On The Front Lines

U.S. Supreme Court Upholds Abusive Civil Forfeiture Law, Allows Police to Keep $201,000 in Cash from Legal Home Sale with No Proof of Criminal Activity

WASHINGTON, D.C. — In refusing to hear a challenge to Texas’ asset forfeiture law, the U.S. Supreme Court is allowing Texas police to keep $201,000 in cash primarily on the basis that the seized cash—the proceeds of a home sale—was being transported on a highway associated with illegal drug trade, despite any proof of illegal activity by the owner. Asset forfeiture laws, which have come under intense scrutiny and criticism in recent years, allow the police to seize property “suspected” of being connected to criminal activity without having to prove the owner of the property is guilty of a criminal offense.

Lisa Leonard, the owner of the $201,000, had asked the U.S. Supreme Court to compel Texas to return her money, given that she was innocent of any crime. In a written opinion that denounced the profit incentives that drive asset forfeiture schemes, Justice Clarence Thomas concluded, “This system—where police can seize property with limited judicial oversight and retain it for their own use—has led to egregious and well-chronicled abuses.”

“Relying on the topsy-turvy legal theory that one’s property can not only be guilty of a crime but is guilty until proven innocent, government agencies have eagerly cashed in on asset forfeiture as a revenue scheme under the pretext of the War on Drugs,” said constitutional attorney John W. Whitehead, president of The Rutherford Institute and author of Battlefield America: The War on the American People. “Yet if the government can arbitrarily freeze, seize or lay claim to your property (money, land or possessions) under government asset forfeiture schemes, you have no true rights. The government’s practice of policing for profit must stop.”

On April 1, 2013, James Leonard was driving with a companion, Nicosa Kane, on U.S. Highway 59 in Texas when the vehicle was stopped by a state police officer for allegedly speeding and following another vehicle too closely. A subsequent search of the vehicle disclosed a safe in the trunk, which Leonard explained belonged to his mother, Lisa Leonard, and contained cash. Kane provided a conflicting account about the contents of the safe. When the police officer contacted Lisa Leonard, she confirmed that the safe’s contents belonged to her, that the contents constituted personal business, and that she would not consent to allowing the officer to open the safe. After police secured a search warrant, the safe was opened and found to contain $201,000 and a bill of sale for a home in Pennsylvania.

Neither the Leonards nor Kane were found to be in possession of illegal drugs. However, the state initiated civil forfeiture proceedings against the $201,100 on the ground that it was substantially connected to criminal activity because Highway 59 is reputed to be a drug corridor. At trial, Lisa Leonard testified that the money was being sent to Texas so that she could use it to purchase a home for her son and Kane. Both the trial and appeals courts affirmed the authority of state officials to seize and keep Leonard’s funds under the state’s asset forfeiture law, basing their ruling on wholly circumstantial evidence and the reputation of Highway 59.

In criticizing abusive asset forfeiture schemes, Supreme Court Justice Thomas noted, “These forfeiture operations frequently target the poor and other groups least able to defend their interests in forfeiture proceedings. Perversely, these same groups are often the most burdened by forfeiture. They are more likely to use cash than alternative forms of payment, like credit cards, which may be less susceptible to forfeiture. And they are more likely to suffer in their daily lives while they litigate for the return of a critical item of property, such as a car or a home.”