Opinion ID: 705074
Heading Depth: 2
Heading Rank: 1

Heading: Evidence Supporting Forfeiture

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.
17 Title 18 U.S.C. Sec. 981 provides that a claimant can avoid forfeiture of his or her property if the illegal activity that serves as the forfeiture's predicate can be shown to have been committed without the knowledge of that owner, that is, if the claimant is an innocent owner. 18 U.S.C. Sec. 981(a)(2). Once again, though, after the Government has established a connection between the defendant property and illegal activity, the burden is on the claimant to show that he or she did not know of the illegal activity. See id.; see also United States v. 755 Forest Road, 985 F.2d 70, 72 (2d Cir.1993) (applying the analogous provision of 21 U.S.C. Sec. 881) (The so-called 'innocent owner' defense is an affirmative defense to be proven by the owner-claimant.) 18 The District Court found that Grace Schaffer--Skip Schaffer's wife--qualified as an innocent owner, and Skip Schaffer argues that his interest in the defendant property should not be subject to forfeiture for the same reason. He claims that the evidence at trial showed that he had limited involvement in GPS's operations after an illness in the early 1980s. He further notes that informant Hoffner's testimony indicated that Hoffner arranged transactions for stolen parts only with Phil Schaffer. Finally, Skip Schaffer highlights the fact that both he and his wife testified at trial that he was completely unaware of whatever illegal activity may have been taking place at GPS. 19 Despite the foregoing, the District Court, relying on circumstantial evidence indicating that Skip Schaffer knew what was going on, expressly concluded that Skip Schaffer was fully aware of the illegal transactions occurring at GPS. The trial evidence showed that, even after his illness, Skip Schaffer regularly worked at GPS at least three days a week, and that he was present in the yard when deliveries of stolen vehicles and parts were made. Moreover, though the Schaffers testified that Skip Schaffer was not aware of any illegal transactions, Grace Schaffer also testified that he was a hands-on owner who liked to be in the yard overseeing operations. 20 Since the District Court's factual findings may be disturbed only if they are clearly erroneous, and we are to show due regard for a trial court's assessment of the credibility of witnesses, see Fed.R.Civ.P. 52(a), we conclude that this evidence provides sufficient support for the District Court's holding. We find that the District Court's rejection of Skip Schaffer's claim of lack of knowledge was plausible in light of the record viewed in its entirety, Anderson v. Bessemer City, 470 U.S. 564, 574, 105 S.Ct. 1504, 1511, 84 L.Ed.2d 518 (1985), and we therefore decline to set aside its conclusion that Skip Schaffer failed to establish an innocent owner defense.