California jewelry business sues Indiana over cash seized at FedEx facility

In April, police inspectors at the Indianapolis FedEx distribution center seized a box containing nearly $43,000 in cash. Even though no criminal charges have been filed in connection with the package, it’s been in the government’s possession for about four months.

Now, the box’s intended recipient, Henry Minh Inc., is pursuing a class action lawsuit against the state of Indiana. The jewelry wholesale business consists of the husband-and-wife duo Henry and Minh Cheng.

Working with the Institute for Justice , a nonprofit focused on civil liberties, Henry Minh alleges a widespread pattern of unlawful package seizures at Indy’s FedEx processing facility.

In court documents, the Marion County prosecutor’s office wrote that shipments of bulk cash are typically associated with criminal activity. Even though Indianapolis Metropolitan Police Department dogs alerted handlers to the smell of drugs in the box, no contraband could be found once it was opened.

A Virginia client sent the Chengs the box of cash in exchange for gold chains, according to an itemized receipt included in the lawsuit.

Henry Minh’s box was one of 130 cash parcels seized by the government from the FedEx facility in the last year, according to the lawsuit.

The government took the box through a process called civil forfeiture. The practice allows law enforcement to confiscate property from people suspected of criminal activity, even if they haven’t been charged with an offense.

If the court does not return the box to the Chengs, the prosecutor’s office will be required by statute to disburse the money into attorneys' fees, law enforcement and school funds.  The Marion County Prosecutor’s Office has filed forfeiture cases for more than $2.5 million since 2022, according to the Henry Minh lawsuit.

“It’s so far removed from a law enforcement function. It’s simply profiteering,” said Marie Miller, the IJ attorney representing Henry Minh Inc.

The Indianapolis facility is the second-largest FedEx processing center in the country. It can sort up to 99,000 packages per hour. Many packages traveling from coast to coast – like the Chengs’ – go through the Indy hub at some point on their journey, even if they aren’t being sent from or to Indiana.

The Marion County prosecutor's office did not immediately respond to a request for comment. Representatives for FedEx declined to comment on the case, citing that they are not a named party in the lawsuit.

“I think it’s unfair, and it just shouldn’t happen in America,” said Henry Cheng in a Monday news conference.

The case’s next hearing is scheduled for Sept. 16, where the judge will rule whether the case can proceed as a class-action suit.

This article originally appeared on Indianapolis Star: California jewelry business sues Indiana over cash seized at FedEx facility