United States v. 6600 North Mesa

903 F.2d 312
CourtCourt of Appeals for the Fifth Circuit
DecidedMay 29, 1990
DocketNos. 90-8151, 90-8152
StatusPublished
Cited by1 cases

This text of 903 F.2d 312 (United States v. 6600 North Mesa) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth 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. 6600 North Mesa, 903 F.2d 312 (5th Cir. 1990).

Opinion

E. GRADY JOLLY, Circuit Judge:

The petitioners for mandamus, various individuals and a corporation, are claimants of certain real property in El Paso, Texas that is the subject of two civil forfeiture actions. They request that we lift a comprehensive and potentially lengthy stay of all proceedings in the cases. The seized properties are the residences of some of the petitioners and a shopping center. None of the claimants is under indictment, nor is any of them alleged to have engaged in illegal activities; yet they have been effectively dispossessed of their homes and denied the use of their business without a hearing. Their property has been seized on the grounds that an individual, to whom some of them are related, enabled them to purchase the properties through his extensive narcotics trafficking. Yet he has not been indicted either. The government contends, however, that a stay in these two cases is necessary pending the outcome of a drug conspiracy case in California, in which, we reiterate, neither the claimants nor the alleged drug trafficker is named. Because we are convinced that the government has not satisfied the statutory requirements for this all inclusive stay, we grant in part the claimants’ petitions and direct the district court to reconsider the stay and to consider claimants’ pending motion to dismiss the forfeiture complaint against the residences.

I

Although the facts underlying both actions are similar, the cases arrive in different procedural postures. Because there is no evidentiary record or findings of fact, our analysis depends entirely upon the pleadings, so we review the procedural history of both cases in some detail.

A

On October 16, 1989 the United States filed a verified complaint in the Western District of Texas, seeking the forfeiture of two adjacent parcels of real property in El Paso (the “residences case”). A “verified complaint” commences an in rent action under the Supplemental Rules for Certain Admiralty and Maritime Claims. See Rule C(2). Although these were civil actions, the forfeiture statute under which they were brought required that they proceed under the Supplemental Rules, rather than the Federal Rules of Civil Procedure. See 21 U.S.C. § 881(b) (West 1990). The complaint alleged that the properties, two residences, outbuildings and surrounding land, constituted proceeds traceable to sales of illegal drugs, and thus were forfeitable under 21 U.S.C. § 881(a)(6).1 One parcel of land, 1070 Gardner Road, consisted of eight lots, including one house with outbuildings. The warranty deed, attached to the complaint, identifies four owners of the lots: Luis Delgado Avalos and Beatriz Varela Delgado (four lots), whose address is given in Juarez, Mexico; Rafael Munoz Telles (three lots), whose address is given in El Paso; and Ivonne Delgado de Munoz (one lot), whose address is also in El Paso. The other parcel, a house at 6636 Gato Road, is owned by Rafael Munoz Telles. The two properties are alleged to be worth over [315]*315$500,000; neither has any liens or mortgages recorded against them.

The complaint averred that agents of the Drug Enforcement Administration believed that the properties were purchased with proceeds from drug transactions because a relative of the property owners is allegedly a major drug trafficker. The complaint described the arrest and indictment in California of a James McTague, on charges of conspiracy to import nineteen tons of cocaine that was found in a warehouse in Sylmar, California. It recounted that, when arrested, McTague gave statements implicating himself and others in the conspiracy. Among those implicated was one Rafael Munoz Talavera who, according to a DEA agent, is “of record” with the DEA, and who, according to McTague, was “in charge of all transportation” of the cocaine.

Rafael Munoz Talavera is the husband of Ivonne Delgado de Munoz and the son of Rafael Munoz Telles. The complaint states:

James McTague also told DEA Special Agent Jim Capra that Rafael Munoz had been the person in charge of the transportation from Mexico of all the cocaine (which he related included a total of about 60 tons during the past year), that had gone through the warehouse in Syl-mar, California. McTague also told Special Agent Capra that the money for the cocaine had traveled back the same route through Rafael Munoz to Munoz’ Colombian connection. During approximately a year period, Rafael Munoz Telles (the father of Rafael Munoz), bought the Respondent property as follows: Lot 2 on November 2, 1987 for $64,520.00, Lots 3, 4, 6 and 7 on November 25, 1987 for $179,550.00, Lot 9 on April 12, 1988 for $35,000.00, Lot 8 on May 5, 1988 for $35,000.00, Lot 1 on August 24, 1988 for $100,000.00 and Lots 8B on August 29, 1988 for $120,195.19. He paid Lawyers Title of El Paso with a cashier’s check for each purchase. The lots were placed in various names (nominees), but the lots are all included in the same compound area as the house on Lot 2, which is where Rafael Munoz, Ivonne Delgado De Munoz (his wife), and his children live.

Attached to the complaint was a declaration by Darrell Spain, a DEA Special Agent, which stated: “I have read the contents of the foregoing complaint for forfeiture, and the statements contained therein are true to the best of my knowledge and belief.”2 The only other evidence were the deeds for the subject property.

Simultaneously with the filing of the complaint, the government moved for permission to have the U.S. Marshal seize the property. The next day the court granted the government’s motion ex parte, and the following day issued a warrant for the property’s arrest.3

A month later, on November 16, the government filed another verified complaint alleging the same relationship between Rafael Munoz Talavera and the California cocaine conspiracy, but in this case the defendant was an El Paso shopping center, owned by a corporation which the government alleged was used to disguise proceeds from drug transactions. The shopping center is worth approximately $4 million, and has a lien against it for a note held by an insurance company for approximately $3.2 million. This complaint states:

The Respondent [property] was purchased from proceeds from the distribution of illegal drugs in violation of 21 U.S.C. § 841. Rafael Munoz knew that the transaction was designed in whole or in part to conceal or disguise the nature, the location, the source, the ownership, or the control of the proceeds of specified unlawful activity described above, for the following reasons:
[316]

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Bluebook (online)
903 F.2d 312, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-6600-north-mesa-ca5-1990.