United States v. $16,757.00 in U.S. Currency

520 F. App'x 413
CourtCourt of Appeals for the Sixth Circuit
DecidedApril 9, 2013
Docket12-3778
StatusUnpublished
Cited by7 cases

This text of 520 F. App'x 413 (United States v. $16,757.00 in U.S. Currency) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth 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. $16,757.00 in U.S. Currency, 520 F. App'x 413 (6th Cir. 2013).

Opinion

ALICE M. BATCHELDER, Chief Judge.

Off-duty Cleveland Police Department Officer James Dunn was driving eastbound on 1-90 when a recklessly driven car almost struck his own vehicle. Believing that the car’s driver had pointed a handgun at him, Dunn slowed his vehicle, noted the car’s license plate number, exited 1-90 onto Superior Avenue, and called two on-duty officers to recount the incident and to describe the car and license plate number. Claimant-Appellant Antonio Cunningham was the driver of the car, which held a passenger later identified as Cunningham’s cousin, Jeron Cantney.

About fifteen minutes after Dunn’s call, the two officers, Robert Sauterer and Robert Taylor, located the car in a beverage store parking lot off East 140th Street. With guns drawn, they approached the car and saw Cunningham inside. Sauterer pulled Cunningham from the car and arrested him. Taylor went into the beverage store and retrieved Cantney, who allegedly told Taylor that he had just finished a prison term imposed for drug trafficking. A search of Cunningham’s person revealed $717, and the officers placed Cunningham and Cantney in the back of the police car.

The officers checked Cantney’s criminal record and learned that he indeed had a conviction for drug trafficking. After the officers arrested Cunningham, he admitted there was marijuana in the car’s console, and Sauterer recovered the drugs. Though Sauterer did not find any gun during his inventory search of the vehicle, he did find $16,040 in a blue grocery bag in the glove compartment. Sauterer asked Cunningham about the money and said he received inconsistent explanations. Because Sauterer believed the money came from drug trafficking, he called one of his colleagues, Officer James Cudo of the Cleveland Police Narcotics Unit, asking for help with processing the cash and initiating civil forfeiture proceedings. Cudo requested that the U.S. Customs and Border Patrol take the cash as a forfeiture, and on December 30, 2009, Customs took custody of the currency.

Cunningham was charged in the Cleveland Municipal Court with violating local ordinances through aggravated menacing and drug abuse, Cleveland v. Cunningham, No. 95267, 2011 WL 1812757, at *1 (Ohio Ct.App. May 12, 2011), and was convicted of drug abuse. Id. The United States filed a claim on June 30, 2010, alleging that the currency was subject to civil *415 forfeiture under 21 U.S.C. § 881(a)(6). Upon the recommendation of the magistrate judge, the district court judge granted the United States’ motion for summary judgment.

We review de novo an order granting summary judgment in a forfeiture action. United States v. $174,206 in U.S. Currency, 320 F.3d 658, 660 (6th Cir.2003). A district court “shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(a). On appeal, Cunningham makes several claims. None of them warrants our reversing the district court.

First, Cunningham challenges our jurisdiction over the currency. This claim lacks merit. “[T]he principle, applicable to both federal and state courts, is established that the court first assuming jurisdiction over the property may maintain and exercise that jurisdiction to the exclusion of the other.” Penn General Casualty Co. v. Pennsylvania, 294 U.S. 189, 195, 55 S.Ct. 386, 79 L.Ed. 850 (1935). Hence, “a court cannot exercise jurisdiction over a res that is already subject to the in rem jurisdiction of another court.” United States v. Certain Real Property 566 Hendrickson Blvd., 986 F.2d 990, 993 (6th Cir.1993). In this case, a federal district court was the first court to assume jurisdiction over the currency. And the City of Cleveland has never filed a forfeiture claim against the currency, nor is a state court now attempting to exercise jurisdiction over it. We have jurisdiction.

Second, there is no genuine dispute over the facts that show the currency is subject to federal forfeiture. Under 21 U.S.C. § 881(a)(6), “[a]H moneys ... furnished or intended to be furnished by any person in exchange for a controlled substance” and “all proceeds traceable to such an exchange” are subject to forfeiture. The burden of proof is on the United States “to establish, by a preponderance of the evidence, that the property is subject to forfeiture.” 18 U.S.C. § 983(c)(1); see also $174,206, 320 F.3d at 661-62 (explaining the United States’ burden of proof before and after the passage of the Civil Asset Forfeiture Reform Act). If the United States meets its burden, it will prevail unless a claimant introduces evidence to support his case for his innocent ownership of the currency. See $174,206, 320 F.3d at 662.

Various circumstances may establish that currency is subject to federal forfeiture. The insufficiency of a claimant’s legitimate income — as reflected by his tax returns — to explain his possession of the currency may be one such circumstance. Id. Another is a claimant’s record of drug activity. United States v. $67,220 in U.S. Currency, 957 F.2d 280, 286 (6th Cir.1992) (“A claimant’s record of drug activity is a highly probative factor in the forfeiture calculus.”). And drugs at the scene of arrest connect currency to crime. United States v. $110,873 in U.S. Currency, 159 Fed.Appx. 649, 652 (6th Cir.2005).

Here, the United States carried its burden to prove by a preponderance of the evidence that the currency is subject to federal forfeiture. Cunningham’s legitimate income is insufficient to explain his possession of the currency; he filed no federal or Ohio income tax returns for the years 2005 through 2009. Cunningham pleaded no contest to charges of drug abuse in 2001 and 2006, and received felony convictions after he pleaded guilty to preparing drugs for sale and to drug trafficking. And there was marijuana in Cunningham’s car. This evidence, “unrebutted by any evidence pointing to any other source of legitimate income or any evidence indicating innocent ownership,” *416 $174,206, 320 F.3d at 662, was sufficient to show the currency is subject to federal forfeiture under 21 U.S.C. § 881(a)(6). The district court did not err in granting the United States’ motion for summary judgment.

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520 F. App'x 413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-1675700-in-us-currency-ca6-2013.