Can the Government Seize Investment Accounts During an Asset Forfeiture Investigation?

 Posted on November 10, 2026 in Civil Asset Forefiture

The government can freeze or seize investment accounts during a forfeiture investigation, even before criminal charges are filed. Brokerage accounts, bank balances, and certain retirement funds can be targeted when officials claim the money came from crime or helped carry it out. However, account protections and deadlines differ under federal and Texas law. In 2026, a Bexar County, TX asset forfeiture defense lawyer can help you challenge a seizure.

How Can Federal or Texas Authorities Freeze Investment Accounts?

Federal agents can obtain a seizure warrant or court order restricting transfers. A bank or brokerage firm must follow the order. Some orders come without warning. You might first learn your account is frozen when a transaction fails.

Under Texas Code of Criminal Procedure Article 59.12, Texas authorities can use a seizure warrant to take control of money or other assets held at certain financial institutions. Texas prosecutors must begin a Chapter 59 forfeiture case within 30 days after seizure.

Civil forfeiture targets property, so a criminal charge or conviction is not always necessary. A freeze, however, is not a final forfeiture.

Can the Government Seize Retirement Accounts and Brokerage Investments?

Ordinary brokerage investments can be forfeited when the government proves a legal basis. Retirement accounts deserve closer review.

Some workplace retirement plans are protected by the Employee Retirement Income Security Act (ERISA). This federal law restricts transfers of certain retirement benefits. Under 29 U.S.C. § 1056(d), those protections can limit forfeiture. Individual retirement accounts have different rules. A lawyer can examine plan documents and the seizure order to assess protections.

What Must the Government Prove to Forfeit Investment Funds?

Under 18 U.S.C. § 983, the government must show by a preponderance of the evidence that the law authorizes it to keep the funds. 

When officials claim an account helped commit a crime, they must show a substantial connection between the property and the offense. Mixing lawful money with alleged criminal proceeds does not automatically make the entire balance forfeitable.

The law also protects innocent owners. If you already owned the funds when the alleged crime happened, you can show that you did not know about it. If you learned about it later, you can show that you did what you reasonably could to stop the misuse. Account records help explain ownership and where deposits came from.

What Deadlines Apply to Federal and Texas Forfeiture Cases?

In federal administrative forfeiture, notice is ordinarily sent within 60 days of a federal seizure. The period is 90 days from the original seizure when state or local police transfer property for federal forfeiture. Exceptions and extensions apply.

A personal federal notice must allow at least 35 days after mailing to file a claim. After you file a claim on time, the government usually has 90 days to file a civil forfeiture case, return the property, or take steps to keep it as part of a criminal case.

A federal court case has separate deadlines for filing a claim and an answer. Texas state cases follow different procedures. Missing a deadline can cost you the chance to contest the forfeiture.

A petition for remission asks an agency to return property at its discretion. It does not replace a timely claim, although both can be filed.

Can Frozen Investments Be Released for Bills or Attorney Fees?

A frozen account can prevent mortgage payments or disrupt a business. However, financial hardship does not guarantee access to the money. Federal law allows hardship release for some seized property. The rule excludes currency and electronic funds unless they are assets of a legitimate business that was seized. This limits the rule's usefulness for personal accounts.

In certain federal criminal cases, courts protect access to legitimate funds unrelated to the alleged offense when needed to hire defense counsel. That does not create an automatic right to spend disputed funds.

What Should You Do After an Investment Account Is Seized?

Several steps can protect your position:

• Save the seizure notice and record when it arrived.

• Preserve account statements, tax returns, and transaction records.

• Collect documents explaining deposits, including sales or inheritances.

• Ask counsel about claim deadlines before filing a remission petition.

• Document financial hardship.

• Do not conceal assets, destroy evidence, or obstruct an investigation.

A lawful source of funds can support a defense, but it does not guarantee release. A lawyer can challenge whether the government connected the funds to a qualifying crime.

Schedule a Free Consultation With Our San Antonio Asset Forfeiture Defense Attorney

If your funds are seized in 2026, acting promptly can protect your right to contest forfeiture. Attorney Arnold Spencer brings more than 30 years of legal experience and is a strong trial lawyer and litigator. He can examine the government's evidence and challenge unsupported forfeiture claims.

Contact Spencer & Associates at 214-376-4441 to talk to our Bexar County, TX asset forfeiture defense lawyer today.