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1 IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF NORTH CAROLINA WESTERN DIVISION NO. 5:14-CV-476-FL UNITED STATES OF AMERICA, : : Plaintiff, : :

v.

: : FUNDS CONTAINED IN THE :

MOTION FOR VOLUNTARY DISMISSAL

BETTER BUSINESS CHECKING : ACCOUNT NUMBERED 802070987 AND: THE BUSINESS SWEEP ACCOUNT : NUMBERED 802121715 AT CAPITAL : BANK, UP TO $359,557.25, IN : THE NAME OF MARLA BEDNAR D/B/A: MARLA ENTERPRISES, : : Defendants. : The United States of America, by and through the United States Attorney for the Eastern District of North Carolina, pursuant to Federal Rule of Civil Procedure 41(a)(2), hereby moves to voluntarily dismiss this case. In support of this motion, the plaintiff states as follows: 1. In a Complaint filed on August 22, 2014 (DE #1) the plaintiff sought the forfeiture of the subject Capital Bank accounts under 31 U.S.C. § 5317(c)(2) on the basis that they were involved in the illegal structured withdrawal of funds in violation of 31 U.S.C. § 5324. 2. In a Declaration submitted with the Complaint, United States Secret Service Special Agent Terry Tate detailed a pattern of 28 withdrawals fromthe seized Capital Bank accounts

Case 5:14-cv-00476-FL Document 33 Filed 05/01/15 Page 1 of 4

2 between January 6, 2014 and May 29, 2014, totaling $246,230.00, which appeared structured to evade the CTR reporting threshold of $10,000. The Declaration further noted that structuring activity had previously occurred at First Citizens Bank, which after providing the claimants with a CTR Reference Guide on September 22, 2010 making themaware of the anti-structuring requirements, terminated its banking relationship with the claimants on October 13, 2010 due to continued structuring activity. The Declaration further notes that another bank, Fifth Third Bank, also terminated its relationship with the claimants on December 9, 2010 due to structuring activity. 3. On August 29, 2014 the Court entered an order finding probable cause for the forfeiture of the bank accounts and directed the Clerk of Court to issue the Warrant of Arrest In Rem(DE #6). Acting on the authority of the Warrant, the accounts were seized on September 25, 2014. 4. While there was clearly probable cause for the seizure and forfeiture of the Capital Bank accounts, and while the United States contends that the property is forfeitable, the plaintiff declines to proceed further in litigation in light of the U.S. Department of Justice Policy Directive 15-3, effective March 31, 2015, under which a forfeiture action like this, where there is no probable cause that the funds structured were generated fromunlawful activity, would not be commenced. While the policy is not retroactive and, therefore, inapplicable to


3 the present case, and while it has no force of law, being merely a guide to the exercise of prosecutorial discretion, the plaintiff chooses, on the particular facts of this case, to exercise its discretion not to continue with the litigation of this case. ACCORDINGLY, it is requested that the Court dismiss this case. A proposed order is being submitted herewith. Respectfully submitted this 1st day of May, 2015. THOMAS G. WALKER United States Attorney BY: /s/ Stephen A. West STEPHEN A. WEST Assistant United States Attorney Attorney for Plaintiff Civil Division 310 New Bern Avenue Federal Building, Suite 800 Raleigh, N. C. 27601-1461 Telephone: (919) 856-4530 Facsimile: (919) 856-4821 E-mail: steve.west@usdoj.gov NC State Bar No. 12586
