The FBI took $86 million from safe deposit boxes. An appeals court
will decide if that's constitutional
Civil rights attorneys argue FBI defied warrant by searching people's
safe deposit boxes
By Hannah Ray Lambert Fox News
Published December 7, 2023 5:32pm EST
The FBI took her life savings. Now she is fighting to help others get
theirs back
Linda Martin and hundreds of others had their life savings seized by
the FBI in a raid on a California safe deposit company. Two years,
later she's seeking justice.
FBI agents cataloged Cartier bracelets, Rolex watches and stacks of
cash as they combed through safe deposit boxes seized from a Beverly
Hills business accused of money laundering. But the owners of many of
those boxes were not accused of any crimes.
After hearing arguments from both sides Thursday, a panel of judges
from the 9th Circuit Court of Appeals will decide whether the sweeping
raid violated customers' Fourth Amendment rights.
"I think the public sees this and recognizes that this is just a total
abuse of people's constitutional rights," Institute for Justice senior
attorney Rob Johnson told Fox News, adding that he felt "extremely
optimistic" about the panel's forthcoming decision.
Paul and Jennifer Snitko rented a safe deposit box from U.S. Private
Vaults to store records and personal belongings. (Courtesy Institute
for Justice)
‘LEGAL THEFT': TEXAS CLASS ACTION LAWSUIT AIMS TO MAKE IT HARDER FOR
POLICE, PROSECUTORS TO SEIZE CASH
On March 22, 2021, the FBI seized around 1,400 safe deposit boxes from
U.S. Private Vaults, a Beverly Hills–based company that, according
to court documents, was regularly used by "unsavory characters to
store criminal proceeds."
Agents took about $86 million in cash from the boxes, as well as a
trove of jewelry, gold bars and coins, silver and other valuables. In
May of that year, the FBI "commenced administrative forfeiture
proceedings" against an unspecified number of the boxes, according to
court documents.
Civil asset forfeiture is the process through which the government
seizes money or other property believed to be linked to a crime
without ever charging the owner.
Federal agents seized around 1,400 safe deposit boxes from U.S.
Private Vaults in Beverly Hills, California. (Irfan Khan/Los Angeles
Times via Getty Images)
MOMS SUE STATE OVER 'CREEPY' BABY BLOOD DATABASE, PRIVACY CONCERNS
U.S. Private Vaults eventually pleaded guilty to money laundering, but
as of October 2022, the U.S. Attorney’s Office said it had not filed
any other criminal charges. A spokesperson on Thursday declined to
comment on the case and could not immediately answer whether
additional criminal charges were ever filed.Â
Several of the safe deposit box renters who haven't been charged filed
a class action lawsuit accusing the government of violating their
Fourth Amendment protection from unreasonable search and seizure and
their Fifth Amendment protection from having private property taken
without compensation.Â
On Thursday, attorneys from the Institute for Justice argued that the
FBI "broke open hundreds of safe deposit boxes, and then it tried to
civilly forfeit everything in those boxes worth over $5,000" after the
raid without any probable cause.
"The search … had an objective function to uncover evidence of
crimes," Johnson argued.
Video
IJ wants the appeals court to definitively state that the FBI violated
individuals' rights and to force the federal government to destroy
copies it made of customers' private documents — including medical
records, wills and trusts while agents searched the boxes.
The appeal comes after a lower court last year sided with the FBI.
Unsealed court documents showed the FBI and U.S. Attorney's Office
never told the judge in their warrant request that they planned to
confiscate the contents of every box containing at least $5,000 in
cash or belongings.
The warrant only authorized agents to seize business computers, money
counters and surveillance equipment. The judge also allowed them to
seize safety deposit boxes and keys, but specifically wrote that
agents should only "inspect the contents of the boxes in an effort to
identify their owners … so that they can claim their property," and
that the warrant "does not authorize a criminal search or seizure of
the contents of the safety deposit boxes."
But while attorneys for the plaintiffs showed the government "had a
dual motive in inventorying the contents of each deposit box," agents
did not exceed the bounds of the warrant, federal Judge R. Gary
Klausner ruled.
Any reasonable judge would have "inferred that the inventory could
lead to the potential discovery of criminal proceeds in certain boxes,
which would then lead to forfeiture," Klausner wrote.
Video
FBI SUED AFTER ALLEGEDLY LOSING HUNDREDS OF THOUSANDS IN RARE COINS DURING RAID
During Thursday's court appearance, Victor Rodgers argued on behalf of
the government that the FBI went above and beyond to reunite customers
with their property by posting a notice on the window of USPV.
"All they had to do was contact the FBI," Rodgers said.
(Peter Taradash says Most people do not go to look at the window of their safe deposit outfit
to check to see if their box has been opened or the contents stolen.
They expect it to be safe as long as they
have paid the current rent on the box-
The same thing happened in London a few years back. The cops were after one guy who was into money laundering, but they sawed open & confiscated the contents of 1000s of (ALL) customers of the same bank in the exclusive Mayfair district. I guess safe deposit boxes especially those in private "safe storage" & even in banks are not the best place to leave valuables any more. Some California banks have been confiscating box contents for years (without any notice or warnings!) if they are "not visited" for over 2 years ---even if they are being paid for regularly... They are considered "abandoned" ...The contents like jewelry & coin collections usually mysteriously disappear.
Subject: safe deposit box raid
By Peter Taradash <[email protected]>
Judges grilled the government's attorney on whether the FBI ignored
the warrant's limitations, why agents even needed to open the seized
boxes and why drug-sniffing dogs were present during the seizure, a
move IJ alleged was taken solely for the purpose of uncovering
evidence of crimes.
"It was really nice to hear the judges ask questions that seemed to
put the counsel for the FBI on the back foot," said Jeni Pearsons, a
nonprofit director who rented a box at USPV. "That they were being
truly questioned about the morality of what happened … it was a good
feeling to be there in court today."
The panel is expected to issue a decision in a few months.
Jeni Pearsons and her husband rented a box at USPV. More than two
years after it was seized during the FBI's raid, Pearson said they've
gotten "the majority" of their belongings back, but that about $2,000
in cash is still unaccounted for. (Courtesy Institute for Justice)
CANCER SURVIVOR DEALT NEW BLOW AFTER TEXAS POLICE DESTROYED HER HOUSE,
BUT LAWYERS SAY CITY STILL HAS TO PAY
The FBI declined to comment on pending litigation. The agency calls
forfeiture an important tool for "disrupting and dismantling criminal
and terrorist organizations and punishing criminals" as well as
"compensating victims and protecting communities."
Forfeiture generated more than $45.7 billion in revenue for the
federal government alone between 2000 and 2019, according to IJ.Â
will decide if that's constitutional
Civil rights attorneys argue FBI defied warrant by searching people's
safe deposit boxes
By Hannah Ray Lambert Fox News
Published December 7, 2023 5:32pm EST
The FBI took her life savings. Now she is fighting to help others get
theirs back
Linda Martin and hundreds of others had their life savings seized by
the FBI in a raid on a California safe deposit company. Two years,
later she's seeking justice.
FBI agents cataloged Cartier bracelets, Rolex watches and stacks of
cash as they combed through safe deposit boxes seized from a Beverly
Hills business accused of money laundering. But the owners of many of
those boxes were not accused of any crimes.
After hearing arguments from both sides Thursday, a panel of judges
from the 9th Circuit Court of Appeals will decide whether the sweeping
raid violated customers' Fourth Amendment rights.
"I think the public sees this and recognizes that this is just a total
abuse of people's constitutional rights," Institute for Justice senior
attorney Rob Johnson told Fox News, adding that he felt "extremely
optimistic" about the panel's forthcoming decision.
Paul and Jennifer Snitko rented a safe deposit box from U.S. Private
Vaults to store records and personal belongings. (Courtesy Institute
for Justice)
‘LEGAL THEFT': TEXAS CLASS ACTION LAWSUIT AIMS TO MAKE IT HARDER FOR
POLICE, PROSECUTORS TO SEIZE CASH
On March 22, 2021, the FBI seized around 1,400 safe deposit boxes from
U.S. Private Vaults, a Beverly Hills–based company that, according
to court documents, was regularly used by "unsavory characters to
store criminal proceeds."
Agents took about $86 million in cash from the boxes, as well as a
trove of jewelry, gold bars and coins, silver and other valuables. In
May of that year, the FBI "commenced administrative forfeiture
proceedings" against an unspecified number of the boxes, according to
court documents.
Civil asset forfeiture is the process through which the government
seizes money or other property believed to be linked to a crime
without ever charging the owner.
Federal agents seized around 1,400 safe deposit boxes from U.S.
Private Vaults in Beverly Hills, California. (Irfan Khan/Los Angeles
Times via Getty Images)
MOMS SUE STATE OVER 'CREEPY' BABY BLOOD DATABASE, PRIVACY CONCERNS
U.S. Private Vaults eventually pleaded guilty to money laundering, but
as of October 2022, the U.S. Attorney’s Office said it had not filed
any other criminal charges. A spokesperson on Thursday declined to
comment on the case and could not immediately answer whether
additional criminal charges were ever filed.Â
Several of the safe deposit box renters who haven't been charged filed
a class action lawsuit accusing the government of violating their
Fourth Amendment protection from unreasonable search and seizure and
their Fifth Amendment protection from having private property taken
without compensation.Â
On Thursday, attorneys from the Institute for Justice argued that the
FBI "broke open hundreds of safe deposit boxes, and then it tried to
civilly forfeit everything in those boxes worth over $5,000" after the
raid without any probable cause.
"The search … had an objective function to uncover evidence of
crimes," Johnson argued.
Video
IJ wants the appeals court to definitively state that the FBI violated
individuals' rights and to force the federal government to destroy
copies it made of customers' private documents — including medical
records, wills and trusts while agents searched the boxes.
The appeal comes after a lower court last year sided with the FBI.
Unsealed court documents showed the FBI and U.S. Attorney's Office
never told the judge in their warrant request that they planned to
confiscate the contents of every box containing at least $5,000 in
cash or belongings.
The warrant only authorized agents to seize business computers, money
counters and surveillance equipment. The judge also allowed them to
seize safety deposit boxes and keys, but specifically wrote that
agents should only "inspect the contents of the boxes in an effort to
identify their owners … so that they can claim their property," and
that the warrant "does not authorize a criminal search or seizure of
the contents of the safety deposit boxes."
But while attorneys for the plaintiffs showed the government "had a
dual motive in inventorying the contents of each deposit box," agents
did not exceed the bounds of the warrant, federal Judge R. Gary
Klausner ruled.
Any reasonable judge would have "inferred that the inventory could
lead to the potential discovery of criminal proceeds in certain boxes,
which would then lead to forfeiture," Klausner wrote.
Video
FBI SUED AFTER ALLEGEDLY LOSING HUNDREDS OF THOUSANDS IN RARE COINS DURING RAID
During Thursday's court appearance, Victor Rodgers argued on behalf of
the government that the FBI went above and beyond to reunite customers
with their property by posting a notice on the window of USPV.
"All they had to do was contact the FBI," Rodgers said.
(Peter Taradash says Most people do not go to look at the window of their safe deposit outfit
to check to see if their box has been opened or the contents stolen.
They expect it to be safe as long as they
have paid the current rent on the box-
The same thing happened in London a few years back. The cops were after one guy who was into money laundering, but they sawed open & confiscated the contents of 1000s of (ALL) customers of the same bank in the exclusive Mayfair district. I guess safe deposit boxes especially those in private "safe storage" & even in banks are not the best place to leave valuables any more. Some California banks have been confiscating box contents for years (without any notice or warnings!) if they are "not visited" for over 2 years ---even if they are being paid for regularly... They are considered "abandoned" ...The contents like jewelry & coin collections usually mysteriously disappear.
Subject: safe deposit box raid
By Peter Taradash <[email protected]>
Judges grilled the government's attorney on whether the FBI ignored
the warrant's limitations, why agents even needed to open the seized
boxes and why drug-sniffing dogs were present during the seizure, a
move IJ alleged was taken solely for the purpose of uncovering
evidence of crimes.
"It was really nice to hear the judges ask questions that seemed to
put the counsel for the FBI on the back foot," said Jeni Pearsons, a
nonprofit director who rented a box at USPV. "That they were being
truly questioned about the morality of what happened … it was a good
feeling to be there in court today."
The panel is expected to issue a decision in a few months.
Jeni Pearsons and her husband rented a box at USPV. More than two
years after it was seized during the FBI's raid, Pearson said they've
gotten "the majority" of their belongings back, but that about $2,000
in cash is still unaccounted for. (Courtesy Institute for Justice)
CANCER SURVIVOR DEALT NEW BLOW AFTER TEXAS POLICE DESTROYED HER HOUSE,
BUT LAWYERS SAY CITY STILL HAS TO PAY
The FBI declined to comment on pending litigation. The agency calls
forfeiture an important tool for "disrupting and dismantling criminal
and terrorist organizations and punishing criminals" as well as
"compensating victims and protecting communities."
Forfeiture generated more than $45.7 billion in revenue for the
federal government alone between 2000 and 2019, according to IJ.Â
