Background
In 2021, the United States seized over seven hundred thousand barrels of crude oil from two tankers in the Mediterranean Sea. The government alleged the oil belonged to the National Iranian Oil Company, which materially supported the Islamic Revolutionary Guard Corps. A private commodities trading company claimed ownership and moved to dismiss the forfeiture action, arguing the government failed to adequately plead elements of its claim. The district court denied the motion after the government filed an amended complaint.
The court’s reasoning
The court reviewed the denial of the motion to dismiss de novo under the Twombly-Iqbal standard. It held that the amended complaint adequately alleged that the National Iranian Oil Company owned the property at the time of the offense, as forfeiture title vests upon commission of the act. The court found the complaint sufficiently alleged that the company’s material support affected foreign commerce under the Foreign Commerce Clause framework. Finally, the court determined the complaint plausibly alleged the offense was calculated to influence the United States government, given the close intertwining of the company and the designated terrorist organization.
The forfeiture takes effect immediately upon the commission of the act.
United States v. Stowell, 133 U.S. 1, 16 (1890)
What it means going forward
The ruling reinforces the government’s ability to pursue civil forfeiture against assets linked to foreign terrorist organizations even when the property is seized long after the underlying offense occurred.
Podcast (federal-narrative-summaries): Play in new window | Download