
A Nevada court has ruled against law enforcement’s use of a federal loophole for civil asset forfeiture, marking a significant victory for property rights advocates.
At a Glance
- Washoe County judge ruled Nevada law enforcement cannot bypass state civil forfeiture laws using federal programs
- Decision stems from 2021 case where Marine veteran Stephen Lara’s life savings were seized during a traffic stop
- Ruling reinforces Nevada’s stricter forfeiture laws, requiring higher proof for property seizure
- Decision seen as a warning to other states about misuse of federal equitable sharing program
Court Closes Federal Loophole in Civil Asset Forfeiture
In a landmark decision, a Washoe County judge has ruled that Nevada law enforcement agencies cannot use federal programs to circumvent state civil forfeiture laws. This ruling stems from a 2021 case involving Marine veteran Stephen Lara, whose life savings were seized during a routine traffic stop. The decision effectively prevents the Nevada Highway Patrol from seizing property under state law and processing it federally to receive up to 80% of the proceeds.
The court’s decision emphasizes that Nevada’s civil forfeiture laws are mandatory and do not allow for federal workarounds. This ruling has significant implications for property owners in Nevada, reinforcing state law protections against federal program exploitation. It also serves as a warning to other states about the potential misuse of the federal equitable sharing program.
Marine Veteran’s Case Sparks Legal Battle
The case that led to this ruling began in February 2021 when Stephen Lara, a Marine veteran, had his life savings of nearly $90,000 seized by the Nevada Highway Patrol during a traffic stop. Despite having documentation proving the money was from legitimate sources, the officer seized the funds and transferred them to the U.S. Drug Enforcement Administration without evidence of a crime.
“This is a groundbreaking decision that closes the door on law enforcement agencies trying to evade their own state laws for profit,” Ben Field, Attorney at the Institute for Justice, said.
Lara, with the help of the Institute for Justice, filed a federal lawsuit and eventually recovered his money seven months later. However, the legal battle didn’t end there. Lara and the Institute for Justice also sued the Nevada Highway Patrol in state court to prevent similar incidents from happening to others.
Nevada’s Stricter Forfeiture Laws Upheld
The court’s ruling highlighted that Nevada’s civil forfeiture laws are more stringent than federal laws, requiring higher proof for property seizure and quicker judicial review. Judge Connie Steinheimer of the Washoe County Second Judicial District Court stated that Nevada has not accepted the federal program, and thus the Nevada Highway Patrol cannot participate in it.
“While federal law clearly provides Nevada the option to participate in the federal equitable sharing program, Nevada’s Legislature has yet to accept this offer. Without such an acceptance, NHP is unable to participate in this program—as doing so effectively requires NHP to eschew Nevada’s delineated forfeiture scheme,” Judge Connie Steinheimer said.
The court ordered the Nevada Department of Public Safety to cease participation in the federal program until they comply with Nevada’s statutory requirements. This decision is seen as a significant victory by civil liberties advocates, as it prevents law enforcement from bypassing state laws for profit through federal partnerships.