Your Money is Not Your Business

Want to know how closely the IRS and other agencies are looking at your financial transactions and how crushing civil forfeiture laws are? Former Gov. Eliot Spitzer — whose crash-and-burn few will lament — certainly knows. His outing as Client No. 9 came about because bankers reported him moving his own money around in his own accounts. Moving money around in amounts less than the $10,000 reporting threshold can be a crime if you’re doing it to avoid the reporting threshold. Nice, huh? Purportedly, it’s to help catch drug dealers and money launderers. But, as Forbes points out this month, it also ensnares plenty of innocents. People like the owners of three Dallas taxi services — Allen Mansourian, Barry Sangani and Ahmad Sangani — who own Executive Taxi, Dallas Taxi and Golden Taxi. Feds have seized $330,000 from the three, and they’ll have to shut down if they don’t get their money back. Which is difficult, given that they have to prove they earned the money legally. (Civil asset forfeiture laws presume guilt, and, with a logic more bent than a bag of paperclips, declare that the property is guilty of a crime.)