United States V. Bajakajian - Case History

Case History

In 1993, Hosep Krikor Bajakajian had attempted to leave the United States with $357,144 without reporting this to customs officials as required by 31 U.S.C. § 5316, which requires the reporting of all international movements of currency with value in excess of $10,000. The Government sought forfeiture of the entirety of the $357,144. None of the money was found to have been connected with any other criminal action whatsoever. Bajakajian was traveling to Cyprus via Italy, and the cash was intended to pay a debt. He was also initially charged with lying to customs, but this charge was dropped.

Bajakajian pleaded guilty to failure to report and opted for a bench trial on the forfeiture of the $357,144. A United States district court judge found the forfeiture of the whole $357,144 to be grossly disproportionate and in violation of the Eighth Amendment. He ordered forfeiture of $15,000 in addition to the maximum fine of $5,000 and three years probation for failure to report. Bajakajian had been eligible for six months in prison, but the Judge did not impose this sentence.

The United States Court of Appeals for the Ninth Circuit affirmed the decision of the District Court and in fact stated its willingness to go further by ruling that the forfeiture of any of the currency was unconstitutional. Unfortunately for Bajakajian, he had not appealed the forfeiture to the Ninth Circuit and they were thus unable to set it aside.