Statement of Reasons for Forfeiture

If members of the law enforcement community, such as those working for the Federal Bureau of Investigation or the Department of Justice, among others, have reasonable grounds to think the following about you, they may seize your property:

·         The house was utilized in the commission of the offense.
·         You used ill-gotten gains to make a purchase of an asset.
·         You are complicit in the act of money laundering.

There are a variety of additional scenarios in which members of law enforcement could take possession of your property. It is possible that property will be seized in cases involving drug trafficking and white collar crimes. Real estate, automobiles, private airplanes, and even assets belonging to businesses can be seized by the government if they are thought to have been obtained illegally (assets acquired by conducting illegal activities).

The loss like any property without any recompense as a consequence of failing to fulfill one’s contractual duties or as a sanction for engaging in illegal behavior is referred to as forfeiture. According to the provisions of a contract, the party who is in breach of their obligations is required to forfeit assets or cash flows generated by an asset as compensation to the other party for the losses that have been incurred as a direct result of the default. Proceedings for forfeiture can be either criminally or civil depending on whether or not they are compelled by law as a sanction for illicit action or activity that is prohibited. The process of seizure frequently entails legal battles that take place in a courtroom. A forfeiture of money, properties, or any other thing of value that is stipulated in a contract will arise when there has been nonperformance or a violation of a contractual duty. This is done in order to recompense the party that has been negatively impacted by the breach. One common provision in a sales contract for real estate states that a deposit will be lost if the buyer does not go through with the transaction to complete the purchase. In the world of finance, if an investor is unable to fulfill the terms of a call option, they may be obliged to give up the shares they now own. The amount of money earned from the forfeit is given to the counter party. In addition, owners run the risk of losing their shares if they attempt to exchange them during a period in which trading is prohibited. The original issuer of the stock receives any shares that are forfeited. When a corporation gives employees stock grants (ESOs) or shares of the firm as a reward, the company will frequently include restrictions on when and how such holdings can be sold by the employee. These limitations are designed to protect the company’s investment. It is possible that the employee will be obliged to give up the share of company stock that was allotted to them if they leave their position with the company before the completion of a predetermined period of time.