This case asks whether Nevada law allows for federal “adoptions” of state asset forfeiture proceedings through equitable sharing. Holding that it does would empower a predatory system and undermine Nevada’s sovereignty.
Asset forfeiture is a claim brought directly against property as if it had done something wrong. Federal prosecutors can adopt a state asset forfeiture action and litigate it. Equitable sharing gets its name because the state agency that refers a case for adoption receives up to 80 percent of the ultimate proceeds. Critically for this appeal, equitable sharing also exempts an asset forfeiture action from state-enacted safeguards for property owners.
Appellee Stephen Lara’s encounter with equitable sharing began on February 19, 2021, when a Nevada Highway Patrol (NHP) trooper pulled him over and briefly questioned him about his travel plans. Stephen was transporting $86,900 in life savings that he had hoped to use to buy a home for himself and his daughters. Though the trooper concluded that Stephen’s story “lines up,” his colleague decided it was “too easy” to seek forfeiture of the cash using equitable sharing, specifically saying he wanted to pursue an “adoption” of the money.
Stephen challenged the attempted asset forfeiture that followed. The district court ultimately enjoined NHP’s participation in equitable sharing, holding, “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” state asset forfeiture law. NHP appealed, and the case is now before the Nevada Supreme Court.
Cato filed an amicus brief urging the court to affirm. Equitable sharing has corrupted law enforcement into a revenue stream and left police agencies “addicted to drug money.” Further, it offends against federalism by denying states the ability to govern their own officers. NHP lists one of its goals as “Maximize Service to the Public”—and equitable sharing stands in the way.