Can the Government Seize Your Assets During a Criminal Investigation in California?

Posted on: July 17th, 2026 by Dod Ghassemkhani, ESQ

Can the Government Seize Your Assets Before You Are Charged?

If you believe you are under criminal investigation, one of the biggest mistakes you can make is waiting to seek legal advice. Long before an arrest is made or criminal charges are filed, law enforcement may begin targeting your financial assets, bank accounts, vehicles, business records, or real property.  Learn whether you can protect assets during a criminal investigation.

By Dod Ghassemkhani, An Award-Winning Criminal Defense Attorney 

In both California state and federal investigations, prosecutors often use asset seizure and forfeiture laws to preserve property they believe is connected to criminal activity. These actions can occur quickly, leaving individuals and business owners scrambling to protect everything they have worked to build.

At Dod Law, our experienced San Diego criminal defense attorneys understand that protecting your freedom often means protecting your financial future as well. Early legal representation can make a significant difference when investigators begin examining your assets.

Can the Government Seize My Assets Before I Am Convicted? Protect Assets Criminal Investigation 

Yes. Many people assume that law enforcement cannot touch their property until they have been convicted of a crime. Unfortunately, that is not always true.

Under both California law and various federal forfeiture statutes, authorities may seize or freeze certain assets during an active criminal investigation if they believe those assets were involved in criminal conduct or represent proceeds from illegal activity.

Depending on the circumstances, investigators may seek court approval to:

• Freeze bank accounts
• Seize cash discovered during a search warrant
• Impound automobiles, boats, motorcycles, or recreational vehicles
• Place liens against real estate
• Obtain financial records through subpoenas
• Freeze business accounts
• Seize cryptocurrency or digital assets
• Confiscate firearms or other property allegedly connected to criminal offenses

Federal agencies such as the FBI, DEA, IRS Criminal Investigation Division (IRS-CI), Homeland Security Investigations (HSI), and the U.S. Attorney’s Office frequently coordinate with local law enforcement agencies throughout San Diego County. These joint investigations often provide prosecutors with broader investigative powers and more aggressive asset forfeiture tools.

What Is Asset Forfeiture?

Asset forfeiture allows the government to take ownership of property that is allegedly connected to criminal activity.

There are generally two types:

Criminal Asset Forfeiture

This occurs after a criminal conviction and is part of the criminal sentencing process.

Civil Asset Forfeiture

Civil forfeiture is different because the government may attempt to seize property without first obtaining a criminal conviction. Instead, prosecutors argue that the property itself was involved in illegal activity.

These proceedings can be highly technical and often require immediate legal action to preserve your rights.

What Should You Do If You Learn You Are Under Investigation?

If you believe investigators are examining your finances or assets, every decision matters.

The sooner you speak with a criminal defense attorney, the more legal options may be available.

Hire an Experienced Criminal Defense Lawyer Immediately

This is the single most important step you can take.

Once you retain legal counsel, communications between you and your attorney are generally protected by the attorney-client privilege. Your attorney can begin evaluating the investigation, communicating with prosecutors when appropriate, and advising you before mistakes are made.

Waiting until after your assets have already been frozen often limits your available legal remedies.

Do Not Transfer Assets to Friends or Family

One of the biggest mistakes people make is attempting to “protect” property by quickly transferring ownership to:

• A spouse
• Children
• Parents
• Friends
• Business partners
• Newly created companies or trusts

Although these actions may seem harmless, transferring assets after learning about a criminal investigation can create entirely new legal problems.

Prosecutors may argue the transfer constitutes:

• Fraudulent conveyance
• Obstruction of justice
• Money laundering
• Concealment of assets
• Evidence of consciousness of guilt

Even perfectly innocent transactions may appear suspicious when they occur after an investigation has begun.

Before making any financial decisions, speak with your attorney.

Do Not Hide Assets

Some individuals mistakenly believe moving money overseas or placing assets in someone else’s name will protect them.

In reality, attempting to conceal assets often makes matters significantly worse.

Examples include:

• Opening undisclosed offshore accounts
• Converting assets into cryptocurrency to avoid detection
• Using relatives to hold money
• Creating shell companies after learning of an investigation
• Destroying financial records
• Withdrawing large amounts of cash without explanation

These actions may expose you to additional criminal charges beyond the original investigation.

Organize Documentation Showing Legitimate Ownership

If your property was legally acquired, documentation can become extremely important.

Helpful records may include:

• Tax returns
• Purchase agreements
• Bank statements
• Payroll records
• Business accounting records
• Investment statements
• Loan documents
• Inheritance paperwork
• Gift documentation
• Real estate closing documents

Clear financial records may help demonstrate that assets were obtained through lawful means rather than criminal activity.

Some Assets May Have Legal Protections

Certain property may receive legal protection depending on the circumstances.

Examples include:

California Homestead Protections

California law provides certain protections for a primary residence through the state’s homestead exemption. However, these protections may not completely prevent forfeiture in every criminal case.

Retirement Accounts

Accounts such as:

• 401(k)s
• Traditional IRAs
• Roth IRAs
• Certain pension plans

may receive varying levels of protection under federal and state law, although those protections are not absolute.

Innocent Owner Defenses

If property is jointly owned by someone who had no knowledge of the alleged criminal activity, that individual may have an “innocent owner” defense that can prevent forfeiture under certain circumstances.

An experienced criminal defense attorney can evaluate whether these protections apply in your case.

What Should Your Criminal Defense Attorney Be Doing? Protect Assets Criminal Investigation

A skilled criminal defense lawyer should not simply wait until charges are filed.

Early intervention often provides the greatest opportunity to protect both your legal rights and your assets.

Depending on your situation, your attorney may:

• Communicate directly with investigators and prosecutors
• Challenge overly broad subpoenas
• Contest unlawful search warrants
• File motions challenging improper seizures
• Advise you regarding ongoing business operations
• Protect privileged communications
• Preserve evidence favorable to your defense
• Negotiate before formal criminal charges are filed
• Challenge unlawful pre-charge asset freezes
• Develop strategies to minimize additional financial exposure

In many investigations, proactive legal representation helps avoid unnecessary escalation.

What If My Assets Have Already Been Seized? | Protect Assets Criminal Investigation

Do not assume there is nothing you can do.

Many people successfully challenge asset seizures, particularly when the government lacks sufficient evidence or fails to follow proper legal procedures.

Depending on your case, you may be able to:

• File a claim contesting the forfeiture
• Challenge the legality of the seizure
• Argue that the property was legally obtained
• Assert innocent owner protections
• Seek return of improperly seized property
• Contest the government’s probable cause

However, these proceedings often involve strict filing deadlines.

Missing those deadlines can permanently affect your ability to recover your property.

Why Early Representation Matters | Protect Assets Criminal Investigation 

One of the greatest advantages you have is acting before charges are filed.

Early legal representation allows your attorney to evaluate the investigation, preserve favorable evidence, communicate with prosecutors when appropriate, and take proactive steps to protect your constitutional rights and financial interests.

Every investigation is different, and every decision made in the early stages can affect the outcome of both the criminal case and any related asset forfeiture proceedings.

Act Now!  Dod Law Can Help | Protect Assets Criminal Investigation

If you believe you are under investigation in San Diego or anywhere in Southern California, do not wait until your bank accounts are frozen or your property has been seized.

At Dod Law, our experienced criminal defense attorneys represent clients during every stage of a criminal investigation, including pre-charge investigations, state criminal cases, federal investigations, and complex asset forfeiture matters. We work aggressively to protect your constitutional rights, challenge unlawful government actions, and safeguard the assets you have worked hard to earn.  Serving San Diego and Southern California.

Protect Assets Criminal Investigation 

The earlier you involve an attorney, the more opportunities may exist to protect both your freedom and your financial future.

If you suspect you are the subject of a criminal investigation, contact Dod Law today for a confidential consultation.