Civil vs Criminal Asset Forfeiture: What NYC Defendants Need to Know

Civil and criminal asset forfeiture allow the federal government to seize property connected to alleged criminal activity. The key difference is how your case will proceed. Criminal forfeiture occurs after a conviction in a criminal case, while civil forfeiture allows the government to pursue property itself, even if you’re not convicted of a crime.

At Peter Katz, our asset forfeiture attorney in New York can evaluate your potential forfeiture exposure and challenge government seizure efforts under federal law.

What is Civil Asset Forfeiture Under Federal Law?

Civil forfeiture is a legal action against property rather than a person. In federal court, the government files a civil case arguing that specific assets are connected to unlawful conduct. Because the case is technically against the property, the government can proceed even if no criminal conviction occurs.

What Property Can Federal Authorities Seize in New York?

Federal forfeiture laws allow the government to pursue a wide range of assets linked to alleged crimes. Examples include:

• Cash or financial accounts connected to fraud or drug activity
• Vehicles used to transport illegal goods
• Real estate used to facilitate criminal conduct
• Business assets tied to unlawful operations

For instance, federal agents in New York may seize cash found during an investigation if they believe the funds are tied to drug distribution or money laundering. The property owner must then challenge the forfeiture in federal court.

In large federal investigations involving financial crimes or narcotics trafficking, asset seizures can reach millions of dollars.

What is Criminal Asset Forfeiture?

Criminal forfeiture occurs as part of a criminal prosecution. In these cases, the government seeks forfeiture after obtaining a conviction for certain federal offenses. Under the law, courts may order the forfeiture of property that represents the proceeds of illegal activity or that was used to facilitate the crime.

A conviction is necessary for criminal forfeiture, unlike civil forfeiture, which may proceed independently of a criminal case. The forfeiture order becomes part of the defendant’s sentence. For example, if someone in Manhattan is convicted of a federal fraud offense, prosecutors may ask the court to forfeit bank accounts or property obtained through the fraudulent scheme.

How Are Civil and Criminal Forfeiture Different?

Although both processes involve asset seizure, they operate differently. Key differences include:

• Civil forfeiture: A case filed against the property itself
• Criminal forfeiture: Occurs after a criminal conviction
• Burden of proof: Civil forfeiture uses a lower evidentiary standard than criminal cases
• Procedure: Civil forfeiture follows civil court procedures, while criminal forfeiture is part of sentencing

The U.S. Supreme Court has addressed constitutional limits on forfeiture, including in Timbs v. Indiana, which confirmed that excessive forfeitures can violate constitutional protections.

Available Defenses in New York Federal Forfeiture Cases

Defendants and property owners may challenge forfeiture through several legal defenses, such as:

• Property was not connected to criminal activity
• The owner didn’t know about the alleged conduct
• A forfeiture violates constitutional limits

The federal “innocent owner” defense may allow property owners to recover seized assets if they can demonstrate they were not involved in the alleged crime. However, you must act quickly to protect your rights.

You generally have only 30 to 35 days from the government’s notice of seizure to file a claim in civil forfeiture cases. Missing this deadline can result in the property being automatically forfeited. In criminal forfeiture, deadlines are tied to the criminal proceedings, but early coordination with our New York asset forfeiture lawyer is essential to safeguard your assets.

How Our Asset Forfeiture Lawyer in New York Can Help with Your Federal Case

Federal asset forfeiture cases are complex and often move quickly after property is seized. Our New York asset forfeiture attorney can analyze the seizure, challenge the government’s legal basis for forfeiture, and pursue the recovery of your assets through federal court procedures.

Defend What’s Rightfully Yours, Talk to Our New York Asset Forfeiture Attorney Now

If federal authorities have seized your property or initiated forfeiture proceedings, contact Peter Katz online or at 609-849-3179 to have your case evaluated by our New York asset forfeiture lawyer right away.