rule G(4)(b). Within 21 days of filing the claim,
a claimant must serve and file an answer to the complaint or a motion under Rule 12.
Supplemental Rule G(5)(b). Because no claim or answer to the complaint has been filed, entry of
default is proper under Rule 55(a), thus plaintiffs motion for entry of default is granted.
Upon entry of default, the facts alleged by plaintiff in its complaint are deemed admitted.
See Ryan v. Homecomings Fin. Network, 253 F.3d 778, 780 (4th Cir. 2001). However, the Court

decides whether those admitted facts actually support the claim alleged and the relief sought
when determining whether to enter default judgment. Id Federal Rule of Civil Procedure 55(b)
provides for the court's entry of default judgment against defendants who have failed to plead or
defend their case. In the civil forfeiture context, default judgment is permitted where no potential
claimant has filed a response to the complaint. See United States v. $3,500.00 in US. Currency,
No. 5:07-CV-312-F, 2008 WL 215807, at *1 (E.D.N.C. Jan. 24, 2008); United States v. 47 W
Oakview Rd, No. 1:10-CV-88, 2011WL304972, at *1 (W.D.N.C. Jan. 28, 2011).

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Civil forfeiture complaints must "state sufficiently detailed facts to support a reasonable
belief that the government will be able to meet its burden of proof at trial." Supp. R. G(2)(f). At
trial, the government must prove by a preponderance of the evidence that the defendant property
is subject to forfeiture. 18 U.S.C. § 983(c). Thus, "the government must state sufficient facts to
support a reasonable belief that it will be able to prove forfeitability by a preponderance of the
evidence." US. v. All Assets Listed, Civil No. 1: 14-cv-969, 2015 WL 1401747, *2 (E.D.Va.
Mar. 25, 2015). The facts alleged in the complaint and search warrant application referenced
therein demonstrate that the defendant currency was the proceeds of an illegal gambling business
operated in violation of 18 U.S.C §§ 371, 1955. As discussed supra, when granting plaintiff's
motion for entry of default, no potential claimant has filed an answer to the complaint.
Accordingly, the government has stated sufficient facts to support a reasonable belief that it
would be able to prove that the currency was forfeitable. The Court finds it proper to grant
plaintiffs motion and enter default judgment against defendant in this case.

It is hereby ORDERED, ADJUDGED AND DECREED that:
1. Plaintiffs motion for default [DE 8] is granted;
2. Plaintiffs motion for default judgment [DE 9] is granted and default judgment is entered
against the defendants;
3. All persons claiming any right, title, or interest in or to said defendants are held in
default;
4. Defendants are forfeited to the United States of America;
5. The United States Department of Justice is hereby directed to dispose of defendants
according to law.

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Plaintiff's motion having been granted, the Clerk of Court is DIRECTED to close this case.

SO ORDERED, this

_¢_.t day of September, 2015.

~·~W./J~
TRRENCE w.
BOYLE
UNITED STATES DISTRICT JUDGE

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