U.S. Says Seizure of 2 Drug Houses May Have Been Mistake

Federal authorities acknowledged Wednesday that they may have erred in seizing two northeast San Fernando Valley houses once used by a drug ring because the houses were apparently sold to unsuspecting buyers before the seizures took effect.

The new owners won’t lose the properties if the purchases were legitimate, officials said. “They won’t lose a penny,” said William Cullen, a special assistant U.S. attorney handling the seizures of 11649 Fenton Ave. in Lake View Terrace and 11236 Adelphia Ave. in Pacoima.

Authorities were unable to explain the mix-up Wednesday. But one of the bewildered purchasers, who had already refurbished the house, complained that the government’s mistake has generated publicity that he claims damaged his reputation.

Can’t Rent House

“I understand what the government is trying to do and support it 100%,” said Ricky Cullors of Saugus, a Los Angeles city employee who is now prohibited from renting the Fenton Avenue house he bought as an investment. “But you have got to do your homework. Things were not done correctly and consequently, my reputation . . . has been stigmatized. I absolutely had nothing to do with what the house was used for before.”

The houses were seized under federal forfeiture laws because they were used to sell cocaine, authorities said. Los Angeles police raided both houses Sept. 29, arresting two men and seizing half a pound of cocaine, $1,400 cash and numerous drug-transaction records.

At the time, the homes were owned by Eddie Barber of Pacoima. Barber was not arrested during the drug raids but is under investigation because police believe he allowed the drug activity to take place on his properties, authorities said.

After the raids, the Los Angeles city attorney’s office began working with the U.S. attorney’s office to seize the two houses. Meantime, Barber put the houses up for sale.

Cullen said that the forfeiture process is lengthy because title searches and property appraisals must be conducted, followed by an application to a U.S. magistrate for a warrant to seize the property and then filing of a civil suit to take possession.

‘Race to the Courthouse’

“Conversely, the bad guy doesn’t have to get any judicial OK to sell his assets,” Cullen said. “It becomes a race to the courthouse.”

The FBI got the warrant to seize the two properties Jan. 30, and Cullen filed suit to take possession the next day. At that time, FBI searches of county records showed that Barber still held title to both houses, Cullen said.

Cullors said he learned about the house’s history Tuesday when he drove up and found several city and federal officials gathered to announce the seizures. He told officials that he had bought the house Jan. 9 with a $22,000 down payment.

Cullen could not explain why the title transfer went undiscovered by the FBI on Jan. 30.

Later Tuesday, while FBI agents were posting “no trespassing” signs at the Adelphia Avenue house, two men arrived in a truck and said they had just moved into the house after it was purchased by an acquaintance, Olivia Vargas.

Cullen said that title transfer records checked Wednesday indicate that Vargas may have bought the Adelphia Avenue house Jan. 31, the same day Cullen filed the seizure suit. Vargas could not be reached for comment.

Cullors said he and his wife have spent weekends painting and refurbishing the Fenton Avenue house. He said he planned to rent it to a family Feb. 20 but may not be able to because federal officials will not allow him access. He has hired an attorney to help him straighten out the mess.

“It’s a paper work mix-up,” he said. “They screwed up. They are closing the barn door after the horse is out.”

Though the two properties may have been legitimately purchased, Vargas and Cullors must only contest the seizures, and federal authorities will investigate, Cullen said. If it is determined that they were innocent buyers, the government will drop its demands on the properties.

The two men who moved into the Adelphia Avenue house have been allowed to stay because a due-process clause in the seizure laws prevents the displacement of residents until the courts decide the case or other housing can be arranged, Cullen said.

Cullors is not so fortunate. Since the Fenton Avenue house was empty, Cullors will not be allowed inside during the investigation without court approval, Cullen said.

If the houses were legitimately sold, Cullen said, the government’s only alternative is to try to seize the proceeds of the sales from Barber. He said that would be difficult because money can be spent and is hard to trace.

Though the government could possibly end up with nothing after the much ballyhooed seizures, Cullen said, the ownership mix-up was not disappointing.

“I wouldn’t call it disappointment,” he said. “We try to work as fast and as diligently as we can.”