United States v. $311,229.00 in U.S. Currency

MEMORANDUM

World Food Association, Inc. appeals from the district court’s order granting summary judgment to the United States in this civil forfeiture action. On appeal, World Food argues that the Government is not entitled to summary judgment because it has not established by a preponderance of the evidence that the $477,216.42 at issue in this case are proceeds traceable to wire fraud in violation of 18 U.S.C. § 1343 . We agree, and reverse.

The Civil Asset Forfeiture Reform Act (CAERA), 18 U.S.C. § 983 , establishes a burden-shifting scheme for summary judgment in civil forfeiture actions that requires the Government to prove, by a preponderance of the evidence, that the property in question is subject to forfeiture. 18 U.S.C. § 983 (c)(1). Here, the undisputed facts do not show that the res sought to be forfeited is traceable to wire or mail fraud, ie., that World Food or its president, Henry Ford, knowingly devised a scheme to defraud Interfinanz Und Im-mobilien, AG (“IFG AG”) by entering into a contract that they had no intention of honoring. See United States v. Jinian, 712 F.3d 1255, 1260, 1265 (9th Cir.2013).

The Government has not charged World Food or Mr. Ford with…