Findings of Fact and Conclusions of Law - Page 1

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF TEXAS

DALLAS DIVISION

 

UNITED STATES OF AMERICA, §

§

Plaintiff, §

§

v. § CIVIL NO. 3:04-cv-648-R

§

ONE 1997 CADILLAC DEVILLE, §

BEARING TEXAS REGISTRATION §

8RCXP AND VIN 1G6KD52Y4VU218829; §

§ 

ONE 1999 FORD F-350 TRUCK, BEARING §

TEXAS REGISTRATION 6PMC75 AND §

VIN 1FTWW32F1XEC78981; §

§

ONE 1974 MASSEY FERGUSON FARM §

TRACTOR, MODEL 1085, BEARING §

SERIAL NUMBER 9B473I6; §

§

ONE 2003 JOHN DEERE GATOR §

BEARING VIN W006X4D03562; §

§

ONE 1999 CHEVROLET TRUCK BEARING §

TEXAS REGISTRATION 1YSM35 AND §

VIN 1GCEC14W3XE130403; §

§

ONE 2003 TOW MASTER TRAILER, §

BEARING VIN 5HNFS352231000194; §

§

ONE 2003 CM TRAILER, BEARING §

TEXAS REGISTRATION CCSZ50 AND §

VIN 49THG162131063821; §

§

ONE 2002 FORD F-150 SUPERCREW §

LARIAT TRUCK, BEARING TEXAS §

REGISTRATION 7TGZ17 AND §

 VIN 1FTRW08L92KA13146; §

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF TEXAS 

DALLAS DIVISION

FILED

September 14, 2005

CLERK, U.S. DISTRICT COURT

 

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§

ONE BULLDOG TRAILER BEARING §

TEXAS REGISTRATION CFZT04 WITH A §

MILLER WELDER BEARING SERIAL §

NUMBER LC497457 AND A CAMPBELL §

HAUSFELD AIR COMPRESSOR BEARING §

SERIAL NUMBER L1080201336; §

§

ONE 2003 CALICO TRAILER, BEARING §

TEXAS REGISTRATION CFJ V14 AND §

VIN 4GASS202931001332; AND §

§

ONE 1999 YAMAHA 600 GRIZZLY, §

BEARING VIN JY4AJ02W7XA018727, §

§

Defendants In Rem. §

MEMORANDUM OPINION AND ORDER

This case involves Defendant Frederico Gonzalez’s (“Defendant” or “Claimant” or

“Gonzalez”) claim to property seized by federal agents during the execution of a valid

search warrant. The United States (“Plaintiff”) alleged the seized property was subject to

forfeiture pursuant to 21 U.S.C. §881(a)(6) as the proceeds of illegal narcotics activity. 

The Court found that the property, to wit, one 1974 Massey Ferguson Farm Tractor,

Model 1085, bearing serial number 9B473I6; one 2003 John Deere Gator, bearing VIN

W006X4D03562; one 2003 Tow Master Trailer, bearing VIN 5HNFS352231000194; one

2003 CM Trailer, bearing Texas Registration CCSZ50 and VIN 49THG162131063821;

one Bulldog Trailer, bearing Texas CFZT04 with a Miller welder bearing serial number

LC497457 and a Campbell Hausfeld Air Compressor bearing serial number

L1080201336; one 2003Calico Trailer, bearing Texas Registration CFJ V14 and VIN

 

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1 At trial, Gonzalez withdrew his claim to four articles of his property, specifically, the 1997

Cadillac Deville, bearing Texas Registration 8RCXP and VIN 1G6KD52Y4VU218829; the 1999 Ford F350 truck, bearing Texas registration 6PMC75 and VIN 1FTWW32F1XEC78981; the 1999 Chevrolet

truck bearing Texas registration 1YSM35 and VIN 1GCEC14W3XE130403; and the 2002 Ford F-150

Supercrew Lariat truck, bearing Texas registration 7TGZ17 and VIN FTRW08L92KA13146. 

Findings of Fact and Conclusions of Law - Page 3

4GASS202931001332; and one 1999 Yamaha Grizzly, VIN JY4AJ02W7XA018727,1

was indeed the result of proceeds from illegal drug trafficking and therefore subject to

forfeiture. 

This matter came before the Court for a half-day bench trial on August 30, 2005. 

The Court, having received and considered the evidence presented and having heard the

testimony of witnesses and the argument of counsel, hereby renders the following

Findings of Fact and Conclusions of Law, as permitted by Rule 52(a) of the Federal Rules

of Civil Procedure:

I. FINDINGS OF FACT

1. Two witnesses testified in the trial - DEA Special Agent Shwan Aziz (“Aziz”) and

Claimant. Forty-eight items were offered by the government and admitted into

evidence by the Court. 

2. The Court credits the testimony of Aziz as truthful and finds he was a credible 

witness. The Court found Gonzalez to be an untruthful witness and finds his

testimony not credible. Therefore, based on the evidence and testimony, the Court

finds the following:

a. Gonzalez was involved in a cocaine trafficking conspiracy in 2003. 

b. Starting in February 2003 and up until his arrest on October 15, 

 

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2003, Gonzalez acquired ten (10) to twenty (20) kilograms of cocaine per 

month, purchasing each kilogram for as little as $10,000 per kilogram and 

selling it for $14,000 to $15,000. 

c. Gonzalez’s Kaufman County ranch was lawfully searched by federal law 

enforcement agents on October 15, 2003.

d. Gonzalez illegally possessed fifteen (15) kilograms of cocaine at his 

Kaufman County, Texas ranch on October 15, 2003. 

e. Approximately $230,000 in cash was found at Gonzalez’s Kaufman 

County, Texas ranch on October 15, 2003. 

f. Gonzalez was lawfully arrested at his Kaufman County ranch on 

October 15, 2003.

g. The property at issue was found at Gonzalez’s Kaufman County ranch 

on October 15, 2003.

I. On October 15, 2003, after being advised of his Miranda rights and while in

custody, Gonzalez voluntarily stated to federal law enforcement agents the 

fifteen (15) kilograms of cocaine at his ranch belonged to him and the cash 

was his profits from selling cocaine for two or three months.

j. During the course of his voluntary statement, Gonzalez repeatedly stated

“I’m guilty” and “you got me.” In regard to the vehicles and equipment

found on the ranch, he stated “they’re yours now, y’all own it now”, and

“y’all caught me, what am I going to do, it’s yours.” Gonzalez further stated

 

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that he owned the vehicles and equipment on the ranch and they had been

purchased by him with the proceeds of drug trafficking. 

k. Gonzalez’s statements were recorded in a DEA-6, a report 

prepared by a DEA agent involved in the investigation of the drug 

conspiracy involving Gonzalez. 

l. The property was lawfully seized by federal law enforcement 

agents.

m. Gonzalez is the owner of the Defendant property.

n. As a result of his involvement in the drug conspiracy, Gonzalez was 

indicted, convicted, and sentenced to life imprisonment in Cause 

No. 3:03-CR-329-G for violating 21 U.S.C. § 846 and money laundering in 

violation of 18 U.S.C. § 1956.

o. In his Factual Resume in the criminal case, Gonzalez admitted participating 

in a drug trafficking conspiracy, buying and selling numerous kilograms of 

cocaine. Gonzalez also acknowledged the property alleged his Kaufman 

County ranch was derived from the proceeds of the drug trafficking 

conspiracy and was used by him to facilitate the drug conspiracy.

p. Gonzalez voluntarily forfeited his Kaufman County ranch to the 

government. A Final Order of Forfeiture concerning the ranch was 

entered on August 16, 2004.

q. Gonzalez’s appeal of his conviction in Cause No. 3:03-CR-329-G was 

 

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dismissed by the Court of Appeals for the Fifth Circuit on August 15, 2005.

r. Gonzalez did not contest forfeiture of the approximately $230,000 in cash 

found on his ranch on October 15, 2003.

3. Accordingly, the Court finds Gonzalez purchased the Defendant property with 

proceeds from drug trafficking. Of all the evidence and testimony offered in the 

trial concerning the origin of the Defendant property, the Court finds most 

compelling the voluntary statements Gonzalez made subsequent to his lawful

arrest. 

II. CONCLUSIONS OF LAW

4. This is a civil forfeiture action for the forfeiture of the Defendant property 

brought pursuant to 18 U.S.C. § 983(a)(3)(A). The Court has jurisdiction of 

this cause pursuant to 28 U.S.C. §§ l345 and l355(a). Venue is proper under 28 

U.S.C. § 1355(b)(1) and 28 U.S.C. § 1395(b).

5. In a civil forfeiture suit, the Government bears the initial burden of establishing

probable cause that the property is subject to forfeiture. See 21 U.S.C. § 1615. 

Under §881(a)(6). The Government must establish probable cause for the specific

belief that there is a “substantial connection” between the defendant property and

illegal drug dealing under Title 21 of the United States Code. 21 U.S.C. § 1615

(providing that “all proceeds traceable to an exchange [for controlled substances]”

are “subject to forfeiture.”); see also United States v. $64,000.00 in U.S. Currency,

722 F.2d 239, 244 (5th Cir. 1984). 

 

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6. After the plaintiff in a forfeiture proceeding establishes probable cause, the burden

of proof shifts to the claimant to show by a preponderance of the evidence that the

money used to purchase the properties in question came from an independent, nondrug-related source. United States v. One 1986 Nissan Maxima GL, 895 F.2d 1063,

1065 (5th Cir. 1990). 

7. Based on its findings of fact, the Court concludes the government has established 

by a preponderance of the evidence that the Defendant property is property subject

to forfeiture under 21 U.S.C. § 881(a)(6).

8. Gonzalez has established no defense to the forfeiture of his property.

III. CONCLUSION

For the reasons stated above, the Court concludes that Defendant property at issue in this

case is property subject to forfeiture under 21 U.S.C. § 881(a)(6).

It is so ORDERED.

SIGNED: September 14, 2005

___________________________________

JUDGE JERRY BUCHMEYER

SENIOR U.S. DISTRICT JUDGE

NORTHERN DISTRICT OF TEXAS

 

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