United States v. Bowman

341 F.3d 1228, 2003 U.S. App. LEXIS 16629, 2003 WL 21919915
CourtCourt of Appeals for the Eleventh Circuit
DecidedAugust 13, 2003
Docket02-13050
StatusPublished
Cited by17 cases

This text of 341 F.3d 1228 (United States v. Bowman) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh 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. Bowman, 341 F.3d 1228, 2003 U.S. App. LEXIS 16629, 2003 WL 21919915 (11th Cir. 2003).

Opinions

COX, Circuit Judge:

INTRODUCTION

The Platinum Club is an adult entertainment establishment that occupies real property owned by Harvey J. and Bobbie J. Bowman. The Club is allegedly used as a front for prostitution and money laundering. After the Government filed and served an in rem civil action seeking forfeiture of the property, the Bowmans allegedly continued to operate the Club for illegal purposes. The district court granted an ex parte application for a warrant to seize the Club prior to trial. Following the seizure, the Bowmans received a post-seizure adversarial hearing, in accordance with 18 U.S.C. § 985(e), at which they contested the basis for the ex parte seizure. Following the hearing, the district court entered an order upholding the seizure. The Bowmans appeal, challenging this interlocutory order. We dismiss the appeal because we conclude that we lack jurisdiction to consider it.

PROCEDURAL HISTORY

The Bowmans have owned and operated the Platinum Club in Anniston, Alabama [1230]*1230since approximately 1993. For several years, the IRS, FBI and the Calhoun County Sheriffs Office received reports from private citizens and other law enforcement agencies that the Bowmans employed exotic dancers who also engaged in various sexual activities with the Club’s patrons for money. These activities allegedly took place both on and off the Club’s premises.

In May 2001, following an undercover investigation by local law enforcement agencies, the Sheriffs office executed a search warrant upon the Platinum Club, seizing cash and business records. Shortly thereafter, the United States Government filed a civil forfeiture action against the Club. The Government’s complaint alleged that the Bowmans, together with their employees and other individuals, used the Club for promotion of prostitution and money laundering in violation of state and federal laws, subjecting the property to forfeiture under 18 U.S.C. § 981(a)(1)(A).

The Government served a copy of the complaint and notice of the forfeiture action on the Bowmans; the Government also posted a “Notice of Complaint for Forfeiture against Real Property” at the Club. Additionally, the Government filed a lis pendens against the real property. The Bowmans responded to the complaint, but no other action was taken at that time and the Club remained open for business. The investigation into the illegal activities at the Club continued after the civil forfeiture action was filed, allegedly revealing that the prostitution and money laundering had not ceased. Hence, in January 2002, the Government made an ex parte application to the district court under 18 U.S.C. § 985(d)(1)(A)1 to seize the real property pretrial due to the its continued illegal use. In support of its seizure application, the Government offered only the affidavit of FBI Special Agent Joseph Perkins. Special Agent Perkins indicated that a cooperating witness, who was an entertainer at the Club (both before and after the search and seizure by state officials), confirmed the price list for prostitution services performed by employees of the club. According to Special Agent Perkins, the cooperating witness stated that prostitution at the Club continued as usual after the club was searched by state authorities. Special Agent Perkins also located a customer of the Club who admitted that he exchanged sex with an employee of the Club for money after the civil forfeiture action was filed.

In its ex parte warrant application, the Government asserted that the continued unlawful use of the Platinum Club constituted an exigency that justified the issuance of a seizure warrant under § 985(d)(l)(B)(ii) without providing the Bowmans prior notice and an opportunity to be heard. (R.39 at ¶ 3.) To comply with the mandate of § 985(d)(2),2 which [1231]*1231requires the Government to establish that means less restrictive than seizure would not suffice to protect the Government’s interest in the continued unlawful use of the property, the Government stated that it had previously filed a lis pendens and that “less restrictive measures, such as a bond or restraining order, would be inadequate in this case to protect the Government’s interests of preventing the continued unlawful use of the defendant real property.” (R.39 at ¶ 4.)

The district court granted the Government’s request for an ex parte seizure warrant.3 In the warrant that issued, the district court found that the Government had established “probable cause for forfeiture of the defendant properties to the United States of America, pursuant to 18 U.S.C. § 981(a)(1)(A), that exigent circumstances presently exist that justify the immediate seizure of said properties without pre-seizure notice or hearing, and that less restrictive means are insufficient to protect the Government’s interests therein[.]” (R.43 at 2.) Thereafter, federal marshals seized the Club and shut down its business operations. The Club remains closed for business.

In May 2002, the district court conducted a post-seizure adversarial hearing, pursuant to 18 U.S.C. § 985(e),4 to provide the Bowmans an opportunity to contest the basis for the ex parte seizure. The Bowmans argued for the return of the Platinum Club, contending that the Government had failed to establish by a preponderance of the evidence (using admissible, non-hearsay evidence) that less restrictive means would not suffice to protect the Government’s interest in preventing the Club’s involvement in criminal activity.

In a memorandum of law submitted to the district court as part of the post-seizure hearing, the Government noted that a lis pendens was filed against the property; then, the Government simply declared that “neither the lis pendens, nor a restraining order, nor a bond would have effectively prevented the Bowmans from their deliberate continued use of the Platinum Club for illegal purposes.” (R.59 at 5.) The Government also summarized the affidavit of Special Agent Perkins, which had been submitted with the ex parte application for the warrant, the contents of which showed that the Platinum Club continued to front illegal activities despite a pending forfeiture action.

The district court concluded that when reviewing the grant of an ex parte warrant at a post-seizure hearing, the statute requires only that the Government establish probable cause to believe that the real property is subject to forfeiture in order to sustain the seizure. The district court concluded that hearsay evidence can suffice to meet this burden of proof. Ultimately, the court concluded that exigent circumstances justified the ex parte seizure. Furthermore, the court determined [1232]*1232that even assuming arguendo that there were no exigent circumstances, the Bow-mans were not entitled to the return of their real property because the Government had established probable cause to believe the property was subject to forfeiture.

The Bowmans timely appeal the district court’s decision.

ISSUE ON APPEAL

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Bluebook (online)
341 F.3d 1228, 2003 U.S. App. LEXIS 16629, 2003 WL 21919915, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-bowman-ca11-2003.