Rahim Forfeiture

UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA

UNITED STATES OF AMERICA,
CIVIL NO. _________
PLAINTIFF,

v.

$200,020.00 IN U.S. CURRENCY,

DEFENDANT.

VERIFIED COMPLAINT FOR FORFEITURE IN REM

The plaintiff, United States of America, through its attorneys Andrew M. Luger,
United States Attorney for the District of Minnesota, and J ames S. Alexander, Assistant
United States Attorney, in a civil cause of action for forfeiture, alleges as follows in
accordance with Supplemental Rule G(2) of the Federal Rules of Civil Procedure:
NATURE OF THE ACTION
1. This is an action to forfeit and condemn to the use and benefit of the United
States of America $200,020.00 in U.S. currency pursuant to 21 U.S.C. 881(6) for
violations of 21 U.S.C. 813 and 841, et seq.
THE DEFENDANT IN REM
2. The defendant in rem is $200,020.00 in U.S. currency (Defendant
Currency).
3. The Defendant Currency is in the custody of the United States Marshals
Service.

CASE 0:14-cv-01054-JRT-JSM Document 1 Filed 04/11/14 Page 1 of 14
2

JURISDICTION AND VENUE
4. Plaintiff brings this action in rem in its own right to forfeit and condemn the
Defendant Currency. This Court has jurisdiction over an action commenced by the
United States under 28 U.S.C. 1345 and over an action for forfeiture under 28 U.S.C.
1355(a).
5. This Court has in rem jurisdiction over the Defendant Currency under 28
U.S.C. 1355(b). Upon the filing of this Complaint, the Plaintiff requests that the Clerk
of Court issue an arrest warrant in rem pursuant to Supplemental Rule G(3)(b)(i), which
the Plaintiff will execute upon the Defendant Currency pursuant to 28 U.S.C. 1355(d)
and Supplemental Rule G(3)(c).
6. Venue is proper in the District of Minnesota pursuant to 28 U.S.C.
1355(b)(1) because some of the acts or omissions giving rise to the forfeiture occurred in
this District, and pursuant to 28 U.S.C. 1395 because the Defendant Currency is located
in this District.
FACTS
A. Overview
7. This is a civil forfeiture complaint against $200,020.00 in U.S. currency
seized from the residence of Mokrane Rahim (Rahim). The Defendant Currency was
located in a silver attach case found in Rahims bedroom in his New Brighton,
Minnesota residence (the Residence).
8. Rahim manufactured and packaged smokeable products containing
controlled substance analogues in his Residence and sold such products at a tobacco store
3

located in south Minneapolis, where he worked as a sales clerk and store manager.
9. The Defendant Currency is forfeitable because it is proceeds of, or is
traceable to proceeds of, the sale of controlled substance analogues, was used or intended
to be used to purchase such substances, or both.
B. The Controlled Substance Analogue Act
10. The Controlled Substances Act prohibits, among other things, the
manufacture, distribution, or possession with intent to distribute certain controlled
substances. See 21 U.S.C. 841 et seq.
11. Title 21 also provides that a controlled substance analogue shall, to the
extent intended for human consumption, be treated as a controlled substance under
Schedule I of the Controlled Substances Act. 21 U.S.C. 813.
12. Section 802(32) defines the term controlled substance analogue. Under
that section, a substance is a controlled substance analogue when: (1) its chemical
structure is substantially similar to that of a controlled substance; and (2) its physiological
effect on the central nervous system is either: (a) substantially similar to or greater than
that of a controlled substance; or (b) represented or intended to have such an effect.
13. The United States is authorized to civilly forfeit property that is furnished
or intended to be furnished in exchange for controlled substances, including controlled
substance analogues, as well as property that facilitates the distribution of such
substances pursuant to 21 U.S.C. 881.
C. Controlled Substances Analogue Distribution
14. In recent years, individuals have begun to manufacture and traffic synthetic
4

cannabinoid products (SC products). These products are a mixture of an organic
carrier medium, such as the herb-like substance damiana, onto which one or more
synthetic cannabinoid compound (SC compound) is applied.
15. 1-pentyl-3-(1-naphthoyl)indole (J WH-018) and four other SC compounds
were designated as Schedule I controlled substances on March 1, 2011, through the
DEAs emergency scheduling authority under 21 U.S.C. 811(h)(2).
1
On February 29,
2012, this emergency scheduling was extended until August 29, 2012.
2
On J uly 9, 2012,
President Obama signed into law the Synthetic Drug Abuse Prevention Act, which
permanently banned J WH-018 and other SC compounds, including (1-(5-Fluoropentyl)-
3-(1-naphthoyl) indole) (AM2201) (which DEA had previously considered to be an
analogue of J WH-018).
16. In an attempt to circumvent federal and state laws that designated various
SC compounds as controlled substances, SC compound manufacturers and traffickers
began manufacturing and distributing SC compounds that varied slightly from the
scheduled compounds, as well as SC products containing such slightly varied SC
compounds.
17. SC products are commonly sold in head shops, tobacco shops, convenience
stores, adult stores, and over the internet.
18. SC products are often marketed as, among other things, incense, potpourri,
or fake weed, and the product packaging often bears the disclaimer that the product is

1
76 Fed. Reg. 11,075 (Mar. 1, 2011).
2
77 Fed. Reg. 12,201 (Feb. 29, 2012).
5

not for human consumption.
19. Distributors of these products use such product names and markings to
suggest that the product is not intended to be smoked and, thereby, to avoid having the
products identified as containing a controlled substance analogue of one or more
Schedule I controlled synthetic cannabinoids and to avoid having the products classified
as a drug that would be subject to the Federal Food and Drug Administration (FDA)
testing and approval process.
20. Adverse health impacts of SC products have been reported to include,
among other things, hallucinations, paranoia, anxiety, elevated blood pressure and loss of
consciousness.
21. DEA has determined that the synthetic cannabinoid 1-(5-Fluoropentyl)-3-
(2,2,3,3-tetramethylcyclopropoyl)indole (more commonly referred to as XLR-11) is a
controlled substance analogue of the Schedule I controlled substance J WH-018 under 21
U.S.C. 802(32) because DEA has found XLR-11 to have a chemical structure
substantially similar to, and to cause pharmacological effects substantially similar to, the
Schedule I controlled substance J WH-018.
22. When XLR-11 is intended for human consumption, therefore, it is a
controlled substance analogue of J WH-018 under 21 U.S.C. 802(32) and must be
treated must be treated, for the purpose of any federal law as a controlled substance in
Schedule I under 21 U.S.C. 813.
23. Accordingly, since March 1, 2011, when J WH-018 was designated a
Schedule I controlled substance, it has been illegal to distribute XLR-11 for human
6

consumption because XLR-11 is a controlled substance analogue of J WH-018.
3

D. Rahim Manufactured And Sold Controlled Substance Analogues
24. In March 2012, the Minneapolis Police Department Community Response
Team received a crime stoppers call-in tip that synthetic marijuana was being sold out of
a south Minneapolis shop called 46th & Nicollet Tobacco.
25. The tipster stated that Rahim was selling K2 from his place of employment
at 46th& Nicollet Tobacco, Minneapolis, Minnesota.
26. The tipster also stated that Rahim weighed and packaged K2 at his
residence.
27. K2 is a term that is commonly used to refer to smokeable SC products,
which frequently contain controlled substance analogues.
28. The tipster identified Rahims home address in New Brighton, Minnesota.
29. In or about April 2012, a plainclothes officer attempted to buy smokeable
SC products from Rahim at 46th & Nicollet Tobacco. At that time, Rahim refused to sell
such products to the officer, who had not previously been introduced to Rahim.
30. In November 2012, officers and agents from the Minneapolis Police
Department and the United States Drug Enforcement Administration developed a
Confidential Informant (CI).
31. The CI agreed to introduce an Undercover Investigator (UI) to the person
distributing smokeable SC products at 46th & Nicollet Tobacco, and identified Rahim as

3
XLR-11 was added to Schedule I on May 16, 2013. Because its scheduling post-dates
the seizure of the Defendant Currency, its forfeitability is based on its analogue status
only, as described above.
7

that person.
32. The CI subsequently introduced the UI to Rahim and informed the UI of
the protocol for purchasing smokeable SC products from Rahim. That protocol involved
paying cash to Rahim, then stating big pack or little pack to indicate the desired
amount of smokeable SC product.
33. On November 7, 2012, the UI spoke to Rahim at 46th & Nicollet Tobacco
and purchased a smokeable SC product from him. The UI paid Rahim $40 for
approximately 10 grams of a product labeled 420! Cubed.
34. On November 9, 2012, the same UI spoke to Rahim at 46th & Nicollet
Tobacco and a purchased smokeable SC product from him. The UI paid Rahim $40 for
37. During each of those four undercover controlled purchases of smokeable
SC products, Rahim produced the product from beneath the counter, where it had been
concealed from public view.
8

38. The contents of each package of 420! Cubed bought in those undercover
controlled purchases were subsequently tested by the Minnesota Bureau of Criminal
Apprehension (BCA).
39. The BCA determined that each such package contained XLR-11.
E. The Search of 46th & Nicollet Tobacco

40. On November 21, 2012, law enforcement executed a state search warrant at
46th & Nicollet Tobacco.
41. Rahim was present when law enforcement arrived to execute the warrant.
42. Law enforcement officers seized, among other things, the following items:
a. 230 packets labeled K-2 Summit, 2.5 grams each;
b. 9 packets labeled 420! Cubed, 2.5 grams each;
c. 13 packets labeled 420! Cubed, 10 grams each;
d. 72 packets labeled 420! Cubed, 3 grams each;
e. One baggie containing approximately 2.7 pounds of a green, leafy
substance;

f. One baggie containing approximately 1.3 pounds of a green, leafy
substance; and

g. $8,105.00 in U.S. currency, which was located inside a microwave oven.
43. The $8,105.00 was administratively forfeited by the State of Minnesota.
44. Other amounts of currency were seized from the stores register and safe.
The store owner filed a claim for those amounts, but did not claim the cash hidden in the
microwave.
9

45. Samples of seized packets labeled K-2 Summit and 420! Cubed were
subsequently tested by the BCA.
46. The BCA determined that each such tested package contained XLR-11.
F. The Search of Rahims Residence and Vehicle
47. On November 21, 2012, a state search warrant was executed at Rahim's
New Brighton Residence.
48. During the search of the Residence, officers discovered evidence that
Rahim was manufacturing, packaging and distributing smokeable SC products.
49. Officers found three folding tables set up in a basement room. Each table
had a thin layer of smokeable SC product spread across it.
50. The three tables appeared to have been used to spread out the organic
carrier medium so that an SC compound could be uniformly applied in order to create a
smokeable SC product that could be packaged and sold to consumers.
51. Officers placed the SC product found on the three tables in a box and
weighed it. They determined that the tables had held a combined 11 pounds of suspected
smokeable SC products.
52. The contents of that box were subsequently tested by the BCA, which
determined that the tested substance contained XLR-11.
53. Officers located two additional boxes containing a similar green, leafy
substance in the northeast bedroom of the Residence, which appears to have been used as
an office. The boxes contained 23 and 38 pounds, respectively, of the green, leafy
substance.
10

54. The contents of one of those boxes were subsequently tested by the BCA,
which determined that the tested substance contained XLR-11.
55. Law enforcement also found a 1.8 gram package of a strawberry flavored
smokeable SC product. The BCA determined that the package contained J WH-18, which
was a Schedule 1 controlled substance when seized.
56. Officers also discovered packaging materials, including boxes of 420!
Cubed labels and a scale in the above-described office room.
57. During the search, officers located and seized a silver colored attach case
containing the defendant $200,020 in U.S. currency from Rahims bedroom.
58. Law enforcement also searched Rahims vehicle on November 21, 2012,
pursuant to a warrant.
59. In the course of that search, officers found multiple empty bottles and cans
with false bottoms or other secret compartments.
60. Officers also found a box of 420! Cubed labels in the trunk. The packaging
on the box indicated that it held 7,500 labels.
G. The Analogues Were Knowingly Sold For Human Consumption

61. Although the packaging for the analogue products indicated that it was not
for human consumption, Rahim was aware that it was, in fact, for human consumption.
62. The price for which the smokeable SC products were sold is much higher
than would be expected if the same items were not intended to be consumed in a manner
similar to a narcotic.
63. The smokeable SC products are sold in much smaller amounts than
11

traditional incense that does not contain SC compounds.
64. The smokeable SC products were sold in an under-the-table manner to
those who knew how to request them, rather than openly displayed like the legal products
that were sold in the store.
65. The smokeable SC products were neither advertised nor publicly displayed
at 46th & Nicollet Tobacco.
66. Instead, customers had to ask for them using code words such as big pack
in order to purchase them, and Rahim refused to sell them to people who did not know
the surreptitious protocol for making such purchases.
67. Moreover, Rahim appears to have been manufacturing and packaging
smokeable SC products in his home. The placement of such products across the tables in
his basement indicates that he applied the SC agents to the organic carrier in order to
create an effect similar to certain narcotics when smoked.
68. In addition, the names of the seized smokeable SC products contain terms
that are commonly associated with synthetic cannabinoids or marijuana, namely: K-2
and 420.
69. Thus, Rahim was aware that the smokeable SC products he sold were
controlled substance analogues, and he was aware that the pharmacological effect of
those products was similar to that of controlled substances, and he intended for those
products to have such effects.

12

H. The Defendant Currency is Proceeds of Sales of Controlled Substance
Analogues and Controlled Substances

70. Rahim sold smokeable SC products at 46th & Nicollet Tobacco.
71. The proceeds of those sales were not deposited into the cash register or
otherwise provided to the tobacco store that employed Rahim.
72. Instead, Rahims kept the proceeds from such sales, which were separate
from the proceeds of the stores other products.
73. Rahims reported income in the years preceding the seizure of the currency
was insufficient to account for his accumulation of such a large amount of currency.
74. Bank records obtained by law enforcement also indicate that Rahim did not
typically deposit large amounts of cash, therefore, the Defendant Currency appears to be
the proceeds of Rahims sales of smokeable SC products, which were maintained in the
form of United States currency.

13

CLAIM FOR RELIEF
75. The plaintiff requests that the Court issue a warrant for the arrest and
seizure of the Defendant Currency, that notice of this action be given to all persons who
reasonably appear to be potential claimants of interests in the Defendant Currency, that
the Defendant Currency be forfeited and condemned to the United States of America, that
the plaintiff be awarded its costs and disbursements in this action, and for such other and
further relief as this Court deems proper and just.
Dated: April 10, 2014 ANDREW M. LUGER
United States Attorney

s/ J ames S. Alexander

BY: J AMES S. ALEXANDER
Assistant U.S. Attorney
Attorney ID No. 166145
600 United States Courthouse
300 South Fourth Street
Minneapolis, MN 55415
Phone: 612-664-5600
Email: J im.Alexander@usdoj.gov

14

VERIFICATION

I, Rich Peterson, verify and declare under penalty of perjury as follows:
I am Special Agent of the United States Drug Enforcement Administration
(DEA) and I have been so employed for approximately 23 years. In that position I
have participated in the controlled purchases of illegal drugs, management of confidential
informants, Federal Title III wire intercepts and assisted in the execution of search
warrants. As a result, I have arrested persons violating both State and Federal statutes
with regards to possession, manufacture, and sale of controlled substances. I have also
received formal training through the DEA, and have attended seminars on the
investigation of narcotics law violations. I have read the foregoing Verified Complaint In
Rem and know the contents thereof, and the matters contained in the Verified Complaint
are true to my own knowledge, except that those matters not within my knowledge are
alleged on information and belief, and I believe those matters to be true.
The sources of my knowledge and information and the grounds of my belief are
the official files and records of the United States, information provided to me by other
law enforcement agencies and officers, and information I have learned by reviewing
reports prepared by other law enforcement agencies and officers, as well as my
investigation of this case, together with others, as an DEA Special Agent.
I hereby verify and declare under penalty of perjury that the foregoing is true and
correct.
Dated: s/ Rich Peterson
RICH PETERSON, Special Agent
U.S. Drug Enforcement Administration
JS 44 (Rev. 09/11)
CIVIL COVER SHEET
The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as provided
by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiating
the civil docket sheet. (SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM.)
I. (a) PLAINTIFFS DEFENDANTS
(b) County of Residence of First Listed Plaintiff County of Residence of First Listed Defendant
(EXCEPT IN U.S. PLAINTIFF CASES) (IN U.S. PLAINTIFF CASES ONLY)
NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF
THE TRACT OF LAND INVOLVED.

(c) Attorneys (Firm Name, Address, and Telephone Number) Attorneys (If Known)
II. BASIS OF JURISDICTION (Place an X in One Box Only) III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an X in One Box for Plaintiff)
(For Diversity Cases Only) and One Box for Defendant)
1 U.S. Government 3 Federal Question PTF DEF PTF DEF
Plaintiff (U.S. Government Not a Party) Citizen of This State 1 1 Incorporated or Principal Place 4 4
of Business In This State
2 U.S. Government 4 Diversity Citizen of Another State 2 2 Incorporated and Principal Place 5 5
Defendant (Indicate Citizenship of Parties in Item III) of Business In Another State
Citizen or Subject of a 3 3 Foreign Nation 6 6
Foreign Country
IV. NATURE OF SUIT (Place an X in One Box Only)
CONTRACT TORTS FORFEITURE/PENALTY BANKRUPTCY OTHER STATUTES
110 Insurance PERSONAL INJURY PERSONAL INJURY 625 Drug Related Seizure 422 Appeal 28 USC 158 375 False Claims Act
120 Marine 310 Airplane 365 Personal Injury - of Property 21 USC 881 423 Withdrawal 400 State Reapportionment
130 Miller Act 315 Airplane Product Product Liability 690 Other 28 USC 157 410 Antitrust
140 Negotiable Instrument Liability 367 Health Care/ 430 Banks and Banking
150 Recovery of Overpayment 320 Assault, Libel & Pharmaceutical PROPERTY RIGHTS 450 Commerce
& Enforcement of Judgment Slander Personal Injury 820 Copyrights 460 Deportation
151 Medicare Act 330 Federal Employers Product Liability 830 Patent 470 Racketeer Influenced and
152 Recovery of Defaulted Liability 368 Asbestos Personal 840 Trademark Corrupt Organizations
Student Loans 340 Marine Injury Product 480 Consumer Credit
(Excl. Veterans) 345 Marine Product Liability LABOR SOCIAL SECURITY 490 Cable/Sat TV
153 Recovery of Overpayment Liability PERSONAL PROPERTY 710 Fair Labor Standards 861 HIA (1395ff) 850 Securities/Commodities/
of Veterans Benefits 350 Motor Vehicle 370 Other Fraud Act 862 Black Lung (923) Exchange
160 Stockholders Suits 355 Motor Vehicle 371 Truth in Lending 720 Labor/Mgmt. Relations 863 DIWC/DIWW (405(g)) 890 Other Statutory Actions
190 Other Contract Product Liability 380 Other Personal 740 Railway Labor Act 864 SSID Title XVI 891 Agricultural Acts
195 Contract Product Liability 360 Other Personal Property Damage 751 Family and Medical 865 RSI (405(g)) 893 Environmental Matters
196 Franchise Injury 385 Property Damage Leave Act 895 Freedom of Information
362 Personal Injury - Product Liability 790 Other Labor Litigation Act
Med. Malpractice 791 Empl. Ret. Inc. 896 Arbitration
REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS Security Act FEDERAL TAX SUITS 899 Administrative Procedure
210 Land Condemnation 440 Other Civil Rights 510 Motions to Vacate 870 Taxes (U.S. Plaintiff Act/Review or Appeal of
220 Foreclosure 441 Voting Sentence or Defendant) Agency Decision
230 Rent Lease & Ejectment 442 Employment Habeas Corpus: 871 IRSThird Party 950 Constitutionality of
240 Torts to Land 443 Housing/ 530 General 26 USC 7609 State Statutes
245 Tort Product Liability Accommodations 535 Death Penalty IMMIGRATION
290 All Other Real Property 445 Amer. w/Disabilities - 540 Mandamus & Other 462 Naturalization Application
Employment 550 Civil Rights 463 Habeas Corpus -
446 Amer. w/Disabilities - 555 Prison Condition Alien Detainee
Other 560 Civil Detainee - (Prisoner Petition)
448 Education Conditions of 465 Other Immigration
Confinement Actions
V. ORIGIN
Transferred from
another district
(specify)
(Place an X in One Box Only)
1 Original
Proceeding
2 Removed from
State Court
3 Remanded from
Appellate Court
4 Reinstated or
Reopened
5 6 Multidistrict
Litigation
VI. CAUSE OF ACTION
Cite the U.S. Civil Statute under which you are filing (Do not cite jurisdictional statutes unless diversity):

Brief description of cause:
VII. REQUESTED IN
COMPLAINT:
CHECK IF THIS IS A CLASS ACTION
UNDER F.R.C.P. 23
DEMAND $ CHECK YES only if demanded in complaint:
JURY DEMAND: Yes No
VIII. RELATED CASE(S)
IF ANY
(See instructions):
JUDGE DOCKET NUMBER
DATE SIGNATURE OF ATTORNEY OF RECORD
FOR OFFICE USE ONLY
RECEIPT # AMOUNT APPLYING IFP JUDGE MAG. JUDGE
CASE 0:14-cv-01054-JRT-JSM Document 1-1 Filed 04/11/14 Page 1 of 1
CM/ECF Requirements
United States of America
James S. Alexander, AUSA, U.S. Attorney's Office, 600 U.S.
Courthouse, 300 South 4th Street, Mpls., MN 55415
612-664-5600
$200,020.00 IN U.S. CURRENCY
Hennepin
Civil forfeiture pursuant to 21 U.S.C. Section 881(6)
Violations of 21 U.S.C. Sections 813 and 841 et seq
04/11/2014 s/ James S. Alexander

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