United States of America v. 116020 in US Currency

Filing 32

ORDER granting 12 Motion to Amend Answer provided that Claimant files his verified statement of right or interest within ten days of the date of this Order. Response due April 5, 2019; Denying 20 Motion to Strike the Ans wer and Amended Answer. However, failure of Claimant to file his verified statement of right or interest within ten days of the date of this Order may result in his answer being stricken. IT IS SO ORDERED. Signed by Magistrate Judge Thomas E Rogers, III on 03/26/2019.(dsto, )

UNITED STATES DISTRICT COURT
DISTRICT OF SOUTH CAROLINA
FLORENCE DIVISION
UNITED STATES OF AMERICA,

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Plaintiff,
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-vs)
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$116,020 IN UNITED STATES
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CURRENCY,
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Defendant.
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___________________________________ )

Civil Action No. 4:18-cv-0425-RBH-TER

ORDER

Presently before the court is the Claimant’s Motion to Amend his Answer (ECF No. 12) and
the Government’s Motion to Strike (ECF No. 20) Claimant’s answer and amended answer. The
Government argues Claimant’s answer should be stricken because Claimant failed to file a verified
claim pursuant to Rule G(5) of the Supplemental Rules for Admiralty or Maritime Claims and Asset
Forfeiture Actions. All pretrial proceedings in this case were referred to the undersigned pursuant
to the provisions of 28 U.S.C. § 636(b)(1)(A) and (B) and Local Rule 73.02(B)(2)(e), DSC.
Supplemental Rule G(5)(a)(i) provides that a person who asserts an interest in the defendant
property may contest the forfeiture by filing a claim in the court where the action is pending. The
claim must: (A) identify the specific property claimed; (B) identify the claimant and state the
claimant's interest in the property; (C) be signed by the claimant under penalty of perjury; and (D)
be served on the government attorney designated under Rule G(4)(a)(ii)(C) or (b)(ii)(D).
Supplemental Rule G(5)(a)(i)(A)-(D). It is undisputed that Claimant, who is proceeding pro se, failed
to file a claim as required by Supplemental Rule G(5)(a)(I). As such, the Government argues,
Claimant’s answer should be stricken because he lacks standing to contest the forfeiture.

A person contesting the forfeiture of property in a civil forfeiture action must file a claim “by
the time stated in a direct notice sent under Rule G(4)(b).” Supp. R. G(5)(a)(ii)(A). A verified claim
is important to protect against the filing of false or frivolous claims. See United States of America
v. $104,250.00 in U.S. Currency, 947 F.Supp.2d 560, at 564 (D.Md.2013) (stating “[t]he only
safeguard the courts have against the filing of false claims in ... in rem proceeding is the threat that
the filing of a false claim will trigger a perjury persecution”). An answer to a verified complaint does
not constitute a verified claim under Rule G(5) or 18 U.S.C. § 983(a)(4)(A). A claimant who fails
to comply with the Supplemental Rules lacks statutory standing to assert a claim. See United States
v. $18,690.00 in U.S. Currency, No. 5:13CV00026, 2014 WL 1379914, at *2 (W.D. Va. Apr. 8,
2014) (unpublished).
While Claimant here has moved to amend his answer, that amendment alone is not sufficient
to cure the defect. However, the Government does not object to Claimant amending his answer.
Therefore, Claimant’s Motion to Amend his Answer (ECF No. 12) is GRANTED, provided that
Claimant files his verified statement of right or interest within ten days of the date of this
order. The Government’s Motion to Strike the Answer and Amended Answer (ECF No. 20) is
DENIED at this time. However, failure of Claimant to file his verified statement of right or
interest within ten days of the date of this order may result in his answer being stricken.
IT IS SO ORDERED.
s/Thomas E. Rogers, III
Thomas E. Rogers, III
United States Magistrate Judge
March 26, 2019
Florence, South Carolina

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