IRS Drops Forfeiture Case, Returns $107,000 Taken In Bogus 'Structuring' Prosecution
from the teaching-old-thieves-new-tricks dept
The streak continues. A highly-dubious IRS asset forfeiture case receives some media attention, closely followed by the agency dropping the case.
Federal prosecutors have dropped an attempt to seize $107,000 from a North Carolina small business owner using asset forfeiture laws following several weeks of media scrutiny.McLellan's case was raised (as a "hypothetical") by Rep. George Holding during IRS testimony in front of the House Ways and Means Committee. Holding asked IRS Commissioner John Koskinen why the agency was continuing to pursue a questionable "structuring" case against McLellan, considering both the IRS and the DOJ had issued policy revisions stating the government would not do this unless there was evidence the deposited money originated from criminal activity.
According to the Institute for Justice, a public interest law firm, the Internal Revenue Service and Justice Department moved Wednesday to voluntarily dismiss their case against Lyndon McLellan.
Koskinen agreed that McLellan's case should be dropped and promised to look into it. Meanwhile, the prosecutor overseeing McLellan's case contacted the Institute for Justice, claiming that its release of case details to House members would not only not help McLellan's case but could actually make it worse for him -- citing the vaguely-threatening "ratcheting" of "feelings" within the IRS by this public disclosure. He then offered McLellan a "final offer" of half his money back.
McLellan didn't take the offer. Now, he's getting all of his money back -- which he'll need, considering he's already racked up plenty of expenses fighting the IRS and DOJ.
McLellan still had to pay for a lawyer, not to mention $19,000 to have his business audited. The government also refuses to pay for interest earned on money after it has been seized.While the IRS may be curbing its dubious forfeitures, there are still problems that need to be addressed within the DOJ itself.
Last week, the Justice Department said it would investigate two other prosecutors after one business owner whose assets were seized said he had been punished more harshly after publicizing his case and another said he had been threatened with a felony charge if he did not agree to give up some of his money.Kind of dispels the notion that asset forfeiture has anything to do with "justice." As these programs continue to suffer from mainstream exposure, those heading up prosecutions seem unwilling to scale back their efforts accordingly. They can see the revenue stream drying up and they're getting desperate. There will be more than a few forfeiture victims whose cases will stay off the radar. Unfortunately for them, these "zealous" prosecutors appear willing to do whatever they can to ensure funds seized with no evidence of criminal intent or origin remain inaccessible to those who actually earned them.
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Filed Under: asset forfeiture, irs, lyndon mclellan, publicity, stealing
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Well, he wasn't wrong about that. It was a final offer.
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Zealots paid?
Conflict of interest?
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"feelings within the IRS"
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Re:
The courts HAVE ruled on this and said it does not violate the fourth amendment.
The courts are wrong.
Not for the first time.
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Asset Forfeiture
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Re: Asset Forfeiture
Personally, I think that proving reasonableness in a court of law (e.g. due process of law) should be a minimum threshold. Even showing evidenciary support prior to seizing property would be a step in the right direction.
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Re: Re: Asset Forfeiture
All ABC Government entities are terrorists to the public of this nation until proven otherwise by a court made up solely from the people, not the government, not the judges, certainly not the fraking lawyers nor corporations.
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Re: Re: Asset Forfeiture
"nor shall private property be taken for public use, without just compensation."
Seizing my money (private property) and using it to fund your agency (public use) without some just compensation is shown to be illegal right here. There's no 5 1/2 Amendment that says; "Unless you're a drug dealer or owner of a cash-based business, in which case you have no rights."
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Sick of this
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Where the hell is Congress you ask??
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Usually covered as 'processing / admin fees'...
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You'd suddenly find DOZENS if not hundreds of managers and supervisors lining their pockets with other peoples money.
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One hopes
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