Government Can't Freeze Assets Without Judicial Review
In United States v.
Cosme, the U.S. Court of Appeals for the Second Circuit
held that the government could not seize and hold assets in
connection with criminal conduct without "a proper judicial
determination of whether probable cause existed at the time of the
seizure to support the forfeitability of his property." In the
case, defendant William Cosme had been arrested for fraud. The day
of his arrest, agents seized a Cadillac, a Ferrari, a Lamborghini
and more than $600,000 in cash. They also froze two of his bank
accounts, telling the banks they would obtain warrants but the
seizures had to happen immediately because of "exigent
circumstances." After he was indicted, the government moved
for – and received – a pretrial order to maintain
custody of the seized assets until the end of the criminal case.
Cosme appealed, arguing that the pretrial seizure without a
judicial determination of probable cause violated
