Written by Zachary Newland, Founding Partner. Last updated August 10, 2026.

Federal Asset Forfeiture: How the Government Seizes Property and How to Fight Back

Federal asset forfeiture gives the government power to take your cash, bank accounts, vehicles, real estate, and business assets, sometimes before you are ever charged with a crime. If a federal agency has seized your property or you have received a seizure notice, the deadlines to respond are short and the consequences of failing to act are irrevocable. Understanding how federal asset forfeiture works, what statutes control the process, and what steps you must take to protect your property is essential for anyone caught in a federal investigation.

On This Page

• What Is Federal Asset Forfeiture?
• Civil vs. Criminal Forfeiture: Key Differences
• How Administrative Forfeiture Works
• Contesting Federal Property Seizure: What You Must Do
• How Federal Asset Forfeiture Intersects with Criminal Investigations
• How Evergreen Attorneys Can Help
• Frequently Asked Questions

What Is Federal Asset Forfeiture?

Federal asset forfeiture is a legal mechanism that allows the United States government to seize and permanently take ownership of property alleged to be connected to federal criminal activity. The property targeted can include currency, financial accounts, vehicles, real estate, and business assets.

The federal government pursues forfeiture under several core statutes. 18 U.S.C. § 981 provides general civil forfeiture authority for property involved in a wide range of federal offenses. 18 U.S.C. § 982 authorizes criminal forfeiture as part of sentencing after a conviction. For drug-related offenses, 21 U.S.C. § 881 governs civil forfeiture of controlled substances, proceeds, and facilitating property, while 21 U.S.C. § 853 addresses criminal forfeiture upon conviction for drug trafficking.

The alleged policy purpose of federal asset forfeiture is to deprive criminal enterprises of proceeds, deter future criminal conduct, and, in certain cases, compensate victims. In practice, forfeiture can impose devastating financial consequences on individuals and businesses, even when no criminal charges are ever filed.

Civil vs. Criminal Forfeiture: Key Differences

The distinction between civil and criminal forfeiture is critical because it determines your rights, the government’s burden of proof, and your available defenses.

Criminal forfeiture is part of a federal prosecution. The government must first convict a defendant, and only then can the court order forfeiture of property linked to the offense. Criminal forfeiture proceedings are governed by statutes such as 18 U.S.C. § 982 and 21 U.S.C. § 853.

Civil forfeiture is a separate action filed against the property itself, not against a person. These cases are styled “in rem,” meaning the lawsuit names the property as the defendant. Civil forfeiture does not require that the property owner be charged with or convicted of any crime. Under the Civil Asset Forfeiture Reform Act of 2000 (CAFRA), codified largely at 18 U.S.C. § 983, the government must prove by a preponderance of the evidence that the property is subject to forfeiture. Property owners can raise defenses, including innocent ownership.

Civil forfeiture gives federal agencies a powerful tool to seize assets even when criminal prosecution is not pursued. This makes it particularly important for professionals and business owners to understand the procedural differences and respond correctly when faced with either type of forfeiture action.

How Administrative Forfeiture Works

Administrative forfeiture is a non-judicial process in which a federal agency such as the FBI, DEA, or IRS forfeits seized property without going to court. This process applies when no one files a timely claim to contest the seizure.

After seizing property, the agency must send written notice to known interested parties and publish a public notice of the forfeiture. If no claim is filed within the deadline (typically 30 to 35 days, depending on the applicable statute and regulations), the property is forfeited by default. Administrative forfeiture is generally limited to certain categories of property, such as currency and personal property up to a statutory value threshold. Real property usually requires judicial proceedings.

If an owner files a valid claim during the notice period, the agency must refer the matter for either a civil judicial forfeiture action in federal court or incorporate the property into a criminal case. Filing a timely claim is the single most important step to preserving your right to challenge the government’s seizure.

Contesting Federal Property Seizure: What You Must Do

If you receive notice that the federal government has seized your property, you face strict deadlines and procedural requirements under 18 U.S.C. § 983. Missing these deadlines can result in permanent forfeiture with no opportunity for judicial review.

1. Read the seizure notice carefully and identify whether the forfeiture is administrative, civil judicial, or connected to a criminal case.
2. Note the deadline for filing a claim. In administrative forfeiture, this is typically 30 to 35 days from the date of the notice.
3. File a timely claim with the seizing agency (for administrative forfeiture) or a verified claim and answer in federal court (for civil judicial forfeiture), following the procedures set out in 18 U.S.C. § 983 and the Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions.
4. Do not ignore the notice. Inaction results in a default forfeiture, and courts have very limited authority to set aside a forfeiture after the deadline passes.
5. Preserve all records related to the seized property, including purchase records, bank statements, contracts, and any correspondence with the seizing agency.
6. Consult a federal criminal defense attorney before making any statements to law enforcement or the seizing agency, as your responses in a forfeiture proceeding can affect a parallel criminal investigation.

Evergreen Attorneys won 9-0 in the U.S. Supreme Court in United States v. Hemani in June 2026.

How Federal Asset Forfeiture Intersects with Criminal Investigations

Federal asset forfeiture rarely happens in isolation. Seizures frequently accompany or precede broader federal investigations into federal fraud crimes, federal drug offenses, and other white collar crime. If you are facing a forfeiture action, there may be a parallel grand jury investigation, a pending indictment, or an active federal investigation involving your assets.

The interaction between forfeiture and criminal proceedings creates serious strategic risks. Statements made in a civil forfeiture case can be used against you in a criminal prosecution. Conversely, decisions in a criminal case can affect what property the government can forfeit and what defenses remain available. A coordinated defense that accounts for both the forfeiture and the underlying criminal exposure is essential.

Business owners and professionals face heightened risks because forfeiture can target operating accounts, commercial real estate, and essential business assets, disrupting operations even before any charges are filed. If you have received a federal target letter or a civil investigative demand, the possibility of asset seizure should be part of your defense planning from the outset.

How Evergreen Attorneys Can Help

Evergreen Attorneys focuses exclusively on federal criminal defense, which means every forfeiture matter is evaluated within the context of the client’s broader federal exposure. The firm’s attorneys analyze seizure notices, identify the type of forfeiture at issue, assess deadlines under 18 U.S.C. § 983 and related statutes, and develop strategies to contest the seizure or negotiate a resolution.

Because forfeiture is so closely tied to criminal investigations, Evergreen Attorneys coordinates forfeiture defense with the client’s overall criminal defense strategy. This includes evaluating whether to file a claim, pursue remission or mitigation, challenge the sufficiency of the government’s evidence, or raise an innocent owner defense. Zachary Newland has appeared as counsel of record in more than 120 federal cases since 2016, providing the depth of federal litigation experience that high-stakes forfeiture cases demand.

Frequently Asked Questions

What is the difference between civil and criminal federal forfeiture?

Criminal forfeiture requires a conviction. The government must prosecute and convict a defendant before the court can order forfeiture of property connected to the offense under statutes such as 18 U.S.C. § 982 or 21 U.S.C. § 853. Civil forfeiture is a separate lawsuit filed against the property itself, not against a person. It does not require a criminal charge or conviction. Under CAFRA and 18 U.S.C. § 983, the government must prove by a preponderance of the evidence that the property is forfeitable, and owners can assert defenses including innocent ownership.

How long do I have to contest a federal asset forfeiture?

In an administrative forfeiture, you typically have 30 to 35 days from the date of the notice to file a claim with the seizing agency. In a civil judicial forfeiture, the deadlines for filing a verified claim and answer are set by the Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions and the court’s scheduling order.

Missing these deadlines can result in permanent, uncontested forfeiture of your property. You need to act fast.

Can the federal government seize my business assets without charging me with a crime?

Yes. Civil forfeiture allows federal agencies to seize and pursue forfeiture of business assets, including bank accounts, commercial property, and operating funds, without filing criminal charges against the owner. The case is brought against the property itself. If the government can show by a preponderance of the evidence that the property is connected to a federal crime, the forfeiture can proceed. Filing a timely claim is the only way to force the case into federal court and mount a defense.

What is remission or mitigation in federal forfeiture?

Remission and mitigation are administrative remedies that allow a federal agency to return seized property or reduce the scope of a forfeiture, even if the statutory requirements for forfeiture are technically met. A property owner files a petition with the seizing agency, explaining why the property should be returned. Remission results in full return of the property; mitigation reduces the forfeiture, for example by returning a portion of seized funds. These petitions are discretionary, and the agency is not required to grant them.

When should a person or business involve federal defense counsel in a forfeiture matter?

As soon as you receive a seizure notice, a notice of forfeiture, or learn that federal agents have seized your property, you should consult a federal criminal defense lawyer. The deadlines to file a claim are short, and any misstep can result in permanent loss of your assets. Because forfeiture is often linked to broader federal investigations, early involvement of counsel allows for a coordinated strategy that protects both your property and your criminal defense interests.

If you are facing federal asset forfeiture or a federal investigation involving seized property, contact Evergreen Attorneys at (303) 948-1489 for an immediate case evaluation with a federal criminal defense attorney.