Opinion ID: 2995343
Heading Depth: 3
Heading Rank: 3

Heading: Burden shifts to claimants for

Text: rebuttal. A finding of probable cause is not the end of the inquiry, however, because the burden then shifts to the claimants to prove by a preponderance of the evidence that the property is not subject to forfeiture. See West Side Bldg. Corp., 58 F.3d at 1189. Without a sufficient rebuttal, the government’s initial showing of probable cause will suffice to support the forfeiture order. Id. Thus, the claimants needed to provide the court with evidence that the properties in question had no connection with illegal drug activity, see Santiago, 227 F.3d at 906, and were instead purchased with funds acquired from legitimate sources. The claimants attempt to do this by asserting that they lived frugally, they grew their own food, they saved money from employment and rental property income, and they stashed substantial amounts of cash in their socks, in gallon jugs and in their homes. The claimants did not produce any records or witnesses to corroborate their explanation for the source of the moneys used to purchase property. In this portion of the order, the district court thoroughly addressed each piece of property individually. In every case, the only evidence submitted by the claimants was their own self-serving assertion that the property was theirs, and not purchased with Melvin’s drug proceeds. This is insufficient to overcome the government’s establishment of probable cause. See Santiago, 227 F.3d at 907 (claimants failed to overcome forfeiture where their evidence consisted entirely of their own self-serving statements and they offered no independent verification of their claims). Moreover, as the district courted noted, the claimants’ stories were often inconsistent. As in Santiago, we see no need to rehash this analysis, as the [claimants] have brought nothing to our attention that causes us to question the district court’s conclusions. 227 F.3d at 908. The claimants also argue, without specifically pointing to any particular evidence, that the district court incorrectly considered hearsay evidence during this portion of the forfeiture proceeding. However, we note that the district court specifically stated that it would only consider hearsay evidence at the probable cause stage of the proceeding, where it was appropriate. The claimants’ conclusory arguments to the contrary do not persuade us that the district court erred. The claimants also argue that the government should have been required to prove what portion of the down payments and loan payments were made with money derived from drug trafficking. We reject this argument. Once the government has established probable cause, it need not present further evidence. Rather, if the claimants fail to rebut the government’s proof of probable cause, the original showing will support the forfeiture order. See West Side Bldg. Corp., 58 F.3d at 1189. To hold otherwise would render the entire burden-shifting analysis meaningless. See Santiago, 227 F.3d at 907 (where claimants proceeded as if government shouldered ultimate burden of proof, court noted that the opposite is true.). Lastly, the claimants argue that the forfeiture is punitive in violation of the Excessive Fines Clause of the Eighth Amendment./11 The Supreme Court has interpreted the Excessive Fines Clause to apply to civil fines, including forfeitures. See United States v. Bajakajian, 524 U.S. 321, 331 n.6 (1998) (noting that while traditionally civil forfeitures were considered non-punitive, it does not follow, of course, that all modern civil in rem forfeitures are non- punitive and thus beyond the coverage of the excessive fines clause.); Austin v. United States, 509 U.S. 602, 621-22 (1993) (although labeled in rem, civil forfeiture of real property used to facilitate the commission of drug crimes was punitive in part and thus subject to review under the Excessive Fines Clause). If a fine or forfeiture is punitive, we must then ask whether the fine is excessive by using a gross disproportionality test. See Towers v. City of Chicago, 173 F.3d 619, 624 (7th Cir. 1999). We conclude that the forfeitures in question are not punitive and therefore not subject to the gross disproportionality test under the Eighth Amendment. In Bajakajian, the Supreme Court determined that the forfeiture under consideration did not bear any of the hallmarks of traditional civil in rem forfeitures because the government had not proceeded against the currency itself, instead seeking a criminal conviction of the respondent personally. 524 U.S. at 331-32. It concluded that the forfeiture serves no remedial purpose, is designed to punish the offender, and cannot be imposed upon innocent owners. Id. at 332. In contrast, the forfeitures under consideration in the present case are truly in rem proceedings. The claimants themselves were not the subject of criminal proceedings, and their conduct is not the cause of the sought forfeitures. And, the properties would not have been forfeited if the claimants had been able to establish that the properties had no connection to Melvin’s drug dealing. Accordingly, we determine that the forfeitures in question are not fines for purposes of the Excessive Fines Clause of the Eighth Amendment. Cf. Smith v. United States, 76 F.3d 879, 882 (7th Cir. 1996) (finding that proceeds forfeitures do not constitute punishment for purposes of the Fifth Amendment’s Double Jeopardy Clause). In any event, the claimants have not pointed to any specific evidence establishing that identifiable portions of the property in question were not properly subject to civil forfeiture.