Opinion ID: 475494
Heading Depth: 2
Heading Rank: 2

Heading: Claims of Kamali and Garrett

Text: 32 Appellants Kamali and Garrett argue that wholly inadmissible evidence may not support a forfeiture of the property to the government. The government's showing of probable cause was dependent upon the Fiorentino affidavit, which Kamali and Garrett claim is inadmissible hearsay. This same argument was raised by the appellant in Tahuna, and the court flatly rejected it. The government's showing of probable cause and the resulting civil forfeiture may be based on otherwise inadmissible hearsay. 33 Kamali and Garrett next argue that the government must show a substantial connection between the forfeited property and the illegal activity. They base this argument on the use of the phrase substantial connection in the legislative history. See Joint Exploratory Statement of Titles II and III of the Psychotropic Substances Act of 1978, Pub.L. No. 95-633, 92 Stat. 3768 (codified in various sections of 18 and 21 U.S.C.), reprinted in 1978 U.S. Code Cong. & Ad. News 9496, 9518, 9522. Although we believe that the government has established probable cause and more, we decline to read a substantial connection requirement into the forfeiture statute. The Eleventh Circuit addressed this identical issue in United States v. Four Million, Two Hundred Fifty-Five Thousand, 762 F.2d 895 (11th Cir.1985), cert. denied, --- U.S. ----, 106 S.Ct. 795, 88 L.Ed.2d 772 (1986), and likewise refused to impose a substantial connection requirement on the government. The court pointed out that the statute does not impose such a requirement. Rather, 21 U.S.C. section 881(a)(6) requires only a showing of probable cause for belief that a substantial connection exists between the property to be forfeited and the criminal activity.... Id. at 903. 34 On the merits of the government's showing, we hold that the government made the requisite showing to support the forfeiture. Kamali and Garrett contend that the government's showing of probable cause is unconvincing and unreliable and therefore does not support a summary judgment in favor of the government. There is little merit to these contentions. Circumstantial evidence of drug transactions is sufficient to support the establishment of probable cause in a forfeiture proceeding. United States v. $93,685.61 In U.S. Currency, 730 F.2d 571, 572 (9th Cir.) (per curiam), cert. denied, 469 U.S. 831, 105 S.Ct. 119, 83 L.Ed.2d 61 (1984). While no single fact in this case is dispositive with regard to the probable cause issue, we conclude that the aggregate of facts gives rise to more than mere suspicion that the property was exchanged for or intended to be exchanged for drugs. See $93,685.61, 730 F.2d at 572 (applying aggregate of facts test). 35 The following facts are particularly significant to the probable cause issue: (1) the extremely large amount of money found in the car; (2) the suspect's arrival from Miami; (3) the suspect's connection with a Marin County motel known as a site for drug transactions; (4) the suspect's driving from Miami to the Atlanta airport to catch a flight to California, which is a common practice of drug dealers to avoid the heightened security measures in the Miami airport; and (5) the presence of cocaine in one of the suitcases containing money. The amount of money found in this case is strong evidence that the money was furnished or intended to be furnished in return for drugs, $93,685.61, 730 F.2d at 572, and the courts have recognized that Miami is a center for drug-smuggling and money-laundering. See, e.g., Four Million, Two Hundred Fifty-Five Thousand, 762 F.2d at 904. Moreover, the courts may take into account common experience considerations to acknowledge recognized drug-smuggling practices. Id. Based on this aggregate of unrebutted facts, we hold that the government established probable cause to believe that the property was exchanged for or intended to be exchanged for illegal controlled substances. The government is therefore entitled to forfeiture of the money and precious metals. 36 We also conclude that the district court did not abuse its discretion by denying Kamali and Garrett's Fed.R.Civ.P. 56(f) request for a continuance to permit further discovery. A party opposing summary judgment is required to provide specific facts showing that there is a genuine issue of material fact for trial, or explain why he cannot immediately do so. Fed.R.Civ.P. 56(e) and 56(f). A Rule 56(f) request must demonstrate how postponement of a ruling on the motion will enable him, by discovery or other means, to rebut the movant's showing of the absence of a genuine issue of fact. Securities & Exchange Commission v. Spence & Green Chemical Co., 612 F.2d 896, 901 (5th Cir.1980) (citations omitted), cert. denied, 449 U.S. 1082, 101 S.Ct. 866, 66 L.Ed.2d 806 (1981). The nonmovant may not simply rely on vague assertions that additional discovery will produce needed, but unspecified, facts.... Id. 37 Kamali and Garrett argue that the district court abused its discretion by denying them an opportunity to: (1) depose Fiorentino and the individual's referred to in his affidavit; (2) conduct discovery regarding the time period during which the automobile was parked in the parking lot, the vehicle's movements, activities and residences of the individual who rented the automobile; (3) discover facts concerning the contents of the automobile, particularly the cocaine; (4) conduct discovery into the possibility that one individual owned the cocaine and another owned the currency and the possibility that any large amount of currency will be accompanied by traces of cocaine; and (5) conduct discovery into the origin, use, and movements of the property and the possibility that the property was accumulated for a purpose other than drug transactions, such as foreign political activities. The district court denied the request on the ground that the desired discovery would not uncover facts sufficient to rebut probable cause. We agree. 38 With regard to the request to depose Fiorentino and others, [n]either a desire to cross-examine affiant nor an unspecified hope of undermining his or her credibility suffices to avert summary judgment, unless other evidence about an affiant's credibility raises a genuine issue of material fact. Frederick S. Wyle, Professional Corp. v. Texaco, Inc., 764 F.2d 604, 608 (9th Cir.1985). Kamali and Garrett have offered no evidence that Fiorentino's credibility is weak regarding material facts. 6 39 With regard to the request for discovery concerning the automobile, the suspect, and the property and cocaine, Kamali and Garrett fail to show how the desired discovery will rebut the government's showing of probable cause. There is no dispute that the property was found in the automobile along with cocaine and that the suspect was from Miami and engaged in criminal activities. 40 With regard to the allegation concerning the usual presence of cocaine with large sums of money and the allegation of foreign political activity, Kamali and Garrett may not rely upon these bald and rather fanciful assertions to counter the government's summary judgment motion. 7 41 The bases for Kamali and Garrett's Rule 56(f) request are not entirely meritless, but are weak nonetheless. The district court did not abuse its discretion by denying the request. 42 By complying with the statutory forfeiture procedures, the government has established its legal title to the property. Tahuna, 702 F.2d at 1279. Title was defined and consummated by the judgment of the district court. Ivers v. United States, 581 F.2d 1362, 1367 (9th Cir.1978). All right, title, and interest in the property vested in the government upon commission of the act giving rise to forfeiture. 21 U.S.C. section 881(h). 8 The government owned the property before any of the claimants knew of its existence, and therefore none of the appellants has a valid claim to the property. 43 The claims and issues not expressly disposed of by the preceding holdings are addressed below.C. Claims of Cory 44 Cory argues that the property is unclaimed property and that the California Unclaimed Property Law, Cal.Civ.Proc.Code section 1500 et seq., governs its disposition instead of 21 U.S.C. section 881. He goes on to assert that federal law has not preempted state laws concerning unclaimed property so state law should control. Cory and the government have framed this issue around constitutional principles concerning federal preemption of state laws. 45 There is no need to decide this issue on constitutional grounds. There is little doubt that a state has the authority to enact laws regarding unclaimed property within its borders, and the federal government has made no attempt to enact uniform national legislation regarding unclaimed property. The question is not whether the state laws are valid. Rather, the question is whether the state laws ever became applicable to the property. The resolution of this issue turns on the question of when the government's interest in the property arose. Compare State of New Jersey v. Moriarity, 268 F.Supp. 546, 563 (D.N.J.1967) (competing claims to contraband property by state and federal governments resolved by determining time at which respective interests attached). As stated earlier in this opinion, all right, title, and interest in the property vested in the government at the time of the illegal transaction. Therefore, the property can not be considered unclaimed, lost, or abandoned property to which the California Unclaimed Property Law applied. It is more realistic to consider that the property was stashed in the rental car with the intent to return to it at some future time, which reinforces our holding on probable cause. D. Claim of Franchise Tax Board 46 The Franchise Tax Board's claim that the property is subject to state taxes is also rejected. The government has owned the property since the time of the illegal transaction. Under the well-settled principle of McCulloch v. Maryland, 17 U.S. (4 Wheat.) 316, 4 L.Ed. 579 (1819), the state may not tax this property belonging to the federal government. E. Claims of Lampros and Stavoe 47 Finally, turning to the claims asserted by Lampros and Stavoe, we hold that they lack standing to assert any claims to the property. To establish standing, appellants must claim an ownership or possessory interest in the property seized. United States v. Fifteen Thousand Five Hundred Dollars ($15,500.00) United States Currency, 558 F.2d 1359, 1361 (9th Cir.1977); see also United States v. One Hundred Twenty-Two Thousand Forty-Three Dollars ($122,043.00) In United States Currency, 792 F.2d 1470, 1473, n. 5 (9th Cir.1986). Lampros alleges that she viewed the containers of the property in the trunk of the car as Kamali was on her way to lunch and touched one of the containers. Stavoe alleges that he viewed the automobile before Garrett located it. Their own admissions reveal the flimsy connection between them and the property. Their claims are based on a mere viewing of a car and luggage. They clearly lack standing to contest the forfeiture. 48 For these reasons the order of the district court is AFFIRMED.