Can the Federal Government Seize Your House, Car, or Bank Accounts in a Criminal Case?

When most people think about the consequences of a federal criminal charge, they think about prison time. But the federal government has another powerful tool that can devastate defendants and their families: asset forfeiture. Federal forfeiture laws allow the government to seize and permanently take ownership of property that was used to commit a federal crime, was acquired with proceeds of a federal crime, or represents the proceeds of a federal crime. This can include your home, your vehicles, your bank accounts, your investments, your business, and virtually any other property.

At Deandra Grant Law, Attorney James Lee Bright has defended clients against federal forfeiture actions over his 25+ year career. Lee understands both the criminal and forfeiture dimensions of federal cases and develops strategies that protect clients’ assets throughout the process.

Two Types of Federal Forfeiture

Criminal Forfeiture

Criminal forfeiture is part of the criminal case itself. If the defendant is convicted, the government seeks forfeiture of specific property as part of the sentence. Criminal forfeiture is governed by 18 U.S.C. §982 (for most federal crimes) and 21 U.S.C. §853 (for drug offenses). The forfeiture must be based on property that has a nexus to the criminal conduct; that is, it was used in, derived from, or facilitated the offense.

Criminal forfeiture requires a conviction. If the defendant is acquitted, criminal forfeiture is not available.

Civil Forfeiture

Civil forfeiture is a separate action brought against the property itself, not the property owner. The government files a civil complaint alleging that the property is subject to forfeiture. Civil forfeiture can proceed without a criminal charge or conviction. The standard of proof is preponderance of the evidence, not beyond a reasonable doubt. The case caption reads “United States v. [property]” — for example, “United States v. $47,000 in United States Currency” or “United States v. One 2022 Mercedes-Benz S-Class.”

Civil forfeiture can be initiated before, during, or after a criminal prosecution. It is the government’s preferred tool when it wants to seize assets but may not have sufficient evidence for a criminal conviction.

What the Government Can Seize

• Real property: Homes, commercial buildings, and land alleged to have been purchased with criminal proceeds or used to facilitate criminal activity.
• Vehicles: Cars, trucks, boats, and aircraft used in the commission of a crime or purchased with proceeds.
• Bank accounts and financial instruments: Checking accounts, savings accounts, investment accounts, and cryptocurrency wallets containing alleged proceeds.
• Cash: Currency seized during a search or arrest.
• Businesses: Entire businesses alleged to have been used as fronts for criminal activity or funded with criminal proceeds.
• Substitute assets: Under 21 U.S.C. §853(p), if the government cannot locate the specific property subject to forfeiture, it can seize substitute assets of equivalent value. This means the government can take property that has no connection to the alleged crime to satisfy a forfeiture judgment.

How to Fight Federal Forfeiture

Lee Bright challenges federal forfeiture at multiple levels:

• Challenging the nexus. The government must prove that the specific property has a connection to the criminal activity. Lee examines whether the government can actually trace the property to criminal proceeds or demonstrate that it facilitated the offense.
• Innocent owner defense. In civil forfeiture cases, a property owner who did not know about or consent to the criminal use of their property can raise the innocent owner defense under 18 U.S.C. §983(d). This defense is critical for spouses, family members, and business partners whose property is targeted based on another person’s conduct.
• Excessive fines challenge. The Eighth Amendment prohibits excessive fines. Forfeiture that is grossly disproportionate to the gravity of the offense can be challenged as constitutionally excessive. The Supreme Court confirmed in Timbs v. Indiana (2019) that this protection applies broadly.
• Third-party interests. Legitimate third parties — lienholders, mortgage companies, co-owners — can petition to protect their interests in forfeited property through ancillary proceedings under 21 U.S.C. §853(n).
• Pre-trial restraint challenges. The government often seeks pretrial restraining orders to freeze assets before conviction. Lee challenges these restraining orders to ensure that clients can access funds needed for living expenses and legal defense.

Contact Deandra Grant Law

If you are under investigation or have been charged with a federal offense, contact Deandra Grant Law for a free, confidential consultation with Attorney James Lee Bright. Lee has more than 25 years of federal trial experience and is admitted to practice in all four federal districts in Texas, the District of Columbia, the Fifth Circuit Court of Appeals, and the United States Supreme Court.