STATE OF MINNESOTA Office of the State Auditor Rebecca Otto State Auditor Criminal Forfeitures in Minnesota For the Year Ended December 31, 2015 Description of the Office of the State Auditor The mission of the Office of the State Auditor is to oversee local government finances for Minnesota taxpayers by helping to ensure financial integrity and accountability in local governmental financial activities. Through financial, compliance, and special audits, the State Auditor oversees and ensures that local government funds are used for the purposes intended by law and that local governments hold themselves to the highest standards of financial accountability. The State Auditor performs approximately 150 financial and compliance audits per year and has oversight responsibilities for over 3,300 local units of government throughout the state. The office currently maintains five divisions: Audit Practice - conducts financial and legal compliance audits of local governments; Government Information - collects and analyzes financial information for cities, towns, counties, and special districts; Legal/Special Investigations - provides legal analysis and counsel to the Office and responds to outside inquiries about Minnesota local government law; as well as investigates allegations of misfeasance, malfeasance, and nonfeasance in local government; Pension - monitors investment, financial, and actuarial reporting for approximately 700 public pension funds; and Tax Increment Financing - promotes compliance and accountability in local governments’ use of tax increment financing through financial and compliance audits. The State Auditor serves on the State Executive Council, State Board of Investment, Land Exchange Board, Public Employees Retirement Association Board, Minnesota Housing Finance Agency, and the Rural Finance Authority Board. Office of the State Auditor 525 Park Street, Suite 500 Saint Paul, Minnesota 55103 (651) 296-2551 [email protected] www.auditor.state.mn.us This document can be made available in alternative formats upon request. Call 651-296-2551 [voice] or 1-800-627-3529 [relay service] for assistance; or visit the Office of the State Auditor’s web site: www.auditor.state.mn.us. Criminal Forfeitures in Minnesota For the Year Ended December 31, 2015 July 21, 2016 Government Information Division Office of the State Auditor State of Minnesota Deputy State Auditor Greg Hierlinger Staff Kathy Docter, Director of Government Information Division John Jernberg, Research Analysis Specialist Christy John, Research Analyst Mark Albarado, Accounting Officer Tiffany O’Neil, Accounting Officer Erin Schutta, Accounting Officer Karla Binuya, Accounting Technician Jackson Krohn (Intern) This page left blank intentionally TABLE OF CONTENTS Executive Summary .......................................................................................................................1 Scope and Methodology .................................................................................................................3 Background ....................................................................................................................................5 2015 Forfeiture Activity ................................................................................................................8 Range in Net Proceeds Level .............................................................................................8 Criminal Forfeiture Activity by Law Enforcement Agency ..........................................9 Type of Property ................................................................................................................9 Table 1: Type of Forfeited Property - 2014 and 2015 ..................................................10 Type of Crime ...................................................................................................................11 Controlled Substance and DUI-Related Forfeitures ....................................................11 Forfeited Property Destroyed, Retained, or Forwarded to Other Agency .................13 Final Disposition of Property ..........................................................................................13 Property or Proceeds Shared With Other Agency .......................................................14 Agencies Reporting No Forfeitures in 2015 ...................................................................14 Data Tables Table 2 - Property Seized Subject to Forfeiture - Final Disposition - 2015 - Sorted by Agency and Net Proceeds ...........................................................................................................16 Table 3 - Summary of Forfeiture Activity by Agency - 2015 - Sorted by Agency ...............225 Appendices Appendix 1 - Law Enforcement Agencies Reporting No Forfeitures in 2015 ......................233 Appendix 2 - 2015 Drug and Violent Crime Enforcement Teams ........................................237 This page left blank intentionally Executive Summary In 2015, 320 Minnesota law enforcement agencies (one less than 2014) reported a total of 6,722 completed forfeitures.1 This compares to 6,874 completed forfeitures in 2014 (pg. 8). Of the 6,722 completed forfeitures reported, 4,297 involved seized cash, property that was sold, or an agreement that required monetary compensation to the agency.2 The total value of net proceeds from these forfeitures was $6,885,052 (pg. 8). In 2015, gross sales of forfeited property or seized cash totaled $9,092,458; administrative expenses and lien holder’s obligations totaled $2,636,619;3 and net proceeds totaled $6,885,0524 (pg. 8). The agencies with 100 or more completed forfeitures in 2015 were: the Minnesota State Patrol (1,044); the Minneapolis Police Department (259); the Southeast Minnesota Drug Task Force (236); the Dakota County Drug Task Force (216); the Saint Paul Police Department (186); the Bloomington Police Department (164); the Rochester Police Department (156); and the Hennepin County Violent Offenders Task Force (119) (pg. 9). In 2015, vehicles accounted for 59 percent of property seized, followed by cash at 27 percent, firearms at 12 percent, and other property at 1 percent5 (pg. 9). The most common criminal activities leading to seizure, forfeiture, and final disposition of property in 2015 were controlled substance and DUI-related, accounting for 92 percent of the forfeitures. Forfeitures involving a controlled substance accounted for 3,199, or 48 percent, of reported forfeitures, while DUI-related forfeitures accounted for 3,013, or 45 percent, of reported forfeitures. The remaining forfeitures involved fleeing (197), weapons (105), “other” crimes (72), prostitution (49), robbery/theft (30), burglary (29), and assault (28) (pg. 11). For 2015, 151 agencies (one less than 2014) reported that they did not process any property under the criminal forfeiture statutes (pg. 14). 1The term “completed forfeitures” used in this report means a final action has been taken on the property, such as being sold, destroyed, forwarded to another agency, returned to owner, or other types of dispositions. 2The remaining 2,425 completed forfeitures involved property returned, property destroyed, and other types of dispositions that did not result in proceeds. 3These costs represent the payment of seizure, storage, forfeiture, and sale expenses; satisfaction of valid liens against the property; and then to court-ordered restitution (Minn. Stat. § 609.5315, subd. 4). 4Net proceeds do not equal the gross proceeds minus administrative expenses/lienholder obligations because when expenses exceed the gross proceeds, the net proceeds available for distribution are shown as zero. 5Vehicles include ATVs, boats, motorcycles, and snowmobiles. Due to rounding, the sum of the percentages is less than 100 percent. 1 This page left blank intentionally Scope and Methodology Under Minnesota law, property associated with designated criminal offenses may be forfeited. Minn. Stat. § 609.5315, subd. 6, directs law enforcement agencies to report to the Office of the State Auditor property seized subject to forfeiture after final disposition. In 2010, the Legislature revised a number of statutes that authorize the seizure and forfeiture of property. The statutory changes, among other things, expanded the scope of information that must be reported to the Office of the State Auditor. Additionally, the reporting requirements are now linked to a broader range of forfeitures, including those involving driving under the influence (DUI), game and fish violations, off-road vehicle violations, gambling, and racketeering. The forfeitures presented in this report only reflect property forfeited under state statutes. Property forfeited under federal statutes is reported to the U.S. Department of Justice (DOJ) and can be found on the DOJ website at http://www.justice.gov/afp. Information reported to the Office of the State Auditor includes the amount forfeited, the statutory authority for the forfeiture, the disposition date, a brief description of the circumstances involved, whether the forfeiture was contested, and the final disposition of the property. For controlled substance and driving while impaired forfeitures, the report must indicate whether the forfeiture was initiated as an administrative or a judicial forfeiture. For firearms, the make, model, and serial number of each firearm forfeited must be reported. This report provides information on the cash and property seized subject to forfeiture