In response to complaints from Little Rock businessman Stephen Parks and his wife, Anna Harper, that federal agents have improperly seized millions of dollars in cash and property from them, prosecutors insist they have provided “abundant detail,” under seal, to judges who found the information compelling enough to approve the seizures.
A response filed Thursday to the couple’s motion to dismiss refers to a sealed 32-page affidavit that the government provided to various federal judges in Little Rock in support of its application for warrants.
“As set forth in the affidavit, the … property is forfeitable as property involved in the money laundering offenses and proceeds of wire fraud and money laundering,” wrote Assistant U.S. Attorney Cameron McCree.
On June 25, attorneys for the couple and three of Parks’ businesses - Ecotec Coal, King Coal and King Coal Holdings - asked a federal judge to unseal the affidavit or affidavits that led to the execution of 22 search warrants between October 2012 and February 2013. The attorneys argued that the couple needs to know specifically what they are accused of doing in order to contest the seizures,as prosecutors are asking that the seized property be forfeited to the government.
A forfeiture complaint says only that the seized property was used in the course of committing wire fraud and money laundering.
In addition to $8 million seized from seven bank accounts, federal agents have seized the couple’s Heights house at 2020 N. Spruce St., as well as another house and a business in the Riverdale area. Agents have also seized more than $150,000 in cash, including about $85,000 from a life insurance policy, the contents of two investment accounts and five vehicles, including a Bentley.
“In the present case, the government’s case is deficient on its face because it does not provide any facts, much less facts supporting a reasonable belief that it could prove the property forfeitable at trial,” says the motion filed on behalf of the couple and the businesses.
For about 17 years, Anna Harper has operated Anna’s Estate Sales in Little Rock, though that business hasn’t been named in public documents and neither spouse has been charged with a crime.
In his response, Mc-Cree wrote, “Contrary to claimants’ assertions in their motion, the UnitedStates’ determination that its investigation has yielded probable cause has been subject to judicial review. The substance of the facts contained in its complaint affidavit has been reviewed by six judicial officers - three district judges and three magistrates.”
McCree said two of the magistrate judges were asked to find that probable cause existed to believe that the property was involved in money laundering, and proceeds of both money laundering and wire fraud, and both determined there was probable cause for the seizure.
McCree also argued that “other courts have permitted the practice of filing of affidavits under seal in prior cases,” adding, “The purpose of this practice is to permit the start of a forfeiture action while recognizing the United States’ compelling interest in protecting its ongoing criminal investigation.”
If the court wants more details about the government’s concerns about unsealing the affidavit, prosecutors “respectfully request the opportunity to submit this information ex parte,” or privately, only for the court’s inspection, he said. He cited a 1995 case in which the court allowed a private inspection of documents that explained how the investigation would becompromised by early disclosure of the warrant affidavit.
McCree said prosecutors had court permission to file affidavits in support of the complaint under seal, noting, “These decisions were sound when made and circumstances have not changed such that the decisions should be disturbed.”
Even if the court finds that the couple is entitled to the affidavit now, the forfeiture case itself shouldn’t be dismissed, he argued.
Without conceding that the affidavit should be unsealed or disclosed yet, he asked the court - in this case, U.S. District Judge Susan Webber Wright - to stay the case until a criminal investigation is completed, “or until it is determined that unsealing or disclosure of the affidavit will not significantly impair the ongoing criminal investigation.”
Meanwhile, U.S. District Judge Bill Wilson held a hearing earlier this week on three related complaints. He required the government to file a brief by Friday for the court’s eyes only, to explain the government’s “compelling interest” in the case.
Northwest Arkansas, Pages 14 on 07/21/2013