On a Tuesday morning in February 2025, federal agents descended upon Ayala's Mini Market, a convenience store in Glendale, Arizona, that offered check cashing, money transfer, shipping, and cellphone repair services along with standard items such as groceries, snacks, sodas, and cigarettes. The agents, who worked for the Internal Revenue Service (IRS) and the Department of Homeland Security (DHS), seized three computers, five cellphones, and business records, plus about $460,000 in cash and checks. They did not say why.

Twenty months later, the store's owner, Mario Ayala, still has not received a definitive answer to that question. Nor has the government told him what it plans to do with his property or how he can try to get it back. That Kafkaesque situation is unconstitutional, Ayala's lawyers at the Institute for Justice argue in a motion and memorandum they filed on Tuesday in the U.S. District Court for the District of Arizona. The motion seeks the return of the property seized from Ayala's business, saying there is no legitimate reason for the government to keep it.

"The government can't take your stuff, disappear, and then never explain itself," says Institute for Justice attorney Betsy Sanz. "For over a year and a half, the government has been holding Mario's money and property. This prolonged seizure violates the Fourth Amendment and federal law. The government cannot hold onto your property indefinitely without explanation so it can eventually take it permanently using civil forfeiture."

The raid on Ayala's store happened while he was visiting his ailing father in Mexico, who died a couple of months later. After Ayala's wife and son called to tell him what had happened, he rushed back to Arizona, where he tried to figure out why his business had been targeted by the IRS and the DHS. That was harder than you might think.

Ayala "has heard nothing from the government since they raided his business and seized his property," Sanz and her colleagues note in their memorandum. When the agents left, they told Ayala's son that "the business would receive a letter within thirty days," the memorandum says, but "no letter came," and the government "has not told Mario why it took his property or why it refuses to return it."

The agents left a one-page inventory of the property they took, including the computers, cellphones (two of which belonged to Ayala's customers), documents, and currency, although it did not specify the amount of money. They also left the first page of a warrant signed by a federal magistrate judge, which contained no information about the crime they were investigating or the property they were authorized to seize. It referred to attachments that might have clarified those points, but the attachments were missing.

Ayala still has not seen those attachments. But on the same day the agents raided his store, they also searched 18 other businesses in the Phoenix area, all of which offered money services. Judging from the warrants served on three of those other businesses, which were signed by the same magistrate judge at the same time on the same day as the warrant for Ayala's Mini Market, the legal justification for the searches was suspected violations of 31 USC 5324, which makes it a felony to "structure" a financial transaction with the intent of "evading" federal reporting requirements.

The Bank Secrecy Act requires that financial institutions report cash transactions involving more than $10,000 to the Financial Crimes Enforcement Network (FinCEN). Although that mandate is aimed at money laundering, someone can be guilty of structuring even without evidence of any other crime if he deliberately tries to avoid triggering a FinCEN report by breaking up a transaction into amounts below the threshold. As far as Ayala can tell, the search of his store was based on nothing more than suspicion of structuring.

If so, Ayala's lawyers argue, the IRS agents who participated in the raid violated a 2019 federal law that bars the agency from seizing money when structuring is the only suspected crime. Congress passed that law in response to IRS forfeiture abuses highlighted by the Institute for Justice. "For the IRS to legally seize property based on a structuring offense, it must also have an added suspicion of some other criminal act," Sanz et al. note. "Yet the IRS seized Mario's property, apparently on the sole suspicion of a structuring violation."

That is not the only legal problem with the seizure. Assuming the government plans to seek forfeiture of Ayala's money based on an alleged connection to criminal activity, it missed a crucial deadline. The Civil Asset Forfeiture Reform Act (CAFRA) requires the federal government to notify property owners of attempted forfeitures within 60 days of the seizure. That deadline passed a year and a half ago, and Ayala still has received no such notice.

"This notice is crucial because it informs a property owner that the government intends to forfeit his property and triggers his ability to respond by filing a claim or administrative petition," Ayala's lawyers note. If the government fails to meet that requirement, CAFRA says, it "shall return the property."

The government can seek extensions of the CAFRA deadline "only if there is reason to believe that notice may have an adverse result," such as "endangering the life or physical safety of an individual," "flight from prosecution," "destruction of or tampering with evidence," "intimidation of potential witnesses," or "otherwise seriously jeopardizing an investigation or unduly delaying a trial." None of those conditions applies in this case, Sanz et al. say, and their client "is unaware of the government seeking any such extension here."

Another possible rationale for keeping Ayala's property is that the government needs it as evidence in a criminal investigation. But his lawyers argue that the seized items "have no independent evidentiary value."

The government "cannot claim that it is holding the cash as evidence of the suspected structuring offense, because the government—in the usual course—does not continue to hold the physical cash it seizes but rather promptly deposits it," the memorandum says. "To prove the suspected offense here, the government would present evidence documenting the amounts and frequency of transactions and evidence that the defendant intentionally evaded reporting requirements. No fact the government must prove to establish a structuring offense becomes more or less provable by the government's continued possession of Mario's money."

Although "the checks and business documents that the government seized from Mario may at first have had some evidentiary value," Sanz et al. say, it could have long since returned the originals and kept copies. As for the computers and cellphones, "the government has had ample time to extract and copy" any relevant information.

While the benefits of keeping Ayala's property seem highly dubious, the cost to him has been severe. The seizure of the checks and currency wreaked havoc with his business model, which relies on money received for transfers to cash checks, which in turn are scanned and used to pay the companies that handle the transfers.

"The search and seizure of Mario's property upended his business," the memorandum says. "He had to keep his business closed until March 1, 2025, to replace the seized computers and to figure out how they could keep the business open. He took $50,000 of his own money out of the bank so that he could keep cashing customers' checks. When that ran out, the business had to stop cashing checks for a long time, losing customers."

Ayala "also had to come up with $112,097.20 to pay the money transmitters to cover the balance that had accrued while he was away," his lawyers add. "Since all the cash and cashed-but-unscanned checks had been seized, Mario needed to pay this money to the transmitters on his own. Though he did ultimately pay back all the money transmitters over the following month, the consequences of the raid damaged Mario's business relationship with one of the money transmitters he had formerly worked with, InterMex. Today, the business can no longer offer InterMex as an option for money transfers."

Ayala's business "is now finally stable, but it is still not doing as well as it was before the raid," Sanz et al. say. "Mario has changed the way he runs his business because of the raid. He now scans every customer's cashed check to send it to the money transmitters as soon as it is cashed, rather than collecting [checks] and scanning them together as they previously did. He constantly worries that his business will be targeted again."

In the 20 months since the raid, the government has not filed a forfeiture action or even notified Ayala that it intends to do so. Nor has it filed any criminal charges related to the seizure, as far as Ayala knows. "The government has no lawful reason to retain
Mario's property," his lawyers say, "and this Court should exercise its equitable jurisdiction to order its return."

The motion relies on Federal Rule of Criminal Procedure 41(g), which says "a person aggrieved by an unlawful search and seizure of property or by the deprivation of property may move for the property's return." The U.S. Court of Appeals for the 9th Circuit, which includes Arizona, has adopted four criteria for granting such a motion: whether the government "displayed a callous disregard for the constitutional rights of the movant," whether "the movant has an individual interest in and need for the property he wants returned," whether "the movant would be irreparably injured by denying return of the property," and whether "the movant has an adequate remedy at law for the redress of his grievance."

All of those factors count in Ayala's favor, Sanz et al. argue. Ayala's interest in the property and the injury he is suffering are clear, as is the absence of any other remedy. As for the first criterion, "the government can neither forfeit Mario's property nor justify holding it as evidence, so its continued retention is unreasonable under the Fourth Amendment," the memorandum says. "And its nearly 20 months of silence, without any notice or any forum in which to contest the seizure, offends due process. At every turn, the government has 'callous[ly] disregarded' Mario's constitutional rights."

Ayala immigrated to the United States from Mexico in 1991 and struggled for years to make a go of his business, which was successful enough at the time of the raid that he planned to open a new location devoted to cellphone repair. That plan is now on hold because of the financial difficulties caused by the seizure.

"This business is my American Dream, and the government took years of my hard work without telling me what I did," Ayala says. "This raid hurt me and my family. I hope this lawsuit gets my money back and helps make sure this doesn't happen to anyone else."

The post The Feds Took $460,000 From This Arizona Convenience Store Owner and Never Explained Why appeared first on Reason Magazine.

A Missouri judge who locked two children in jail cells because he was frustrated by their resistance to a parental custody decision is liable for violating their Fourth Amendment rights, a federal appeals court ruled this week. The U.S. Court of Appeals for the 8th Circuit rejected Taney County Judge Eric Eighmy's claim that he was shielded by qualified immunity, a doctrine that blocks federal civil rights claims unless they allege a violation of "clearly established" law.

"A reasonable judge should have known better," Judge David Stras writes in an opinion joined by the two other members of the 8th Circuit panel. "The law was 'clearly established' enough" to "place the issue 'beyond debate.'"

Institute for Justice attorney Dylan Moore, who wrote an 8th Circuit brief arguing against immunity for Eighmy and participated in oral arguments, welcomed the decision. "Every reasonable person knows that a judge can't throw children in jail for no good reason," he said. "Yet Judge Eighmy claimed qualified immunity shielded him from accountability anyway because no prior case told him that imprisoning innocent kids is unconstitutional. That defense is ridiculous, and we are thrilled that the court saw through it. When government officials commit such obvious constitutional violations, qualified immunity should never enter the picture."

The incident at the center of the case happened after an October 2019 custody hearing involving Kadan Rockett, then 14, and his 12-year-old sister, Brooklyn, who had achieved a modicum of fame as magicians performing on America's Got Talent. Their divorced parents, Bart Rockett and Kami Ballard, agreed that Ballard, who at that point lived in Missouri, would have primary custody of the children, while Rockett, who was living in California, would be "responsible for them at the beginning of each month and 'during TV pilot season.'" But Kadan and Brooklyn did not want to go home with their mother, which led to an argument in the lobby of the courthouse.

Eighmy intervened, telling Kadan and Brooklyn to come with him to a conference room, where he informed them that they had to leave with Ballard. "The children would not budge, even after the judge mentioned that the other option was foster care," Stras notes. "Frustrated, Judge Eighmy had the children follow him again, this time to a waiting area in the courthouse's juvenile division." A few minutes later, Eighmy "led them down a hallway to two holding cells."

Outside the cells, Eighmy again threatened Kadan and Brooklyn with foster care, but they were still unmoved. "Lock them up," the judge told an officer, who "patted them down and ordered them to remove their socks and shoes" before confining them in separate cells.

It is not clear exactly how much time Kadan and Brooklyn spent in the cells. The Institute for Justice says "about an hour," while Stras says "the time spent in the holding-cell area was between twenty and forty minutes." In any case, the children's respect for Eighmy's authority had improved by the time he came back. He "asked them one more time whether they would leave with their mother," Stras writes. "This time, they both nodded yes, so he let them go."

In June 2021, Rockett, the children's father, sued Eighmy on their behalf under 42 USC 1983, which authorizes claims against state or local officials who violate constitutional rights under color of law. In his motion to dismiss the lawsuit, Eighmy argued that he was protected by judicial immunity, which is absolute with respect to a judge's official duties. U.S. District Judge Douglas Harpool disagreed, and the 8th Circuit affirmed that ruling in 2023, noting that Kadan and Brooklyn were beyond Eighmy's contempt power because they were not parties to the custody case and that "judges do not do double duty as jailers."

Eighmy reiterated his judicial immunity claim in a motion for summary judgment, and Harpool rejected it again. After the trial began, Eighmy claimed qualified immunity twice, once after all the evidence had been submitted and again after the jury's verdict in favor of Kadan and Brooklyn. Harpool denied him that defense both times.

The jury ultimately awarded Kadan and Brooklyn $5,000 each in damages, and Harpool added about $327,000 in attorney fees. Eighmy appealed again, reiterating his judicial immunity claim. But the appeals court ruled that he had abandoned that argument by failing to raise it during the trial or after the verdict. So Eighmy was left with qualified immunity, which the appeals court said he did not deserve.

Eighmy clearly violated the Fourth Amendment's prohibition of unreasonable seizures, Stras says, because he "did not have 'probable cause to believe that [the children had] committed' an offense, much less one that justified placing them in a holding cell. Rather, their only misdeed was one every parent knows well: resisting authority. Even in the context of legal-custody proceedings, refusing to leave with a parent is not a jailable offense. Nor were there 'exigent circumstances' arising out of danger to themselves or others."

Did Eighmy's authority as a judge give him extra leeway? Nope. "Criminal contempt was off the table because the children were neither parties to the custody case nor present inside the courtroom," Stras notes. "Nor could the power to punish a party for violating an injunction have provided the justification, given that Judge Eighmy never issued one."

Eighmy's motive for jailing the children does not change that analysis. "We have no doubt that Judge Eighmy believed he was acting in 'good faith,' and possibly even in the children's best interests, by detaining them," Stras writes. "But good faith in the Fourth Amendment context is about reasonable reliance, either on binding appellate precedent or a warrant issued by a 'neutral magistrate.'"

What about Eighmy's argument that he had no way of knowing his actions were unconstitutional? "The law in this area" was "clearly established," Stras says. "'[I]t would have been sufficiently clear [to] every reasonable official,' Judge Eighmy included, that locking up two children for refusing to follow directions violated the Fourth Amendment. As we put it over a decade and a half ago, long before the events in this case, '[i]t is clearly established that a warrantless arrest, unsupported by probable cause, violates the Fourth Amendment."

That principle was so well established, in fact, that Kadan and Brooklyn, neither of whom had attended law school, took it for granted. "I don't know how you have a right to lock us up," Kadan told Eighmy when he threatened to jail them, according to Rockett's amended complaint. "We have done nothing wrong." The complaint says Brooklyn raised the same point. "How can you just lock up kids?" she asked. "This isn't legal. We've done nothing wrong."

Given Eighmy's obvious disregard for Kadan and Brooklyn's Fourth Amendment rights, "we are not concerned about the lack of a prior case" with "fundamentally similar" facts, Stras says. "Indeed, given how clear the law is, it would have been surprising to find one." He quotes an observation that Supreme Court Justice Neil Gorsuch made as a 10th Circuit judge: "Sometimes the most obviously unlawful things happen so rarely that a case on point is itself an unusual thing."

The post The 8th Circuit Rejects Qualified Immunity for a Judge Who Jailed 2 Kids for 'Refusing To Follow Directions' appeared first on Reason Magazine.

Back in 1983, the Supreme Court declared that "a person traveling in an automobile on public thoroughfares has no reasonable expectation of privacy in his movements from one place to another." That increasingly doubtful proposition underpins a nationwide network of more than 144,000 AI-assisted cameras that track the travels of innocent motorists across the country billions of times each week.

So far, state and federal courts have almost uniformly rejected constitutional challenges to automated license plate readers (ALPRs) installed by companies such as Flock Safety. But in a decision that could signal a shift in the legal treatment of Flock cameras, a federal judge in Oklahoma recently recognized that they enable "a type of indiscriminate mass surveillance."

ALPRs are much more sophisticated than the technology that the Supreme Court considered in 1983, when it approved the warrantless use of a radio transmitter that helped police tail a suspected methamphetamine manufacturer's car. Three decades later, by contrast, the Court said police should have obtained a search warrant before attaching a GPS tracker to another drug suspect's car.

The majority opinion in the latter case emphasized the physical intrusion necessary to install the tracker. But five justices embraced an alternative rationale, saying GPS tracking impinges on reasonable expectations of privacy by revealing potentially sensitive information about the target's historical whereabouts.

That theory came to the fore in a 2018 case involving mobile-phone location data collected by cell sites, which the majority said implicated the Fourth Amendment because "individuals have a reasonable expectation of privacy in the whole of their physical movements." The Supreme Court reiterated that principle this year, extending it to data collected by Google's Location History feature.

"An individual has a reasonable expectation of privacy in records about his cell phone's location," Justice Elena Kagan said in the majority opinion, "and police intrude on that constitutionally protected interest when they demand the information." By similar logic, U.S. District Judge Sara E. Hill concluded this month in the Oklahoma case, people have a reasonable expectation of privacy in ALPR records, and police therefore generally need a warrant to search them.

Those databases include "information about all vehicles that pass by any network-connected camera at all times," which police can peruse "on demand," Hill noted. "Freedom from persistent, dragnet-style surveillance while in public is not a foreign concept in our society, and it is a reasonable expectation that society already accepts," as reflected in the Supreme Court's cellphone decisions.

Like cars, cellphones "move in public places where people can see you in plain view," Hill wrote. "But it becomes constitutionally problematic when law enforcement can indiscriminately and passively catalog your whereabouts over an extended period of time and then use that information for any purpose whenever convenient."

At this point, Hill's decision is an outlier. "It appears that nearly every court examining the issue to date has determined that ALPR technology use is not a search under the Fourth Amendment because people have no reasonable expectation of privacy in their movements on public streets," she noted.

Last month, for instance, a federal judge in California held that ALPR database searches are "clearly distinguishable from and less extensive than the 'near perfect surveillance' achievable" with cell-site or Location History data. And the day after Hill's ruling, a state judge in California rejected a challenge to San Jose's Flock camera network, saying "there is no reasonable expectation of privacy in license plate data collected from cameras directed solely at public streets."

A federal lawsuit involving the same city's ALPR system, which the Institute for Justice filed last April, is still pending. So are challenges to Flock cameras in cities such as Wichita, Kansas, and Norfolk, Virginia.

Even when they reject such lawsuits, courts commonly acknowledge that the legal picture could change as the number and capabilities of ALPRs multiply. If so, it seems likely that Hill will eventually be joined by other judges who recognize the perils of "indiscriminate mass surveillance."

© Copyright 2026 by Creators Syndicate Inc.

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