Ohel Rachel Synagogue Eric Johansing Isadore Breaux, on Behalf of Themselves and All Others Similarly Situated v. United States

The question before us is whether 28 U.S.C. § 2465 (b)(1)(C) requires the government to disgorge interest earned on seized currency when the government returns the currency rather than initiating judicial forfeiture proceedings. We answer that question “no” and, accordingly, affirm the judgment of the district court.

FACTUAL AND PROCEDURAL HISTORY

The United States Drug Enforcement Administration (“DEA”) seized currency from Plaintiffs Ohel Rachel Synagogue, Isadore Breaux, and Eric Johansing in unrelated events. The DEA initiated a separate administrative forfeiture proceeding against each Plaintiff. Each Plaintiff promptly filed a claim contesting the relevant forfeiture. In each instance the DEA referred the matter to the United States Attorney’s Office for the Central District of California, which chose not to pursue a judicial forfeiture action as to any Plaintiff. Instead, the government returned the principal amounts of the seized funds. But the government did not remit any interest.

Plaintiffs brought suit on behalf of themselves and all others similarly situated, that is, those whose assets were seized by the government and later returned, without interest, after the…