833 F.3d 13
1st Cir.2016Background
- Agents arrested Angel Abner Betancourt-Pérez at his apartment during a drug investigation; search revealed cocaine, marijuana, a pistol, and assorted jewelry (~$44,328) hidden in the kitchen area.
- Betancourt-Pérez lived alone in the apartment; jewelry was found “behind the kitchen cabinet on top of the refrigerator” near a 1,056-gram brick of cocaine.
- He pled guilty in related criminal cases to conspiracy and firearm charges tied to drug trafficking.
- Government filed an in-rem civil forfeiture complaint under the Controlled Substances Act/CAFRA seeking forfeiture of the jewelry; claimant intervened asserting lawful ownership and that items were purchased with lawful income or were gifts/held for his mother.
- The district court granted the government’s summary judgment motion; claimant appealed. The First Circuit vacated and remanded, finding the government had not met its preponderance-of-the-evidence burden on the record before the district court.
Issues
| Issue | Plaintiff's Argument (Gov.) | Defendant's Argument (Betancourt-Pérez) | Held |
|---|---|---|---|
| Whether government proved a "substantial connection" between the jewelry and drug trafficking under CAFRA (preponderance standard) | Jewelry’s concealment near drugs, claimant’s guilty pleas, and claimant lacked legitimate income to buy the jewelry — so property traceable to drug proceeds | Jewelry belonged to claimant by lawful means (earnings, gifts, mother’s property); proximate location alone insufficient; claimant had legitimate income evidence | Vacated district court summary judgment: proximity and guilty pleas alone do not satisfy the preponderance standard without evidence (e.g., lack of lawful means) linking jewelry to drug proceeds |
| Whether the district court could consider claimant’s guilty pleas and proximity of items to drugs | Pleas and proximity are highly probative to establish connection | Proximity insufficient absent proof claimant couldn’t lawfully acquire items; challenges to warrant not preserved | Court agreed pleas and proximity are probative but insufficient alone; claimant’s late/undeveloped search-warrant challenge waived |
| Whether summary judgment record could include post-judgment materials (PSI) to show claimant’s lack of lawful income | Government sought to rely on PSI and statements made at conference indicating low lawful income | PSI was not part of the civil forfeiture record and post-dates district court ruling; cannot be considered on appeal | Court held PSI not part of the civil case record and therefore cannot be considered on appeal; government failed to meet burden on existing record |
| Whether items should be adjudicated collectively or individually on remand | Government treated jewelry as a collection in district court | Claimant could contest individual items and provenance for each | Court remanded and noted parties may make item-by-item arguments on remand |
Key Cases Cited
- Ortiz-Cameron v. Drug Enf't Admin., 139 F.3d 4 (1st Cir. 1998) (standard of review for summary judgment)
- United States v. 1933 Commonwealth Ave., 913 F.2d 1 (1st Cir. 1990) (no need to link property to a particular drug transaction to forfeit)
- United States v. 6 Fox St., 480 F.3d 38 (1st Cir. 2007) (legitimate income evidence can defeat or support forfeiture inference)
- United States v. Funds in the Amount of $3,670.00, 403 F.3d 448 (7th Cir. 2005) (CAFRA raised government’s burden above probable cause)
- United States v. $58,422.00 in U.S. Currency, [citation="154 F. App'x 20"] (9th Cir.) (proximity of drugs and assets is persuasive evidence of connection)
- United States v. $21,510.00 in U.S. Currency, [citation="144 F. App'x 888"] (1st Cir.) (combination of concealment, guilty plea, and drug residue on currency upheld forfeiture)
- United States v. $149,442.43 in U.S. Currency, 965 F.2d 868 (10th Cir.) (proximity and other indicia can support forfeiture)
- United States v. $67,220.00 in U.S. Currency, 957 F.2d 280 (6th Cir.) (claimant’s drug record is highly probative)
- Poloquin v. Garden Way, Inc., 989 F.2d 527 (1st Cir. 1993) (argument preservation principles)
- United States v. Zannino, 895 F.2d 1 (1st Cir. 1990) (issue preservation and appellate review standards)