The federal government is using a legal process called 'civil forfeiture' to seize massive amounts of money from unsuspecting Americans – without alleging that they've committed any crimes. Laws put on the books to help the government track drug trafficking proceeds and terrorists' cash reserves are regularly contorted, according to a civil rights group, by prosecutors who see easy access to piles of cash that ultimately pays their salaries. The financial seizures leave some honest small businessmen and women out of luck when their life savings disappear and their family trades teeter on the edge of insolvency. In one case, the IRS took $446,000 from a mostly cash-only small business that distributes candy, snacks and cigarettes to convenience stores. Brothers Jeffrey, Richard and Mitch Hirsch lost that money two years ago when the federal government raided their bank account.
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Agencies that seize the cash can KEEP IT to pay salaries and grow their budgets
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Feds seized $446,000 from NY candy and cigarette distributor that deals mostly in cash;Iowa grandma lost $33,000 from her restaurant business
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Government can take money if it thinks people are evading financial reporting laws by depositing money in specific amounts
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Deposits of $10,000 or more trigger bank reporting requirements, so drug kingpins, terrorists and racketeers often limit their deposits to $9,900
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Law-abiding people can have their money seized; IRS can sit on the cash and try to pressure ordinary businessmen and women into settlements
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Institute for Justice, a nonprofit law firm, is pushing back and demanding hearings before federal judges
The @placeholder is collecting horror stories and planning legal responses.