We are pleased to announce that, within the last year alone, our experienced healthcare defense attorneys have recovered for clients more than $20 million in cash and securities unlawfully seized by banks and brokerage houses.

In recent years, the government has placed increasing pressure on banks and other financial institutions to cooperate with investigations. Not surprisingly, banks have caved to these pressures because they do not want the government’s scrutiny to turn on them. As a result, businesses and individuals have had their assets seized and their accounts restricted. Such account restraints are potentially unlawful and a violation of constitutional rights and due process. Legislation curbing the government’s forfeiture powers, referred to as the FAIR Act, is under consideration by the U.S. Congress, but similar efforts have failed in years past.

The government cannot seize someone’s property without a legitimate basis. Often times, this requires a court order, which helps to protect the rights of the property owner. However, the government may not have sufficient evidence to obtain a court order, especially in the early stages of an investigation. In these scenarios, the government may request that a financial institution place an “account hold” over deposits. These voluntary requests also typically state that the account holder is under investigation, which triggers an internal review by the bank for compliance with “know your client” due diligence and “anti-money laundering” rules. As a result, clients have not only had their assets frozen, but also have experienced broad account closures by banks for no stated reason.

Nonetheless, when experienced counsel is involved, banks can be convinced to reverse course. That is because—while financial institutions will often bend to whatever the government demands of them—they do not want to risk liability (and adverse publicity) for unlawfully restricting customer accounts. For example, in a recent case, a Georgia-based bank and brokerage froze our client’s cash deposits and securities based on a voluntary request by the government. In another matter, a Massachusetts-based bank froze our client’s cash deposits for nearly 2.5 years based on nothing more than repeated requests from the government with no force of law. Our attorneys know the law in this area because, as former federal and state prosecutors, they conducted seizure warrants and asset forfeitures on behalf of the government. Accordingly, we have been able to engage in productive discussions with banks regarding our clients’ rights and resolve these matters successfully.

In short, the Health Law Alliance has successfully recovered more than $20 million for clients from banks and brokerages that unlawfully froze those assets without legal justification. Notably, it appears that the banking crisis is ongoing, with more regional banks predicted to fail. Therefore, if accounts are frozen or assets restrained, there is a risk that customers will not be able to recover their funds in the event of a bank failure. Either way, clients should immediately retain experienced counsel if their accounts are restricted by a financial institution. Our attorneys have helped numerous clients to further understand their options for challenging account holds, and have recovered tens of millions of dollars in unlawful seizures. Our firm’s mission is simple: use unmatched experience and insight to defend our clients against insurance conglomerates, the federal government, and state agencies. We used to work for them. Now let us fight for you. Contact us today for a consultation. We can help.