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filed a motion with the 14th Judicial District Court of Calcasieu
Parish, Louisiana, for return of the seized property. On January
13, 1994, the State of Louisiana initiated a civil judicial
forfeiture proceeding against the currency. Mr. Brown filed both
an answer to the pending forfeiture and a claim for the return of
the currency in early 1994. The forfeiture proceeding is still
pending.
On September 23, 1993, Mr. Brown entered into a contract to
purchase a townhouse in Houston, Texas. Pursuant to the
contract, Mr. Brown made an earnest money deposit in the amount
of $5,000. The closing was to take place on November 9, 1993.
In the event that the buyer defaulted on the contract, the
contract provided, in pertinent part:
If Buyer fails to comply with this contract, Buyer
shall be in default, and Seller may either (a) enforce
specific performance, seek such other relief as may be
provided by law, or both, or (b) terminate this
contract and receive the Earnest Money as liquidated
damages, thereby releasing both parties from this
contract. * * *
Mr. Brown was unable to close due to the seizure of the
$30,900, which he planned to use to purchase the townhouse. Mr.
Brown reported the $5,000 deposit as a loss on his 1993 Federal
income tax return. In 1994, Mr. Brown recovered the $5,000
deposit and reported it as income on his 1994 Federal income tax
return.
In August 1993, Mr. Brown purchased a 1985 Cadillac DeVille
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Last modified: May 25, 2011