Opinion ID: 705074
Heading Depth: 3
Heading Rank: 1

Heading: Illegal Activity

Text: 13 The appellants contend that the Government failed to present sufficient evidence to establish violations of the statutes prohibiting money laundering and trafficking in parts with tampered VINs. Given the allocation of burdens in civil forfeiture actions and the proof introduced at trial, however, such claims are unavailing. 14 To support a forfeiture under 18 U.S.C. Sec. 981, the Government initially needs only to establish probable cause, i.e. some reasonable grounds, to believe that there is a nexus between the defendant property and illegal conduct. See Marine Midland Bank, N.A. v. United States, 11 F.3d 1119, 1126 (2d Cir.1993); see also United States v. Daccarett, 6 F.3d 37, 55-56 (2d Cir.1993) (applying the analogous forfeiture provision of 21 U.S.C. Sec. 881), cert. denied, --- U.S. ----, 114 S.Ct. 1294, 127 L.Ed.2d 648 (1994). Once the Government has made such a showing, the burden shifts to the claimant to show, by a preponderance of the evidence, that the defendant property was not in fact used unlawfully and hence is not subject to forfeiture. See Daccarett, 6 F.3d at 57; United States v. 4492 South Livonia Road, 889 F.2d 1258, 1267 (2d Cir.1989). 15 In view of these standards, the evidence developed at trial was more than sufficient to support the forfeiture orders. Informant Hoffner testified about his many sales of stolen vehicles and components with removed VINs to GPS. Among these were several unlawful transactions conducted with Phil Schaffer during the Suffolk County police investigation. In addition, the Government showed that numerous cars and parts found in the GPS yard had removed or altered VINs, and that the VINs found intact on GPS's premises belonged to vehicles that had been reported stolen. Finally, a former bookkeeper for GPS testified to GPS's irregular transactions with certain suppliers of parts, and her testimony was corroborated through the introduction of GPS's business records. 16 This direct and circumstantial evidence easily satisfies the Government's initial burden of showing probable cause that there was a nexus between the defendant properties and trafficking in VIN-altered auto parts and money laundering. And since the claimants presented nothing to refute this ample evidence, it is just as plain that at trial they failed to establish that the factual predicates for forfeiture had not been met. United States v. 15 Black Ledge Drive, 897 F.2d 97, 102 (2d Cir.1990). Accordingly, we hold that there was sufficient evidence for the District Court's orders of forfeiture.