Acceptance of a Monetary Amount in Lieu of Forfeiture

When it is in the interests of justice, and subject to the limitations set forth below, which have been imposed as a matter of policy rather than statutory requirement, the Government may accept and forfeit an agreed amount of money in lieu of seized forfeitable property. In a judicial forfeiture case, with court approval, the Government may also accept and forfeit an agreed amount of money in lieu of forfeitable property, including real estate, that has not been seized.

The following procedures must be followed when the Government accepts and forfeits money in lieu of other property:

Administrative forfeitures

. 19 U.S.C. § 1613(c), as incorporated by,

e.g.

, 18 U.S.C. § 981(d), 21 U.S.C. §§ 853(j), 881(d), permits federal seizing agencies, as a form of relief from administrative forfeiture, to accept and forfeit a sum of money in lieu of forfeitable seized property.

See also

19 U.S.C. § 1614. As a matter of policy and discretion, however, DEA and FBI limit their use of this authority to cases where such substitution is determined to be in the interests of justice and a timely claim for the forfeitable property has been filed pursuant to 18 U.S.C. § 983(a)(2) and referred by the seizing agency to the U.S. Attorney's Office for initiation of judicial forfeiture proceedings. After consultation with the seizing agency, the U.S. Attorney's Office may accept a monetary amount in lieu of forfeiture of the seized property and refer the matter back to the seizing agency to effect the settlement.

Judicial forfeitures

. After commencing a judicial forfeiture case, with court approval, and pursuant to an appropriate order of forfeiture, the Government may accept and forfeit an agreed sum of money in lieu of forfeitable property.

ttorney's Office may accept a monetary amount in lieu of forfeiture of the seized property and refer the matter back to the seizing agency to effect the settlement.

Judicial forfeitures

. After commencing a judicial forfeiture case, with court approval, and pursuant to an appropriate order of forfeiture, the Government may accept and forfeit an agreed sum of money in lieu of forfeitable property.

The Government must transfer money received in lieu of forfeiture to the U.S. Marshal's Service district office or the appropriate Treasury agency in place of the asset being released.

Pursuant to the order of forfeiture, the U.S. Marshal's Service or the appropriate Treasury agency must deposit the forfeited money (and share it when appropriate) in the same manner as applies to other forfeited property.

In cases where the Postal Inspection Service or the National Marine Fisheries Service is the primary federal investigative agency, the U.S. Marshals Service must deposit the money, deduct expenses (if any) incurred with respect to the property being returned, deduct the approved equitable shares attributable to other federal agencies participating in the Department of Justice Assets Forfeiture Fund, and transfer the balance by refund to the above services, as appropriate. Each service will be responsible for sharing with participating state and local agencies in these cases.

For additional information on this topic see Chapter 11 of the Asset Forfeiture Policy Manual ("Cash in Lieu of Forfeiture of Other Property").

[updated May 2010]