2256

Distinction of Interlocutory Sales

It has long been the position of the Department of Justice that sales in accordance with 28 U.S.C. § 2001 are only necessary for interlocutory sales conducted in forfeiture cases. Criminal Division, A Guide to Sales of Property Prior to Forfeiture (Revised Current as of November 1990); 19 U.S.C.§ 1612; See The Nancy II, 38 F.2d 182, 184 (1st Cir. 1930); United States v. Real Property and Residence at 3097 S.W. 111th Ave, Miami, Florida, 699 F. Supp. 287, 288 (S.D. Fla. 1988); cf. United States v. One 1984 Kawasaki Ninja Motorcycle, 790 F. Supp. 697, 701 (W.D. Tex. 1992); Marks v. United States, 24 Cl. Ct. 310 (1991). Very often, interlocutory sales are necessary because the property to be forfeited is deteriorating in value. However, it must be remembered that an interlocutory sale is not the end of the forfeiture case. It is a precautionary step in which the property to be forfeited is turned into cash to prevent deterioration in value. The forfeiture case continues, and the United States, if successful, will receive a final forfeiture order against the cash fund or proceeds of the sale. Using this procedure, the proceeds of the sale are then treated as substitute res for the original property to maintain jurisdiction as well as to satisfy the final judgment. Criminal Division, A Guide to Sales of Property Prior to Forfeiture (Revised Current as of November 1990), p. 1. [cited in USAM 9-115.310]