NCJ Number
131423
Date Published
1990
Length
64 pages
Annotation
Federal and State forfeiture law has been used in drug law enforcement as a way of separating criminals from assets that were acquired illegally. However, the doctrine could be applied equally to innocent third parties including lienholders, unsecured creditors, business partners, or corporate shareholders whose property may be subject to forfeiture because it was used in or derived from a drug transaction.
Abstract
The U.S. Supreme Court decision in Calero-Toledo v. Pearson Yacht Leasing Company upheld the constitutionality of civil and criminal forfeiture law even as it affects innocent third parties. The Court held that due process does not require pre-seizure forfeiture hearings and that innocence is not a mandated defense in civil hearings. However, subsequent Federal legislation outlining expedited-release procedures and administrative remission may help protect persons who had done all that reasonably could be expected to prevent the use of their property for illegal purposes. Third-party rights are also protected by some State forfeiture laws. 1 appendix and 291 notes