Disposition of Forfeited Property

The disposition of property forfeited to the United States is an executive branch decision and not a matter for the court. Consequently, orders of forfeiture should be drafted broadly to direct forfeiture of the property to the United States "for disposition in accordance with law." In addition, orders of forfeiture should specifically address any third party claims against the forfeited property that are recognized by the United States. If the interests of the claimant are to be satisfied in whole or in part by payments from the proceeds of a sale of property by the United States Marshals Service or Treasury, the proposed forfeiture order should provide specific guidance concerning such payments and, where possible, specify that such claims shall be paid only after the costs of the United States are recovered, and shall be paid only up to the amount realized from the proceeds of the forfeited property. The Attorney General has been given the authority to dispose of forfeited property "by sale or any other commercially feasible means" without subsequent court approval.

See

21 U.S.C. §§ 881(e), 853(h), and 18 U.S.C. § 1963(f). This is generally called a "forfeiture sale" of the property. Forfeiture sales do not require judicial confirmation pursuant to 28 U.S.C. § 2001.

See

Chapter 5 of the Asset Forfeiture Policy Manual ("Disposal of Forfeited Property").

[updated May 2010]