Asset forfeiture laws were originally passed with the intention to facilitate dismantling criminal activity and groups by empowering law enforcement to seize assets linked to illegal activity. But as good as this may sound, the unfortunate reality is that many business owners have unjustly suffered as a result of these laws being abused. Many legitimate businesses that have absolutely no relationship with any involvement with illegal activity face the constant threat of having property and resources they rely on abruptly taken from them.

In this article, asset forfeiture defense lawyer Jacek Lentz of Asset Forfeiture Attorney in Los Angeles, CA, will discuss the risks businesses face from asset forfeiture, the impact that seizures have on businesses, and strategies you can use as a business owner to protect yourself against wrongful forfeiture claims.

Overviewing Asset Forfeiture 

Asset forfeiture is a legal process wherein law enforcement can seize assets. These assets can range to include things like cash, property, or other valuable items.

There are two types of asset forfeiture: criminal and civil. Criminal forfeiture is generally part of a larger prosecution. In it, the asset(s) in question are seized after the owner has been convicted of a crime. On the other hand, a criminal conviction is not a requirement for civil forfeiture to occur.

In essence, all law enforcement needs to justify seizing an asset in civil forfeiture is suspicion that the asset in question was used in or connected to criminal activity. The legal threshold for these cases is not the robust beyond a reasonable doubt, as is commonly known for being the legal standard for criminal convictions, but rather only probable cause. This threshold is significantly less rigorous.

As you might be thinking, this dynamic is ripe for abuse, and property owners oftentimes find themselves in precarious situations as a result. This is especially true of businesses with cash flows that are high in volume and that have high-value assets.

How Asset Forfeiture Targets Businesses 

The many law enforcement agencies that can exercise asset seizure, including, but not limited to the Federal Bureau of Investigation, Drug Enforcement Administration, Immigration and Customs Enforcement, Internal Revenue Service Criminal Investigation, and U.S. Marshals Service, as well as state and local police departments, can put any business in their civil asset forfeiture crosshairs.

Merely suspecting a business of being a front for a money laundering or drug trafficking operation, for example, can be all it takes for law enforcement to take action and the business in question to suffer. Businesses that regularly deal with cash, such as restaurants, retail stores, or transportation companies, are more likely to be flagged than other types of businesses.

Impacts On Business Owners 

The impact a seizure can have on a business is one of sheer devastation. When assets are seized, they are typically held for quite some time while the legal process unfolds. This easily goes on for months, if not years. To reiterate, all this can occur even if there isn’t necessarily a criminal conviction of anyone associated with the business or assets in question.

With the ability to pay employees, purchase necessary supplies, and maintain operations potentially in jeopardy, depending on the specific financial situation of the business in question, it might quickly find itself struggling to stay afloat. This can, in turn, cause a downward spiral that the business isn’t ever able to grip its way out of. All the while, business owners oftentimes find themselves with little to absolutely no recourse to reverse the course of their one thriving business as it changes course and moves toward ruin.

The damage doesn’t stop here, though. In addition to these practical challenges that asset forfeiture presents to businesses that have assets seized are immaterial impacts, such as damage to the business’s reputation. Given how asset forfeiture is a public ordeal, there’s a good chance most businesses caught in the middle of an asset forfeiture case will have their reputation dragged through the mud, even if the business owner is completely innocent of any wrongdoing. This can easily lead to a loss in business as clients and partnerships dry up.

On top of all this, the cost of these cases certainly weighs down on businesses. Legal fees, court costs, and the immeasurable cost of the time you’ll have to spend on everything will add a significant strain on any business, no matter how financially healthy it may be. The burden of proof will rest on you as the business owner, not the government, too, making your need to develop a strong case incredibly important.

If you’re a business owner and are concerned about these risks, understanding the mechanisms of asset forfeiture and taking proactive measures to protect your business is key to mitigating them. Consulting with an asset forfeiture litigation attorney is a great way to get insight relevant to your particular case that may be more relevant than general, albeit still useful, information you can find online.

Strategies For Navigating Asset Forfeiture Defense – 

Fortunately, there are things you can do to defend yourself and your business in your asset forfeiture case. Here are some key strategies to consider:

Innocent Owner Defense 

As a business owner, you can fall on the innocent owner defense as your defense. This means that if you had no knowledge of any wrongdoing that your property was used in, you can argue that you should not be deemed liable for potentially the conduct of someone else, be it an employee or third party.

Challenging Probable Cause 

In asset forfeiture, law enforcement must establish some sort of probable cause. If you’re able to erode the basis for the probable cause asserted in your case, you can turn the tables. An experienced lawyer can be vital for successfully doing this.

Compiling Thorough Evidence 

Maintaining detailed records of all transactions, contracts, and sources of income your business is involved with is an irrefutable defense you can use to undermine the government’s claims against you. These records can demonstrate that your assets are legitimate and not tied to the illegal conduct in question.

Asset forfeiture poses a grave threat to business owners with serious damage to suffer. If you are a business owner and face an asset forfeiture action, reach out to a qualified attorney who thoroughly understands these cases. They will help increase the likelihood of recovering your assets and preserving your business.