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United States v. Five Hundred Thousand Dollars, Etc., Arturo Fernandez, Etc., Movant-Appellant
Citations: 730 F.2d 1437; 1984 U.S. App. LEXIS 23055Docket: 83-5220
Court: Court of Appeals for the Eleventh Circuit; April 30, 1984; Federal Appellate Court
The government initiated forfeiture proceedings against five sums of money linked to drug transactions, seized on November 9, 1981, with a notice published on November 25, 1981. Rafael Ujueta, the individual who deposited the money, was the only person served but was unreachable as he had left the U.S. After no claims were filed within thirty days, the district court issued a default judgment, awarding the funds to the FBI. Arturo Fernandez later filed a motion to set aside the default judgment, claiming financial loss due to the seizure of $500,000 and $400,000, which he alleged were tied to his currency exchange business. The district court denied the motion, ruling Fernandez lacked standing as he was not the "owner" of the funds. This ruling was upheld upon Fernandez's subsequent motion to vacate. The forfeiture stemmed from an FBI sting operation investigating drug money laundering. Ujueta used a company called C.R.V. with an account at Uniworld Holdings for deposits and transfers. The $500,000 was meant for transfer to Fernandez's New York account but was never executed. The $400,000 was also seized after Ujueta requested changes to cashier's checks issued by C.R.V. Fernandez, who facilitated currency exchanges, claimed he lost money based on wire transfer representations made to him. He provided affidavits and documentation to support his standing, including an order from C.R.V. and telexes confirming the non-receipt of the funds. Fernandez appeals the district court's denial of his motions to reopen a default judgment regarding forfeited funds, arguing three main points: the need for an evidentiary hearing on standing, that he had standing, and that he was not notified of the forfeiture despite the FBI's knowledge of his interest in the funds. The court affirms the district court's decision, noting that Fernandez failed to demonstrate any facts establishing standing. To contest a forfeiture, a claimant must show a sufficient ownership or possessory interest in the seized property, and the burden rests on the claimant. Fernandez claimed an interest based on a potential commission from a transaction but did not assert ownership of the funds involved. His counsel had previously stated that neither he nor his company owned the funds. Although Fernandez argued he was an "owner" due to a wire transfer order, this order was never executed, and the funds did not reach his account. The checks related to the transaction were rejected by the bank, which confirms that the funds remained with the Miami bank. Fernandez's argument relies on an equitable interest from a business practice, but he failed to provide evidence of actual purchase or ownership of the seized funds. The district court ruled that no evidentiary hearing was warranted, as there were no material facts in dispute. Additionally, Fernandez had opportunities to present evidence in the district court but did not do so. Consequently, the court found no abuse of discretion in denying his motions, affirming that he lacked the standing necessary to challenge the default judgment.