Friday, February 28, 2014

The Supreme Court just made it easier for the government to take your assets before you even go to trial

The Supreme Court just made it easier for the government to take your assets before you even go to trial 

With charges looming, the Kaleys sought an estimate from their lawyers of how much mounting a defense would cost. The answer: $500,000. (That figure may seem high, but sadly the government agreed it was reasonable.) The Kaleys took out a home equity loan and used the $500,000 to purchase a certificate of deposit, which they planned to spend on lawyers.

Then came the grand jury indictment and with it a nasty surprise: an order freezing essentially all their assets, including the CD that was meant to pay their legal bills. The only assets exempt from the order—Kerri’s retirement account and their children’s college funds—weren’t enough to cover the $500,000 estimate. And if the Kaleys liquidated those funds, they’d have owed $183,500 in tax penalties. The bottom line: They could no longer pay for their lawyer of choice even though, as the government agreed, that’s what the Sixth Amendment right to counsel protects.