by Martin Armstrong, Armstrong Economics:
Two men were pulled over while driving on I-20 in Texas, carrying $250,000 worth of gold bars. US law permits and encourages law enforcement to confiscate assets. Civil asset forfeiture enables the government to simply seize assets and declare that the owner is guilty of money laundering before any due process occurs.
“We have to be able to prove what that criminal activity was, in other words how they got the money that they laundered. A lot of times that’s hard when your case starts with a traffic stop,” DA Tonda Curry said. Officers and drug sniffing dogs searched the men and their vehicle but found nothing aside from the gold. Curry initially attempted to pin the men with money laundering charges but could not make a case. The DA then determined that the men were involved in some criminal organization “that defrauds the elderly with investment-type scams.”