United States v. $38,916.00 IN U.S. CURRENCY

CourtDistrict Court, C.D. Illinois
DecidedMarch 28, 2025
Docket4:21-cv-04113
StatusUnknown

This text of United States v. $38,916.00 IN U.S. CURRENCY (United States v. $38,916.00 IN U.S. CURRENCY) is published on Counsel Stack Legal Research, covering District Court, C.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. $38,916.00 IN U.S. CURRENCY, (C.D. Ill. 2025).

Opinion

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF ILLINOIS ROCK ISLAND DIVISION

UNITED STATES OF AMERICA, ) ) Plaintiff, ) ) v. ) Case No. 4:21-cv-04113-SLD ) $38,916.00 IN U.S. CURRENCY, ) ) Defendant. )

ORDER Before the Court is Plaintiff United States of America’s Motion for Summary Judgment, ECF No. 37.1 For the following reasons, the motion is GRANTED. BACKGROUND2 In February 2020, Claimant Michael Angelo Tovar sold cocaine to a confidential informant on two occasions, totaling approximately 2 grams. In March 2020, police arrested Tovar at a bar and found $416 in U.S. currency and 1.8 grams of cocaine on his person. Police then obtained a warrant to search Tovar’s residence where they found: $38,500 in U.S. currency, consisting of $5,000 in the pocket of a jacket in the bedroom closet and $33,500 inside a cracker box under a floor vent in the bedroom; a pistol and a loaded magazine in another pocket of the same jacket; 164 grams of marijuana; 29.7 grams of cocaine; a digital scale; one round of

1 ECF references and other citations correspond to the docket of 4:21-cv-04113-SLD unless otherwise specified. 2 At summary judgment, the court must construe all facts and draw all reasonable inferences in favor of the nonmoving party. United States v. Funds in Amount of One Hundred Thousand One Hundred and Twenty Dollars ($100,120.00), 730 F.3d 711, 716 (7th Cir. 2013) [hereinafter $100,120]. Unless otherwise noted, the factual background of this case is drawn from the Government’s statement of undisputed material facts, Mot. Summ. J. 3–5; Tovar’s statement of disputed material facts and additional material fact, Resp. Mot. Summ. J. 2–3, ECF No. 38; the Government’s reply to Tovar’s additional material fact, Reply Mot. Summ. J. 2–4, ECF No. 39; and exhibits to the filings. ammunition on a dresser in the bedroom; and inositol powder (a substance often used for cutting cocaine before sale) on the same dresser. On June 16, 2020, a grand jury indicted Tovar on five counts: Counts 1 & 2 charged him with distributing cocaine in violation of 21 U.S.C. § 841(a)(1), (b)(1)(C) and 18 U.S.C. § 2;

Count 3 charged him with possessing with intent to distribute cocaine and marijuana in violation of 21 U.S.C. § 841(a)(1), (b)(1)(C), (b)(1)(D) and 18 U.S.C. § 2; Count 4 charged him with possessing a firearm in furtherance of a drug trafficking crime in violation of 18 U.S.C. § 924(c)(1)(A) and 18 U.S.C. § 2; and Count 5 charged him with possessing a firearm and ammunition as a felon in violation of 18 U.S.C. §§ 922(g)(1), 924(a)(2). See generally Indictment, Mot. Summ. J. Ex. 1, ECF No. 37-1. The indictment contained a notice of forfeiture which provided that upon conviction of the drug crimes, Tovar “shall forfeit to the United States any property constituting, or derived from, any proceeds obtained, directly or indirectly, as a result of the aforesaid violations, including, but not limited to $38,916 in United States currency seized on March 2, 2020, from the residence at 2413 15th Street, Moline, Illinois, and from the

person of the defendant.” Id. at 4. Tovar pleaded guilty to all counts on May 4, 2021, but contested the forfeiture of the $38,916. Tovar submitted a sentencing memorandum wherein “he denie[d] that the funds at issue were drug proceeds but were in fact proceeds from the sale of used cars.” Sent’g Mem. 5, Mot. Summ. J. Ex. 2, ECF No. 37-2. On October 25, 2022, the Court held a sentencing hearing during which it addressed Tovar’s objection to the conversion of cash to drug weight used in calculating his sentencing guidelines range. Tovar argued that the $38,916 constituted proceeds from auto sales and therefore it was inappropriate for the Court to convert the currency into drug weight when determining Tovar’s base offense level. The Court rejected Tovar’s claim that the $38,916 was derived from “automobile transactions or any other type of legitimate source,” Sent’g Hr’g Tr. 17:21–18:3, Mot. Summ. J. Ex. 3, ECF No. 37-3, after finding that the records presented by Tovar regarding auto sales did not account for the large amount of cash found and that the transactions did not occur around the

relevant time period. It further noted that the records “indicate[d] that the defendant has bank accounts, frequents the bank to conduct transactions, and yet this cash that was found . . . in a Cracker Jack box hidden in the floorboards of a vent, which is not the typical way for legitimate funds to be stored.” Id. at 18:24–19:6. The Court concluded that the location of the drugs and drug sale paraphernalia near the currency supported the reasonable inference that the $38,916 constituted drug sales proceeds. The location of the cash proceeds in proximity to not only the marijuana but also cocaine as well as cocaine that was packaged for sale, three different baggies in sale amounts as well as with other tools of the distribution trade present in proximity to the cash, notably a scale as well as Inositol, which is known to be a cutting agent for cocaine, that based on the burden at play here in a sentencing hearing, is -- the Court can make a reasonable inference that the location of drug distribution materials and drugs to the cash supports that it was proceeds from the sale of [drugs]. Id. at 18:11–23. Though it decided that the currency was from drug sales, the Court could not conclusively determine whether the cash emanated from the sale of cocaine or from the sale of marijuana. See id. at 20:18–21 (“I’m uncomfortable, without more evidence to attribute the cash to which type of substance, that that’s really a fair assessment and way to employ the drug equivalency.”). The Court recognized that the cocaine-equivalent of the cash would “ha[ve] a much greater impact” on Tovar’s sentencing guidelines range than the marijuana-equivalent. Id. at 19:18–20:10. In total, Tovar possessed 33.57 grams of cocaine, 164.4 grams of marijuana, and $38,916 in U.S. currency. On its own, without converting the currency to drug weight, possession of 33.57 grams of cocaine and 164.4 grams of marijuana results in a base offense level of 12. The United States Sentencing Commission Guidelines Manual (“Guidelines”) allows a court to “approximate the quantity of the controlled substance” where “the amount [of drugs] seized does not reflect the scale of the offense.” U.S. Sent’g Guidelines Manual § 2D1.1 cmt. 5 (U.S. Sent’g

Comm’n 2021). At the time of sentencing, the price for one gram of cocaine was $100, meaning that $38,916 was equivalent to 389.16 grams of cocaine, resulting in a base offense level of 20. Second Revised Presentence Investigation Report (“Second Revised PSR”) ¶ 24, United States v. Tovar, No. 4:20-cr-40023-SLD (C.D. Ill. Oct. 18, 2022), ECF No. 66 (citing U.S. Sent’g Guidelines Manual § 2D1.1(c)(10)). The price for one pound of marijuana was $2,000, meaning that $38,916 was equivalent to 19.45 pounds or 8.8 kilograms of marijuana, resulting in a base offense level of 12. Id. (citing U.S. Sent’g Guidelines Manual § 2D1.1(c)(14)).

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United States v. $38,916.00 IN U.S. CURRENCY, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-3891600-in-us-currency-ilcd-2025.