From: [c--i--s] at [clarinet.com] (GREG HENDERSON) Date: Wed, 24 Feb 93 16:30:11 EST Newsgroups: clari.news.law.supreme,clari.news.law.drugs,clari.news.issues.civil_rights,clari.local.new_york Subject: Supreme Court strikes blow to government's drug war WASHINGTON (UPI) -- The Supreme Court Wednesday struck a major blow to the government's war on drugs, ruling that federal agents can no longer seize drug profits given to a third party who is unaware of their illegal origin. By a 6-3 vote, the court said the government cannot take ownership of the New Jersey home where Beth Ann Goodwin and her children have lived since 1982, even though the $216,000 she used to buy the house came from her boyfriend's drug sales. In a splintered ruling, Justice John Paul Stevens wrote for a four- justice plurality that the government cannot apply a 1978 law allowing the seizure of illegal drug proceeds to gifts that have been given to persons who are unaware of any drug connection. Justice Antonin Scalia, writing for a two-person concurring opinion, reached the same conclusion on different grounds. Justice Anthony Kennedy, in a dissent joined by Chief Justice William Rehnquist and Justice Byron White, said the ruling ``leaves the forfeiture scheme that is the centerpiece of the nation's drug enforcement laws in quite a mess.'' Kennedy said the decision will pose ``immense'' practical difficulties for the Drug Enforcement Administration and other federal officials, and invites drug dealers to protect illegal profits by ``giving'' them away to close friends and family. ``If the government is to drain the criminal's economic power, it must be able to pierce donative transfers and recapture the property given in the exchange,'' wrote Kennedy. ``It is serious and surprising that the plurality today denies the government the right to pursue the same ownership claims that under traditional and well-settled principles any other claimant or trust beneficiary or rightful owner could assert against a possessor who took for no value and who has no title or interest greater than that of transferor.'' Goodwin claims the money to buy the house was given to her by her former boyfriend, Joseph Brenna, and she believed it was legal proceeds from his boating business. The DEA contends the 1982 purchase of the Rumson, N.J., home came from drug money and that it should be allowed to take the house. The couple split up on 1987, and Brenna was indicted in Florida in 1990 on drug trafficking charges. After Brenna's indictment, Goodwin testified under a grant of immunity. The government then ``seized'' her home but had allowed her to continue living there pending the culmination of the case. The 3rd U.S. Circuit Court of Appeals in Philadelphia said the ``innocent owner'' provision of Congress's drug property seizure law protects Goodwin, and the high court Wednesday agreed. That provision states that ``no property shall be forfeited'' for action ``committed or omitted without the knowledge or consent of that owner.'' The government said the ``innocent owner'' exception should not apply when the drug money was a gift, whether or not the property owner knew where the money came from. Stevens wrote that Congress intended the seizure law to apply only when drug profits are knowingly transferred. His opinion was joined by justices Harry Blackmun, Sandra Day O'Connor and David Souter. Scalia's concurring opinion was joined by Justice Clarence Thomas.