United States District Court, D. Colorado
ORDER
Michael E. Hegarty, United States Magistrate Judge.
The
United States instituted this action for forfeiture in
rem pursuant to 21 U.S.C. § 881 on March 26, 2018,
seeking the forfeiture of two real properties alleged to be
used in violation of federal narcotics law. Compl. ¶ 1,
ECF 1. On July 30, 2018, Plaintiff filed an amended complaint
seeking the forfeiture of additional property alleged to be
used in an operation to supply “large amounts of
heroin, cocaine, methamphetamine, and prescription pain
narcotics in the North Denver Metro Area.” Am. Compl.
¶¶ 3, 6, ECF 20. Currently before the Court is the
United States' Motion for Default and Final Order of
Forfeiture (ECF 50), in which Plaintiff seeks a default
judgment against the following defendant properties: $118,
955.00 in United States currency; $40, 030.00 in United
States currency; $10, 000.00 in United States currency seized
from Jonathan Martinez; $10, 000.00 in United States currency
seized from Marcos Ramirez; $264.00 in United States
currency; and $24, 500.00 in United States currency. For the
reasons below, the Court grants the motion.
BACKGROUND
The
following facts are taken from Plaintiff's Verified
Amended Complaint. Plaintiff, the United States, instituted
this action for forfeiture in rem, seeking
forfeiture of the defendant properties based on violations of
the narcotics provisions of 21 U.S.C. § 801 et
seq. Plaintiff alleges that in June 2017, Drug
Enforcement Agency (“DEA”) agents began
investigating Heather Knoll, Richard Martinez, and others, as
members of a possible drug trafficking enterprise in Northern
Colorado. Ms. Knoll was identified as a mid-level poly-drug
supplier and bulk currency smuggler; Mr. Martinez was
identified as Ms. Knoll's boss and a “source of
supply” of large amounts of narcotics.
On
November 11, 2017, officers observed Ms. Knoll drive to a
Comfort Inn, located at 670 Eagleridge Boulevard, Pueblo,
Colorado, and park her 2005 Jeep Grand Cherokee. Another
vehicle pulled up adjacent to Ms. Knoll's. Ms. Knoll then
exited her vehicle and handed a small, green lunchbox to the
driver of the other car, who handed her a plastic,
“grocery type” bag, described by investigators as
“decently full.” Ms. Knoll got back into her Jeep
and drove away from the location, entering onto Interstate
25. Shortly after, Pueblo Police K-9 Detective Vincent
Petkosek conducted a traffic stop on Ms. Knoll. During the
stop, Detective Petkosek deployed his K-9 partner, named
Widget, who alerted to the odor of narcotics emitting from
Ms. Knoll's Jeep. After Ms. Knoll refused permission to
search the interior of the vehicle, Detective Petkosek seized
the 2005 Jeep Grand Cherokee pursuant to probable cause.
During a search of the Jeep, investigators located fifteen
pounds of marijuana inside two suitcases and found Defendant
$118, 955.00 in United States currency in an “extremely
well made and complex” hidden compartment in the
backseat of the vehicle.
On
January 25, 2018, Richard Martinez received a call from an
individual, later identified as Everardo Nunez-Gutierrez,
discussing Ms. Knoll, who was driving a truck from
Indianapolis, Indiana, to Denver, Colorado. Mr.
Nunez-Gutierrez told Mr. Martinez that the “truck was
ready” and that he could not follow Mrs. Knoll back to
Colorado because he was on his way to Chicago to drop the
rest of the “paper.” Plaintiff alleges that
“paper” means proceeds from the sale of
narcotics.
The
next day, Colorado State Police Trooper Ryan Cox observed two
vehicles traveling near speeds of eighty miles per hour and
observed Defendant 2017 GMC Sierra Denali tailgating closely
to another vehicle. Trooper Cox pulled over Defendant 2017
GMC Sierra Denali, which was driven by Ms. Knoll. During the
interview following her traffic stop, Ms. Knoll indicated the
vehicle she was driving, and occupied alone, belonged to her
cousin Richard Martinez. After obtaining consent to run his
K-9, named Cain, through and around the vehicle, CSP K-9 Cain
alerted to the rear center-seat area of the vehicle's
interior. Based his previous experience and on an examination
of the blots and area surrounding the rear seat, Trooper Cox
believed the read seat had been modified. On January 29,
2018, pursuant to a state search warrant, DEA and Colorado
Springs Police conducted a search of Defendant 2017 GMC
Sierra Denali. They discovered a sophisticated, hidden
hydraulic compartment in the same area at which CSP K-9 Cain
alerted. The hidden compartment contained four clear
vacuum-sealed plastic bags, containing Defendant $40, 030.00
in United States currency.
On
February 24, 2018, Richard Martinez received a telephone call
from a subject later identified as Jonathan Martinez. Based
on the content of the call, investigators believed that
Jonathan Martinez was going to bring narcotics to Richard
Martinez. On February 25, 2018, agents intercepted two
calls/texts, which indicated that Jonathan Martinez met
Richard Martinez at Richard's residence. That day
officers also observed a Kia in the driveway of Richard
Martinez's residence, which had previous been identified
as a vehicle associated with narcotics transportation. The
driver of the Kia was identified as Jonathan Martinez. Later
that day, Richard Martinez was involved in a phone call
indicating he was “short” of money for narcotics
that had been taken over to his residence and that he and
Jonathan Martinez would meet up the next day, on February 26,
2018, to settle the outstanding balance. On February 26,
2018, Richard Martinez received a call from Jonathan
Martinez. Richard Martinez indicated he was at home and
Jonathan Martinez stated he needed to “pick up those
files” and that he would call “as soon as he
picks them up.” Plaintiff alleges “files”
means narcotics. At approximately 12:03 p.m., Jonathan
Martinez sent Richard Martinez a text message indicating that
he was at Richard's residence. A pole camera confirmed
the presence of the Kia, previously driven by Jonathan
Martinez. At 12:09 p.m., a male exited the vehicle and went
into Richard Martinez's residence for a few minutes. The
vehicle was then followed from the City of Thornton, Colorado
to the City of Colorado Springs.
In
Colorado Springs, two El Paso County deputies conducted a
traffic stop on the Kia, which was driven by Jonathan
Martinez. The deputies deployed a K-9, who alerted to the
presence of the odor of narcotics inside of the vehicle. A
search of the Kia revealed Defendant $264.00 in United States
currency in the center console. Officers also located
Defendant $10, 000.00 in United States currency seized from
Jonathan Martinez inside Jonathan Martinez's jacket
pocket and Defendant $10, 000.00 in United States currency
seized from Marcos Ramirez inside Marcos Ramirez's jacket
pocket.
On
March 1, 2018, Richard Martinez communicated with a subject,
“UM9236, ” who appeared to be a narcotics
customer. Based on intercepted calls, it appeared Mr.
Martinez would supply UM9236 with cocaine and UM9236 would
pay him for this cocaine. On March 2, 2018, Mr. Martinez told
UM9236 that UM9236 needed to bring payment for the narcotics
transaction to Mr. Martinez's courier, Fred Tafoya, and
that UM9236 could meet Mr. Tafoya in the area of the Ugly Dog
Bar and Grill located at 1345 Cortez Street, Denver,
Colorado. UM9236 advised Mr. Martinez that he would be
driving a White Buick SUV. Mr. Martinez then contacted Mr.
Tafoya, telling him to go to the Ugly Dog to pick up
“around twenty-five” in narcotics proceeds. At
approximately 4:00 p.m., a Black Ford F-150, driven by Mr.
Tafoya, arrived in the vicinity of a White Buick SUV in the
parking lot of the “Lazy Dog.”[1] Mr. Tafoya left
the truck empty-handed and walked over to the Buick. After
approximately one minute at the Buick, Mr. Tafoya returned to
his truck with a white zip pouch in his hand and he left the
area in his truck.
A
traffic stop was then conducted on the truck in Westminster,
Colorado, for vehicle code violations. A consensual search of
the inside of the truck located the white pouch, which had
been seen in the surveillance at the Ugly Dog. Mr. Tafoya
advised that he had $24, 500.00 in United States currency
inside of the pouch. A K-9 sniff was conducted and the K-9
alerted to the odor of narcotics in the vehicle, specifically
to the white pouch. Defendant $24, 500.00 in United States
currency was seized as drug proceeds. After the currency was
seized, Mr. Martinez contacted Mr. Tafoya, who told him the
police took “the paperwork” and that he was not
comfortable talking on his phone because the police had had
it for a couple of hours. Subsequent intercepted calls
between Mr. Martinez and UM9236 confirmed that narcotics
proceeds were taken from Mr. Tafoya and Mr. Martinez believed
UM9236 had compromised the exchange.
DISCUSSION
Plaintiff
commenced this action in rem pursuant to 21 U.S.C.
§ 881. Plaintiff seized the six defendant properties at
issue in the present motion during searches executed prior to
the commencement of this action. Plaintiff has provided all
known interested parties with the opportunity to respond to
the forfeiture. ECF 21. Plaintiff also filed a Notice of
Publication pursuant to Rule G(4)(a)(iv)(C) of the
Supplemental Rules for Admiralty or Maritime Claims and Asset
Forfeiture Actions. ECF 34. This Notice was published on an
official government internet site for at least thirty
consecutive days. See ECF 34-1. No. claim, answer,
or other responsive pleading has been filed as to the
following defendant assets, and the time to do so has
expired: $118, 955.00 in United States currency; $40, 030.00
in United States currency; $10, 000.00 in United States
currency seized from Jonathan Martinez; $10, 000.00 in United
States currency seized from Marcos Ramirez; $264.00 in United
States currency; and $24, 500.00 in United States currency.
Based on the Verified Amended Complaint and these facts, the
Clerk of the Court entered an Entry of Default as to the
above-noted defendant properties on March 5, 2019. ECF 49.
Plaintiff now moves for default and a final order of
forfeiture as to those defendant assets.
I.
Entry of ...