United States v. Bajakajian
Headline: Court blocks full forfeiture of $357,144 for failing to report cash, finding the seizure grossly disproportional and limiting the government’s power to confiscate large undeclared sums.
Holding: The Court held that forfeiting the entire $357,144 for a willful failure to report international currency would violate the Eighth Amendment because such a punitive forfeiture is grossly disproportional to the offense.
- Limits government's ability to forfeit all undeclared cash as a punitive penalty.
- Requires courts to strike fines grossly disproportional to the offense.
- District courts assess proportionality; appeals review forfeiture decisions de novo.
Summary
Background
A traveler, Hosep Bajakajian, was stopped at Los Angeles International Airport while trying to leave the country with his wife and two daughters. Customs officers using sniffing dogs found $357,144 in the family’s luggage after Bajakajian told them he and his wife had only about $15,000. He pleaded guilty to willfully failing to report that he was taking more than $10,000 abroad, and the Government sought to forfeit the entire amount under a federal statute. The District Court found the money came from lawful sources, ordered a $15,000 forfeiture instead of full forfeiture, and the Government appealed.
Reasoning
The Court asked whether taking all $357,144 as punishment would violate the Eighth Amendment’s ban on excessive fines. The Justices concluded that the forfeiture at issue is a punitive “fine” and must be proportional to the offense. Adopting a test that a forfeiture is unconstitutional if it is “grossly disproportional” to the crime, the Court found full forfeiture excessive here because the crime was only a willful reporting failure, the money was lawful and unconnected to other crimes, and the statutory and guideline penalties showed limited culpability.
Real world impact
The ruling limits the government’s ability to confiscate an entire sum of lawful money solely for failing to file a report when forfeiture would be grossly disproportionate. District courts must compare a forfeiture’s size to the offense’s gravity, and courts of appeal review that proportionality decision anew. The opinion did not address the District Court’s specific $15,000 order.
Dissents or concurrances
A dissent argued the decision undermines established customs fines, disfavors Congress’s chosen penalties, and could weaken enforcement against money laundering and smuggling.
Opinions in this case:
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