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If you have issues viewing or accessing this file contact us at NCJRS.gov. Q U.S. Department of Justice Office of the Attorney General "Annual Report of the ,Department of Justice Asset Forfeiture Program o1991 oepartme°t ~ 0 g ~OfOrce~eO LO W" \ Annual Report .of the Department of Justice Asset Forfeiture Program NCJRS NOV ~.~ ~j ACQU~SI1T~O~S 156256 U.S. Department of Justice National Institute of Justice This document has been reproduced exactly as received from the person or organization originating it. Points of view or opinions stated in this document are those of the authors and do not necessarily represent the official position or policies of the National Institute of Justice. Permission to reproduce this ~ material has been grantedb¥ FUD-IC Domain/OJP/Off. of the Attorney General/US Dept. of Justice to the National Criminal Justice Reference Service (NCJRS). Further reproduction outside of the NCJRS system requires permission of the ~lf,owner. Prepared by the Executive Office for Asset Forfeiture Office of the Deputy Attorney General Fiscal Year 1991 0 0 0 0 0 0 The Annual Report of the Department of Justice Forfeiture Program 1991 is dedicated to the memory of Drug Enforcement Administration Special Agent Eugene T. McCarthy who died in service to his country in the Persian Gulf War. Special Agent McCarthy flew surveillance missions over Peru for Operation Snowcap in our nation's war against drugs. O @ @ffite of the Attorneu General ~llashington, ~1.~. ~-0530 Q ,v,~jus~ ,~ FOREWORD To the Senate and the House of Representatives of the United States of America in Congress Assembled: To tell the story of the Department of Justice Asset Forfeiture Program is to report not only its significant law enforcement impact but also the multitude of other benefits that flow to society when drug traffickers and criminals are stripped of their ill-gotten gains. The Asset Forfeiture Program is first and foremost a law enforcement program. Since Fiscal Year 1985 more than $2.4 billion in cash and property has been stripped from drug traffickers and other criminals. Most of these forfeiture proceeds have been reinvested in law enforcement. Over $830 million in forfeited cash and property has been shared with state and local law enforcement agencies Which participated in cases resulting in federal forfeitures. In Fiscal Year 1991 alone, $289 million was shared. Almost a half-billion dollars in forfeiture proceeds have been used to finance federal prison construction. Over $350 million has helped finance federal investigations and prosecutions. These successes are the result of unprece- dented law enforcement cooperation at all levels of government both domestically and abroad. Through asset forfeiture, we are able to give effect to the maxim: "crime does not pay." Forfeited property has not only been reinvested in law enforcement. The victims of financial institution fraud receive restitution from forfeited assets. The environmental hazards caused by clandestine drug laboratories have been removed. Forfeiture also benefits victims of crime as assets can be "frozen" before they can be dissipated. The Asset Forfeiture Program is a top priority of the Department of Justice and has my strong personal support. The success of the program comes from the hard work done on a day-to-day basis by dedicated investigators, prosecutors, and marshals across this nation. This year's Annual Report highlights their outstanding contributions. Respectfully submitted, William P. Barr Attorney General Table of Contents Executive Summary . .............. 1 Introduction: Fiscal Year 1991 Annual Report .5 Methodology . ............ 5 Statutory Reporting Requirement ......... ...... .................. 5 Chapter I The History Of Forfeiture ..................................... 7 Legal Standard for Seizure .................................. ...... 7 Criminal vs. Civil Forfeiture .... 7 Safeguards in the Process ........................ .. ...... .., ...... 8 Protections for Innocent Owners ............... ........ • ........... 8 Expedited Settlement Process for Mortgage Holders .... ............. 9 Forfeiture and the War Against Crime .......... ...: ................. 9 Chapter II Forfeiture Law ............. .............................................. 11 Significant Changes to Federal Forfeiture Authority ................. 11 Recent Legislative Changes to the Assets Forfeiture Fund ............ 12 Model Asset Seizure and Forfeiture Act 12 Chapter III Program Improvements . ............ 15 The Executive office for Asset Forfeiture ................................ 15 Development of the Consolidated Asset Tracking System (CATS) ........... 16 Audits and Evaluations .............. ...... , ........................... 17 Quality Assurance Standards ..................................... 18 Oversight of the Program ........................................ 19 Policy and Procedure Improvements .............................. 20 Use of Contract Employees ................................ , ..... 20 Chapter IV Asset Forfeiture Program Components ...................................... 23 Drug Enforcement Administration ........................................ 24 Headquarters Enhancements ..................................... 24 Training ........ ....... ... ...... .... i. ....................... .. 24 Field Operations ............. .............................. .... 24 DEA Seizures .................................................. 25 Field Investigations . ... .............. .......................... 25 Operation Royal Flush ............................ • ...~ .......... 26 Clandestine Lab Sources and Hazardous Waste Disposal ...... ~ ...... 26 State and Local Cooperation and Equitable Sharing .... :. ............ 26 Federal Bureau of Investigation ......................................... 27 General Information .. i .... i ............... ... ................... 27 Headquarters Activities ............ ............................. 27 Training .................................. : .................... 27 Field Operations ................................................ 28 Field Investigations ..................... ........................ 28 FIRREA Investigations .......................................... 28 Narcotics Investigations ............... : .......................... 28 Gambling and Public Corruption ............................... ... 28 Illegal Toxic Waste .................................... .... : ...... 29 i Immigration and Nationalization Service .... ............................ 29 United State~ Attorneys 30 Organized Crime Drug Enforcement Task Forces ................. .. 30 : Law Enforcement Coordinating Committees ................ ....:... 31 U.S. Marshals Service... ........................... ...... i.... ......... 32 Sales of Forfeited Property ... ; ....... ......... , ...... i ......... ,. 34 Asset Forfeiture Office Criminal Division ..~ ... .... ...... .'.:. ...... .... 35 International Forfeiture Support ........ -.. •..' ....... ....... ........ 35 Training ..................................................... .. 35 ii Office of Justice Programs ...... ........................................ 36 Police Executive Research Forum .................................. 36 Model Asset Seizure and Forfeiture Act ........................... 36 Postal Insp~ection Service ................ • ............... .. ~ ............ 37 Information Management.... ....................... ............. 37 Training .................... ~................................... 37 Significant Cases ................... ............................ 37 Cooperation with Other Departments . ... .......... ..... ........ ~. 38 Internal Revenue Service .... .. '. ............... ~i ........ ....... .... .. 39 Headquarters Field Operations. ........................ .......... 39 Seizures ...................... • ................................ 39 Training .. ............. • ....................................... 39 Significant Investigations .................... ..................... 39 The Bureau of Alcohol, Tobacco And Firearms ........................... 40 Implementing the Program.. ..................................... 40 U. S. Park Police ..................................................... .41 Chapter V International Cooperation ................................................. 43 Treaties and Agreements ... ...... • ..... ............... - ~. • - ..... 43 Approaches to International Forfeiture .'.. ..... ........ ....... .... 44 International Asset Sharing ...................................... 46 Personnel and Training ........................................ ,. 46 Future of the Program ........................................... 47 Chapter VI , Equitable Sharing .................... ........................... "...... ... 49 Report on the Equitable Sharing Program .......................... 50 Real Property Transfers ................... .... ................... 51 • .... I'U Chapter VII The Assets Forfeiture Fund ....................... ......................... 53 Special Forfeiture Fund ......................................... 57 Q Appendices Appendix A ............................ .59 Department of Justice Assets Forfeiture Fund Statement of Income and Expenses Fiscal Year 1991 (October 1, 1990 through September 30, 1991) Financial Statement Fiscal Year 1991 Appendix B "'''''''''''"-"-....-....-.................................63 Properties on Hand as of September 30, 1991 with Net Equity at or Above $1,000,000.00 U.S. Marshals Service Appendix C ...... ..........
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