After the Internal Revenue Service (IRS) and Department of Justice (DOJ) relinquished the bank account of a North Carolina business owner on Monday, U.S. Rep. Peter Roskam (R-IL) blasted the agencies for seizing the account without evidence of questionable activity.
“What the IRS and Justice Department did to [business owner] Lyndon McLellan is unfortunately not unique,” Roskam, the Ways and Means Oversight Subcommittee chairman, said. “The law provides the government tools to stop terrorists and money launderers from avoiding bank reporting to hide illicit activity. However, it is clear that federal agencies and the IRS in particular have routinely abused this authority to harass law-abiding small business owners.”
McLellan, who owns L & M Convenience Mart in Fairmont, North Carolina, has been fighting for the return of $107,700 since it was seized from the store’s bank account by the federal government last July for “structuring violations.” McLellan was never charged with a crime.
The DOJ last week released a statement that it was dropping the case and returning the money, citing policy changes regarding civil asset forfeiture.
“I hope the decision by federal prosecutors to return Mr. McLellan’s money, while long overdue, signals a recognition that this practice is wrong and must end,” Roskam added. “I also want to commend the Institute for Justice for their diligent work on behalf of hardworking Americans who have fallen victim to the abuse of asset forfeiture laws. The Oversight Subcommittee will continue to investigate these cases to ensure that all taxpayers are treated fairly and equally under the law.”