United States v. $148,840.00 in United States Currency

521 F.3d 1268, 2008 U.S. App. LEXIS 7354, 2008 WL 901783
CourtCourt of Appeals for the Tenth Circuit
DecidedApril 4, 2008
Docket07-2142
StatusPublished
Cited by71 cases

This text of 521 F.3d 1268 (United States v. $148,840.00 in United States Currency) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. $148,840.00 in United States Currency, 521 F.3d 1268, 2008 U.S. App. LEXIS 7354, 2008 WL 901783 (10th Cir. 2008).

Opinion

LUCERO, Circuit Judge.

In this civil in rem action, the United States seeks the forfeiture of $148,840 in United States currency discovered in the trunk of a rental car driven by claimant David Austin after Austin was stopped by police for speeding. The government commenced the action under 21 U.S.C. § 881(a)(6), which authorizes the forfeiture of currency: (1) furnished or intended to be furnished in exchange for a controlled substance, (2) traceable to a controlled substance exchange, or (3) used or intended to be used to facilitate a violation of the Controlled Substances Act (“CSA”). Following a motion for summary judgment by the government, the district court concluded that Austin lacked constitutional standing to challenge the forfeiture. On appeal, we are faced with the sole question of whether a claimant, such as Austin, who has made an unequivocal claim of ownership to currency potentially forfeitable to the United States, and who is found in the exclusive possession and control of that currency, has Article III standing to challenge the forfeiture action. Exercising jurisdiction under 28 U.S.C. § 1291, we conclude that Austin has advanced sufficient jurisdictional facts to support his constitutional standing. We thus REVERSE and REMAND for further proceedings.

I

A

At approximately 10:30 a.m. on June 25, 2005, Bernalillo County Deputy Sheriff Peter Roth stopped Austin for traveling 65 miles per hour in a 45-miles-per-hour construction zone on westbound Interstate 40 near Albuquerque, New Mexico. At Roth’s request, Austin produced a driver’s license issued by the State of California *1271 and a rental contract in Austin’s name from a Hertz Rent-A-Car location in Port Newark, New Jersey. Because the documents originated from divergent coasts and places far from Albuquerque, Roth inquired about Austin’s travel itinerary. Austin told him that he had flown from California to Philadelphia the day before to visit a friend and that he was now on his way back to California. He also stated that he had driven from Philadelphia to Illinois to visit another friend and that because he was already halfway to California after that visit, he decided to drive the rest of the way home. Finding this explanation suspicious, Roth returned to his patrol car to perform a warrants check on Austin as well as a vehicle check on Austin’s rental car to determine whether it was stolen. After both checks came back negative, Roth prepared a traffic citation for speeding and a preprinted consent to search form.

When he returned to Austin’s vehicle, the deputy showed Austin the citation, and Austin agreed to pay the associated fíne. Roth then gave Austin a copy of the citation and returned Austin’s documents. As both he and Austin prepared to leave, however, Roth stopped and asked Austin if he could again speak with him. Austin responded in the affirmative and Roth inquired whether Austin had any illegal contraband or large sums of money in the vehicle. Austin stated that there were no such items, at which point Roth asked Austin whether he would be willing to consent to a search of the vehicle. Austin replied that he would not consent. Roth then advised Austin to remain on the scene while he summoned an officer with a drug-sniffing canine.

As Austin and Roth waited for the canine team to arrive, Roth asked Austin about his travel plans again. Austin told the officer that he had traveled to Philadelphia to visit a friend named Lenny with whom he used to play pool in California, but that he did not know Lenny’s last name. When asked about his employment, Austin stated that he had recently started a kitchen refurbishing business, and offered to refurbish the deputy’s kitchen for approximately $300. Together, these statements made Roth subjectively suspicious that Austin was engaged in some type of illegal activity.

Officer Arcenio Chavez soon arrived with a drug-sniffing canine, and asked Austin for permission to have the dog inspect the interior and exterior of the rental vehicle. Austin agreed and unlocked the trunk for the officers. Chavez then escorted the dog around the exterior of Austin’s rental car. When the dog approached the rear of the car, it jumped into the open trunk. Once inside the trunk, the dog alerted to the odor of a controlled substance within the trunk area and then attempted to open a cooler in the trunk with her nose. 1

Upon observing the dog alert, the officers asked Austin to remove the cooler as well as an adjacent hard-sided suitcase. Austin complied, setting the items down on the pavement behind the vehicle. Chavez then redirected the dog toward these items and she again tried to open the cooler with her nose. She also bit into the suitcase and dragged it along the pavement area. At that point, the officers proceeded to search the suitcase and cooler. Although they found nothing of interest in the suit *1272 case, Chavez noticed several plastic bags containing bundles wrapped in aluminum foil under the ice in the cooler. Roth removed the plastic bags and the aluminum foil covering, and discovered $148,840 in cold hard cash.

Suspecting that the currency was related to drug trafficking, Roth handcuffed Austin and read him his Miranda rights, but did not place him under arrest. He then proceeded to search the remainder of the vehicle, a venture which ultimately yielded no additional cash or contraband. When questioned by Roth about the origins of the currency, Austin refused to reveal the source of the cash, but told the deputy that the money belonged to him and said that he knew the amount of the money that had been discovered. Austin then refused to discuss the matter further without the advice of an attorney. Without any reason to continue detaining Austin, Roth took possession of the currency, handed Austin a receipt for it, and allowed him to continue on his travels.

B

On December 2, 2005, the United States filed a verified complaint in rem seeking the forfeiture of the $148,840 recovered from Austin’s vehicle. The government alleged that the currency was subject to forfeiture under 21 U.S.C. § 881(a)(6) because the currency was furnished, or intended to be furnished, in exchange for a controlled substance, constituted proceeds traceable to such an exchange, or was otherwise used or intended to be used to facilitate a violation of the CSA- 2 Following the filing of the complaint, Austin submitted a verified claim opposing the forfeiture and an answer to the government’s complaint, asserting that he was the owner of the currency.

The government thereafter deposed Austin on May 24, 2006. At that deposition, Austin repeatedly claimed that he was the owner of the currency seized, but in response to specific questions about the cash, he invoked his Fifth Amendment privilege against self-incrimination. Specifically, he refused to describe the source of the currency, explain why it was packaged in plastic and foil, or reveal why he was carrying such a large amount of cash.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
521 F.3d 1268, 2008 U.S. App. LEXIS 7354, 2008 WL 901783, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-14884000-in-united-states-currency-ca10-2008.