Audit: State cops botched tracking of seized assets

New York State Police have done a poor job keeping track of more than $2 billion in seized assets and didn't get enough in return when selling them off, a state audit has found.

The audit by the state Comptroller's Office found that nearly $993 million in seized property was misclassified as "pending disposition," when, in fact, the cases associated with them had been closed. In some instances state police troops didn't even report seized property to headquarters, including $39,967 in cash and three vehicles in one case.

"Without proper tracking and accounting of seized asset cases, the (state police) cannot readily or accurately determine the number and value of seized assets in its own and other agencies' custody, the amount of proceeds due through court or administrative dispositions, and the amount of proceeds received," the comptroller's audit said. "As a result, there is limited assurance that the (state police) receives its correct share of proceeds from forfeited assets."

The audit examined items seized by police in the department's 11 troops between April 2011 and September 2013. It did not specify which troops, or barracks, were involved, nor what most of the seized items were.

In a written response to Comptroller Thomas DiNapoli, state police Assistant Deputy Superintendent Terence O'Mara said the department has and will continue to address and update its database and forfeiture procedures.

"Division staff will ensure division records accurately reflect up-to-date information about all seized assets," O'Mara wrote. "To accomplish this, all seized assets will be required to be reported to Division Headquarters, including those in the custody of a local or federal law enforcement agency."

Police agencies have the authority to seize assets during the course of an investigation if they determine that the items were used to commit a crime, constituted proceeds from a crime or were purchased with proceeds from a crime. Any return on the sale of seized items is used to enhance law enforcement efforts.

The comptroller's audit looked at 1,788 seizures made by state police, including 1,408 collections of cash, 304 vehicles and 49 properties — collectively worth $1.2 billion.

In one instance, the audit said troopers received $840,000 less than it expected from a forfeited asset. In a sampling of 107 pending cases, auditors said seized items in 56 cases, valued at $992 million, had been closed with state police receiving only $12.2 million, or 1.25 percent, in return.

Sixteen cash seizures totaling nearly $40,000 and three vehicles had not been included on the state police seized assets database and were not reported to its coordinator. In addition, state police continued to hold on to $700,000 in seized items that had not been forfeited and was deemed abandoned. Those assets should have been turned over to the Comptroller's Office of Unclaimed Funds.

The audit comes six months after The Journal News revealed a history of shoddy handling of evidence at the state police Troop K barracks in Hawthorne. The report said that drugs and other evidence had been lost at the barracks, leading to botched prosecutions, the retirement of two senior investigators and the forced resignation of a trooper.

In a follow-up report June 2, the newspaper said poor record-keeping of evidence at Troop K dated to 1986, with troopers unable to account for 65 items, including bullets, two crossbows, a safe and two Chevrolet vehicles.

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